On August 15, 2017, the Minister of Finance issued Circular 86/2017/TT-BTC guiding the implementation of certain provisions of Decree 88/2016/ND-CP dated July 1, 2016 of the Government of Vietnam on the voluntary supplemental retirement program.
Circular guiding investment, accounting, determining the net asset value, and reporting policies of pension fund management enterprises and supervisory banks in accordance with Decree 88/2016/ND-CP dated July 1, 2016, of the Government of Vietnam on the voluntary supplementary pension program.
Subjects of application include:
- Enterprises managing voluntary supplementary pension funds.- Supervisory banks; depository institutions.- Organizations and individuals providing services related to the establishment, operation, management, and supervision of voluntary supplementary pension funds.
The investment activities of the pension fund are carried out in accordance with the regulations of Article 20 of Decree 88/2016/ND-CP based on compliance with legal regulations, self-responsibility for investment activities, ensuring safety, effectiveness, and following the objectives and investment policies of the pension fund as stipulated in the fund's charter.
In addition to complying with Article 20 of Decree 88/2016/ND-CP, the pension fund is allowed to invest no more than 20% of the total asset value of the fund in securities investment fund certificates.
In cases of investing in securities investment fund certificates of funds managed by the pension fund management enterprises, the pension fund management enterprises are only permitted to charge the fund management fee once.
The pension fund is allowed to apply accounting policies for open-ended funds as regulated in Circular 198/2012/TT-BTC dated November 15, 2012, of the Ministry of Finance on accounting policies applicable to open-ended funds, Circular 181/2015/TT-BTC dated November 13, 2015, of the Ministry of Finance on accounting policies applicable to portfolio swap funds, and any amending or supplementing documents (if any) to account and record the operations of the fund.
The Circular includes 5 appendices.
Circular 86/2017/TT-BTC is effective from October 1, 2017.
Source: Finance Magazine
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