Documents serving identification of professional securities investors in Vietnam

Documents serving identification of professional securities investors in Vietnam (Internet image)

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

1. Who are professional investors?

Professional investors are investors that have adequate financial capacity or securities qualifications, including:

(i) Commercial banks, foreign branch banks (FBB), finance companies, insurers, securities companies, fund management companies, securities investment funds, international financial institutions, off-budget financial funds, state-owned financial institutions permitted to buy securities as prescribed by relevant laws;

(ii) Any company whose contributed charter capital exceeds 100 billion VND; every listed or registered organization;

(iii) Holders of securities professional certifications;

(iv) Any individual holding a quantity of listed or registered securities that is worth at least 02 billion VND as confirmed by the securities company;

(v) Any individual whose taxable income in the latest year is at least 01 billion according to his/her submitted tax return or tax deduction documents of his/her income payer.

(Article 11 of the Law on Securities 2019)

2. Documents serving identification of professional securities investors in Vietnam

Specifically, in Article 5 of Decree 155/2020/ND-CP, the documents serving identification of professional securities investors are as follows:

- For the organizations mentioned in Point a Clause 1 Article 11 of the Law on Securities 2019: the Certificate of Enterprise Registration or Establishment and Operation License or equivalent documents.

- For the organization mentioned in Point b Clause 1 Article 11 of the Law on Securities 2019:

+ For listed or registered organizations: the decision on listing or registration;

+ For organizations other than listed or registered organizations: the Certificate of Enterprise Registration or equivalent documents; audited annual financial statement or examined half-year financial statement.

- For the individuals mentioned in Point c Clause 1 Article 11 of the Law on Securities 2019:

+ Unexpired ID card or passport;

+ Unexpired securities practicing certificate.

- For the individuals mentioned in Point d Clause 1 Article 11 of the Law on Securities 2019:

+ Unexpired ID card or passport;

+ Certification by the securities company where the investor opens the securities trading account of market values of listed or registered securities when the individual is identified as a professional securities investor.

- For the individuals mentioned in Point dd Clause 1 Article 11 of the Law on Securities 2019:

+ Unexpired ID card or passport;

+ Tax declaration dossier submitted to the tax authority or tax deduction documents of the latest year before the individual is identified as a professional securities investor.

3. Securities-related offences in Vietnam

Individuals and organizations are strictly prohibited from performing the following acts:

- Direct or indirect commission of frauds, forgery of documents, provision or disclosure of false information to conceal true information or omit necessary information in a manner that causes misunderstanding, adversely affects the offering, listing, trading, investment of securities and provision of securities-related services.

- Use of internal information to buy or sell securities to oneself or another person; revelation or provision of internal information; advising another person to buy or sell securities based on internal information.

- Use of one or several accounts of oneself or another person, trading securities in a manner that creates artificial demand or supply; collaborating with another person in trading securities to manipulate securities prices; use of other methods, with or without false information, to manipulate securities prices.

- Engaging in securities trade or provision of securities-related services without a license, certification or approval from SSC.

- Use of a client’s account or asset without the client’s authorization or against the law; abuse of trust to appropriate a client’s assets.

- Allowing another person to borrow the account to trade securities, hold securities in the name of another person for the purpose of manipulating securities prices.

- Organizing the securities market against regulations of the Law on Securities 2019.

(Article 12 of the Law on Securities 2019)

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