Section 160 Investments and Securities Act

Section 160 of the Investments and Securities Act 2025 is about Revocation of authorisation of a scheme. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) Subject to the provisions of this section, the Commission may revoke the authorisation of a scheme where —
(a) there is a contravention of any provision of this Part or of any rule or regulation made under this Act;

(b) the Commission is no longer satisfied in respect of the matter specified in section 157(3)(a), (c) and (d) of this Act; or
(c) the interest of the holders of units or participatory interest created under the scheme so requires.

(2) The Commission shall before the revocation —
(a) notify the manager and the trustee or custodian under the scheme, who may within 21 days from the date of the notification make representations in writing to the Commission in respect of the proposed revocation; and
(b) consider any representation duly made by the manager and trustee under the scheme.

(3) The Commission shall communicate its decision to revoke its authorisation of the scheme within 30 days after the making of the representations or if none are made within 30 days after the last day for making of the representation under this section.

(4) Whenever the authorisation of a scheme under this Act is revoked, the Commission shall appoint a trustee or an independent administrator as it deems fit, who shall be an agent of the unit holders and observe utmost good faith in the discharge of its responsibilities.

(5) Whenever the trustee or an administrator is so appointed, notice shall be given to the unit holders by publication of the revocation of the scheme and the appointment of the trustee or administrator in three national daily newspapers.

(6) The manager shall within 14 days after the revocation, file with the Commission, a statement of the affairs of the scheme including names, addresses of all creditors, unit holders, the securities held and such other information as may be prescribed by the Commission.

(7) The manager shall submit a copy of the statement of affairs filed with the Commission under subsection (6) to the trustee or administrator as the case may be.

(8) A manager who defaults in complying with the requirements of subsection (6), commits an offence and is liable to a penalty of not less than N1,000,000 and not less than N50,000 for every day the violation continues.

(9) The trustee or administrator shall realise all the property or undertaking and buy all the units of the scheme at the prevailing price subject to deduction of costs of realisation as well as the remuneration for the appointment and other costs as shall be approved by the Commission.

(10) The trustee or administrator so appointed shall within one month after ceasing to act as the administrator or trustee, deliver to the Commission a statement of receipts and payments during the period.

(11) Any trustee or administrator who fails to comply with the provisions of subsection (10) is liable to a fine of N50,000 for every day the violation continues.