Brokerage Houses Banned from Providing Online Transaction Services when Placed under Special Supervision

According to the Circular 87/2013/TT-BTC of the Ministry of Finance, which takes effect on August 15, 2013, to provide electronic securities transaction services, securities companies must be members of stock exchanges, connect with the transaction systems of stock exchanges, and register online securities transaction services provided with the State Securities Commission of Vietnam. In case securities companies are suspended from operation or transaction to end their membership with stock exchanges or be placed under the status of special supervision by the State Securities Commission of Vietnam, they are not allowed to provide online securities transaction services.

 

In addition, the Ministry of Finance specifies that securities companies must provide services directly for investors, not authorise or hire other unlicensed organizations. They must also keep and ensure the integrity and originality of electronic documents and orders and digitally record phone calls placed by customers in at least 10 years. They are responsible to secure investors’ information and they are not allowed to release investors’ information related to cash balance, securities balance and others.

 

Websites and emailing systems of securities must be verified by digital certificate.