Section 162 Investments and Securities Act

Section 162 of the Investments and Securities Act 2025 is about Liability for material misstatement. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

A manager of a scheme who offers or sells by means of a letter, notice, circular, document or oral communication which —
(a) includes an untrue statement of a material fact, or

(b) omits to state a material fact necessary in order to make the statement, in the light of the circumstances under which it was made, not misleading, is liable to refund to the purchaser the consideration paid for such units or participatory interest with interest at the prevailing prime lending rate of the banker to the person in breach, and in addition, the manager shall be liable to a penalty of not less than N50,000,000 in the first instance and N50,000 for every day the violation continues.