Do the investors in securities investment funds have the right to request the fund management company to repurchase open-end fund certificates in Vietnam?
- What is a securities investment fund in Vietnam? What are the purposes of the securities investment fund?
- Do the investors in securities investment funds have the right to request the fund management company to repurchase open-end fund certificates in Vietnam?
- Are the regulations on the repurchase of open-end fund certificates specified in the charter of a securities investment fund in Vietnam?
What is a securities investment fund in Vietnam? What are the purposes of the securities investment fund?
Pursuant to Clause 37, Article 4 of the Law on Securities 2019:
Definitions
For the purpose of this Law, the terms below are construed as follows:
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35. Securities portfolio management means the management of an investor’s sale, purchase and holding of securities and other assets of the investor under an agreement.
36. Securities investment fund management means management of the sale, purchase and holding of securities and other assets of the securities investment fund.
37. A securities investment fund is a fund established through capital contribution by investors to make investment in securities or other assets, including real estate. Investors do not have the right to daily control the investment decisions of the fund.
38. A public fund is a securities investment fund that publicly offer fund certificates.
39. An open-end fund is a public fund whose publicly offered fund certificates have to be redeemed at the request of the investors.
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Thus, a securities investment fund is a fund established through capital contribution by investors to make investment in securities or other assets, including real estate.
Do the investors in securities investment funds have the right to request the fund management company to repurchase open-end fund certificates in Vietnam? (Image from the Internet)
Do the investors in securities investment funds have the right to request the fund management company to repurchase open-end fund certificates in Vietnam?
Pursuant to Point c, Clause 1, Article 101 of the Law on Securities 2019:
Rights and obligations of investors in securities investment funds
1. Investors have the rights to:
a) Benefits from investments of the securities investment fund in proportion to their contributions;
b) Interests and assets lawfully distributed from liquidation of assets of the securities investment fund;
c) Request the fund management company to repurchase open-end fund certificates;
d) File lawsuits against the fund management company, supervisory bank or relevant organizations if they violate their the lawful rights and interests;
dd) Execute their rights through the General Meeting of Investors;
e) Transfer fund certificates in accordance with the fund’s charter;
g) Exercise other rights prescribed by law and the fund’s charter.
2. Investors have the obligations to:
a) Implement decisions of the General Meetings of Investors;
b) Fully pay for the fund certificates;
c) Fulfill other obligations prescribed by law and the charter of the securities investment fund.
Thus, the investors in securities investment funds have the right to request the fund management company to repurchase open-end fund certificates.
Are the regulations on the repurchase of open-end fund certificates specified in the charter of a securities investment fund in Vietnam?
Pursuant to Point k, Clause 2, Article 103 of the Law on Securities 2019:
Charters of securities investment funds
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2. The charter of a securities investment fund shall contain the following information:
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dd) Rights and obligations of the fund management company and supervisory bank; cases of change of the fund management company and supervisory bank; regulations on authorizing the fund management company to sign the supervision contract with the supervisory bank;
e) Regulations on representative board and General Meeting of Investors of the fund;
g) Limits on investments of the fund;
h) Regulations on registration of fund certificate ownership and storage of investor register of the fund;
i) Regulations on selection of the supervisory bank; selection and change of the accredited audit organization;
k) Regulations on transfer, issuance, repurchase of open-end fund certificates; regulations on listing of closed-end fund certificates;
l) Costs and incomes of the fund; payments and extra payments to the fund management company and the supervisory bank; cases of and methods for distributing the fund’s income among investors;
m) Method for determination of net asset value of the fund and of each fund certificate;
n) Regulations on settlement of conflict of interest;
o) Reporting regulations;
p) Regulations on dissolution of the fund;
q) Commitment of the supervisory bank and fund management company to fulfill their obligations to the fund and investors, and to comply with the fund’s charter;
r) Formalities for revising the fund’s charter.
Therefore, regulations on the repurchase of open-end fund certificates are specified in the charter of a securities investment fund
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