When do customers have to sign a contract to open securities trading accounts in Vietnam? What contents are not agreed upon in the contract to open securities trading accounts in Vietnam?
- When do customers have to sign a contract to open securities trading accounts in Vietnam?
- What contents are not agreed upon in the contract to open securities trading accounts in Vietnam?
- What are the conditions for provision of online securities trading services by securities companies?
- In what approaches does the securities company receive trading orders from customers?
When do customers have to sign a contract to open securities trading accounts in Vietnam?
Pursuant to Article 15 of Circular No. 121/2020/TT-BTC providing for the opening of securities trading accounts as follows:
Opening securities trading accounts
1. Before buying and selling stocks on customers’ behalf, securities companies must take steps in opening accounts for each customer on the basis of contracts to open stock trading accounts with customers. These contracts must meet current regulations and at least contain required information shown in the form given in the Appendix III hereto.
2. Securities companies must give explanations about contractual terms and conditions and relevant documents when rendering stock trades or transactions on customers’ behalf, learning about financial capacity, risk tolerance and expectations of profits earned by customers.
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Thus, before buying and selling stocks on customers’ behalf, securities companies must take steps in opening accounts for each customer on the basis of contracts to open stock trading accounts with customers.
When do customers have to sign a contract to open securities trading accounts in Vietnam? What contents are not agreed upon in the contract to open securities trading accounts in Vietnam?
What contents are not agreed upon in the contract to open securities trading accounts in Vietnam?
Pursuant to Clause 3, Article 15 of Circular No. 121/2020/TT-BTC stipulating this content as follows:
Opening securities trading accounts
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2. Securities companies must give explanations about contractual terms and conditions and relevant documents when rendering stock trades or transactions on customers’ behalf, learning about financial capacity, risk tolerance and expectations of profits earned by customers.
3. An account opening contract prescribed in clause 1 of this Article shall not include any of the following agreements:
a) Agreement for avoidance of legal obligations of a securities company without plausible reasons;
b) Agreement for limitation on the scope of compensation of the securities company without plausible reasons, or transfer of risk from the securities company to customers;
c) Agreement that binds customers to fulfill compensation obligations in an unfair manner;
d) Agreements made unfairly to the detriment of customers.
4. Investors opening accounts at securities companies must fill out all information required on account opening contracts.
Thus, an account opening contract prescribed in clause 1 of this Article shall not include any of the following agreements:
- Agreement for avoidance of legal obligations of a securities company without plausible reasons;
- Agreement for limitation on the scope of compensation of the securities company without plausible reasons, or transfer of risk from the securities company to customers;
- Agreement that binds customers to fulfill compensation obligations in an unfair manner;
- Agreements made unfairly to the detriment of customers.
What are the conditions for provision of online securities trading services by securities companies?
Pursuant to Clause 2, Article 16 of Circular No. 121/2020/TT-BTC stipulating this content as follows:
Receiving and executing orders
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2. Securities companies are only allowed to perform online stock transactions according to the provisions of Article 201 of the Decree, detailing the implementation of a number of articles of the Law on Securities.
Referring to Article 201 of Decree No. 155/2020/ND-CP stipulating the conditions for provision of online securities trading services 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.
Thus, a securities company may only conduct online securities trading services when it meets the following conditions:
- 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.
- 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.
- The conditions specified in Clause 2 Article 200 of this Decree are satisfied;
- Online securities trading services are directly provided for investors.
In what approaches does the securities company receive trading orders from customers?
Pursuant to Clause 1, Article 16 of Circular No. 121/2020/TT-BTC stipulating this content as follows:
Receiving and executing orders
1. Securities companies can receive orders from customers according to the following approaches:
a) Receiving orders directly at counters;
b) Receiving orders via phone, fax, internet and other transmission modes.
Thus, securities companies can receive orders from customers according to the following approaches:
- Receiving orders directly at counters;
- Receiving orders via phone, fax, internet and other transmission modes.
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