Section 183 Investments and Securities Act

Section 183 of the Investments and Securities Act 2025 is about Duty of auditor to disclose irregularity or undesirable practice. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The auditor shall —
(a) report to the manager and trustee any irregularity or undesirable practice in the administration of the scheme which has come to his notice in the ordinary course of fulfilling his audit responsibilities or performing other functions under this Act; and

(b) submit a copy of such report to the Commission, where there is reasonable cause to believe that the report is or might be of material significance to the Commission, within a period not more than 10 working days from the day the irregularity was observed.

(2) For the purposes of this section, a report is of material significance to the Commission if it deals with a matter which, because of its nature or potential financial impact, has caused or is likely to cause financial loss to the scheme or any of its investors or creditors.

(3) An auditor who fails to discharge any of the duties referred to in this section, is liable to a penalty of not less than N5,000,000.

[/membership]