Requirements for a foreign securities company to establish a branch in Vietnam

According to Article 76 of the Law on Securities 2019 of Vietnam, a foreign securities company may establish a branch in Vietnam when the following requirements are satisfied:

- Be licensed and has been continuously operating in the field of banking, securities, insurance for 02 years before the year in which capital is contributed or shares/stakes are purchased;

- The home country’s licensing authority and State Securities Commission (SSC) has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market;

- The organization’s business has profit in 02 years prior to the year in which capital is contributed or shares/stakes are purchased, and the latest annual financial statement has been audited and received unqualified opinions;

- The company is not holding more than 49% of charter capital of any securities company or fund management company in Vietnam;

- The capital provided for the branch in Vietnam shall be VND. The minimum charter capital for each operation of the securities company is conformable with regulations of the Government;

- The branch in Vietnam satisfies the infrastructural and personnel requirements.

Infrastructural requirements include: the premises are adequate for securities trading; available equipment and technologies are adequate for securities trading processes.

Personnel requirements include: There is a General Director (Director), at least 03 employees having suitable securities trading certifications for the licensed operations, and at least 01 employee in charge of compliance management. The General Director (Director) shall:

- Not be facing criminal prosecution, serving an imprisonment sentence or being banned from securities trading as prescribed by law;

- Have at least 02 years’ experience of working in specialized departments of finance, securities, banking, insurance organizations or in finance, accounting, investment departments of other organizations;

- Have the practicing certificate for financial analysis or asset management;

- Not incur any administrative penalties for securities-related offenses in the last 06 months prior to the application date.

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

Ty Na

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