Failing to provide margins for transactions shall be fined up to VND 50 million

According to Clauses 4, 5 and 6 Article 77 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, administrative penalties for violations against regulations on trading in goods via mercantile exchange are specified as follows:

1. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed upon an employee of the mercantile exchange for committing one of the following violations:

- Luring clients to sign contracts by promising to compensate for the entire or partial damage or ensure a portion of their profits;

- Using fake prices and other fraudulent methods when providing brokerage to clients;

- Providing brokerage for trading in goods via the mercantile exchange by an entity that is not the trading member or brokerage member of the mercantile exchange.

2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon an employee of the mercantile exchange for committing one of the following violations:

- Failing to provide or improperly providing margins for transactions as prescribed;

- Failing to comply with regulations on total maximum limit on transactions or transaction limit;

- Luring clients to sign contracts by promising to compensate for the entire or partial damage or ensure a portion of their profits.

3. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed upon the mercantile exchange for committing one of the following violations:

- Failing to provide accurate and timely information in the application for issuance, re-issuance or modification of the license for establishment of a mercantile exchange;

- Refusing to approve membership of the mercantile exchange without giving written notification or reasons of such refusal.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, issued on August 24, 2020.

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE