What are regulations on personnel, capital, finance, accounting regimes and financial reporting of insurance brokerage companies in Vietnam?

What are regulations on personnel, capital, finance, accounting regimes and financial reporting of insurance brokerage companies in Vietnam?

Pursuant to Article 138 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating personnel, capital, finance, accounting regimes and financial reporting of insurance brokerage companies in Vietnam as follows:

1. Chairpersons of the Managing Boards, Chairpersons of the Boards of Members, members of the Managing Boards, members of the Boards of Members, Directors or General Directors, legal representatives, Vice Directors or Deputy General Directors, Chief Accountants, heads of operations departments of insurance brokerage companies must satisfy qualification, experience and other requirements and credentials under the Government’s regulations.

2. Persons directly involved in the insurance brokerage sector must hold at least undergraduate degrees in the insurance major or insurance practicing certificates appropriate for the types of insurance or insurance brokerage practicing certificates conferred by legally-licensed domestic or foreign training institutions according to the Ministry of Finance’s regulations.

3. Insurance brokerage companies must maintain the rate or amount of their charter capital and equity that is not less than the required minimum requirement of charter capital and must carry out insurance regimes under the Government's regulations.

4. Insurance brokerage companies shall follow instructions about the fiscal year and accounting regime given in Article 103 and 104 herein and carry out annual independent audits of financial statements.

5. Insurance brokerage companies shall follow the instructions on reporting regime of the Minister of Finance with respect to the following reports:

a) Financial report;

b) Periodic operations report; irregular, information or other data report.

6. Foreign-invested insurance brokerage companies may remit or transfer earnings and property abroad as per Article 107 herein.

7. Insurance brokerage companies shall follow financial management regulations laid down in Article 108 herein.

8. Insurance brokerage companies shall post information about financial statements that have been audited and any changes relying upon the Ministry of Finance’s approval or consent as prescribed in clause 1 of Article 136 herein and the information prescribed in point a, b and e of clause 1 of Article 120 herein on their websites. Responsibilities for information disclosure shall be subject to Article 117 herein.

What are regulations on insurance brokerage practising certificates in Vietnam?

Pursuant to Article 139 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating insurance brokerage practising certificates in Vietnam as follows:

1. Insurance brokerage training course or program shall mainly comprise:

a) General knowledge about insurance and insurance services;

b) Principles, responsibilities and code of ethics for practising as an insurance broker;

c) Domestic law of Vietnam applicable in the insurance industry;

d) Insurance brokerage skills and practising as an insurance broker.

2. The Minister of Finance shall impose detailed regulations on training program or curriculum, application requirements, procedures and processes for certification testing, issuance, revocation, withdrawal and reissuance of insurance brokerage practising certificates issued by legally-licensed domestic insurance training institutions.

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