Vietnam: A fine of up to VND 70 million shall be imposed on erasing or modifying contents of the representative office operation registration certificate

According to Article 24 of Decree No. 108/2013/NĐ-CP of Vietnam’s Government, a fine of between VND 50,000,000 and 70,000,000 shall be imposed on securities business organizations conducting any of the following violations:

- Commencing the operation of a representative office without having fully satisfied prescribed conditions or failing to make operation registration under regulations, or operating without obtaining a representative office operation registration certificate;

- Acting as representative for another organizations; transferring its representative office operation registration certificate to other individual or organization;

- Erasing or modifying contents of the representative office operation registration certificate.

Concurrently, Decree No. 108/2013/NĐ-CP also specifies fines for violations of the regulations on representative offices of securities business institutions as follows:

- A fine of between VND 10,000,000 and 30,000,000 shall be imposed on securities business organizations failing to conduct procedures for adjusting, amending and supplementing, re-granting certificate of operation registration, operation suspension of representative office in accordance with law.

- A fine of between VND 70,000,000 and 100,000,000 shall be imposed on head of the representative office of securities business organization conducting activities of business in Vietnam or business in securities or management of capitals, assets for foreign investors or securities trading organizations in contravention of law.

- Deprivation of the right to use representative office operation registration certificate for duration of 18-24 months shall be imposed on a securities trading organization conducting any of the following violations:

+ Making, certifying the dossiers requesting for grant of representative office operation registration certificate containing untrue information or seriously-misleading information;

+ Operating for improper purposes or at variance with the operation registration certificate.

View more details at Decree No. 108/2013/NĐ-CP of Vietnam’s Government, effective from November 15, 2013.

Ty Na

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