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VASB: Closure of agents receiving investors’ orders untimely
The Vietnam Association of Securities Businesses (VASB) has sent a dispatch to the National Assembly Finance and Budget Committee, asking it not to close the agents of securities companies which receive orders from investors for its companies.
According to VASB’s Secretary General Nguyen Thanh Ky, the decision by the Ministry of Finance to close these agents proves not to fit the current circumstances of the market for four reasons.
First of all, the model of the agent belonging to securities companies receiving stock investors’ orders was clearly stipulated when the stock market began operating. To date, legal documents issued on the operation of the stock market have not contravened these institutions.
Second, this kind of agent aims to help securities companies expand their networks, especially in localities where securities companies cannot open branches or transaction offices.
Third, expanding the network of agents receiving orders for securities companies proves to be a strategy that many securities companies have been following for a long time, since the beginning of the market’s operation.
Fourth, order-receiving agents, since their operation, have not caused any considerable losses to clients or securities companies. No big risks for investors have been reported that should force the closure of these agents.
VASB has suggested that instead of closing order-receiving agents, the Ministry of Finance should think of perfecting the legal framework for their operations.
Their operations are recognised in the regulations on the organisation and operation of securities companies released by the Ministry of Finance.
However, the ministry at the end of 2008 promulgated Decision No 126, amending some provisions of the regulation. It asked for the closure of the agents within a year. Following the decision of the ministry, the State Securities Commission has many times urged securities companies to obey the decision.
The ministry’s decision has not been applauded by securities companies and investors, who say that the decision will hinder the development of securities companies and the stock market, while it is also contrary to the policy on pushing up the equitisation of state-owned enterprises.
ACB’s Securities Company (ACBS) said that it has opened 50 agents throughout the country. Phu Gia Securities Company said it has three agents in Dong Nai, Da Lat and HCM City.
Securities companies say that they open order-receiving agents to carry out ‘market exploration’, on the basis of which they decide whether to upgrade the agents into branches.
They have been rushing to open new branches, offices and order-receiving agents, even though the stock market fell for a long time and has only just recovered a little.
VietNamNet, DTCK
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