Cap. 370 Art. 20Unenforceability of certain agreements.

An investment agreement which 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 agreement, or where such property cannot be so recovered, such party shall be entitled to have it replaced by its value at the time of the agreement, together with compensation for any loss sustained by him in consequence of such payment or transfer or the non-recovery of the property transferred and any profits that may have accrued 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 -

(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 agreement to which this article applies to be enforced and the money or property paid or transferred thereunder to be retained.