Can I open a securities account online in Vietnam?

Can I open a securities account online in Vietnam?

Pursuant to Clause 4, Article 89 of the Securities Law 2019, the obligations of securities companies and branches of foreign securities companies in Vietnam are as follows:

4. Sign written service provision contracts with clients; provide adequate and accurate information for clients.

Pursuant to Article 15 of Circular 121/2020/TT-BTC regulations on opening securities trading accounts as follows:

1. Before buying and selling stocks on customers’ behalf, securities companies must take steps in opening accounts for each customer on the basis of contracts to open stock trading accounts with customers. These contracts must meet current regulations and at least contain required information shown in the form given in the Appendix III hereto.

2. Securities companies must give explanations about contractual terms and conditions and relevant documents when rendering stock trades or transactions on customers’ behalf, learning about financial capacity, risk tolerance and expectations of profits earned by customers.

3. An account opening contract prescribed in clause 1 of this Article shall not include any of the following agreements:

a) Agreement for avoidance of legal obligations of a securities company without plausible reasons;

b) Agreement for limitation on the scope of compensation of the securities company without plausible reasons, or transfer of risk from the securities company to customers;

c) Agreement that binds customers to fulfill compensation obligations in an unfair manner;

d) Agreements made unfairly to the detriment of customers.

4. Investors opening accounts at securities companies must fill out all information required on account opening contracts.

According to this Article, for a securities contract to be recognized as valid to complete procedures for opening a securities account, the signed contract must be in writing, the account must fully declare customer information, and be signed by the customer for confirmation. contract. If you open an online account, it will basically be valid according to the law such as VPS securities company. The contract between the customer and the securities company can be signed electronically. This means that opening an online securities account is completely valid. It also ensures legality and reliability for both contracting parties in Vietnam.

Can I open a securities account online in Vietnam? (Image from the Internet)

What are regulations on online trading of securities in Vietnam?

Pursuant to Article 20 of Circular 121/2020/TT-BTC regulations on online trading of securities as follows:

1. Obligations of securities companies to provision of online securities trading services

a) Ensuring continuous and smooth services;

b) Ensuring security, safety and confidentiality for data of the trading system;

c) Having a standby system or an alternative in case of failure or emergency;

d) Separating from their other electronic information systems;

dd) Issuing the procedures for operation, management and operation of the online securities trading system.

2. When providing online securities trading services to customers, securities companies must sign contracts or annexure to contracts to have customer’s accounts opened, including the following terms and conditions:

a) Disclosure of the risks that can occur when trading securities online;

b) Stipulations as to the responsibility of customers and securities companies for the confidentiality of information about customers' online transactions.

3. Securities companies must report to the State Securities Commission on online securities trading activities, the condition of the online securities trading system and disclose information in accordance with the laws on instructions about electronic trading activities.

Best regards!