Shall the organizational structure and management of a branch of a foreign fund management company in Vietnam be decided by the State Securities Commission of Vietnam?
- Is a branch of a foreign fund management company in Vietnam a juridical person?
- What is the scope of operations of a branch of foreign fund management company in Vietnam?
- Shall the organizational structure and management of a branch of a foreign fund management company in Vietnam be decided by the State Securities Commission of Vietnam?
- Is a branch of a foreign fund management company in Vietnam allowed to raise capital in the territory of Vietnam?
Is a branch of a foreign fund management company in Vietnam a juridical person?
Pursuant to the provisions of Clause 3, Article 2, Circular 97/2020/TT-BTC, a branch of a foreign fund management company in Vietnam means:
Definitions
For the purposes of this Circular, the terms below are construed as follows:
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3. “branch” means an affiliated unit of a foreign securities company or foreign fund management company that is not a juridical person, is established under the law of Vietnam and has all of its operations in Vietnam responsible before the law of Vietnam by its parent company.
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Thus, a branch of a foreign fund management company in Vietnam means an affiliated unit of a foreign fund management company that is not a juridical person, is established under the law of Vietnam and has all of its operations in Vietnam responsible before the law of Vietnam by its parent company.
Is a branch of a foreign fund management company in Vietnam a juridical person? (Image from the Internet)
What is the scope of operations of a branch of foreign fund management company in Vietnam?
Pursuant to the provisions of Article 18 of Circular 97/2020/TT-BTC on the scope of operations of a branch of foreign fund management company in Vietnam:
Scope of operations of a branch
A branch may only provide asset management services for capital raised overseas, including assets in Vietnam formed from capital raised overseas.
A branch of a branch of foreign fund management company in Vietnam may only provide asset management services for capital raised overseas, including assets in Vietnam formed from capital raised overseas.
Shall the organizational structure and management of a branch of a foreign fund management company in Vietnam be decided by the State Securities Commission of Vietnam?
Pursuant to the provisions of Article 17 of Circular 97/2020/TT-BTC:
Organizational structure and management of a branch of a foreign fund management company in Vietnam (hereinafter referred to as “branch”)
The parent company shall decide the organizational structure and management of its branch in conformity with regulations of the law of Vietnam on organizational structure, management and internal control of domestic fund management companies.
The parent company shall decide the organizational structure and management of its branch in conformity with regulations of the law of Vietnam on organizational structure, management and internal control of domestic fund management companies
The organizational structure and management of a branch of a foreign fund management company in Vietnam shall not be decided by the State Securities Commission of Vietnam.
Is a branch of a foreign fund management company in Vietnam allowed to raise capital in the territory of Vietnam?
Pursuant to the provisions of Clause 1 Article 20 of Circular 97/2020/TT-BTC:
Obligations of a branch
A branch shall discharge the following obligations:
1. A branch is not allowed to raise capital in Vietnam for management in any form.
2. During the management of assets, the branch must comply with the following regulations:
a) Unless otherwise ordered by trustors or prescribed by investment trust agreements or charters of foreign organizations, when providing asset management services to clients, the branch must comply with regulations on depositing, separately manage assets of each client, asset transactions between investment portfolios of trustors in accordance with regulations applicable to domestic fund management companies;
b) Protect confidentiality of information about clients and their asset transactions and investment portfolios, and other relevant information, unless such information is provided at the request of SSC or a competent authority;
c) Comply with regulations on foreign exchange, limitation on ownership in Vietnamese enterprises, anti-money laundering and other relevant laws;
d) Do not provide loans in the territory of Vietnam to clients, other entities or itself in any form; do not use trust assets or its assets as collateral, deposit or security for loans in the territory of Vietnam, including for trustors, other entities or itself;
dd) Do not offer or issue securities to raise capital in the territory of Vietnam;
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Therefore, a branch of a foreign fund management company in Vietnam is not allowed to raise capital in the territory of Vietnam.
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