What practising certificate must the general director of a securities company in Vietnam have? Can the general director of a securities company work for 02 enterprises?
What practising certificate must the general director of a securities company in Vietnam have?
Pursuant to the provisions of Clause 5, Article 74 of the 2019 Law on Securities in Vietnam:
Requirements for issuing the securities trading license to a securities company
…
5. Personnel requirements:
There is a General Director (Director), at least 03 employees having suitable securities trading certifications for the licensed operations, and at least 01 employee in charge of compliance management. The General Director (Director) shall:
a) Not be facing criminal prosecution, serving an imprisonment sentence or being banned from securities trading as prescribed by law;
b) Have at least 02 years’ experience of working in specialized departments of finance, securities, banking, insurance organizations or in finance, accounting, investment departments of other organizations;
c) Have the practising certificate for financial analysis or asset management;
g) Not incur any administrative penalties for securities-related offences in the last 06 months prior to the application date.
The Deputy General Directors (Deputy Directors) in charge of specific operations shall satisfy the requirements specified in Points a, b, d of this Clause and have practising certificates suitable for their operation.
Thus, according to the above regulations, the general director (director) of a securities company must have the practising certificate for financial analysis or asset management.
What practising certificate must the general director of a securities company in Vietnam have? Can the general director of a securities company work for 02 enterprises?
Is the general director of a securities company allowed to work for 02 enterprises?
According to the provisions of Clause 2, Article 10 of Circular No. 121/2020/TT-BTC stipulating as follows:
Board of Directors
1. General Director (Director) is the person who runs the daily business of a securities company, is supervised by the Governing Board, the Members’ Council or the Owner, and is accountable to the Governing Board, the Members' Council or the Owner and before the law for the exercise of his/her assigned rights and duties.
2. General Director (Director), Deputy General Director (Deputy Director) of a securities company cannot concurrently work for another securities company, fund management company or enterprise; General Director (Director) of a securities company is not allowed to hold office as a member of the Governing Board or the Members' Council of another securities company.
3. General Director (Director), Deputy General Director (Deputy Director) in charge of core business functions must meet the requirements or standards specified in Clause 5, Article 74 of the Law on Securities.
4. A securities company must formulate the working rules and regulations of the Board of General Directors (Board of Directors) and submit them to seek approval or consent from the Governing Board, Members’ Council or the Owner of the company. These working rules and regulations must include, but not limited to, the following basics:
a) Specific responsibilities and duties of members of the Board of General Directors (Board of Directors);
b) Regulations on processes and procedures for holding and participating in a meeting;
c) Accountability of the Board of General Directors (Board of Directors) to the Governing Board, the Members’ Council, the Owner or the Supervisory Board.
Thus, General Director (Director), Deputy General Director (Deputy Director) of a securities company cannot concurrently work for another securities company, fund management company or enterprise;
General Director (Director) of a securities company is not allowed to hold office as a member of the Governing Board or the Members' Council of another securities company.
What are the requirements for becoming contributing members and shareholders of a securities company in Vietnam?
According to the provisions of Clause 2, Article 74 of the 2019 Law on Securities in Vietnam stipulating as follows:
- Requirements for becoming contributing members and shareholders include:
+ Shareholders and contributing members that are individuals are qualified for establishment and management of enterprises in Vietnam as prescribed by the Law on Enterprises;
+ Shareholders and contributing members that are organizations shall be lawfully operating juridical persons that have profitable business in 02 years prior to the year in which the license is applied for; the latest annual financial statement has been audited and received unqualified opinions;
+ Shareholders and contributing members holding at least 10% of charter capital of 01 securities company; their related persons (if any) do not hold more than 5% of charter capital of another securities company;
+ Shareholders and contributing members that are foreign investors shall satisfy the requirements specified in Article 77 of this Law.
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