What types of services are branches in Vietnam of foreign securities companies permissible to provide?

What types of services are branches in Vietnam of foreign securities companies permissible to provide?

Pursuant to Clause 7, Article 86 of the Law on Securities in 2019 stipulating types of services are branches in Vietnam of foreign securities companies permissible to provide as follows:

The branch in Vietnam of a foreign securities company may only provide securities investment consultancy services. The branch in Vietnam of a foreign fund management company may only provide asset management services for capital raised overseas.

As regulations above, the branch in Vietnam of a foreign securities company may only provide securities investment consultancy services.

When shall branches in Vietnam of foreign securities companies disclose information on an ad hoc basis?

Pursuant to Clause 2, Article 123 of the Law on Securities in 2019 stipulating branches in Vietnam of foreign securities companies disclose information on an ad hoc basis as follows:

- The company’s account at a bank or foreign branch bank (FBB) is frozen at the request of a competent authority or when the payment service provider suspects a fraud or illegal activities relevant to the account; the account is unfrozen;

- Business suspension; changes to enterprise registration information; revocation of the certificate of enterprise registration; revision, suspension, revocation of the license for establishment and operation or operating license;

- Ratification of decisions of an ad hoc General Meeting of Shareholders;

- The company’s decision to repurchase its shares; the date of exercising the right to buy shares of bondholders, or the date of conversion of convertible bonds into shares, and decisions relevant to the offering and issuance of securities;

- Decisions on the enterprise’s reorganization or dissolution; strategies, medium-term development plans and annual business plans of the company; establishment, dissolution of subsidiaries and associate companies; any transaction that turns a company into a subsidiary or associate company or vice versa; establishment and closure of branches or representative offices;

- Decisions on change of accounting period, accounting policies; retroactive adjustments to financial statements; qualified opinions of the audit organization in the financial statement; selection or change of an audit company;

- Changes or addition of internal actors;

- Decisions to buy or sell assets or any transaction whose value exceeds 15% of total asset of the company according to the latest audited annual financial statement or latest examined biannual financial statement;

- Decisions on imposition of penalties for tax offences, effective court judgments or decisions that affect the company’s operation; the court’s notice of receipt of the company’s bankruptcy petition;

- Any charge against the company or its internal actor;

- Approval or cancellation of listing at a foreign stock exchange;

- Other events prescribed by the Minister of Finance.

Best regards!