06 Operations subject to approval by State Securities Commission in Vietnam

06 Operations subject to approval by State Securities Commission in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is the State Securities Commission?

According to Clause 1, Article 9 of the Law on Securities 2019, State Securities Commission (SSC) is affiliated to the Ministry of Finance and is responsible for advising and assisting the Minister of Finance in state management of securities and the securities market, organizing implementation of regulations of law on securities and the securities market as authorized by the Minister of Finance

2. Operations subject to approval by SSC in Vietnam

A securities company or fund management company shall obtain a written approval of SSC before initiating the following operations:

(i) Suspension of operation, except for force majeure events;

(ii) Offering and listing securities of the company overseas;

(iii) Making indirect outward investments;

(iv) Establishing, closing a branch or representative office in Vietnam or overseas; establishing an overseas subsidiary; changing business operations at the branch; establishing or closing a transaction office;

(v) Changing the name or location of a branch, representative office or transaction office;

(vi) Provision of the services mentioned in Point b Clause 1 Article 86 of the Law on Securities 2019.

In addition, the suspension of the branch in Vietnam of a foreign securities company or fund management company in the cases specified in Point a Clause 1 of this Article is subject to written approval by SSC.

(Clause 1, 2, Article 87 of the Law on Securities 2019)

3. Duties and entitlements SSC in Vietnam

Pursuant to Clause 1, Article 9 of the Law on Securities 2019,SSC has the following duties and entitlements:

- Propose legislative documents on securities and the securities market, strategies, plans, schemes and policies on development of the securities market to the Minister of Finance or a competent authority for promulgation;

- Organize and develop the securities market; directly manage and supervise securities activities; manage services related to securities and the securities market in accordance with regulations of law;

- Issue, reissue, renew, revise, revoke licenses, securities professional certifications, certificates related to securities activities; revise, suspend and revoke decisions relevant to securities activities;

- Manage, inspect, supervise operations of VSE, its subsidiaries and VSDCC; consider approving regulations of VSE, its subsidiaries and VSDCC;

Request VSE, its subsidiaries and VSDCC to revise their regulations; revise, suspend and revoke decisions relevant to operations of VSE, its subsidiaries and VSDCC; direct VSE, its subsidiaries and VSDCC to fulfill duties to protect the lawful rights and interests of investors;

- Consider approving new securities; change and apply new transaction methods;

- Manage and supervise operations related to securities and the securities market of organizations and individuals;

- Carry out inspections; settle complaints and denunciations; impose administrative penalties against securities-related offences;

- Submit reports to the Ministry of Finance on the securities market developments. Submit a report to the Ministry of Finance, the Government and the Prime Minister on any adverse event that considerably affect the security and safety of the securities market in order to stabilize the market and maintain financial security and safety;

- Implement or request a competent authority to implement measures for assurance of securities market safety and security;

- Produce statistics and forecasting about securities activities and the securities market; modernize information technology serving securities activities and the securities market;

- Provide or cooperate with relevant organizations in providing training for securities officials and certified securities professionals; spread knowledge about securities and the securities market in the public.

- Issue instructional documents and other documents under the management of SSC;

- Supervise securities-related socio-professional organizations implementing their charters and guidelines;

- Prepare and submit reports on securities trading and securities market as prescribed by law;

- Promote international cooperation and coordinate implementation of securities-related international agreements to which Vietnam is a signatory;

- Other duties and entitlements provided for in this Law and relevant laws.

Nguyen Thi Hoai Thuong

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