Vietnam: Using securities of customers for pledge shall be fined from VND 200 million to VND 300 million

According to Decree No. 108/2013/NĐ-CP of Vietnam’s Government, a fine of between VND 200,000,000 and 300,000,000 for any of the following violations:

1. Appropriating securities, money under the possession of customers or temporarily keeping securities, money under the possession of customers in form of depository under name of Securities Company;

2. Lending money, securities on accounts of customers;

3. Using securities of customers for pledge;

4. Using a customer's account or money or securities on such account without authorization of Securities Company according to written entrustment of this customer to Securities Company;

5. Buying or letting its customers buy securities when these customers do not possess securities or letting its customers borrow securities, unless otherwise provided for by law.

Moreover, a fine of between VND 150,000,000 and 200,000,000 for any of the following violations:

- Changing the priority order of orders of customers; misusing the access with information of orders of customers which have not yet entered into the transaction system so as to make an order for himself/herself or another individual or organization on the basis of anticipating that information in the transaction orders of customers able to impact appreciably on price of securities, with the aim to earn benefit from change of securities prices;

- Using name or account of a customer to register, make securities transactions;

- Buying, selling securities on the entrusted transaction account in excess of the entrusted scope, value of entrusted assets and investment objective of the entrusting customers.

View more details at Decree No. 108/2013/NĐ-CP of Vietnam’s Government, effective from November 15, 2013.

Ty Na

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