Vietnam: Procedures for replacing depository bank and supervisory bank of the investment company

According to Article 34 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, the procedures for replacing depository bank and supervisory bank of the investment company are as follows:

- Within 10 days from the date on which the complete and valid dossier is received, the State Securities Commission shall change the supervisory bank or depository bank in the License for establishment and operation of the investment company. The refusal must be notified and explained in writing by the State Securities Commission.

- In the cases prescribed in Clause 1 and Clause 2 of this Article, the rights and obligations of the old supervisory bank or depository bank to the investment company shall be transferred to the alternative banks as prescribed in Article 86 of Decree No. 58/2012/ND-CP of Vietnam’s Government. The depository bank or supervisory bank only terminates the contract after finishing transferring all rights and obligations to the alternative banks. The alternative supervisory bank or depository bank must make and send the handover record to the State Securities Commission, certified by the asset management company and the Board of Directors of the investment company.

- Within 10 days from the date on which the replacement of the depository bank or supervisory bank prescribed in Clause 3 of this Article is complete, the investment company and asset management company (if any) shall disclose the information about this replacement as prescribed by relevant laws.

Note: Where the depository bank or supervisory bank changes its legal status, the new bank shall inherit all rights and obligations to the assets deposited and supervised at the old one.

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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