Decision No. 35/2007/QD-BTC dated May 15, 2007 of the Ministry of Finance issuing Regulations on organization and operation of fund management companies
THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
Hanoi, 15 May 2007
ISSUING REGULATIONS ON ORGANIZATION AND OPERATION OF FUND MANAGEMENT COMPANIES
THE MINISTER OF FINANCE
Pursuant to the Law on Securities dated 29 June 2006;
Pursuant to Decree 14/2007/ND-CP of the Government dated 19 January 2007 making detailed provisions for implementation of the Law on Securities;
Pursuant to Decree 77/2003/ND-CP of the Government dated 1 July 2003 on functions, duties, powers and organizational structure of the Ministry of Finance;
On the proposal of the chairman of the State Securities Commission:
Article 1. To issue with this Decision the Regulations on Organization and Operation of Fund Management Companies.
Article 2. This Decision shall be of full force and effect fifteen (15) days after the date of its publication in the Official Gazette.
Article 3. The Head of the Office, Chairman of the State Securities Commission, fund management companies and parties concerned shall be responsible for implementing this Decision.
FOR THE MINISTER OF FINANCE
Tran Xuan Hanoi
ON ORGANIZATION AND OPERATION OF FUND MANAGEMENT COMPANIES
(Issued with Decision 35/2007/QD-BTC of the Minister of Finance dated 15 May 2007)
Article 1. Governing scope
These Regulations provide for the establishment, organization and operation of fund management companies and for the operation of securities and securities market service providers to fund management companies within the territory of the Socialist Republic of Vietnam.
Article 2. Interpretation of terms
In these Regulations, the following terms shall be construed as follows:
1. Fund management company means an organization with legal entity status which provides services being management of securities investment Funds and management of securities investment portfolios. Apart from licensed fund management companies, other economic institutions shall not be permitted to provide services being management of securities investment Funds and management of investment portfolios.
2. Entrusting investor means any organization or individual who entrusts a fund management company to manage investment of its/his/her assets.
3. Fund management practitioner means a person who has a fund management practising certificate issued by the State Securities Commission and who is working in a professional position in a fund management company.
4. Valid copy means a copy which is notarized [and/or] certified by a competent body of Vietnam.
5. Valid application file means a file containing all the documents required by these Regulations and with all items declared as required by law.
6. Net circulating assets means the difference between short-term assets and short-term debts.
7. Liquid capital means capital in money and assets which are convertible into cash within thirty (30) days.
8. Date of valuation means the day fixed by a fund management company to determine the net asset value of a securities investment Fund ("a Fund") or the net asset value of a securities investment company.
ESTABLISHMENT, ORGANIZATION AND OPERATION
Section 1. ISSUANCE OF LICENCE FOR ESTABLISHMENT AND OPERATION
Article 3. Conditions for issuance of licence for establishment and operation:
1. Having office headquarters and equipment for the professional operation including:
(a) Having the land use right for at least one year to the office headquarters, which must have safe and secure equipment;
(b) Having the minimum facilities and equipment comprising office equipment; a computer system together with software for conducting classification of investments, analysis and risk management; and a system for preserving securities.
2. Having minimum paid up charter capital equal to the level of legal capital stipulated in article 18 of Decree 14/2007/ND-CP.
3. Ensuring a sufficient number of employee are issued with a fund management practising certificate in accordance with the business plan, including at least five employees with a fund management practising certificate based at the head office.
4. The following personnel must satisify the conditions stipulated in article 10 of these Regulations and the conditions for fund management practioners stipulated by the Ministry of Finance: the director or deputy director in charge of fund management and investment portfolio management, the general director or deputy general director in charge of fund management and investment portfolio management, the head of the section in charge of fund management and investment portfolio management, and fund management practioners.
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