Section 163: Revocation of authorisation of scheme.

(1) Subject to the provisions of this section, the Commission may revoke the authorisation of a scheme if:
(a) there is a contravention of any provision of this part of this Act or of any rule or regulation made thereunder; or
(b) the Commission is no longer satisfied in respect of the matter specified in subsection (3) (a), (c) and (d) of section 160 of this Act; or
(c) the interest of the holders of units or securities created under the scheme so requires.
(2) The Commission shall before such revocation:
(a) notify the manager and the trustee or custodian under the scheme and the manager and trustee or custodian may within twenty-one days from the date of such notification make representations in writing to the Commission in respect of the proposed revocation; and
(b) consider any representation duly made by the manager and trustee under the scheme.
(3) The Commission shall communicate its decision to revoke its authorisation of the scheme within thirty days after the making of the representations or if none are made within thirty days after the last day for making of the representation under this section.
(4) Whenever the authorisation of a scheme under this Act is revoked, the Commission shall appoint:
(a) the trustee for the scheme; or
(b) if the trustee was found negligent in the discharge of its duties, an administrator to take over the property or undertaking of the manager to the scheme and the trustee or administrator so appointed shall be an agent of the unit holders and observe the utmost good faith towards them in any transaction on their behalf.
(5) Whenever the trustee or an administrator is so appointed, notice shall be given to the unit holders by publication of the revocation of the scheme and the appointment of the trustee or administrator in three (3) daily newspapers.
(6) The manager shall within seven days after the revocation, file with the Commission, a statement of the affairs of the scheme including names, addresses of all creditors, the securities held and such other information as may be prescribed by the Commission.
(7) The manager shall also submit a copy of the statement of affairs filed with the Commission pursuant to subsection (6) of this section to the trustee or administrator as the case may be.
(8) If any manager makes default in complying with the requirements of subsection (c) above, he shall be guilty of an offence and shall be liable to a fine of not less than N50,000 for every day during which the default continues.
(9) The trustee or administrator shall realise all the property or undertaking and buy all the units of the scheme at the price at which, for the time being, the manager buys units of the scheme subject to deduction of costs of realisation as well as the remuneration for the appointment and other costs as shall be approved by the Commission.
(10) The trustee or administrator so appointed shall within one month after his ceasing to act as the administrator or trustee, deliver to the Commission a statement of his receipts and payments during the period.
(11) Any trustee or administrator who fails to comply with the provisions of subsection (10) of this section shall be liable to a fine of N50,000.00 for every day during which the contravention continues.