Circular No. 91/2020/TT-BTC: 06 rules for application of prudential indicators in Vietnam

According to Article 3 of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, rules for determination of prudential indicators, regulation on report on prudential indicators of securities-trading organizations, actions against and responsibilities of relevant parties to securities-trading organizations that fail to maintain the prudential indicators include:

1. Securities-trading organizations shall calculate their prudential indicators and take responsibility for the accuracy of their calculations.

2. Assets and capital sources used for calculation of the liquid capital value and risk values up to the time of calculation shall be updated.

3. Securities-trading organizations are not required to calculate the value of various risks against assets which have been deducted from liquid capitals as prescribed in Articles 5 and 6 of this Circular.

4. The securities-trading organization that has subsidiaries shall calculate prudential indicators according to its own financial terms.

5. The prudential indicator reports of June 30 shall be examined by accredited audit organizations according to Vietnam’s Audit Standards for examination contracts. The prudential indicator report of December 31 and the prudential indicator report used for proving that a securities-trading organization is eligible to have warning, control or special control lifted must be audited by an accredited audit organization according to the Vietnam’s Audit Standard - Special considerations – Audits of financial statements prepared in accordance with special purpose frameworks and other relevant Audit Standards.

6. The securities-trading organization must establish an internal control and information system for recording, monitoring, and updating the financial information and detailed information serving the preparation, examination, and audit of the prudential indicator reports. The Board of Directors (management board) of the securities-trading organization shall be responsible for the preparation and presentation of prudential indicator reports prescribed by this Circular.

View more details at the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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