What is a securities investment company in Vietnam? When is official date of operation of the securities company in Vietnam?

What is a securities investment company in Vietnam?

Hello, let me ask, according to the new regulations on the field of securities, what is a securities investment company? Thanks for answering support.

Answer: Pursuant to Article 114 of the Securities Law 2019, regulations on investment companies are as follows:

1. A securities company is a securities investment fund that is reorganized into a joint-stock company to invest in securities. A securities company can be a private investment company or public investment company.

2. Investment companies shall be licensed by SSC. After being licensed by SSC, the investment company shall apply for enterprise registration in accordance with the Law on Enterprises.

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What is a securities investment company in Vietnam? When is official date of operation of the securities company in Vietnam? (Image from the Internet)

When is official date of operation of the securities company in Vietnam?

Please ask: According to the new regulations, when is the official date of operation of securities companies and securities investment management companies? And the regulations related to this issue, please support!

Answer: Pursuant to Article 84 of the Securities Law 2019, the official date of operation of securities companies and securities investment management companies is prescribed as follows:

1. Securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies shall inaugurate within 12 months after they are licensed.

2. Securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies must not trade securities before their official inauguration dates.

3. A securities company or fund management company may start to operate after:

a) It has been granted enterprise registration as prescribed in Article 71 of this Law;

d) It has processes for operation, risk management, internal control;

c) The charter has been approved by General Meeting of Shareholders, the Board of members or the owner.

4. The branch of a foreign securities company or fund management company may start to operate after the requirements in Point a and Point b Clause 3 of this Article are satisfied.

5. The licensed securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies shall send a notice of their fulfillment of requirements in Clause 3 and Clause 4 of this Article to SSC at least 15 days before their official inauguration date. SSC will suspend operation of the securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies that fail to fully satisfy the requirements in Clause 3 and Clause 4 of this Article.

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Are representative offices of foreign fund management companies in Vietnam allowed to trade securities in Vietnam?

My company is an overseas fund management company, planning to set up a representative office in Vietnam next year. May I ask what conditions must be met to set up a representative office? Another question is, can a representative office conduct securities trading activities? Thank you!

Answer: Pursuant to Clause 1 and Clause 3, Article 78 of the Securities Law 2019 stipulates:

1. A foreign securities company or foreign fund management company may establish a representative office in Vietnam when:

a) It is licensed and has been lawfully operating in this home country;

b) The home country’s licensing authority and SSC has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market, or the company has been managing investment funds in Vietnam; the remaining operating period is at least 01 years.

3. Representative offices of foreign securities companies and foreign fund management companies must not trade securities.

=> Thus, if the above conditions are met, your company is allowed to establish a representative office in Vietnam, but is not allowed to conduct securities business activities.

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