Standards for the General Director of fund management company in Vietnam

According to Clause 5 Article 75 of the Law on Securities 2019 of Vietnam on requirements for issuing the securities trading license to a fund management company, personnel requirements include:

- There is a General Director (Director), at least 05 employees having asset management certifications, 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 04 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 asset management or equivalent as prescribed by the Government;

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

- The Deputy General Directors (Deputy Directors) in charge of specific operations shall satisfy the requirements specified above and have practicing certificates suitable for their operation.

Besides, the Law on Securities 2019 of Vietnam also stipulates quantities of shareholders and contributing members as follows:

- At least 02 founding shareholders and contributing members shall be organizations. The owner of the fund management company that is a single-member limited liability company shall be an insurer or commercial bank or foreign organization that satisfies the requirements specified in Clause 2 Article 77 of this Law;

- Total capital contributed by organizations shall be at least 65% of charter capital; capital contributed by insurers and commercial banks shall be at least 30% of charter capital.

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

Ty Na

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