Section 65 Investments and Securities Act 2025

Section 65 of the Investments and Securities Act 2025 is about Penalty for withdrawing money from trust account without authority. It is under Part VI (Registration and Regulation of Capital Market Operators) of the Act. It provides as follows:

(1) A capital market operator who withdraws money from a trust account without the requisite authority commits an offence and is liable on conviction to a fine of not less than N5,000,000 or imprisonment for a term of not less than one year or both.

(2) For the purpose of subsection (1), a withdrawal from a trust account shall be deemed to be without requisite authority where the withdrawal is made for a purpose other than —
(a) to pay the person entitled to the payment;
(b) to defray brokerage and other proper charges; or
(c) as may otherwise be authorised by law.

(3) The Commission may, in lieu of prosecution for the offence prescribed under subsection (1), sanction a capital market operator who violates the provisions of this section by imposing a penalty of not less than N5,000,000.

(4) In addition to the penalty prescribed under subsection (3), the Commission shall direct the capital market operator to refund the money received together with the interest at a rate to be determined by the Commission.