Section 64 Investments and Securities Act 2025

Section 64 of the Investments and Securities Act 2025 is about Maintenance of separate accounts and payment into certain trust accounts. It is under Part VI (Registration and Regulation of Capital Market Operators) of the Act. It provides as follows:

(1) A capital market operator shall maintain separate accounts for transactions carried out on behalf of different clients.

(2) Except as may be otherwise provided in this Act, no capital market operator shall mix the proceeds of the account of a client with other accounts whether belonging to the capital market operator or his clients.

(3) A capital market operator shall establish and keep in a bank one or more trust accounts to be designated or evidenced as trust accounts, into which the capital market operator shall pay all amounts (less any brokerage and other proper charges) received —

(a) from or on account of any person (other than a capital market operator) for the purchase of securities which are not attributable to securities delivered to the capital market operator; and
(b) for or on account of any person (other than a capital market operator) from the sale of securities which are not paid to that person or as that person directs not later than the next business day following the day on which they were received by the capital market operator.

(4) The payment of amounts required by subsection (3) to be made by a capital market operator shall be made by the capital market operator not later than the next business day following the day on which the amounts were received by the capital market operator.

(5) A capital market operator who contravenes or fails to comply with any of the provisions of this section is liable to a penalty of not less than N2,000,000 and a further sum of N5,000 for every day the violation continues.