Are securities companies allowed to provide online securities trading services in Vietnam? What are the conditions for provision of online securities trading services by securities companies in Vietnam?
Are securities companies allowed to provide online securities trading services in Vietnam?
Pursuant to the provisions of Article 86 of the 2019 Law on Securities in Vietnam on the activities of securities companies as follows:
Operation of securities companies, fund management companies, branches and representative offices in Vietnam of foreign securities companies and foreign fund management companies
1. A securities company licensed to provide securities brokerage services may:
a) Receive and manage securities trading accounts of individuals; distribute securities or act as securities distribution agent; manage securities trading account; manage other enterprises’ lists of securities holders;
b) Provide online securities trading services; provide or cooperate with credit institutions granting loans for purchase of securities or securities lending; provide or cooperate with credit institutions in advancing payment for securities; securities depository; offset and pay securities; provide other derivative-related services.
2. A securities company licensed for proprietary trading may trade securities on its proprietary trading account, make investment, contribute capital, issue and offer financial products.
3. A securities company licensed for securities underwriting may provide securities offering consultancy services; perform pre-offering procedures; act as an agent for securities depository, payment, transfer; provide consultancy on restructuring, consolidation, acquisition, rearrangement of enterprises; provide consultancy of enterprise administration, business strategies; provide consultancy on offering, listing, registration of securities; provide consultancy on enterprise equitization.
4. 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.
5. In addition to the services specified in Clause 1, 2, 3, 4 of this Article, a securities company may only provide other finance services conformable with regulations of law after a written report is submitted to SSC. SSC is entitled to suspend or terminate provision of other financial services of a securities company if it is not conformable with law or poses a risk to the securities market system.
6. A fund management company may mobilize and manage foreign funds in Vietnam; manage voluntary pension funds in accordance with relevant laws; provide online securities trading services.
7. The branch in Vietnam of a foreign securities company may only provide securities investment consultancy services. The branch in Vietnam of a foreign fund management company may only provide asset management services for capital raised overseas.
Thus, a securities company licensed to provide securities brokerage services may provide online securities trading services.
Are securities companies allowed to provide online securities trading services in Vietnam? What are the conditions for provision of online securities trading services by securities companies in Vietnam? (Image from the Internet)
What are the conditions for provision of online securities trading services by securities companies in Vietnam?
Pursuant to the provisions of Article 201 of Decree No. 155/2020/ND-CP on conditions for provision of online securities trading services by securities companies as follows:
Conditions for provision of online securities trading services by securities companies
1. The securities company is a member of the Stock Exchange and it’s the provision of online securities trading services is approved by its Board of Directors, Board of Members or owner.
2. There is personnel to operate the trading system; technical solutions for assurance of safety of the system and data storage and failure prevention as instructed by the Ministry of Finance.
3. The conditions specified in Clause 2 Article 200 of this Decree are satisfied;
4. Online securities trading services are directly provided for investors.
What is the application for approval for service provision by a securities company?
Pursuant to the provisions of Article 203 of Decree No. 155/2020/ND-CP stipulating the application for approval for service provision by a securities company as follows:
Application for approval for service provision by a securities company
1. The application form No. 77 in the Appendix hereof.
2. The decision of the company’s Board of Directors, Board of Members or owner to approve the provision of services for which the company is qualified according to Articles 198, 199, 200, 201 of this Decree.
3. The decision issued by a competent authority on operational, internal control, risk management processes.
…
6. In the case of online trading services, the application shall include the decision to approve the membership, result of system inspection by the Stock Exchange and the documents specified in Clause 2 Article 201 of this Decree.
Thus, in order to provide online trading services, securities companies need to prepare documents according to the above regulations.
LawNet
