Legal Counselling

06 requirements for a foreign fund management company to establish a branch in Vietnam

23:35, 05/12/2019

This is a notable content of the Law on Securities 2019, issued by the National Assembly of Vietnam on November 26, 2019.

06 điều kiện Công ty quản lý quỹ nước ngoài được thành lập chi nhánh tại VN, Luật Chứng khoán 2019

According to the Law on Securities 2019 of Vietnam, a foreign fund management company may establish a branch in Vietnam when the following requirements are satisfied:

- It is licensed for management of public funds by the home country’s securities authority;

- The home country’s licensing authority and State Securities Commission (SSC) has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market with a remaining operating of at least 05 years;

- The foreign company is not holding more than 5% charter capital of 01 fund management company in Vietnam, whether directly or indirectly, with or without related persons;

- The capital provided for the branch in Vietnam satisfies the requirements in Clause 1 Article 75 of this Law;

- The infrastructural and personnel requirements specified in Clause 4 and Clause 5 Article 75 are satisfied by the branch in Vietnam;

- All of the requirements specified in Point c Clause 2 Article 77 of this Law are satisfied.

Note: Each foreign securities company or fund management company may establish 01 branch in Vietnam.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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