Introduction
In March 2025, the Nigerian government passed a major update to its investment regulatory framework—the Investment and Securities Act (ISA) 2025. While much attention has been given to its implications for capital markets, this law includes important provisions that impact families, private investors, and estate planners—particularly in relation to digital assets, unclaimed investments, and legacy planning.
Key Highlights Relevant to Families and Individual Investors
- Digital Assets Now Regulated as Securities: Virtual assets—including cryptocurrencies and blockchain-based investments—are now formally classified as securities and are subject to regulation by the Securities and Exchange Commission (SEC).
- Oversight of Unclaimed Investment Proceeds: The Act requires that unclaimed dividends and investment proceeds be transferred to an Unclaimed Dividend Trust Fund, managed by the SEC. These funds remain accessible upon proper claim verification.
- Expanded SEC Powers and Investor Protections: The SEC has broader oversight powers to enforce compliance, protect investors, and ensure accountability, particularly in areas like market misconduct and digital asset oversight.
Implications for Families, Shareholders, and Wealth Managers
- Estate Planning Must Reflect Digital Asset Ownership: Individuals holding or planning to invest in digital assets must ensure these are formally declared, properly documented, and included in succession plans, wills, or trust instruments, with clear access protocols.
- Timely Updates to Investment Records Are Critical: Outdated shareholding information or missing beneficiary details could lead to assets being deemed unclaimed and transferred into the government-managed trust fund. Regular updates to records and next-of-kin forms are essential.
- Family Offices and Wealth Managers Must Adjust Documentation Standards: ISA 2025 compliance should now form part of client onboarding, portfolio reviews, and legal documentation—particularly where digital asset exposure exists or intergenerational transfers are planned.
Planning Ahead with SimmonsCooper Partners
Whether managing personal investments or overseeing a family estate, ISA 2025 highlights the need for legacy planning to evolve alongside regulatory change. To explore how ISA 2025 may affect your estate or financial affairs, contact us at info@scp-law.com or visit www.scp-law.com.
