Primary Penalizing Forms for Administrative Violations in the Securities Sector are Prescribed How?

Main forms of administrative violations sanctions in the field of securities

What are the main forms of sanctions for administrative violations in the field of securities according to the new regulations?

Answer:

Based on Clause 1, Article 4 of Decree 156/2020/ND-CP, which was amended by Point a, Clause 3, Article 1 of Decree 128/2021/ND-CP, the main forms of sanctions include:

- Warning;

- Monetary fine;

- Suspension of securities trading activities for a period ranging from 01 month to 12 months;

- Revocation of the right to use the certificate of registration for the operation of representative offices and securities practice certificates for a period ranging from 01 month to 24 months. - This clause was amended by Clause 38, Article 1, Decree 128/2021/ND-CP

Conducting acts that cause customers and investors to misunderstand the price of securities

There is a new regulation on administrative sanctions in the field of securities. Can you explain how the act of causing customers and investors to misunderstand the price of securities is understood?

Answer:

Based on Clause 6, Article 3 of Decree 156/2020/ND-CP, the content is regulated as follows:

“Conducting acts that cause customers and investors to misunderstand the price of securities” means intentionally providing customers and investors with information, making judgments, advice, or recommendations that are inaccurate, incomplete, unfounded, or concealing the truth about the price or factors affecting the price of one or more types of securities, leading customers and investors to misunderstand the price of securities and make wrong investment decisions.

Authority to make minutes of administrative violations in the field of securities

What are the current regulations on the authority to make minutes of administrative violations in the field of securities?

Answer:

Article 48 of Decree 156/2020/ND-CP, amended by Clause 38, Article 1 Decree 128/2021/ND-CP stipulates the authority to make minutes of administrative violations in the field of securities as follows:

- The titles listed in Article 47 of this Decree, upon detecting administrative violations in the field of securities and the securities market, have the right to make minutes of administrative violations according to regulations.

- Officials of the State Securities Commission during the inspection, examination, and supervision of activities related to securities and the securities market; finance sector officials while performing their duties; officials and public employees; authorized persons executing duties under legal normative documents or administrative documents issued by competent authorities, upon detecting administrative violations prescribed in this Decree, must promptly make minutes of administrative violations as regulated and send the minutes to the competent authority for sanctioning.

Sincerely!