What are regulations on documentation and procedures for issuance of the securities practicing certificate in Vietnam?

What are regulations on documentation and procedures for issuance of the securities practicing certificate in Vietnam?

I want to ask about documentation and procedures for issuance of the securities practicing certificate in Vietnam.

Answer:

Pursuant to Article 213 of the Decree 155/2020/NĐ-CP stipulating documentation and procedures for issuance of the securities practicing certificate in Vietnam as follows:

1. The securities brokerage certificate will be issued to an individual who:

a) Satisfies the conditions specified in Clause 2 Article 97 of the Law on Securities; and

b) Has securities-related qualifications, including: certificate of basic training in securities and securities market, certificate of training in securities and securities market laws, certificate of training in securities analysis and investment, certificate of training in securities brokerage and securities investment counseling or equivalent certificates.

2. The financial analysis certificate will be issued to an individual who:

a) Satisfies the conditions specified in Clause 1 of this Article; and

b) Has the following qualifications: certificate of training in financial counseling and securities underwriting, certificate of training in financial statement analysis or equivalent certificates.

3. The fund management certificate will be issued to an individual who:

a) Satisfies the conditions specified in Clause 2 of this Article; and

b) Has certificates of training in fund and asset management; and

c) Has at least 03 years’ experience of working in sales, investment, finance, accounting departments of enterprises, organization of finance-, banking-, insurance-, securities-, audit-related activities or has a lawful securities practicing certificate issued overseas;

4. An application for the securities practicing certificate shall contain:

a) The application form No. 85 in the Appendix hereof;

b) The applicant’s personal information sheet according to Form No. 67 in the Appendix which must be prepared within the last 06 months before the application is received by SSC;

c) The judicial record issued by a competent authority within the last 06 months before the application is received by SSC;

d) The applicant’s bachelor’s degree, master’s degree or doctoral degree;

dd) A lawful securities practicing certificate issued overseas or equivalent documents proving that the applicant is lawfully practicing securities in a foreign country; qualifications in securities or equivalent certificates;

e) 02 4x6 cm photos that are taken within the last 06 months before the application is received by SSC;

g) In case of applying for the fund management certificate, the application shall include a document certifying the seniority and position of the applicant issued by the applicant’s current workplace or former workplaces.

5. The application for the securities practicing certificate will not be returned, even if it is rejected.

6. Within 07 working days from the receipt of the satisfactory application, SSC shall issue the securities practicing certificate and inform the applicant of the fee payable. In case the application is rejected, SSC shall issue a written rejection and provide explanation.

7. If the certificate holder fails to pay the fee or receive the certificate within 01 year from the day on which the fee is notified by SSC, SSC will issue a decision to invalidate the certificate issued.

8. The Ministry of Finance shall specify the fees for issuance, reissuance of securities practicing certificates; organization of examinations for securities practicing certificates according to Point d Clause 2 Article 97 of the Law on Securities, qualifications and equivalent certificates specified in Point b Clause 1 and Point b Clause 2 of this Article.

What documents are included in the application for termination of fund certificate distribution in Vietnam?

I want to know about the documents that are included in the application for termination of fund certificate distribution in Vietnam.

Answer:

Pursuant to Clause 2 Article 221 of the Decree 155/2020/NĐ-CP stipulating the application for termination of fund certificate distribution in Vietnam as follows:

An application for termination of fund certificate distribution shall contain:

- The written request for permission for termination of fund certificate distribution;

- The original copy of the certificate of registration of fund certificate distribution agent;

- The report on termination of fund certificate distribution at all locations; records on finalization of fund certificate accounts of clients of the agent or records on transfer of clients to substitute agents (if any).

What are regulations on non-voting depositary receipts (NVDRs) in Vietnam?

According to the regulations, what are non-voting depositary receipts (NVDRs) in Vietnam?

Answer:

Pursuant to Article 140 of the Decree 155/2020/NĐ-CP stipulating non-voting depositary receipts (NVDRs) in Vietnam as follows:

1. NVDR is a security issued by a subsidiary company of the Stock Exchange to foreign investors based on shares of a listed or registered company.

2. NVDR holders have the same economic interests and obligations as those of the underlying ordinary shares, except the right to vote.

3. The issuer is entitled to attend the GMS and vote in case the issuer of underlying shares needs to enquire shareholders about delisting but does not have other economic rights that are relevant to these shares.

4. The Minister of Finance shall specify the types of underlying securities that are the basis for issuance of NVDRs, issuance limits, mechanism for conversion of underlying securities into NVDRs; exercising of the right to attend the GMS and vote of issuers, information disclosure, listing, trading, registration, depositing, clearing, payment and other NVDR-related issues.

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