Securities companies must comply with regulations on deposit management: SSC

Tuesday, May 16, 2023 08:35

An investor sits next to a computer showing stock indices. Securities companies must not conduct business activities, or provide securities and financial services without being licensed by the State Securities Commission. — VNA/VNS Photo Van Giap

Securities companies must strictly manage securities trading deposits of investors, and must not carry out activities that make investors understand that they mobilise deposits.

This is a recent requirement of the State Securities Commission (SSC). Specifically, the State Securities Commission said that it has directed securities companies to improve operational quality and financial safety.

The regulatory agency requires securities companies to strictly comply with securities law provisions; must not conduct business activities, provide securities and financial services without being licensed by the State Securities Commission.

Securities companies ensure the liquidity, and payment of securities trading deposits for investors in all situations.

SSC also requires securities companies to strengthen internal control, and risk management, to fulfil the obligations and responsibilities of the company as prescribed in Article 89 of the Law on Securities and other relevant laws.

It has also directed securities companies to strengthen the management of their employees; when advising clients, the number of employee certificates must be announced; the employees are not allowed to join online forums and groups that are not approved by securities companies to give advice on financial investment, to entice investors to buy and sell securities, as a representative of their securities company.

When participating in forums and groups approved by the securities company, the employees must not perform prohibited acts that the securities company restricted or disallowed.

SSC required securities companies to strengthen information security and safety, monitor and detect links leading to fake websites of the securities company, illegal use of images and trademark of the securities company.

When detecting suspicious links, websites, social networks, groups, and forums online, securities companies should immediately notify the police and promptly warn them to take measures to prevent and limit damage.

The SSC stated that, in the new context of the market, improving the quality of operations of securities companies continues to be a priority of the management agency.

The system of securities companies plays an important role in the active and transparent development of the stock market. Therefore, the quality of service provision to customers of securities companies will be enhanced, which will help support the market to develop healthier and more sustainably. — VNS

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