Do securities companies where accounts are opened commit to their customers about profits when investing in securities in Vietnam?
Do securities companies where accounts are opened commit to their customers about profits when investing in securities in Vietnam? Can a securities company purchase shares of another securities company in Vietnam?
Hello, let me ask that I am an office worker, I am intending to use my savings to invest in securities. Can you tell me that if I invest, do my securities company where my account is opened commit to me about profits when investing in securities? Please advise, thanks for the help.
Do securities companies where accounts are opened commit to their customers about profits when investing in securities in Vietnam?
In Article 91 of the Law on Securities 2019, there are restrictions on securities companies, fund management companies, branches of foreign securities companies and foreign fund management companies in Vietnam as follows:
1. Do not comment on or guarantee income or profit on the clients’ investment; Do not make no-loss guarantee, except investment in fixed income securities.
2. Do not reveal information about a client unless the provision of information is agreed by the client or requested by a competent authority.
3. Do not make clients and investors confused about securities prices.
4. Founding shareholders and capital contributors during establishment of the securities company or fund management company must not transfer their shares or stakes for 03 years from the licensing date, except transfer between those shareholders or contributors.
5. Securities companies, fund management companies, branches and representative offices of foreign securities companies and foreign fund management companies shall provide their services in their own names; must use the names of others or allows others to use their names to provide securities services.
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According to this Article, the securities company where you open an account is not entitled to commit to profit when you invest in securities in Vietnam.
Can a securities company purchase shares of another securities company in Vietnam?
In Clause 6, Article 91 of the Law on Securities 2019, a securities company must not contribute capital or purchase shares/stakes of another securities company in Vietnam, unless the purchase results in:
a) Consolidation or acquisition of the latter;
b) Ownership or joint ownership (with related persons) of up to 5% of voting shares of a listed or registered securities company.
Thus, a securities company can still purchase shares of another securities company if it meets one of the two conditions mentioned above in Vietnam.
Best Regards!
