Vietnam: The investment company shall report to the State Securities Commission when it replaces the supervisory bank

According to Article 34 of Circular No. 227/2012/TT-BTC of the Ministry of Finance of Vietnam, when replacing depository bank and supervisory bank, the investment company shall send a report to the State Securities Commission, enclosed with the following documents:

- The notice of the replacement of the supervisory bank or depository bank, specifying the reasons, together with the commitment made by the depository bank or supervisory bank to completely hand the rights and obligations to the assets of the investment company over to the alternative bank;

- The meeting minutes and decision of the General meeting of shareholders on the replacement of the depository bank or supervisory bank, specifying the alternative one; the approval for the plan for transferring assets from the old depository bank or supervisory bank to the alternative one;

- The depository principle contract, and the supervisory principle contract signed with the alternative depository bank or supervisory bank;

- The revised charter of the investment company;

- The plan for handing over the rights and obligations between the banks, even during the handover, and the methods for resolving the issues concerning the rights and obligations of relevant parties.

Note: The depository bank and supervisory bank shall have their rights and obligations to the investment company terminated in the following cases:

- The depository bank and supervisory bank are divided, split, dissolved, bankrupted, amalgamated, merged, having its legal status changed, or having their Certificate of Security depository registration revoked, as prescribed in Clause 2 Article 51 of the Law on Securities;

- The depository or supervision contract is unilaterally terminated;

- The investment company has passed its operating period, or is dissolved, amalgamated, or merged;

- The termination is decided by the General meeting of shareholders of the investment company.

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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