Can certified securities professionals open securities accounts in Vietnam at the securities company for which they don't work?

Can certified securities professionals open securities accounts in Vietnam at the securities company for which they don't work?

In Article 98 of the Securities Law 2019, there are regulations on responsibilities of certified securities professionals as follows:

1. Holders of securities professional certifications shall operate as representatives of securities companies, fund management companies, branches of foreign securities companies and foreign fund management companies, or investment companies.

2. A certified securities professional must not:

a) Simultaneously work for 02 or more securities companies, fund management companies, branches foreign securities companies or foreign fund management companies in Vietnam, or investment companies;

b) Open, manage securities trading accounts at the securities company for which he/she works, unless it does not provide securities brokerage services;

c) Act beyond the authorization of the company for which he/she works.

3. Certified securities professionals shall attend training courses in securities and securities market, systems for trading of new securities organized by SSC, VSE and its subsidiaries, and VSDCC.

4. Securities companies, fund management companies, branches foreign securities companies and foreign fund management companies in Vietnam, and investment companies are responsible for operation of their certified securities professionals.

According to current regulations in Vietnam, a certified securities professional can still open a securities account at another securities company if it does not provide securities brokerage services.

Can certified securities professionals whose practice certificate is revoked due to simultaneously work for 02 securities companies be re-issued in Vietnam?

In Clause 3, Clause 4, Article 97 of the Securities Law 2019, there are regulations on securities professional certifications as follows:

3. A securities professional certification will be revoked if its holder:

a) no longer satisfies the requirements specified in Clause 2 of this Article;

b) commits any of the offences specified in Article 12 or Clause 2 Article 98 of this Law; or

c) fails to work as a certified securities professional for 03 consecutive years.

4. The securities professional certification will not be reissued once revoked in the case specified in Point b Clause 3 of this Article.

In Clause 2, Article 98 of the Securities Law 2019, there are regulations on responsibilities of certified securities professionals as follows:

2. A certified securities professional must not:

a) Simultaneously work for 02 or more securities companies, fund management companies, branches foreign securities companies or foreign fund management companies in Vietnam, or investment companies;

b) Open, manage securities trading accounts at the securities company for which he/she works, unless it does not provide securities brokerage services;

c) Act beyond the authorization of the company for which he/she works.

According to this Article, in case the certified securities professional is working at two different securities companies at the same time, the practice certificate will be revoked and the securities professional certification will not be reissued.

Can holders of securities professional certifications be considered professional investors in Vietnam? 

In Article 11 of the Securities Law 2019, there are regulations on professional investors as follows:

1. Professional investors are investors that have adequate financial capacity or securities qualifications, including:

a) Commercial banks, foreign branch banks (FBB), finance companies, insurers, securities companies, fund management companies, securities investment funds, international financial institutions, off-budget financial funds, state-owned financial institutions permitted to buy securities as prescribed by relevant laws;

b) Any company whose contributed charter capital exceeds 100 billion VND; every listed or registered organization;

c) Holders of securities professional certifications;

d) Any individual holding a quantity of listed or registered securities that is worth at least 02 billion VND as confirmed by the securities company;

dd) Any individual whose taxable income in the latest year is at least 01 billion according to his/her submitted tax return or tax deduction documents of his/her income payer.

2. The Government shall elaborate this Article.

According to this Article, holders of securities professional certifications are considered professional investors in Vietnam.

Best Regards!