Section 76 Investments and Securities Act 2025

Section 76 of the Investments and Securities Act 2025 is about Failing regulated entity. It is under Part VII (Inspections and Investigations) of the Act. It provides as follows:

(1) Where, after an examination under section 75 of this Act, the Commission is satisfied that the regulated entity is in a grave situation as regards the matters referred to under section 75(1), or the regulated entity informs the Commission that it is —
(a) likely to become unable to meet its obligations under this Act,
(b) about to suspend its obligations to any extent, or
(c) insolvent,
the Commission may exercise any of the powers specified in subsection (2).

(2) The Commission may, in addition to all other powers under this Act —
(a) prohibit the regulated entity from receiving funds or other assets from the public for a period as may be set by the Commission, and make the prohibition subject to such exceptions, and impose such conditions in relation to the exceptions as may be prescribed by the Commission;

(b) require the regulated entity to take any step or action or to refrain from taking any step or action, in relation to its operations, directors, or officers as may be stipulated by the Commission;
(c) remove for reasons to be recorded in writing, with effect from such date as may be set out in the notice, any director, manager or officer of the regulated entity notwithstanding any written law, or any limitations contained in the memorandum and articles of association of the regulated entity;

(d) in respect of a regulated entity notwithstanding any written law or any limitations contained in the memorandum and articles of association of the regulated entity and for reasons to be recorded in writing —
(i) remove from office, with effect from the date as may be specified by the Commission, any director or officer of the regulated entity, or
(ii) appoint any person to manage the affairs of the regulated entity in the interim, and provide for the person so appointed to be paid by the regulated entity the remuneration as may be determined by the Commission; or

(e) appoint any qualified person to advise the regulated entity in relation to the proper conduct of its business, and provide for the person so appointed to be paid by the regulated entity, such remuneration as may be determined by the Commission.