Section 128 Investments and Securities Act

Section 128 of the Investments and Securities Act 2025 is about Dealing by employees and associated persons of securities dealers. It is under Part X (Conduct of Securities Business) of the Act. It provides as follows:

(1) A securities dealer shall not give an unsecured credit to an associated person, an employee, or a person who is associated with the employee of the securities dealer, if the —
(a) unsecured credit is advanced for the purpose of enabling the person to purchase or subscribe for any securities; or

(b) person giving, authorising or approving the unsecured credit knows or has reason to believe that the unsecured credit will be used for the purpose of purchasing or subscribing for securities.

(2) A person who fails to comply with the provisions of subsection (1), commits an offence and is liable on conviction to a fine of not less than N2,000,000 or imprisonment for a term not more than two years or both.

(3) The Commission may, in lieu of prosecution under subsection (2), impose a penalty of not less than N5,000,000 and a further sum of not less than N10,000 for every day the violation continues.

(4) Notwithstanding the provisions of subsections (2) and (3), a person who contravenes the provisions of this section shall be liable to forfeit to the Commission, the profit made or to be made from the contravention.

(5) An employee or any person to whom unsecured credit is advanced in contravention of this section and any agent through which such unsecured credit
advancement is made shall be equally liable in the manner specified in subsections (2), (3) and (4).