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Firms discuss deadline to move investors’ accounts
October 1 is fast approaching as the deadline for securities firms to finish moving investors' accounts to commercial banks, in a bid to ensure that traders' money is safely managed.
The following sections are opinions of the State Securities Commission (SSC), the Viet Nam Association of Financial Investors (VAFI) and relevant firms on the matter. The companies include SME Securities and Dong A Bank.
SME Securities
At present, we are finalising the trial of the move with some accounts. In the near future, we will be able to complete the move with all clients' accounts.
The move will actually benefit investors the most as they will be offered many services to use accounts in the most effective way.
For commercial banks, they will double their number of customers, as well as earn a significant profit. When securities firms can focus solely on securities services, they will be able to better develop their services.
In the eyes of a concerned party, we realise that the move between a commercial bank and a securities firm parented by the bank will be much easier than between separate banks and securities firms, as the bank and its securities firm can use the same software system. The effectiveness of the move will be higher.
Meanwhile, for separate securities firms, the move will initially lead to clients spending more time on transactions, and in some emergencies, they won't be able to do transactions at the last minute.
Dong A Bank
We are now connecting with 15 securities firms in this matter, including Empower Securities, Bao Viet Securities and HCM City Securities.
During the connection, we have experienced no substantial difficulties with securities firms. As well, we have set up an IT connection system allowing securities firms with different technical systems to connect to our bank.
The matter now is when the securities firms implement the move.
SSC
Securities firms do not have to receive directly the money from investors to pay for securities trading.
As well, investors' accounts that firms opened or moved to commercial banks must be separate from the firms' accounts for institutional trading. Investors' accounts must be used only for securities trading payments, which is obviously stated in the contract between securities firms and their clients.
VAFI
Market regulators should be stricter in urging securities firms to implement the move of investors' accounts to commercial banks.
As well, regulators should encourage investors to open accounts themselves in commercial banks for securities trading.
In cases where securities firms open accounts for their clients, it's compulsory for the firms' managers to commit their clients to ensure the accounts in commercial banks, avoiding misuse by junior staff.
In case of any violation, violators must be punished with strict measures such as revoking professional certificates.
VNN
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