GUIDANCE ON IMPLEMENTATION OF THE GOVERNMENT’S DECREE NO. 69/2016/ND-CP DATED JULY 01, 2016 REGARDING REQUIREMENTS FOR RUNNING DEBT TRADING SERVICES

This Circular provides guidance on implementation of the Government’s Decree No. 69/2016/ND-CP dated July 01, 2016 regarding requirements for running debt trading services (hereinafter referred to as Decree No. 69/2016/ND-CP).

1. Enterprises running debt trading service under the regulation scope of the Decree No. 69/2016/ND-CP.

2. Entities in need of running debt trading services.

3. Other agencies, entities and individuals involved.

1. When starting running debt trading services and during operation, enterprirses running debt trading services must satisfy all of the requirements mentioned in the Decree No. 69/2016/ND-CP in corresponding with their debt trading service types and publish their satisfaction of requirements for running debt trading services in terms of capital and internal management regulations, including internal regulations on personnel management, internal regulations on debt trading activities and regulations on operation of debt trading floors at their head offices and on their websites.

2. Enterprises must retain documents proving their satisfaction of requirements for running debt trading services and present them upon request of competent authorities.

While running debt trading services, the enterprise’s charter capital/ actual investment capital recorded in its balance sheet must be higher than or equal to the minimum capital levels prescribed in the Decree No. 69/2016/ND-CP in corresponding with each type of debt trading service.

1. When starting debt trading activities, the enterprise’s internal management regulations in terms of personnel management and debt trading activities promulgated by its competent authority as defined in its charter must be available.

2. When starting providing debt trading floor services, the debt trading floor service provider must have the regulations on operation of debt trading floor, which specify all of contents prescribed in Clause 5 Article 8 of Decree No. 69/2016/ND-CP promulgated by its competent authority as defined in its charter.

At the time when a person is appointed as manager of an enterprise running debt trading service, he/she must have the following documents available:

1. The Criminal Record Statement.

2. The Bachelor’s Degree (or higher) in one of the following fields of study: Economics, Business Administration, Law or other specialty which he/she is appointed to take charge of.

3. The Written Commitment made with the enterprise running debt trading service to guarantee the appointed manager’s satisfaction of requirements mentioned in Points a, c, d Clause 3 Article 5 of the Decree No. 69/2016/ND-CP.

Before running debt trading floor services, the enterprise must have:

1. The auditted financial statements proving that the enterprise has provided debt trading services for at least 01 year up to the time of starting providing debt trading floor services, and earned at least VND 500 billion of revenues from debt trading services in the year preceding the year in which it is going to run debt trading floor services.

2. The original written explanation about the enterprise’s technical facilities and information technology system that meet requirements for operation of a debt trading floor to receive, update and provide information about debt trading activities between trading floor participants; software system for managing and supervising transactions, including retention and provision of information about debts to be posted on the trading floor.

3. Labour contracts signed with at least 02 persons who possess certificate of professional auditor or at least 02 persons who have practicing card in valuation granted by Minister of Finance.

1. Within 30 days from the ending date of the finacial year and in irregular circumstances, the enterprise running debt trading services must submit reports to the People’s Commitee of province or central-affiliated city where its head office is located on its satisfaction of requirements for running debt trading service, operating results and its compliance with law according to guidance by the People’s Commitee of province or central-affiliated city in the Appendix 01/BC encloseed herewith.

2. On quarterly basis and in irregular cases, business registration agencies shall submit reports to People’s Committees of provinces or central-affiliated cities on the issuance and modification of Certificate of business registration regarding debt trading services.

3. Within 60 days from the ending date of the finacial year and in irregular circumstances, each People’s Commitee of province or central-affiliated city shall submit reports to Ministry of Finance on operating results and the compliance with law by enterprises running debt trading services in such province or city according to guidance in the Appendix 02/BC enclosed herewith.

1. Effect

 This Circular takes effect as from July 03, 2017.

2. Transitional provisions

For enterprises that are established and run debt trading services before the date of entry into force of the Decree No. 69/2016/ND-CP:

a) Not later than July 01, 2017, they must meet all of requirements for running debt trading service laid down in the Decree No. 69/2016/ND-CP and regulations herein, complete documents proving their satisfaction thereof and publish their satisfaction of requirements for running debt trading service at their head offices and ob their websites.

b) They must submit reports on their satisfaction or failure to satisfy requirements for running debt trading services to business registration agencies by July 01, 2017. If an enterprise fails to meet all of requirements for running debt trading services, such enterprise must suspend its debt trading activities and report thereof to the business registration agency.

3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.

 

III. Compliance with effective regulations of law: Violations, remedial measures (if any).

1. Overview of debt trading services in province or city

2. Operating results of enterprises

3. Violations committed in course of performing debt trading activities

(Specify issues arisen in the province or city, enterprises’ administratively sanctioned violations, implementation of remedial measures and imposition of administrative penalties, etc.)