Capitalist system and its safeguards

Singapore adopts the capitalist, free market system that prevails in America. However, the American system has the following safeguards for consumers:

• If retail investors bring up a case against a financial institution and loses their case, they do not have to bear the legal cost of the other party.
• Some lawyers in America are willing to bring up the case on behalf of the retail investors on a "success fee" basis. The lawyer will bear all the expenses and will only charge their fees and expenses on the successful outcome 
• If there is sufficient merit, the attorney general will take up the case on behalf the retail investors, rather than leave it to them to fight the financial institution on their own. The attorney general is the lawyer for the people, as well as the lawyer for the government.

If Singapore had the same safeguards, the retail investors of the DBS High Notes would not have to suffer the outcome that they faced yesterday, when their case was rejected by the High Court judge and face the prospect of paying large legal fees, in addition to losing their invested principal.

Tan Kin Lian

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