Regulations of representative offices of securities companies in Vietnam
Regulations of representative offices of securities companies in Vietnam. Rights and obligations of representative offices of securities companies in Vietnam. Let us learn about this topic with LSX Law firm below:
Conditions for establishing representative offices of securities companies in Vietnam
A foreign securities company or fund management company may establish a representative office in Vietnam when it meets the following conditions:
Firstly, licensed and operating legally in the country of origin;
In addition, the licensing agency of the country of origin and the State Securities Commission have signed a bilateral; or multilateral cooperation agreement on information exchange; cooperation in management, inspection and supervision of securities activities and the stock market; or foreign securities companies or fund management companies that are managing funds currently investing in Vietnam. The remaining operation term (if any) is at least 01 year.
Operational scope of representative offices of securities companies in Vietnam
The scope of operation of a representative office of a securities company; or foreign fund management company in Vietnam includes one, some or all of the following contents:
First, perform the function of liaison office and market research;
Secondly, promoting the construction of cooperation projects in the field of securities and securities market in Vietnam;
Thirdly, promote and supervise the implementation of agreements signed between securities companies, foreign fund management companies, and Vietnamese economic organizations;
In addition, they are promoting and supervising the implementation of projects sponsored by securities companies and foreign fund management companies in Vietnam.
Moreover, representative offices of securities companies, foreign fund management companies in Vietnam are not allowed to conduct securities business activities.
Besides, the State Securities Commission granted the Certificate of Operation Registration; manage and supervise operations of representative offices of securities companies and foreign fund management companies in Vietnam.
Rights and obligations of representative offices of securities companies in Vietnam
Firstly, can open an account in foreign currency or in Vietnam dong with foreign currency origin at a commercial bank licensed to conduct foreign exchange business in Vietnam and only use this account for operations of the representative office. The opening, use, and closing of accounts of representative offices shall comply with relevant laws;
Additionally, to recruit Vietnamese and foreign workers to work at representative offices under Vietnamese law. Within 30 days from the date of recruitment of foreign workers to work at representative offices in Vietnam; the parent company or representative office (in case authorized by the parent company) must notify the State Securities Commission of the recruitment of foreign personnel; accompanied by documents certifying the approval of the competent state management agencies under the provisions of the Labor Code;
Moreover, having its seal according to the provisions of Vietnamese law and only using this mark in transaction documents under the authority and function of the representative office;
Furthermore, only perform activities according to the contents and within the operation duration specified in the representative office operation registration certificate; not be allowed to conduct securities business activities in Vietnam; not perform asset management, investment capital management for investors, including the parent company’s investment capital in Vietnam and other securities business activities in Vietnam;
Also, other rights and obligations as prescribed by law.
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Related questions
Vietnam Stock Exchange is an enterprise established and operating under the provisions of this Law and the Law on Enterprises, in which the State holds more than 50% of the charter capital or the total number of voting shares.
Stock broker is an intermediary to buy and sell securities for customers.
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