Requirements in the private fund management activities of of the fund management company in Vietnam

Nguyen Trinh

17:10, 01/01/2021

This is a notable content of the Circular No. 98/2020/TT-BTC of the Ministry of Finance of Vietnam providing guidance on operation and management of securities investment funds.

According to Clause 5 Article 5 of the Circular No. 98/2020/TT-BTC of the Ministry of Finance of Vietnam, when managing a private fund, the fund management company shall:

- Not use the fund’s capital and assets to make investments in that fund;

- Not use the fund’s capital and assets to provide loans or loan guarantees; not underwrite the offering of securities;

- Invest in public fund certificates and shares of public securities investment companies managed by other fund management companies, but ensure the following limits:

+ Not invest in more than 10% of total outstanding fund certificates of a public fund or total outstanding shares of a public securities investment company;

+ Not invest more than 20% of total value of its assets in fund certificates of a public fund or shares of a public securities investment company;

+ Not invest more than 30% of total value of its assets in public fund certificates or shares of public securities investment companies.

- …

More details at the Circular No. 98/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2021.

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