Securities companies in Vietnam shall inaugurate within 12 months after they are licensed

According to Article 84 of the Law on Securities 2019 of Vietnam, securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies shall inaugurate within 12 months after they are licensed. Concurrently, securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies must not trade securities before their official inauguration dates.

Besides, a securities company or fund management company may start to operate after:

- It has been granted enterprise registration as prescribed in Article 71 of the Law on Securities 2019;

- It has processes for operation, risk management, internal control;

- The charter has been approved by the General Meeting of Shareholders, the Board of members or the owner.

The branch of a foreign securities company or fund management company may start to operate after having been granted enterprise registration and having processes for operation, risk management, and internal control.

Note: The licensed securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies shall send a notice of their fulfillment of requirements mentioned above to the State Securities Commission (SSC) at least 15 days before their official inauguration date. SSC will suspend operation of the securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies that fail to fully satisfy the above-mentioned requirements.

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

Ty Na

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