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New rules for asset managers to improve trading security
An asset-management company should only be allowed to operate if it has at least two financial institutions as founding members. The two institutions must hold a minimum of 65 per cent of the company’s charter capital.
This is the basis of a revised draft on fund-management companies by the State Securities Commission. The proposal has been published for consultation.
The existing regulation allows founders to hold just 20 per cent of charter capital. An official from the commission who wants to stay anonymous said the changes were needed to keep pace with developments in the stock market.
"The Securities Law, which was established a year ago, has some shortcomings," the official said, adding that the higher requirements would make firms work better, as well as raising competitiveness between fund managers.
In the draft, the founders of an asset-management company must not have previously established another similar company in Viet Nam.
Founding members have to prove their ability to double the financial stakes they hold in a company. If their possessions are in securities, not money, the securities must be listed on the stock exchange.
Recently, the State Securities Commission stopped giving licences to new fund management companies and securities firms so that it could review activities.
"The suspension will last until we have a detailed plan for the operation of new firms," the official said.
Nguyen Tien Dung, an independent analyst, said the commission was trying to improve trading security on the stock exchange, which would benefit investors.
VNS
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