Vietnam: Securities companies must disclose information on their operation 03 continuous issues of a printed newspapers

Specifically, according to Article 25 of the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, disclosure of other information of securities companies, securities investment fund management companies and branches of foreign securities companies and foreign fund management companies in Vietnam are stipulated as follows:

- Securities companies, securities investment fund management companies, branches and representative offices of foreign securities companies and foreign fund management companies in Vietnam must disclose information on their operation on the media of the State Securities Commission of Vietnam (SSC) and 01 online newspaper or 03 continuous issues of a printed newspapers at least 30 days before its expected inauguration date. 

- A securities company shall disclose at its headquarters, branches and transaction offices information about transaction methods, order placement, depositing, payment time, transaction fees, services provided and list of the company’s certified securities professionals.   In case of provision of margin trading services, it shall notify conditions for provision of margin trading services, including margin ratio, loan interest, loan term, method for making margin calls, and list of securities available for margin trading.

- When carrying out forced selling or selling pledged securities of clients that are its internal actors and their affiliated persons, the securities company shall disclose information on its website. The securities company shall notify transaction results to the client by the end of the transaction date so that the client can disclose information as prescribed in Article 33 of this Circular.

- The securities company that issues covered warrants shall disclose information in accordance with regulations on offering and trading of covered warrants.

- Unless the ownership is in the name of the trustor, the securities investment fund management company or branch of foreign fund management company in Vietnam and the trustor must disclose information as follows:

+ Disclose information as a majority shareholder prescribed in Article 31 of this Circular when total shares owned by the fund management company and its trustors, or total shares owned by the branch of a foreign fund management company in Vietnam, its parent company and trustors, are accounted for at least 5% of total voting shares of a public company or at least 5% of fund certificates of a closed-end fund, except trustors that are ETFs;

+ Disclose information as internal actors and their affiliated persons as prescribed in Article 33 of this Circular when the fund management company is a affiliated person of an internal actor as prescribed by law, except exchange transactions and periodic portfolio restructuring according to ETF benchmarks.

- Securities investment fund management companies and branches of foreign fund management companies in Vietnam shall report and disclose information concerning securities transactions on behalf of their clients when holding trust assets in their names in case a client has to disclose information as prescribed by law. In case trust assets are held in their names, the clients shall fulfill the obligation to report ownership and disclose information as prescribed by law.

- Notwithstanding Clauses 1, 2, 3, 4, 5 and 6 of this Article, securities companies and securities investment fund management companies shall disclose information according to Article 13 of this Circular and regulations on establishment and operation of securities companies and securities investment fund management companies.

View more details at the Circular No. 96/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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