05 forms to ensure financial prudential for securities companies in Vietnam

14:59, 10/10/2014

This is a notable content mentioned in Circular No. 146/2014/TT-BTC of the Ministry of Finance of Vietnam on finance regulations for securities companies, asset management companies.

According to Vietnam’s current regulations, securities companies, asset management companies shall maintain the financial prudential ratios, ensure liquidity and compliance with the relevant provisions of the Securities Law, Law Amending and Supplementing a number articles of the Securities Law and the guidelines.

an toan, tai chinh, cong ty chung khoan, quan ly quy

According to Article 6 of Circular No. 146/2014/TT-BTC of the Ministry of Finance of Vietnam, the financial prudence shall be ensured through the following 05 forms:

- Purchase of professional liability insurance or setting up the investor protecting funds, provision funds for loss and compensating for damages under the provisions of Article 11 of this Circular;

- Making provisions for devaluation of securities as prescribed in Article 7 of this Circular.

- Making provisions for losses on securities investment as prescribed in Article 8 of this Circular.

- Making provisions for operational risk and financial reserve funds as prescribed in Article 14 of this Circular.

- Making provisions for bad debts in compliance with regulations for businesses.

Relevant provisions can be found in Circular No. 146/2014/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from November 21, 2014.

Thu Ba

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