Does reorganization of securities companies need approval from SSC in Vietnam?

Does reorganization of securities companies need approval from SSC in Vietnam?

Pursuant to Clause 1, Article 93 of the Law on Securities 2019 has the following provisions:

1. Reorganization of a securities company or fund management company is subject to approval by SSC. Within 30 days from the receipt of the complete and valid application, SSC shall decide whether to approve the reorganization of the securities company or fund management company. In case of rejection, SCC shall send a written notice and provide explanation.

2. After approval is granted by SSC as prescribed in Clause 1 of this Article, the company shall initiate the reorganization in accordance with the Law on Enterprises and the following regulations:

a) The reorganization must not affect the lawful rights and interests of clients; ensure continuity and safety of transactions;

b) The securities company or fund management company that is established after the reorganization shall inherit the rights and obligations of the reorganized company as prescribed by law;

c) The reorganized company shall disclose information to its clients in full.

3. The Government shall specify the requirements, documentation and procedures for approving reorganization of securities companies and fund management companies.

4. The company established after the reorganization shall apply for issuance or revision of the securities trading license in accordance with this Law.

Thus, a securities company before reorganization must be approved by SCC in Vietnam.

Documentation for reorganization of a securities company in Vietnam

Pursuant to Clause 1, Article 207 of Decree 155/2020/ND-CP, the application for approval for reorganization shall include:

a) The application form No. 79 in the Appendix hereof;

b) The minutes of meeting, the decision of the GMS, Board of Members or the company’s owner on reorganization of the company;

c) The contract on principle in case of consolidation or merger according to form No. 80 in the Appendix hereof;

d) The reorganization that has been approved by the company’s GMS, Board of Members or owner according to form No. 81 in the Appendix hereof;

dd) Documents proving conformity with Clause 2, Clause 3 Article 206 of this Decree.

Best Regards!