Vietnam: Is a securities company allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former?
- Is a securities company allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former?
- What are the regulations on securities investment counseling service in Vietnam?
- Are securities companies only allowed to provide other financial services after making written reports to the State Securities Commission?
Is a securities company allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former?
Pursuant to Clause 7 Article 24 of Circular No. 121/2020/TT-BTC stipulating on securities investment consulting services as follows:
Securities investment counseling service in Vietnam
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7. A securities company is not allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former.
Thus, a securities company is not allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former.
Vietnam: Is a securities company allowed to provide its securities investment counseling services for another company of which at least 10% of the charter capital is held by the former?
What are the regulations on securities investment counseling service in Vietnam?
Pursuant to Article 24 of Circular No. 121/2020/TT-BTC stipulating this content as follows:
Securities investment counseling service in Vietnam
1. In order to provide securities investment counseling services to customers, securities companies must enter into contracts with customers, including but not limited to the followings:
a) Rights, obligations and responsibilities of contracting parties;
b) Scope of service;
c) Method of rendering the service;
d) Service charge.
2. Securities companies must collect and manage customer’s information, including:
a) Financial health;
b) Investment objectives;
c) Risk tolerance;
d) Investment experience and knowledge.
3. Securities investment counsels must be provided on a reasonable and appropriate basis by using reliable information and logical analysis. Investment recommendations must relate and correspond to analyses of securities and stock markets. Stock and market analysis reports and investment recommendations must clarify the sources of data to be cited and the names of the persons in charge of implications of reports and investment recommendations.
4. When providing investment counsels to customers, securities companies must ensure that customers make their investment decisions after being provided with information in full, including implications and risks of provided products or services.
5. Securities companies must ensure that information received from users of counseling services is kept confidential during the process of providing counseling services, unless otherwise agreed by customers or otherwise provided by law.
6. Securities companies must provide investment counsels relevant to investment objectives and financial health of customers and shall be responsible for analysis results and reliability of information to be provided to customers.
Thus, in order to provide securities investment counseling services to customers, securities companies must enter into contracts with customers, including but not limited to the followings:
- Rights, obligations and responsibilities of contracting parties;
- Scope of service;
- Method of rendering the service;
- Service charge.
In addition, securities investment counsels must be provided on a reasonable and appropriate basis by using reliable information and logical analysis.
Investment recommendations must relate and correspond to analyses of securities and stock markets.
Stock and market analysis reports and investment recommendations must clarify the sources of data to be cited and the names of the persons in charge of implications of reports and investment recommendations.
When providing investment counsels to customers, securities companies must ensure that customers make their investment decisions after being provided with information in full, including implications and risks of provided products or services.
Are securities companies only allowed to provide other financial services after making written reports to the State Securities Commission?
Pursuant to Article 25 of Circular No. 121/2020/TT-BTC stipulating this content as follows:
Other financial services
1. When performing other financial services as prescribed in Clause 5, Article 86 of the Law on Securities, a securities company must ensure that these services relate to and support other licensed business functions; must ensure that the interests of its customers or its own and the stock market are not affected.
2. A securities company is not allowed to provide counseling services related to offering and listing of securities, equitization and valuation of another company of which at least 10% of the charter capital is held by the former.
3. Securities companies are only allowed to provide other financial services in accordance with laws after making written reports to the State Securities Commission. The State Securities Commission has the right to request temporary suspension or termination of the provision of other financial services by any securities company if the provision of such services is in breach of the provisions of law or poses risks to the stock market.
Thus, securities companies are only allowed to provide other financial services in accordance with laws after making written reports to the State Securities Commission.
The State Securities Commission has the right to request temporary suspension or termination of the provision of other financial services by any securities company if the provision of such services is in breach of the provisions of law or poses risks to the stock market.
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