Section 214 Investments and Securities Act

Section 214 of the Investments and Securities Act 2025 is about Claims against a license holder. It is under Part XIV (Investor Protection Fund) of the Act. It provides as follows:

(1) A claim for compensation relating to a defalcation by a license holder shall first be made to such license holder where it is not insolvent or bankrupt and the license holder shall settle the claim within 14 days or such other period as may be approved by the Commission.

(2) Where the license holder fails to settle the claim, under subsection (1), the investor shall be entitled to make a claim to the investor protection fund of the exchange.

(3) Where the fund settles the claim under subsection (2), the exchange shall proceed against the license holder to recover the amount paid in settling the claim.