Section 181: Duties of trustee or custodian.

(1) A trustee or custodian shall:
(a) ensure that the basis on which the sale, issue, repurchase or cancellation, as the case may be, of participatory interests effected by or on behalf of a scheme is carried out in accordance with this Act and the trust deed or custodial agreement;
(b) ensure that the selling or repurchase price of participatory interests is calculated in accordance with this Act and the trust deed or custodial agreement;
(c) carry out the instructions of the manager unless they are inconsistent with this Act or the trust deed or custodial agreement;
(d) verify that, in transactions involving the assets of a scheme, any consideration is remitted to it within time limits which are acceptable market practice in the context of a particular transaction;
(e) verify that the income accruals of a portfolio are applied in accordance with this Act and the trust deed or custodial agreement;
(f) enquire into and prepare a report on the administration of the scheme by the manager during each annual accounting period, in which it shall be stated whether the scheme has been administered in accordance with the provisions of this Act and the trust deed or custodial agreement;
(g) if the manager does not comply with the limitations and provisions referred to in paragraph (f) of this subsection, state the reason for the non-compliance and outline the steps taken by the manager to rectify the situation;
(h) send the report referred to in paragraph (f) of this subsection to the Commission and to the manager in good time to enable the manager include a copy of the report in its annual report; and
(i) ensure that:
(i) there is a legal separation of assets held under custody and that the legal entitlement of investors to such assets is assured; and
(ii) appropriate internal control systems are maintained and that records clearly identify the nature and value of all assets under custody, the ownership of each asset and the place where documents of title pertaining to each asset are kept.
(2) A trustee or custodian shall report to the manager any irregularity or undesirable practice, concerning the collective investment scheme of which it is aware and if steps to rectify the irregularity or practice in question are not taken to the satisfaction of the trustee or custodian, it shall as soon as possible report such irregularity or undesirable practice to the Commission.
(3) The trustee or custodian shall satisfy itself that every income statement, balance sheet or other return prepared by the manager in terms of section 169 fairly represents the assets and liabilities, as well as the income and distribution of income, of every portfolio of the scheme administered by the manager.
(4) At the request of the trustee or custodian, every director or employee of the manager shall submit to the trustee or custodian any book or document or information relating to the administration by the manager of its collective investment scheme which is in its possession or at its disposal, and which the trustee or custodian may consider necessary to perform its functions.
(5) No person shall interfere with the performance by a trustee or custodian of its functions under this Act.
(6) A trustee or custodian of a collective investment scheme which fails to perform any of its duties referred to in this section, is liable to a penalty of N500,000.