What should a securities company do during the suspension period in Vietnam?

Nội dung chính

• In Vietnam, what should a securities company do during the suspension period?
• In Vietnam, when do securities companies, fund management companies operate?
• What can be a securities company licensed to provide securities investment consultancy services done?

In Vietnam, what should a securities company do during the suspension period?

I heard that the National Assembly has just passed a new Law on Securities. What should a securities company do during the suspension period?

Answer: Pursuant to Clause 3, Article 94 of the Securities Law 2019 stipulating suspension of securities companies:

During the suspension period, the company or branch shall:

a) Not conclude new or renew contracts relevant to the suspended operations; finalize or convert accounts if requested by the clients;

b) Prepare a rectification plan and report the implementation thereof at the request of SSC;

c) In case proprietary trading is suspended, the securities company may only sell and must not make new investments, except for purchases for fixing transaction errors, odd lot transactions or exercise or rights of the securities it is holding as prescribed by law.

In Vietnam, when do securities companies, fund management companies operate?

In Vietnam, when are securities companies and fund management companies operated?

Answer: Pursuant to Clause 3, Article 84 of the Securities Law 2019 stipulating official inauguration date:

A securities company or fund management company may start to operate after:

a) It has been granted enterprise registration as prescribed in Article 71 of this Law;

d) It has processes for operation, risk management, internal control;

c) The charter has been approved by General Meeting of Shareholders, the Board of members or the owner.

What can be a securities company licensed to provide securities investment consultancy services done?

Hello Lawnet, what can a securities company licensed to provide securities investment consultancy services do?

Answer: Pursuant to Clause 4, Article 86 of the Securities Law 2019:

A securities company licensed to provide securities investment consultancy services may provide services for its clients in accordance with Clause 32 Article 4 of this Law.

Best regards!