How long is a securities company allowed to suspend operations? What is the application for approval for suspension of securities companies in Vietnam?
How long is a securities company allowed to suspend operations?
This issue is specified in Article 208 of Decree No. 155/2020/ND-CP on conditions for suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies, specifically as follows:
Conditions for suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies
1. The suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies must not affect the interests of their clients (if any).
2. The suspension duration must not exceed 90 days. If the suspension lasts longer than 90 days, the State Securities Commission will receive the license for establishment and securities operation and relevant establishment decisions.
3. There must be a plan for suspension and settlement of effective contracts with the clients according to form No. 84 in the Appendix hereof. This plan must be approved by a competent authority.
Thus, the suspension duration must not exceed 90 days.
If the suspension lasts longer than 90 days, the State Securities Commission will receive the license for establishment and securities operation and relevant establishment decisions.
How long is a securities company allowed to suspend operations? What is the application for approval for suspension of securities companies in Vietnam?
What is the application for approval for suspension of securities companies in Vietnam?
Clause 1, Article 209 of Decree No. 155/2020/ND-CP has regulations on the application for approval for suspension of securities companies as follows:
Procedures for suspension of securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and fund management companies
1. The application for approval for suspension shall include:
a) The application form No. 83 in the Appendix hereof;
b) The decision on suspension issued by a competent authority;
c) The plan for settlement of effective contracts according to form No. 84 in the Appendix hereof; records on finalization of effective contracts with trustors or documents confirming that the fund management company has transferred the rights and responsibility for management of trust assets to the substitute fund management company.
Thus, the application for approval for suspension shall include:
- The application form No. 83 in the Appendix of Decree No. 155/2020/ND-CP;
- The decision on suspension issued by a competent authority;
- The plan for settlement of effective contracts according to form No. 84 in the Appendix of Decree No. 155/2020/ND-CP; records on finalization of effective contracts with trustors or documents confirming that the fund management company has transferred the rights and responsibility for management of trust assets to the substitute fund management company.
The application form is made according to Form No. 83 in the Appendix issued with Decree No. 155/2020/ND-CP, as follows:
Download the application form for approval for suspension of securities companies in Vietnam: here.
What are the regulations on the procedures for suspension of securities companies in Vietnam?
Pursuant to Clause 2, Article 209 of Decree No. 155/2020/ND-CP stipulating the procedures for suspension of securities companies as follows:
- Within 07 working days from the receipt of the satisfactory application as prescribed in Clause 1 Article 209 of Decree No. 155/2020/ND-CP, State Securities Commission shall decide whether to issue a decision to approve the suspension, or reject the application and provide explanation.
In addition, the company or branch shall submit a report and relevant documents proving conformity with Clause 1 Article 85 of the 2019 Law on Securities to the State Securities Commission before its operation is resumed.
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