Vietnam: The assets of the investment company are not under the ownerships of the supervisory bank

Specifically, according to Article 32 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, the tangible and intangible assets of the investment company, registered under the name of the investment company or not (in case the asset ownership is not registered as prescribed by law), deposited at the depository bank, supervisory bank, and secondary depository (if any) are under the ownerships of the investment company, not the depository bank, supervisory bank, or asset management company. The depository bank and supervisory bank may not use assets of the investment company to make payments and guarantee the debt repayments of them or of a third party, including the asset management company.

- The transactions of the investment company on the account of the depository bank and supervisory bank, including money reception, payments, reception of dividends, bond interest, and other incomes must be specified that they belong to the investment company.  Where the transactions are made on the accounts or under the name of the secondary depository organization as prescribed by law, these transactions and assets therein must be specified that they belong to the investment company, via the supervisory bank.

- The depository bank and supervisory bank must have an appropriate technical system to automatically receive, monitor, make, and pay for the asset transactions on the accounts of the investment company, unless otherwise required in written directives from the asset management company. This system must satisfy the following conditions:

+ All assets of the investment company are recorded in accounting books. All changes related to the assets must be completely, accurately, and promptly recorded;

+ The receipts and expenses, dividends, bond interest, and incomes are recorded;

+ Entries and payments for expenditures are made;

+ Receive and make entries in accounting books from the additional issues, restructuring of the issuers, and other relevant changes.

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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