Cases of dissolution of securities investment fund in Vietnam

Cases of dissolution of securities investment fund in Vietnam (Image from Internet)

1. Cases of dissolution of securities investment fund in Vietnam

According to Clause 1, Article 104 of the Securities Law 2019, a securities investment fund in Vietnam shall be dissolved in the following cases:

- Upon the expiration of the operational period specified in the charter of the securities investment fund;

- When the general meeting of investors decides to dissolve the securities investment fund before the expiration of the operational period specified in the charter of the securities investment fund;

- The fund management company has its establishment and securities business operation license revoked or is dissolved or bankrupt, and the fund's representative board fails to appoint a replacement fund management company within 2 months from the date of the event;

- The supervisory bank has its certificate of securities custody registration revoked, is dissolved or bankrupt, or the supervision contract between the supervisory bank and the fund management company is terminated and the fund management company fails to appoint a replacement supervisory bank within 2 months from the date of the event;

- The net asset value of the securities investment fund falls below 10 billion VND continuously for 6 months;

- Other cases as stipulated in the charter of the securities investment fund.

2. Provisions on the Charters of securities investment funds in Vietnam

The provisions on the charter of securities investment funds in Vietnam according to Article 103 of the Securities Law 2019 are as follows:

- The charter of the securities investment fund is drafted by the fund management company and approved by the general meeting of the securities investment fund's investors.

- The charter of the securities investment fund shall include the following main contents:

+ Name of the securities investment fund, fund management company, and supervisory bank;

+ Date of establishment of the securities investment fund;

+ Operational objectives; investment fields; operational period of the securities investment fund;

+ Contributed capital and regulations on changes in the charter capital of the securities investment fund;

+ Rights and obligations of the fund management company and supervisory bank; cases of changes in the fund management company and supervisory bank; provisions on authorizing the fund management company to sign the supervision contract with the supervisory bank;

+ Regulations on the representative board of the securities investment fund and the general meeting of the securities investment fund's investors;

+ Investment restrictions of the securities investment fund;

+ Provisions on the registration of fund certificate ownership and maintenance of the investor registration book of the securities investment fund;

+ Provisions on selecting the supervisory bank; selecting and changing the acceptable auditing organization;

+ Provisions on the transfer, issuance, and redemption of open-ended fund certificates; provisions on listing closed-end fund certificates;

+ Types of expenses and income of the securities investment fund; fee and bonus levels for the fund management company and supervisory bank; cases and methods of distributing income of the securities investment fund to investors;

+ Methods for determining the net asset value of the securities investment fund and the net asset value per fund certificate;

+ Regulations on resolving conflicts of interest;

+ Regulations on reporting policies;

+ Regulations on the dissolution of the securities investment fund;

+ Commitments of the supervisory bank and the fund management company on fulfilling obligations to the securities investment fund, investors, and complying with the charter of the securities investment fund;

+ Procedures for amending and supplementing the charter of the securities investment fund.

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