Operating instructions for branches of foreign securities companies in Vietnam

Le Hai

17:15, 01/01/2021

On November 16, 2020, the Ministry of Finance of Vietnam issued the Circular No. 97/2020/TT-BTC providing guidance on operation of representative offices and branches of foreign securities companies and foreign fund management companies in Vietnam.

According to the Circular No. 97/2020/TT-BTC of the Ministry of Finance of Vietnam, a branch shall be allowed to provide securities investment consultancy services only. A branch shall provide analysis outcomes and reports, and recommendations for clients with or without collecting fees in the following cases:

- Provide reports on analysis of transactions on the securities market, and investment recommendations;

- Provide reports on analysis of operations of public companies, listed companies and other enterprises, and investment recommendations;

- Enter into securities investment consultancy service contracts with clients.

A branch is not allowed to make investments in securities on behalf of clients; reach agreements with clients for sharing profits or losses; advertise or declare that the efficiency or value of its securities analysis methods is higher than those of other securities companies; etc.

More details at the Circular No. 97/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

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