Vietnam - Brokers in financial distress face suspension

Stock market authorities will suspend member securities firms plagued with financial problems or violations of regulations on report submissions, transactions or payments, said Vu Bang, chairman of the State Securities Commission (SSC).

“Stock exchanges have suggested some rule-breaking brokerages be suspended but we still need further consideration,” Bang told the Daily last week.

Customers will be affected if those brokers are asked to suspend operations immediately. Therefore, SSC initially will announce suspension decisions but they will come into force 15 days later to give customers some time to shift to other companies.

Bang noted it was not time to publicize poor-performing securities firms for the sake of their customers. Information about these companies should be searched on the market, in the Vietnam Securities Depository, and at stock exchanges and state agencies.

Securities firms in Vietnam incurred total losses of 2 trillion dong in the first nine months. In principle, losses are the matter of these enterprises but they must bear responsibility for the interests of their clients, Bang said.

SSC has mapped out a securities firm restructuring project and submitted it to the Ministry of Finance and the Government. Those with serious financial problems will be forced to stop their brokering services so as to protect customers’ interests.

“As there is no legal framework regarding this matter, SSC has asked the Vietnam Securities Depository to issue warnings to investors,” Bang said.

Saigon Times

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