Section 175 Investments and Securities Act

Section 175 of the Investments and Securities Act 2025 is about Irregular or undesirable practices. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The Commission may, by notice declare a particular practice or manner of administration of schemes to be an “irregular or undesirable practice” or an “undesirable manner of administration”.

(2) A person shall not, after 21 days from the date of publication of the notice whereby a practice or manner of administration has been declared to be irregular or undesirable, employ such a practice or manner of administration otherwise than for the sole purpose of fulfilling any obligation entered into before the date of such notice or to comply with any directive by the Commission under subsection (3).

(3) The Commission may in writing direct any person who employed a practice or manner of administration which was declared to be irregular or undesirable under subsection (1) to rectify anything which was caused by or arose out of the employment of that irregular or undesirable practice or manner of administration whether or not it occurred before, during or after the date of the declaration referred to in subsection (1).

(4) A person who has been directed under subsection (3) to rectify anything shall effect such rectification within three days after being so directed or within such longer time as the Commission may approve.

(5) A person who —
(a) contravenes subsection (2),
(b) refuses or fails to comply with a direction referred to in subsection (3), or
(c) fails to comply with subsection (4), commits an offence and is liable on conviction to a fine of not less than N10,000,000 or to imprisonment for a term not less than two years or both.