Section 78 Investments and Securities Act 2025

Section 78 of the Investments and Securities Act 2025 is about Management of failing regulated entity. It is under Part VII (Inspections and Investigations) of the Act. It provides as follows:

(1) The Commission or an appointed person that assumes control of the business of a regulated entity, shall remain in control until the Commission is satisfied that —
(a) adequate provision has been made for the repayment of investors; or
(b) it is no longer necessary to remain in control of the business of the regulated entity.

(2) The cost and expenses of the Commission and an appointed person, may be payable from the funds and properties of the regulated entity as a first line charge.