Section 18Part 1 — Securities Investment Business Act
Injunctions and restitution and disgorgement orders
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If, on the application of the Authority the court is satisfied —
that there is a reasonable likelihood that a person will contravene section 5(1) or that a licensee or registered person will contravene this Law or any regulations hereunder; 18
that a person has contravened section 5(1) or that a licensee or registered person has contravened this Law or any regulations made hereunder and that there is a reasonable likelihood that the contravention will continue or be repeated; or
that a licensee or registered person has engaged in any fraudulent activity in relation to securities investment business, it may grant an injunction restraining the contravention or anticipated contravention or the fraudulent activity.
If, on the application of the Authority, the court is satisfied that a person has entered into any transaction in contravention of section 5(1) or any other provision of this Law or any regulations made hereunder, the court may order that person, and any other person who appears to the court to have been knowingly concerned in the contravention, to take such steps as the court may direct for restoring the parties to the transaction to the position in which they were before the transaction was entered into.
The court may, on the application of the Authority, and subject to any other considerations the court finds relevant, make an order under subsection
if satisfied that a person has been carrying on securities investment business in contravention of this Law or any regulations made hereunder and —
that profits have accrued to that person as a result of that person’s contravention; or
that one or more clients have suffered loss or been otherwise adversely affected as a result of that person’s contravention. (4) The court may, under this section, order the person concerned to pay into court, or appoint a receiver to recover from that person, such sum as appears to the court to be just, having regard to — (a) in a case within subsection (3)(a), the profits appearing to the court to have accrued; (b) in a case within subsection (3)(b), the extent of loss or other adverse effect; or
in a case within subsection (3)(a) and (b), the profits and the extent of loss or other adverse effect.
Any amount paid into court by, or recovered from, a person pursuant to an order under subsection (4) shall be distributed as the court may direct among those who appear to the court to have entered into transactions with that person as a result of which the profits or loss or other adverse effect in respect of the contravention occurred.
On an application under subsection (3) the court may require the person concerned to furnish it with such accounts or other information as it may require to establish whether any and if so what profits have accrued to that person as a result of the contravention and for determining how any amounts are to be distributed under subsection (5); and the court may require such accounts or other information to be verified in such manner as it may direct.
Nothing in this section affects the right of any person other than the Authority to bring proceedings in respect of any of the matters to which this section applies.
Nothing in this section shall affect the rights of secured creditors.
The court shall not exercise the powers conferred on it by subsections (2) to (6) unless a reasonable opportunity has been given to persons affected to make representation to the court.