Regulations on names of securities companies and fund management companies in Vietnam

Regulations on names of securities companies and fund management companies in Vietnam (Internet image)

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

1. Regulations on names of securities companies and fund management companies in Vietnam

Regulations on names of securities companies and fund management companies according to Article 82 of the Law on Securities 2019 are as follows:

- Names of securities companies and fund management companies shall comply with regulations of the Law on Enterprises, Clause 2 and Clause 3 of Article 82 of the Law on Securities 2019.

- The Vietnamese name of a securities company consists of the following elements from left to right:

+ The type of business;

+ The phrase “chứng khoán” (“securities”);

+ The company’s proper name.

- The Vietnamese name of a fund management company consists of the following elements from left to right:

+ The type of business;

+ The phrase “quản lý quỹ” (“fund management”);

+ The company’s proper name.

- A organization that is not a securities company or fund management company must not use the phrase “chứng khoán” or “quản lý quỹ” in its name,

Or any other phrases and terms that may create a false impression that it is a securities company or fund management company.

2. Contents of the securities trading license in Vietnam

Contents of the securities trading license under Article 81 of the Law on Securities 2019 is as follows:

- The securities trading license of a securities company or fund management company shall have the following contents:

+ The company’s name;

+ Addresses of the headquarters;

+ Business operations;

+ Charter capital;

+ The legal representative.

- The securities trading license of the branch of a foreign securities company or foreign fund management company shall have the following contents:

+ Name, address and operations of the branch;

+ The parent company’s name;

+ The parent company’s address;

+ Capital provided for the branch;

+ The branch manager.

- Changes to the securities trading license mentioned in Clause 1 and Clause 2 of Article 81 of the Law on Securities 2019 are subject to approval by SSC.

- Within 10 days from the day on which SSC approves the changes mentioned in Clause 3 of Article 81 of the Law on Securities 2019, the license holder shall inform the changes to the business registration authority in accordance with enterprise laws.

3. Official inauguration date in Vietnam

Official inauguration date according to Article 84 of the Law on Securities 2019 is as follows:

- Securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies shall inaugurate within 12 months after they are licensed.

- Securities companies, fund management companies, branches and representative offices of foreign securities companies and fund management companies must not trade securities before their official inauguration dates.

- A securities company or fund management company may start to operate after:

+ It has been granted enterprise registration as prescribed in Article 71 of the Law on Securities 2019;

+ It has processes for operation, risk management, internal control;

+ The charter has been approved by General Meeting of Shareholders, the Board of members or the owner.

- The branch of a foreign securities company or fund management company may start to operate after the requirements in Point a and Point b Clause 3 of Article 84 of the Law on Securities 2019 are satisfied.

- The licensed securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies shall send a notice of their fulfillment of requirements in Clause 3 and Clause 4 of Article 84 of the Law on Securities 2019 to SSC at least 15 days before their official inauguration date.

SSC will suspend operation of the securities companies, securities investment fund management companies, branches in Vietnam of foreign securities companies and asset management companies that fail to fully satisfy the requirements in Clause 3 and Clause 4 of Article 84 of the Law on Securities 2019.

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