Investment Services Act (Cap. 370), article 20

20. An investment agreement wh ich is entered into - (a) by a person in the course of providing an investment service in contravention of the provisions of article 3 of this Act; or (b) by the holder of an investment services licence or by an exempted person in consequence of anything said or done by a person in the course of providing an investment service in contravention of the provisions of article 3, shall be unenforceable against the other party; and such other party shall be entitled to recover any money paid, or other property transferred by him under the agr eement, or where such property cannot be so recovered, such party shall be entitled to have it replaced by its value at the tim e of the agreement, together wi th compensation for any loss sustained by him in consequence of su ch payment or transfer or the non-recovery of the property transfe rred and any profits that may have accr ued as a result of that money or other property having been transferred by him: Provided that where on demand for a recovery under this article, the court is satisfied that - INVESTMENT SERVICES [CAP. 370. 65 (i) in a case falling under paragraph ( a), the person therein mentioned reasonably believed he was not contravening the provisions of the said article 3; or (ii) in a case falling under paragraph ( b), the licence holder or exempted person neither knew nor ought to have known that the agreement was entered into as mentioned in that paragraph, it may allow an investment agr eement to which this article appl ies to be enforced and the money or property paid or transferred thereunder to be retained. Powers of the court in the case of a likely contravention. Amended by: XXIV .1995.362; XX. 2007.74; XXXI. 2017.61..