Section 193 Investments and Securities Act

Section 193 of the Investments and Securities Act 2025 is about Foreign collective investment schemes. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The Commission may approve an application by a manager or operator of a scheme administered in a foreign jurisdiction to solicit investment in such scheme from investors in Nigeria where —
(a) the application complies with the conditions prescribed by the Commission; and

(b) a copy of the approval or registration by the relevant foreign regulator authorising the foreign collective investment scheme to act as such is filed with the Commission.

(2) A person who invites the public to invest in a foreign collective investment scheme which is not approved by the Commission shall in addition to restituting the investors of deposits received, be liable to a penalty of not less than N10,000,000 or 10% of the gross value of the participatory interest of the scheme, whichever is higher.

(3) Where any person acquires or disposes of any participatory interest in a scheme, or deposits money with any company as a result of an invitation to the public made in breach of subsection (2), he shall be entitled to —
(a) rescind such transactions; and

(b) either in addition to or in place of rescinding the transaction, recover compensation for any loss sustained by him from any person who is liable in respect of the breach.