Vietnam: 03 cases in which the supervisory bank are not responsible for paying compensation

According to Article 32 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, the depository bank and supervisory bank are responsible for paying compensation to the investment company when causing the loss of assets of the investment company that are deposited at the banks, whether it is due to mistakes, deceptions of bank employees, or negligence of the bank. The depository bank and supervisory bank are responsible for paying compensation to the investment company when the secondary depository causes loss of assets of the investment company.

However, the depository bank and supervisory bank are not responsible for paying compensation to the investment company in the 03 following cases:

1. In events of force majeure, beyond the control of the depository bank and supervisory bank, in which the depository and supervision contract absolve the depository bank and supervisory bank of the responsibility.

2. The secondary depository is responsible for paying compensation to the investment company, and the secondary depository contract allows the asset management company (if any) to claim request the secondary depository to pay compensation as specified in the contract, on behalf of the investment company;

3. The depository bank and supervisory bank have fulfilled the obligations related to the authorization in accordance with law.

View more details at Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, effective from July 01, 2013.

Le Vy

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