What are the penalties for violations of regulations on securities trading license in Vietnam?

What are the penalties for violations of regulations on securities trading license in Vietnam? (Internet image)

Article 20 of Decree 108/2013/ND-CP stipulates administrative sanctions for violations of regulations on securities trading license in Vietnam as follows:

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on a securities company, fund management company or securities investment company; a Vietnam-based branch of a foreign securities company or fund management company which uses the name of the company, branch, representative office or transaction bureau; or renames of company, branch, representative office or transaction bureau in contravention of regulations.

2. A fine of between VND 10,000,000 and 30,000,000 shall be imposed on Vietnam-based branch of a foreign securities company or fund management company which fails to conduct procedures for adjusting permit of establishment and operation of branch in accordance with law.

3. A fine of between VND 50,000,000 and 70,000,000 shall be imposed on a securities company, fund management company or securities investment company; a Vietnam-based branch of a foreign securities company or fund management company which fails to revise, supplement dossier of requesting for grant, adjustment of permit of establishment and operation when detect incorrect information or omitted important content required by regulations to be included in dossier or when arising important information involving dossier already filed.

4. A fine of between VND 70,000,000 and 100,000,000 shall be imposed on a securities company, fund Management Company or securities investment company; a Vietnam-based branch of a foreign securities company or fund management company which conducts any of following violations:

• Setting up or shutting down a branch, representative office or transaction bureau based in Vietnam or foreign country or investing abroad without approval of State Securities Commission;

• Conducting its separation, splitting up, merger, consolidation or transformation or dissolving itself before schedule or suspends its operation without approval of the State Securities Commission, unless otherwise provided for by law.

5. A fine of between VND 100,000,000 and 150,000,000 for any of the following violations:

• Erasing, modifying the permit;

• Borrowing, hiring permit, receiving the permit transfer or lending, leasing, transferring its permit;

• Conducting securities business or providing securities services at locations without approval of the State Securities Commission or changing location of head office, branch, representative office, transaction room without approval of the State Securities Commission;

• Conducting securities business or providing securities services while failing to meet all conditions as prescribed by law.

6. A fine of between VND 200,000,000 and 300,000,000 for any of the following violations:

• Conducting securities business or providing securities services without license or approval of the State Securities Commission, providing securities services, financial services without written opinion of the State Securities Commission or without guiding regulations of competent state agencies;

• Operating not in compliance with its license.

7. A fine of between VND 200,000,000 and 300,000,000 shall be imposed on act of compiling or certifying a dossier of application for an establishment and operation license or its supplementation, which contains misleading information, hiding the truth or having been seriously falsified.

More details can be found in Decree 108/2013/ND-CP, which comes into force from November 15, 2013.

Ty Na

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