Section 167: Prohibition of certain transactions and profits by manager under a scheme.

(1) No company that is a manager under a scheme or is a subsidiary or holding company of the manager or a director or a person engaged in the management of such a company shall carry out transactions for itself or himself, or make a profit for itself or himself from a transaction in any assets held under the scheme.
(2) A company that is a manager of a scheme constituted under a trust or is a subsidiary or holding company of the manager shall not:
(a) borrow money on behalf of the scheme for the purpose of acquiring securities or other property for the scheme;
(b) lend money that is subject to the trusts of the scheme to a person to enable him to purchase units or securities of the scheme;
(c) mortgage, or charge or impose any other encumbrance on any securities or other property subject to the trust of the scheme; or
(d) engage in any transaction that is not in the interest of unit or security holders and of the scheme.
(3) Any person who contravenes the provisions of this section, commits an offence and is liable on conviction to a fine of N100,000 or to a term of imprisonment of not less than three years or to both such fine and imprisonment.
(4) The Commission may, in addition to a prosecution under subsection (3) of this section, sanction a person who contravenes the provisions of this section by imposing a penalty in an amount that is equal to the profits made from any such transaction or an amount of N50,000 whichever is higher.