Section 40: Maintenance of seperate accounts and payment into certain trust accounts

(1) A capital market operator shall maintain separate accounts for transactions carried out on behalf of different clients.
(2) 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 or banks one or more trust accounts to be designated or evidenced as trust accounts, into which the capital market operator shall pay:
(a) all amounts (less any brokerage and other proper charges) received 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 capital market operator; and
(b) all amounts (less any brokerage and other proper charges) received 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 banking business day following the day on which they were received by the capital market operator.
(4) The payment of amounts required by subsection (3) of this section to be made by a capital market operator shall be made by the capital market operator not later than the next banking 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 N100,000 and a further sum of N5,000 for every day the violation continues.