Decree 108: Administrative sanctions for violations of regulations on establishment of member funds in Vietnam

Decree 108: Administrative sanctions for violations of regulations on establishment of member funds in Vietnam (Internet image)

Article 25 of Decree 108/2013/ND-CP stipulates the level of administrative sanctions for violations of regulations on establishment of member funds in Vietnam as follows:

- A fine of between VND 50,000,000 and 70,000,000 shall be imposed on failing to modify, supplement dossiers of establishing member fund upon detecting inaccurate information or omitted important contents required by regulations to be included in these dossiers or when arising important information involving the dossiers already filed.

- A fine of between VND 70,000,000 and 100,000,000 for any of the following violations:

+ Using the mass media to advertise, call for capital contribution or probe the market in the process of setting up a member fund;

+ Increasing or reducing its charter capital in contravention of law.

- A fine of between VND 100,000,000 and 150,000,000 for any of the following violations:

+ Failing to report on the setting up of a member fund under regulations or setting up a member fund without satisfying prescribed requirements;

+ Failing to report or to promptly report on risks or fund asset losses.

- A fine of between VND 200,000,000 and 300,000,000 shall be imposed on act of compiling or certifying a dossier of application for establishment of member fund, which contains untrue information, hides the truth or is seriously falsified.

In addition, the remedial measures for violations of regulations on establishment of member funds in Vietnam: forcibly canceling information, correcting information for act of compiling or certifying a dossier of application for establishment of member fund, which contains untrue information, hides the truth or is seriously falsified.

More details can be found in Decree 108/2013/ND-CP which comes into force from November 15, 2013.

Ty Na

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