What to do during suspension of operations of branches of foreign securities companies in Vietnam?

What to do during suspension of operations of branches of foreign securities companies in Vietnam?

I need some information related to a branch of a securities company. Please tell me what to do during the suspension of branch operations of a foreign securities company in Vietnam? Thank you!

Answer: Pursuant to Clause 3, Article 94 of the Securities Law 2019 stipulates that during the period of suspension of operations, branches of foreign securities companies in Vietnam must take the following corrective measures or limit operations:

a) Not conclude new or renew contracts relevant to the suspended operations; finalize or convert accounts if requested by the clients;

b) Prepare a rectification plan and report the implementation thereof at the request of SSC;

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What to do during suspension of operations of branches of foreign securities companies in Vietnam? (Image from the Internet)

When does a securities investment management company withdraw its operations in Vietnam?

Hello, I am learning about the securities sector according to new regulations, I have a question: The securities investment management company suspended operations but after 6 months still cannot fix the financial safety problem. Will it be withdrawn from securities business? Thanks for answering support. Thank!

Answer: Pursuant to Clause 2, Article 94 of the Securities Law 2019 stipulates:

After 06 months from the effective date of the suspension decision, the State Securities Commission shall issue a decision to terminate the suspended operations in case the securities company fails to overcome the suspension situation within the following cases:

- Failure to remedy the situation as prescribed in Article 92 of this Law: Securities companies, fund management companies, branches of foreign securities companies and foreign fund management companies in Vietnam shall maintain financial safety indicators.

- Failure to meet the requirements specified in Clause 1 Article 85 of this Law or Clause 2 are not satisfied or the equity is still smaller than minimum charter capital after expiration of the time limit specified in Clause 2 Article 85 of this Law.

=> Thus, if after 6 months of suspension of operations, the securities investment management company still cannot overcome financial safety criteria, it will be withdrawn from securities business operations in Vietnam.

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What are rights and obligations of investors participating in securities investment funds in Vietnam? 

Hello, may I ask how the new Securities Law regulates rights and obligations of investors participating in securities investment funds? Thanks for the answer, thank you!

Answer: Pursuant to Article 101 of the Securities Law 2019, rights and obligations of investors participating in securities investment funds are as follows:

1. Investors have the rights to:

a) Benefits from investments of the securities investment fund in proportion to their contributions;

b) Interests and assets lawfully distributed from liquidation of assets of the securities investment fund;

c) Request the fund management company to repurchase open-end fund certificates;

d) File lawsuits against the fund management company, supervisory bank or relevant organizations if they violate their the lawful rights and interests;

dd) Execute their rights through the General Meeting of Investors;

e) Transfer fund certificates in accordance with the fund’s charter;

g) Exercise other rights prescribed by law and the fund’s charter.

2. Investors have the obligations to:

a) Implement decisions of the General Meetings of Investors;

b) Fully pay for the fund certificates;

c) Fulfill other obligations prescribed by law and the charter of the securities investment fund.

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