Between July 2023 and December 2024, MAS recorded 33 criminal convictions, S$7.16 million in civil penalties and S$4.4 million in penalties for anti-money laundering breaches. False trading – which involves creating an artificial price or the appearance of trading volume – was associated with many of the individuals convicted or fined.
Among other activities detected were spoofing (rapid order placement and cancellation), unusual and suspicious volume bursts in thinly‐traded counters, and front running and promotions in chat groups or online forums suggesting “buy now” without clear disclosure.
Strengthening the recourse to action will help retail investors who for so long have kept silent when wronged.
MAS’ initiatives are thus timely and should be welcomed. There are three key proposals.
First, it proposes helping to establish an independent party, or designated representative, to represent and coordinate legal action on behalf of these retail investors.
Second, it plans to set up a grant to co-fund investor actions so they will not find it so prohibitive to take legal action. The grant will also defray the costs of the designated representative.
Third, it seeks to reduce the legal barriers for retail investors to take civil action, by simplifying and streamlining the process for investors to claim compensation based on existing criminal convictions or penalties.
Taken together, MAS reckons the proposed measures would complement public enforcement actions. It is seeking feedback from the market over the coming months until Dec 31.
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Among other activities detected were spoofing (rapid order placement and cancellation), unusual and suspicious volume bursts in thinly‐traded counters, and front running and promotions in chat groups or online forums suggesting “buy now” without clear disclosure.
Strengthening the recourse to action will help retail investors who for so long have kept silent when wronged.
HOW INVESTORS COULD BE ENABLED TO SEEK RECOURSE
MAS’ initiatives are thus timely and should be welcomed. There are three key proposals.
First, it proposes helping to establish an independent party, or designated representative, to represent and coordinate legal action on behalf of these retail investors.
Second, it plans to set up a grant to co-fund investor actions so they will not find it so prohibitive to take legal action. The grant will also defray the costs of the designated representative.
Third, it seeks to reduce the legal barriers for retail investors to take civil action, by simplifying and streamlining the process for investors to claim compensation based on existing criminal convictions or penalties.
Taken together, MAS reckons the proposed measures would complement public enforcement actions. It is seeking feedback from the market over the coming months until Dec 31.
Continue reading...