How many employees possessing fund management practicing certificate do securities investment fund management companies have to maintain in Vietnam?

How many employees possessing fund management practicing certificate do securities investment fund management companies have to maintain in Vietnam?

Pursuant to Article 7 of Circular 99/2020/TT-BTC stipulating executive Board and employees of a fund management company as follows:

1. The fund management company must appoint General Director (Director), and Deputy General Directors (Deputy Directors) in charge of securities trading operations (if any) who meet the conditions in Clause 5 Article 75 of the Law on Securities.

2. In addition to General Director (Director) and Deputy General Directors (Deputy Directors), the fund management company must have at least 05 employees possessing fund management practicing certificate during its operation.

3. The fund management company must arrange persons having securities practicing certificate to hold the following working positions:

a) Executives of the fund; managers and deputy managers of specialized departments in investment analysis, investment appraisal and investment decision-making; employees directly taking charge of investment analysis, investment appraisal and investment decision-making must possess fund management practicing certificate;

b) Manager and deputy manager of securities investment consulting department, and securities investment consultants; manager and deputy manager of investment department, and employees directly making investments for trustors must possess appropriate securities practicing certificate.

4. The fund management company must dismiss General Director (Director), and Deputy General Directors (Deputy Directors) in charge of securities trading operations, and executives of the fund within 07 working days when they commit any of the violations in Article 12 and Clause 2 Article 98 of the Law on Securities or in case they are facing criminal prosecution or serving an imprisonment sentence or being banned from securities trading as prescribed by law.

5. Within 05 working days from the date of ratification of the decision on appointment, dismissal or replacement of General Director (Director), Deputy General Director (Deputy Director) in charge of securities trading operations, or an executive of the fund, the fund management company shall send a notification thereof and the following documents to SSC:

a) The decision on appointment or dismissal of General Director (Director), Deputy General Director (Deputy Director) in charge of securities trading operations, or executive of the fund;

b) The list of General Director (Director), Deputy General Directors (Deputy Directors) in charge of securities trading operations, and executives of the fund, made according to the form in Appendix I enclosed herewith; valid copies of documents proving that General Director (Director), Deputy General Directors (Deputy Directors) in charge of securities trading operations, and executives of the fund meet the conditions laid down in the Law on Securities.

Thus, the securities investment fund management company must ensure that there are always at least 05 employees possessing fund management practicing certificate during its operation in Vietnam.

How long does it take for domestic branches of securities investment fund management companies to have theirdecision to establish the branch revoked in Vietnam?

According to Article 9 of Circular 99/2020/TT-BTC, branches are prescribed as follows:

1. Name of a domestic branch of the fund management company shall consist of the name of the fund management company and the phrase “branch” and comply with regulations on naming of branches in the Law on enterprises.

2. The domestic branch of the fund management company shall have its establishment decision revoked in the following cases:

a) The fund management company is dissolved, declared bankrupt or has its securities trading license revoked;

b) The application for approval of establishment of the branch contains inaccurate information;

c) The branch operates for wrong purposes or against its establishment decision;

d) It fails to meet requirements for headquarters and equipment serving the performance of licensed securities operations after a maximum duration of at least 03 months for remedying unsatisfactory requirements;

dd) The branch fails to operate within 03 months from the issue date of the decision to establish the branch.

3. Within 15 days from the receipt of SSC’s written notification of revocation of the decision to establish the branch, the fund management company shall shut down its branch and report it to SSC in accordance with regulations of the Law on Securities.

According to this Article, the domestic branch of a securities investment fund management company that fails to operate within 03 months from the issue date of the decision to establish the branch will be revoked the decision on establishment according to regulations in Vietnam.

When do domestic representative offices of securities investment fund management companies have their establishment decision revoked in Vietnam?

In Article 8 of Circular 99/2020/TT-BTC, representative offices are as follows:

1. Name of a domestic representative office of the fund management company shall consist of the name of the fund management company and the phrase “representative office” and comply with regulations on naming of representative offices in the Law on enterprises.

2. The domestic representative office of the fund management company shall have its establishment decision revoked in the following cases:

a) The fund management company is dissolved, declared bankrupt or has its securities trading license revoked;

b) The application for approval of establishment of the representative office contains inaccurate information;

c) The representative office operates for wrong purposes or against its establishment decision.

3. Within 15 days from the receipt of SSC’s written notification of revocation of the decision to establish the representative office, the fund management company shall shut down its representative office and report it to SSC in accordance with regulations of the Law on Securities.

Thus, the domestic representative office of the fund management company shall have its establishment decision revoked when it falls into one of the cases specified above in Vietnam.

Best Regards!