Section 194 Investments and Securities Act

Section 194 of the Investments and Securities Act 2025 is about Appointment of inspectors. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The Commission may appoint one or more competent inspectors to investigate and report on the affairs of the —
(a) manager, trustee or custodian of any scheme;

(b) operator, trustee or custodian of any recognised foreign scheme relating to activities carried on in Nigeria; or
(c) operator, trustee or custodian of, any other scheme if it appears to the Commission that it is in the interest of the participants to do so or that the matter is of public concern.

(2) An inspector appointed under subsection (1) to investigate the affairs of the manager, trustee, custodian or operator of any scheme may also, if necessary for the purpose of that investigation, investigate the affairs of, the manager, trustee, custodian or operator of, any other such scheme as is mentioned in subsection (1) whose manager, trustee, custodian or operator is the same person as the manager,
trustee, custodian or operator of the first-mentioned scheme.

(3) Where a person claims a lien on a document, its production shall be without prejudice to the lien.

(4) Nothing in this section shall require a person carrying on the business of banking to disclose any information or produce any document relating to the affairs of a customer unless the —

(a) customer is a person whom the inspector has reason to believe may be able to give information relevant to the investigation; and
(b) Commission is satisfied that the disclosure or production is necessary for the purpose of the investigation.

(5) An inspector appointed under this section shall if so directed by the Commission, make interim reports to the Commission and on the conclusion of his investigation shall make a final report to the Commission.

(6) A report made under subsection (5) shall be written or printed as the Commission may direct and the Commission may, if it deems fit —

(a) furnish a copy, on request and on payment of the prescribed fee, to the manager, trustee, custodian or operator or any participant in a scheme under investigation or any other person whose conduct is referred to in the report; and
(b) cause the report to be published on its website and by any other means it deems fit.