What is the application for issuance of the securities practicing certificate in Vietnam? What to do when a person who does not possess securities practicing certificates performs securities brokerage practice?
What is the application for issuance of securities practicing certificate in Vietnam?
According to the provisions of Clause 4, Article 213 of Decree No. 155/2020/ND-CP, the application for issuance of the securities practicing certificate shall contain:
- The application form No. 85 in the Appendix hereof;
- The applicant’s personal information sheet according to Form No. 67 in the Appendix which must be prepared within the last 06 months before the application is received by the State Securities Committee;
- The judicial record issued by a competent authority within the last 06 months before the application is received by the State Securities Committee;
- The applicant’s bachelor’s degree, master’s degree or doctoral degree;
- A lawful securities practicing certificate issued overseas or equivalent documents proving that the applicant is lawfully practicing securities in a foreign country; qualifications in securities or equivalent certificates;
- 02 4x6 cm photos that are taken within the last 06 months before the application is received by the State Securities Committee;
- In case of applying for the fund management certificate, the application shall include a document certifying the seniority and position of the applicant issued by the applicant’s current workplace or former workplaces.
What is the application for issuance of securities practicing certificate in Vietnam? What to do when a person who does not possess securities practicing certificates performs securities brokerage practice?
What are the securities practice principles?
According to the provisions of Clause 2, Article 216 of Decree No. 155/2020/ND-CP on this content as follows:
- A securities brokerage certificate holder may provide securities brokerage and securities investment advisory services;
- A financial analysis certificate holder may provide securities brokerage and securities investment advisory services, proprietary trading, securities underwriting;
- A fund management certificate holder may provide securities brokerage and securities investment advisory services, proprietary trading, securities underwriting, securities investment portfolio management, securities investment fund management;
- A securities practicing certificate is only valid when its holder is working at a securities company, securities investment fund management company, Vietnamese branch of a foreign securities company or foreign fund management company, or investment company and his/her employment has been notified by the company to the State Securities Committee;
- A person who holds 01 of the 03 securities practicing certificates mentioned in Points a, b, c of this Clause and has certificates of training in derivatives and derivative market may operate within the derivative-related certificates at a securities company or securities investment fund management company;
- A securities practicing certificate holder may only work at 01 securities-related department at a time.
In addition, every securities practicing certificate holder shall submit a report to the State Securities Committee according to Form No. 86 in the Appendix hereof within 05 working days from the day on which the employment contract with the securities company, securities investment fund management company, Vietnamese branch of the foreign securities company or foreign fund management company is concluded or terminated, or the day on which a securities transaction account is opened.
- The securities practicing certificate holder shall notify the State Securities Committee if the certificate is lost on information thereon is changed according to Form No. 86 in the Appendix hereof.
What to do when a person who does not possess securities practicing certificates performs securities brokerage practice?
According to Clause 1, Clause 2, Article 32 of Decree No. 156/2020/ND-CP stipulating as follows:
- A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
+ Failing to submit reports on changes in certified securities professionals by the prescribed deadline;
+ Failing to make sure employees in specialized departments have appropriate securities practicing certificates; arranging employees to perform tasks inappropriate to their securities practicing certificates;
+ Arranging employees or certified securities professionals to hold multiple positions in case such multiple position-holding is prohibited.
- A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for committing one of the following violations:
+ Arranging persons who do not possess securities practicing certificates or whose securities practicing certificates have been suspended to perform operations or hold positions the holders of which are required to have securities practicing certificates;
*The above fine is imposed upon organizations, in case of individuals committing the violations, the fine is equal to ½ of the fine imposed upon organizations.
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