Legal Counselling

Operations of securities companies and fund management companies in Vietnam

17:30, 05/12/2019

On November 26, 2019, the National Assembly of Vietnam issued the Law on Securities 2019, replacing the Law on Securities 2006 and the amended Law on Securities 2010.

Nghiệp vụ KD của Công ty chứng khoán, công ty quản lý quỹ đầu tư chứng khoán, Luật Chứng khoán 2019

According to the Law on Securities 2019 of Vietnam, after being granted the securities trading license, the license holder that is a securities company or fund management company shall apply for enterprise registration in accordance with the Law on Enterprises of Vietnam, the license holder that is a branch in Vietnam of a foreign securities company or fund management company shall apply for business registration at a business registration authority. Securities companies and fund management companies shall be limited liability companies or joint-stock companies as prescribed by the Law on Enterprises.

A securities company shall be licensed to perform one, some or all of the following operations:

- Securities brokerage;

- Proprietary trading;

- Securities underwriting;

- Securities investment consultancy.

Note: A securities company shall only be licensed for proprietary trading when it is licensed for securities brokerage. A securities company shall only be licensed for securities underwriting when it is licensed for proprietary trading.

Operations of a fund management company include:

- Securities investment fund management;

- Securities portfolios

- Securities investment consultancy.

The licensing of the operations shall be included in the securities trading license of the fund management company.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Ty Na

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