What are regulations on reorganization of securities companies and fund management companies in Vietnam?

What are regulations on reorganization of securities companies and fund management companies in Vietnam?

As far as I know, the National Assembly Of Vietnam has just passed the new Law on Securities. Can I ask what are regulations on reorganization of securities companies and fund management companies in Vietnam according to the newest promulgations? Thank you!

Answer:

Pursuant to Article 93 of the Law on Securities in 2019 stipulating reorganization of securities companies and fund management companies in Vietnam as follows: 

- 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.

- 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:

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

+ 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;

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

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

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

What are regulations on documentation and procedures for issuance of the securities trading license in Vietnam?

According to the new regulations on securities, what are regulations on documentation and procedures for issuance, reissuance, revision, revocation of the securities trading license and the certificate of registration in Vietnam? Thank you!

Answer:

Pursuant to Article 79 of the Law on Securities in 2019 stipulating documentation and procedures for issuance, reissuance, revision, revocation of the securities trading license and the certificate of registration in Vietnam as follows: 

- The Government shall specify the documentation, procedures for issuance, reissuance, revision, revocation of the securities trading license of securities companies, fund management companies, branches in Vietnam of foreign securities companies and fund management companies; the certificate of registration of representative offices in Vietnam of foreign securities companies and fund management companies.

- Within 30 days from the receipt of the satisfactory application, SSC shall decide whether to issue the securities trading license or the certificate of registration. In case of rejection, SCC shall send a written notice and provide explanation.

What are the rights of Vietnam Stock Exchange (VSE)?

Hello Lawnet. I am learning about the new regulations of securities activities, can I ask what are the rights of Vietnam Stock Exchange (VSE) according to the new regulations?

Answer:

Pursuant to Clause 1, Article 46 of the Law on Securities in 2019 stipulating rights of Vietnam Stock Exchange VSE as follows: 

- Issue its regulations on listing and trading securities, disclosing information, regulations on its members and other regulations on organization and operation of the securities market after they are approved by SSC;

- Organize and operate the securities market;

- Putting securities under alert, control and restriction in accordance with law and its SSC;

- Suspend or terminate trading of certain securities in case of abnormal fluctuation in their prices or trading quantity without rectification by their issuers, which result in the securities being put under alert, control or restriction, or in case the suspension or termination is necessary to protect the investors’ the lawful rights and interests and ensure the stability and safety of the securities market;

- Approve, change, cancel listing or registration of securities; supervise the fulfillment of conditions for listing of securities of listed organizations;

- Grant and cancel membership of members of VSE;

- Provide bidding services; services involving market information and information about listed or registered securities; technological infrastructure development services for the securities market, and other relevant services specified in its Charter;

- Act as a mediator to settle securities-related disputes at the request of its members;

- Carry out inspections and take actions against violations committed by its members, listed organizations and registered organizations in accordance with its regulations;

- Request regulatory authorities to provide information about its members, listed organizations and registered organizations for information disclosure purposes as prescribed by law;

l) Other rights prescribed by law and its charter.

Executives and employees of VSE, in performance of their duties, shall comply with regulations of law on securities and the securities market, code of professional ethics, information confidentiality regulations and relevant laws.

Best regards!