Can a branch of a foreign securities company in Vietnam enter into securities investment consultancy service contracts with clients?

Can a branch of a foreign securities company in Vietnam enter into securities investment consultancy service contracts with clients?

Pursuant to Article 14 of Circular 97/2020/TT-BTC regulating the scope of activities and contents of branches of foreign securities companies in Vietnam as follows:

1. Scope of operations

A branch shall be allowed to provide securities investment consultancy services only.

2. Specific operations

A branch shall provide analysis outcomes and reports, and recommendations for clients with or without collecting fees in the following cases:

a) Provide reports on analysis of transactions on the securities market, and investment recommendations;

b) Provide reports on analysis of operations of public companies, listed companies and other enterprises, and investment recommendations;

c) Enter into securities investment consultancy service contracts with clients.

Thus, branches of foreign securities companies in Vietnam are allowed to sign securities investment consultancy contracts with clients in the course of their commercial activities. In addition, the foreign company branch is also provided with a report on the results of the analysis of the trading situation on the stock market and making investment recommendations, providing a report on the results of the analysis of the activities of public companies, listed companies and other enterprises and making investment recommendations.

What are rights of branches of foreign securities companies in Vietnam?

Pursuant to Article 15 of Circular 97/2020/TT-BTC regulating the rights of branches of foreign securities companies in Vietnam as follows:

A branch shall have the following rights:

1. Collect consultancy service fees as agreed upon with clients and prescribed by laws.

2. Open a foreign currency account or VND account converted from a foreign currency at a commercial bank that is licensed to provide foreign exchange services in Vietnam and only use this account for its operations. The opening, use and closure of an account by the branch shall comply with regulations of relevant laws.

3. Recruit both Vietnamese and foreign employees to work at the branch in accordance with regulations of relevant laws.

4. Have its own seal under the law of Vietnam and only use this seal on transaction documents made within the ambit of rights and functions of the branch.

5. Exercise other rights as prescribed by relevant laws.

In the above case, the branch of securities company C is allowed to sign a securities investment consultancy contract with customers. In addition, it is also possible to provide a report on the results of analysis of the trading situation on the stock market, provide a report on the results of analysis of the activities of public companies, listed companies and other enterprises and make investment recommendations for customers in Vietnam.

Best Regards!