Vietnam: Sanctioning competence of administrative violations of the Chairman of the State Securities Commission

According to Decree No. 108/2013/NĐ-CP of Vietnam’s Government, sanctioning competence of administrative violations of the Chairman of the State Securities Commission in the domains of securities and securities market is as follows:

1. Impose a warning;

2. Impose fines of up to VND 2,000,000,000 on organizations and fines of up to VND 1,000,000,000 on individuals maximally;

3. Impose fines of up to 5% of total amount raised illegally for organizations that make or certify dossiers for registration of public offering of securities containing forgeries under regulations;

4. Impose fines of up to 05 times illegal revenues for organizations conducting a public offering of securities when they have not yet had certificate of public offering of securities as prescribed and organizations conducting act of organization of the securities trading market in contravention of law in case of having illegal revenues;

5. Apply form of additional sanction and remedial measures as follows:

Additional sanction:

- Suspension with a defined term for activities of listing securities, activities of registering for securities transaction; suspension with a defined term for a public bid; suspension with a defined term for activities of trading and supplying securities services; suspension with a defined term for activities of branches of foreign fund management companies in Vietnam; suspension with a defined term for activities of representative offices; suspension with a defined term for activities of securities depository or suspension with a defined term for other activities stated in the sanction decision;

- Deprivation of the right to use certificate of register for activities of representative offices, certificate of securities practice for a defined time of between 01 month and 03 months;

- Confiscation of exhibits of administrative violations and means used for committing administrative violations.

Remedial measures:

- Forcible recall of securities conducted sale offer, issue and returning the amounts of securities purchase to investors; forcible recall of shares issued additionally;

- Forcible return of securities, amount possessed by clients;

- Forcible cancellation of information, correction of information;

- Forcible remittance of illicit earnings from the commission of violations;

- Forcible public bid according to the registered plan;

- Forcible further purchase of the remaining shares or closed fund certificates after conducting public bid;

- Forcible abandon of the right to vote directly or through authorized representatives on the share quantity obtaining from violation;

- Forcible transfer of securities in order to reduce the holding rate in accordance with regulations;

- Forcible approval of General Meeting of Shareholders for change of purpose and plan on using capital obtaining from sale offer of securities;

- Forcible depository, separate management of assets, capital and securities; 

- Forcible provision of explanation, supply of information and figures involving audit activities.

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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