Vietnam: When is a securities-trading organization put under warning?

Specifically, according to Article 13 of the Circular No. 91/2020/TT-BTC of the Ministry of Finance of Vietnam, the State Securities Commission (SSC) shall issue the decision to issue warning to a securities-trading organization in the following cases:

- The liquid capital ratio reaches from 150% to below 180% during the reporting periods in three (03) consecutive months; or

- The liquid capital ratio that has been examined or audited by an accredited audit organization reaches from 150% to below 180%; or

- The prudential indicator report about which the accredited audit organization issue a dissenting or contrary opinion, or a disclaimer of opinion, or fails to give any opinion, or issues a qualified opinion, the liquid capital ratio is from 150% to below 180%, if the exceptions are not included in the liquid capitals.

Note: The warning period begins when a warning is issued against the securities-trading organization and ends when SSC issues a decision to lift the warning.

Concurrently, SSC will consider lifting the warning when the securities-trading organization’s liquid capital ratio reaches 180% or more in three (03) consecutive months, the liquid capital ratio during the last reporting period has been audited by an accredited audit organization, and the securities-trading organization has submitted a report according to Appendix XI hereof to SSC.

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

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE