Vietnam: Procedures for compulsory termination of clearing and settlement services

According to Article 13 of the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, the clearing and settlement service provider is required to terminate its provision of clearing and settlement services in the following cases:

- It fails to rectify the causes of suspension of clearing and settlement services by the end of suspension period;

- It is dissolved, declared bankrupt, or has its operations suspended or its license for establishment and operation revoked; or it no longer provides derivative brokerage services; or the organization established after full or partial division, consolidation or merger fails to meet one of the requirements in Clauses 2, 3 Article 9 hereof.

Within 30 days from the day on which the clearing and settlement service provider is determined to fall in the case of termination of clearing and settlement services, the State Securities Commission of Vietnam (SSC) shall request it in writing to follow procedures for termination of its provision of clearing and settlement services.

From the receipt of SSC's written request for termination of clearing and settlement services, the clearing and settlement service provider shall implement and comply with relevant regulations in Clauses 5, 6 Article 7 hereof. Within 05 business days from the completion of procedures as prescribed in Clause 3 of this Article, the clearing and settlement service provider shall submit reports to SSC as prescribed in Clause 6 Article 12 hereof.

Besides, within 05 business days from the receipt of reports, SSC shall issue a decision to revoke the certificate of eligibility to provide clearing and settlement services.

More details at the Decree No. 158/2020/NĐ-CP of the Vietnam’s Government, effective from January 01, 2021.

Ty Na

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