Procedure for Issuance of Certificate of Business for Voluntary Pension Fund Services

Before an enterprise proceeds with the procedures for obtaining a certificate of eligibility for voluntary pension fund management services, it must meet the requirements and conditions mandated by the law.

Conditions of Implementation:

- The enterprise must be legally established in Vietnam and authorized to operate in the following fields: life insurance, fund management in accordance with specialized laws, and must meet the following conditions:- For life insurers: must meet the conditions to deploy pension insurance products according to the laws on pension insurance business;- For fund management companies: must have at least 5 years of experience in fund management, with a minimum total asset value of 1,000 billion VND, and currently managing open funds or bond funds.- Must not be an organization undergoing restructuring or under special control and supervision decided by competent state agencies.- Must have a draft charter for each proposed pension fund.- Must have a principle agreement signed with the following service providers:- Asset custody organization for pension fund assets;- Bank supervising pension fund management activities and managing individual pension accounts.- Must have a business plan for pension fund management services, including the following basic contents:- Operation and strategic plan for the next 5 years;- Forecasted revenues and expenses for the next 5 years;- Plan for IT infrastructure to manage each individual pension account, ensuring the execution of contributions, investments, cost payments, taxes, penalties, and disbursements to related parties;- A framework contract template for participating in the pension fund.- Must have at least 5 employees with at least 5 years of direct experience in pension fund management, securities investment fund management, or insurance contract fund management. Among them, at least 3 professional employees must have a fund management license issued by the State Securities Commission or be a member of the Chartered Financial Analyst (CFA) Institute.- Must have a risk management process and internal control system.

After meeting the requirements, the enterprise must carry out procedures in the following steps:

Step 1: Prepare the Dossier

The enterprise prepares a dossier including:

- Application form for the Certificate of eligibility for business (with enterprise identification information).- A copy of the operation license in the specialized field (a copy from the original ledger, a copy certified by competent state agencies, or an uncertified copy presented with the original for verification).- A copy of the principle agreement with the custody organization and supervising bank.- Business plan for pension fund management services:- Operation and strategic plan for the next 5 years;- Forecasted revenues and expenses for the next 5 years;- IT infrastructure plan to manage each individual pension account, ensuring the execution of contributions, investments, cost payments, payments to fund participants and employers, and personal income tax payments;- Framework contract template for participating in the pension fund.- Documents proving at least 5 employees meet the conditions, including basic documents:- Copy of the labor contract (certified copy by competent state agencies or an uncertified copy presented with the original for verification);- Employee resume certified by competent authorities or organizations (detailing work history and any certificates, degrees if available);- Copy of the fund management license issued by the State Securities Commission or membership of the Chartered Financial Analyst (CFA) Institute.- Risk management process and internal control system.

Step 2: Submit the Dossier

- The enterprise submits 1 dossier to the Ministry of Finance to check the completeness and validity of the dossier.- Within 5 working days from the date of receipt, the Ministry of Finance will notify the enterprise of the completeness and validity of the dossier and request the submission of 2 official dossiers for appraisal, if necessary.- Within 30 working days from the date of receiving a complete valid dossier, the Ministry of Finance will take the lead in cooperating with the Ministry of Labor - Invalids and Social Affairs, the Ministry of Planning and Investment, and related units to appraise and review the dossier for issuing the Certificate of eligibility for business. In case of refusal, the Ministry of Finance will notify the enterprise in writing, clearly stating the reasons.

Fee: none.

Result of Implementation: The Ministry of Finance issues the Certificate of eligibility for pension fund management services and notifies the enterprise through a written communication in case of refusal.

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