Vietnam: How much is the fine for infringing the regulations on confidentiality of information involving the securities ownership of customers?

Specifically, according to Decree No. 108/2013/NĐ-CP of Vietnam’s Government, a fine of between VND 100,000,000 and 150,000,000 shall be imposed on Stock Depository Center, depository member, and a fine of between VND 50,000,000 and 75,000,000 shall be imposed on staff of securities depository member, conducting any of the following violations:

1. Violating regulations on accounting on securities depository accounts, time limit for securities payment or ownership transfer;

2. Conducting a transaction in securities which have not been accounted by the Securities Depository Center into a member's securities trading account, unless otherwise provided for by law;

3. Failing to protect the database and keep original documents on securities registration, depository, clearing and payment under regulations;

4. Infringing the regulations on confidentiality of information involving the securities ownership of customers;

5. Failing to conduct depository and failing to manage securities deposited by customers at the Securities Depository Center or a depository member separately from assets of the Center or depository member; failing to open a detailed securities depository account for each customer and to manage separately assets of each customer.

Moreover, a fine of between VND 300,000,000 and 400,000,000 shall be imposed on Stock Depository Center conducting any of the following violations:

- Accepting or canceling a depository membership in contravention of regulations;

- Using securities of customers in interest of other institutions and individuals or for its own benefit.

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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