Fines for violations against regulations on license for establishment and operation in Vietnam are sharply increased from 2021

No.

Violation

Fine

Additional penalties

1

A branch of foreign securities company or foreign fund management company in Vietnam for failing to follow procedures for modification of the license for establishment and operation of branch in accordance with regulations of law

VND 10.000.000 - VND 30.000.000

(VND 5.000.000 - VND 30.000.000 according to the previous regulation)

None

2

A securities company, securities investment fund management company, securities investment company or branch of foreign securities company or foreign fund management company in Vietnam fails to revise the application for issuance or modification of the license/certificate when finding inaccurate or inadequate information, or any new information related to the submitted application

VND 70.000.000 - VND 100.000.000

(VND 50.000.000 - VND 70.000.000 according to the previous regulation)

None

3

A securities company, securities investment fund management company, securities investment company or branch of foreign securities company or foreign fund management company in Vietnam trades securities before the official inauguration date

None

4

A founding shareholder or capital contributor during establishment of a securities company or securities investment fund management company for transferring their shares or stakes within the transfer restriction period

VND 100.000.000 - VND 150.000.000

(remained the same as the previous regulation)

None

5

Erasing or altering contents of the license

VND 150.000.000 - VND 200.000.000

(VND 100.000.000 - VND 150.000.000 according to the previous regulation)

The exhibits and instrumentalities which are erased or altered documents shall be confiscated

6

Borrowing, hiring or receiving transfer of license, or lending, leasing or transferring the license; failing to trade securities or provide securities services in its own name; using the names of others or allowing others to use its name to trade securities or provide securities services

None

7

Conducting securities operations before obtaining the license of the State Securities Commission of Vietnam (SCC)

VND 200.000.000 - VND 300.000.000

(VND 100.000.000 - VND 150.000.000 according to the previous regulation)

None

8

Trading securities or providing securities services or other services which must be reported to SSC before submitting reports to SSC or obtaining SSC’s approval or a competent authority’s written instructions; providing securities services other than the licensed ones as prescribed in Article 86 of the Law on Securities of Vietnam

Securities activities or services shall be suspended for a period of 01 – 03 months

9

Operating for improper purposes or against the issued license or certificate or the approved contents

Securities activities or services shall be suspended for a period of 01 – 03 months

10

Continuing operations or performing prohibited or restricted acts during the operation period, after termination of operation or while the license or certificate is revoked

None

11

Preparing or certifying the application for issuance or modification of the license for establishment and operation which contains forged documents or false information or conceals true information

VND 400.000.000 - VND 500.000.000

(VND 200.000.000 - VND 300.000.000 according to the previous regulation)

Securities activities or services shall be suspended for a period of 01 – 03 months

12

Preparing or certifying the application for certificate of eligibility to trade derivatives or provide clearing services or derivatives payment services which contains forged documents or false information