What practicing certificate is required to be a Director of a securities company in Vietnam?

What practicing certificate is required to be a Director of a securities company in Vietnam?

Pursuant to Clause 5, Article 74 of the Securities Law 2019, requirements for issuing the securities trading license to a securities company are as follows:

5. Personnel requirements:

There is a General Director (Director), at least 03 employees having suitable securities trading certifications for the licensed operations, and at least 01 employee in charge of compliance management. The General Director (Director) shall:

a) Not be facing criminal prosecution, serving an imprisonment sentence or being banned from securities trading as prescribed by law;

b) Have at least 02 years’ experience of working in specialized departments of finance, securities, banking, insurance organizations or in finance, accounting, investment departments of other organizations;

c) Have the practicing certificate for financial analysis or asset management;

g) Not incur any administrative penalties for securities-related offences in the last 06 months prior to the application date.

The Deputy General Directors (Deputy Directors) in charge of specific operations shall satisfy the requirements specified in Points a, b, d of this Clause and have practising certificates suitable for their operation.

Thus, the Director of a securities company must meet the standards prescribed above, including having a practicing certificate for financial analysis or asset management.

What practicing certificate is required to be a Director of a securities company in Vietnam? (Image from the Internet) 

Can internal control department's personnel concurrently work as an accountant in a securities company in Vietnam?

According to Clause 4, Article 12, Circular 121/2020/TT-BTC regulating internal control of securities companies as follows:

4. Requirements of the internal control department's personnel

a) Assign at least 01 staff member to perform the tasks of control and supervision of compliance matters;

b) The Head of the internal control department must hold his/her professional qualification in legislation, accounting and auditing specialties; must be experienced, credible and competent enough to effectively perform his/her assigned duties;

c) These personnel are not related to heads of professional departments, persons performing core business functions, the General Director (Director), the Deputy General Director (Deputy Director), Directors of branches of the securities company;

d) These personnel must hold professional certificates in securities and securities market fundamentals or securities practicing certificates, and professional qualifications in securities and securities market laws;

dd) These personnel are not allowed to be in charge of the securities company’s other tasks.

According to this Article, internal control department's personnel will not be allowed to concurrently perform other jobs in the securities company. Therefore, it is impossible to bring internal control department's personnel to work concurrently as accountants in securities companies in Vietnam.

What are basic contents of working rules and regulations of the Board of General Directors of a securities company in Vietnam?

In Article 10, Circular 121/2020/TT-BTC stipulates that the Board of Directors is as follows:

1. General Director (Director) is the person who runs the daily business of a securities company, is supervised by the Governing Board, the Members’ Council or the Owner, and is accountable to the Governing Board, the Members' Council or the Owner and before the law for the exercise of his/her assigned rights and duties.

2. General Director (Director), Deputy General Director (Deputy Director) of a securities company cannot concurrently work for another securities company, fund management company or enterprise; General Director (Director) of a securities company is not allowed to hold office as a member of the Governing Board or the Members' Council of another securities company.

3. General Director (Director), Deputy General Director (Deputy Director) in charge of core business functions must meet the requirements or standards specified in Clause 5, Article 74 of the Law on Securities.

4. A securities company must formulate the working rules and regulations of the Board of General Directors (Board of Directors) and submit them to seek approval or consent from the Governing Board, Members’ Council or the Owner of the company. These working rules and regulations must include, but not limited to, the following basics:

a) Specific responsibilities and duties of members of the Board of General Directors (Board of Directors);

b) Regulations on processes and procedures for holding and participating in a meeting;

c) Accountability of the Board of General Directors (Board of Directors) to the Governing Board, the Members’ Council, the Owner or the Supervisory Board.

Thus, the working rules and regulations of the Board of General Directors (Board of Directors) must at least have the basic contents specified above in Vietnam.

Best regards!