Vietnam: Administrative penalties for violations of regulations on operation of separate securities investment companies which self-manage capital

According to Article 23 of Decree No. 108/2013/NĐ-CP of Vietnam’s Government, fines for violations of regulations on operation of separate securities investment companies which self-manage capital are as follows:

1. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on a separate securities investment company which self manages its capital conducting any of the following violations:

- Failing to modify, supplement dossiers of registration for establishment of separate securities investment company self managing its capital, upon detecting inaccurate information or omitted important contents required by regulations to be included in these dossiers or when arising important information involving the dossiers already filed;

- Failing to promulgate the process of evaluating net assets of securities Investment Company or failing to valuate net assets or wrongly valuating the net assets of a securities investment company.

2. A fine of between VND 70,000,000 and 100,000,000 shall be imposed on a separate securities investment company which self manages its capital conducting any of the following violations:

- Participating in elaboration, implementation and development of a project on real estate;

- Infringing regulations on limited operation of securities investment companies;

- Conducting transactions which result in a change in its share or contributed capital ownership in contravention of law; increasing or reducing its charter capital in contravention of law.

3. A fine of between VND 200.000,000 and 300.000,000 shall be imposed on a separate securities investment company self manage its capital which makes, certifies dossiers of registration for establishment of a separate securities investment company self manage its capital containing untrue information or hiding the truth or having been seriously falsified.

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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