Vietnam: Severe fine for failing to enter into written entrustment contracts

According to Clauses 2 and 3 Article 77 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, administrative penalties for violations against regulations on trading in goods via mercantile exchange are as follows:

A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for committing one of the following violations:

- Failing to notify the Ministry of Industry and Trade of trading in goods via a foreign mercantile exchange;

- Trading in goods via the mercantile exchange by an entity that is not the trading member of the mercantile exchange.

A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed upon an employee of the mercantile exchange for committing one of the following violations:

- Failing to record the trading in goods via the mercantile exchange of each client separately from his/her trading;

- Failing to keep contracts or orders for entrusted transactions and requests for modification or cancellation or orders for entrusted transactions of clients;

- Failing to keep adequate documents and accounts reflecting accurate details about transactions of clients and about his/her transactions;

- Failing to notify clients of reasons for termination of his/her membership and performance of obligations under the signed entrustment contracts;

- Failing to notify or notifying transactions to clients against regulations;

- Failing to enter into written entrustment contracts with clients as prescribed by law or conducting transactions for clients without receiving their orders;

- Acting as a broker without entering into contracts with clients as prescribed;

- Receiving entrustment for conducting transactions against regulations.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, issued on August 24, 2020.

Le Vy

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