Source of article: Channel News Asia

The Monetary Authority of Singapore (“MAS”) has just published its third enforcement report for the period Jul 2020 to December 2021.

The section in the Report on major cases investigation updates is to be applauded. Investors who have suffered losses as a result of errant management are understandably concerned when a long period has passed with no news of enforcement actions after a major corporate debacle was first reported. The MAS is striking a balance between updating the public with the status and progress of on-going investigations, while not compromising the investigations process. It is important that the collation and getting up preparation of evidence for any enforcement action must be handled with great care. All evidence must withstand judicial scrutiny. Any criminal charge must satisfy the legal requirement of proving the offence(s) of the accused person(s) beyond reasonable doubt.

The continual emphasis on timely and accurate corporate disclosures as set out in the Report is also commendable. Investors must be given equal access to accurate, complete and timely material information to make proper trading decisions, and to prevent the creation of any false market.

The prohibitively high costs of litigation have made it difficult for retail investors to commence class actions against persons responsible for major corporate failures. The MAS has indicated that it is looking at various options to assist investors who have suffered losses in the securities market to seek legal recourse against errant senior management and tardy directors. Retail investors will no doubt be delighted by this news.

I shared some of my thoughts on the Report with the Channel News Asia in an interview this evening and on LinkedIn here.