Asset management companies in Vietnam must finish adjusting the investment portfolio within 03 months

Asset management companies in Vietnam must finish adjusting the investment portfolio within 03 months (Internet image)

According to Article 9 of Circular 227/2012/TT-BTC, within 03 months from the date on which the variances due to the reasons prescribed in Point a, b, and c Clause 6 of Article 9 of Circular 227/2012/TT-BTC, the asset management company must finish adjusting the investment portfolio of the investment company to make it conformable Clause 4 of Article 9 of Circular 227/2012/TT-BTC.

Where variances occur due to the non-conformity or the asset management company to the investment limits as prescribed by law or the charter of the investment company, the asset management company must adjust the investment portfolio within 15 days from the date on which the variances occur.  The asset management company must pay compensation to the investment company (if any) and incur the costs related to the adjustment of the investment portfolio. All profits generated must be recorded for the investment company.

Within 05 days from the date on which the adjustment of the investment portfolio is done, the asset management company must disclose the information as prescribed in Clause 10 Article 3 of Circular 227/2012/TT-BTC, and notify the State Securities Commission of the variances, the reasons and the time when they occur or are detected, the damage, and the compensation paid to the investment company (if any), or the generated profits of the investment company (if any), the remedial measures, the remedy period, and the remedy result. The notification must be certified by the supervisory bank.

When making asset transactions for the investment company, the asset management company must comply with the following regulations:

• For the securities listed and registered at the Stock Exchange, the transactions must be made via the transaction system of the Stock Exchange;

• For the assets not being listed or registered securities, or not mentioned in agreements, the asset management company must obtain written consent from the Board of Directors of the investment company to the range of prices, the time of transactions, the partners, or the forbidden partners (if any), and the transacted assets before transactions are made.

More details can be found in  Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

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