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Foreign securities reps get new rules
The Ministry of Finance has issued rules specifically for the establishment and operation of foreign representative offices related to securities in Viet Nam.
There are only about 10 international representative offices which have been granted operation registration certificates by the State Securities Commission (SSC). Dozens of foreign representative offices are also operating without being licensed by the SSC.
The new rules are a move to legalise and standardise the operation of these firms using more specific regulations.
A lawyer from Bross and Partners Advocates and Solicitors, who wanted to remain anonymous, said that previously these companies operated under general regulations for overseas representative offices.
The Ministry of Planning and Investment has the responsibility for granting licences for representative offices. Foreign offices doing business in securities are required to get a sub-licence from the SSC.
Securities offices, which were set up before the Law on Securities came into effect (January 1, 2007) and did not get licences will now have to be licensed by the SSC.
Herein, the representative offices will not be allowed to do business, or manage assets and investment capital for investors. This includes the capital injected by the overseas holding companies into Viet Nam and other securities trade activities in the country.
Offices are only allowed to operate as communication offices and do research on the stock market, and supervise the contract implementation process and donation schemes.
The certificate for each office has a maximum duration of five years. If foreigners are employed at the office, the SSC must be informed within five working days.
VietNamNet, Viet Nam News
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