Vietnam: Securities-trading organization placed under special control shall submit report before 16:00 every Friday

Specifically, according to Article 18 of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, the Board of Directors, Board of Members, President, Director General (Director) of the securities-trading organization placed under control or special control shall:

- Develop a remediation plan and organize the implementation of such plan;

- Continue managing, controlling and administering operation and ensuring safety of securities-trading organization’s assets in accordance with law;

- Take responsibility for the issues concerning organizational structure and operation of the securities-trading organization before, during and after the period of control or special control;

- Provide assistance for or enable other organizations to perform their duties as prescribed in this Circular and perform other tasks at the request of the State Securities Commission of Vietnam (SSC).

Before 16:00 every Friday, the securities-trading organization shall submit a report on the implementation of the remediation plan and results. During the control or special control period:

- A securities-trading institution shall not pay stock dividends to its shareholders, divide profits to its capital contributors or give bonuses to members of the Board of Directors, Board of Members, Board of Controllers, Director General (Director), Deputy Director General (Deputy Director), chief accountant, staff members and relevant individuals;

- The securities-trading organization must not convert unsecured debts into debts secured by its assets;

- The securities-trading organization must not purchase treasury stocks or redeem the stake from capital contributors;

- The securities-trading organization must not sign new and extended margin trading contracts, securities lending and purchase contracts, purchase transactions with a commitment to resell securities and contracts on provision of loans to customers without secured assets and continue carrying out these contracts and transactions; and must not sign the firm commitment underwriting agreement;

- The securities-trading organization must not establish new transaction offices, branches and representative offices, expand its operation area and provide new services;

- The securities-trading organization must not contribute capital to establish subsidiaries or invest in real estate; must avoid investment in high-risk assets or business operations that increase its risk value and reduce liquid capitals.

- A securities company shall manage only securities trading money by having its customers open accounts at commercial banks selected by the securities company.

View more details at the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

Le Vy

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