What are regulations on obligations of supervisory banks in securities activities in Vietnam?

What are regulations on obligations of supervisory banks in securities activities in Vietnam?

Let me ask, when the new regulations governing the securities sector take effect, what obligations will the supervisory bank have in supervising securities investment fund management companies within the scope related to public funds? What?

Answer: Pursuant to Article 116 of the Securities Law 2019, regulations on supervisory banks are as follows:

1. A supervisory bank is a commercial bank that has the certificate of securities depository registration granted by SSC, provides depository services and supervises the management of public funds and investment companies.

2. Supervisory banks shall supervise operations of fund management companies that are relevant to the public funds and investment companies that are the banks’ clients. A supervisory bank has the following obligations:

a) Fulfill the obligations specified in Clause 3 Article 56 of this Law;

b) Deposit assets of public funds and investment companies; separately manage assets of public funds, investment companies and assets of the bank;

c) Supervise to compliance of this law, charters of securities investment funds and charters of investment companies by fund management companies and their General Directors (Directors);

d) Manage revenues, expenses, payments and transfer of assets of public funds and investment companies at the request of the fund management companies or General Director (Director) of the investment companies;

dd) Verify reports prepared by fund management companies and investment companies that are relevant to the public funds or investment companies;

e) Supervise reporting and information disclosure by fund management companies and investment companies in accordance with this Law;

g) Report to SSC in case a fund management company, investment company, organization or individual commits violations against the law, the fund’s charter or the investment company’s charter;

h) In cooperation with fund management companies and investment companies, periodically examine accounting books, financial statements and transactions of public funds and investment companies;

i) Fulfill other obligations prescribed by law, the charter of the securities investment fund and investment company.

We will respond to you with information.

What are regulations on obligations of supervisory banks in securities activities in Vietnam? (Image from the Internet)

What regulations must public securities investment companies comply with in Vietnam?

It is known that there are new regulations regulating the securities sector. Can I ask, according to this regulation, what regulations must public securities investment companies comply with in Vietnam?

Answer: Pursuant to Clause 2, Article 115 of the Securities Law 2019 stipulates that establishment and operation of investment companies:

2. A public investment company shall comply with the following regulations:

a) The investment limits specified in Article 110 of this Law;

b) Regulations on asset valuation and reporting in Article 106 and Article 107 of this Law;

c) Obligations of public companies specified in Points a, b, c Clause 1 and Clause 2 Article 34 of this Law;

d) The investment company‘s assets shall be deposited at 01 depository bank.

We will respond to you with information.

What are some restrictions on supervisory banks in securities activities in Vietnam?

Let me ask, according to the new regulations passed by the National Assembly on the field of securities, what are limitations of the supervisory bank in securities activities?

Answer : Pursuant to Article 117 of the Securities Law 2019, restrictions on limits on supervisory banks are prescribed as follows:

1. Supervisory banks, their Boards of Directors, executives and employees that supervise and manage assets of public funds and investment companies must not be related persons, owners, lenders or borrowers of the fund management companies or investment companies, and vice versa.

2. Supervisory banks, their Boards of Directors, executives and employees that supervise and manage assets of public funds and investment companies must not be buyers or sellers of assets of public funds and investment companies.

We will respond to you with information.

Best regards!