Officially remove the proposal for professional investors to trade 10 times per quarter

Amendment to Securities Law: Officially remove the proposal for professional investors to trade 10 times per quarter

Regulations on individual professional securities investors remain the same as the 2019 Securities Law, but the subjects purchasing and trading individual corporate bonds continue to be only institutional professional securities investors, except for bonds issued by credit institutions.

Remove the recommendation that professional investors trade 10 times per quarter

This is the updated change in the Draft Law amending 7 Laws of the Ministry of Finance announced yesterday afternoon (October 16) that the Vietnam Federation of Commerce and Industry (VCCI) presented at the Workshop "Getting business opinions on the Draft Law amending the Law on Securities; Law on Accounting; Law on Independent Auditing; Law on Tax Administration" organized by the Vietnam Federation of Commerce and Industry (VCCI) with the participation of many experts in the fields of finance and accounting held on October 17.

Accordingly, the amendment only adds foreign institutional and individual investors to the group of professional securities investors.

Previously, according to the initial draft related to Article 11. Professional securities investors, to become a professional securities investor, an individual must participate in securities investment for a minimum period of 2 years, have a minimum transaction frequency of 10 times per quarter in the last 4 quarters and hold a listed securities portfolio, registered for transactions with a minimum value of VND 32 billion at the time the individual is identified as a professional securities investor. Another case is an individual with a minimum personal income tax payable of VND 200 million per year in the last 2 years up to the time the individual is identified as a professional securities investor according to the tax declaration submitted to the tax authority or tax deduction documents of the paying organization or individual.

The regulations for individuals when considering professional securities investors are unchanged compared to the Securities Law 2019. However, the amended content continues to stipulate that the subjects participating in purchasing, trading, and transferring individual corporate bonds are professional securities investors who are organizations. Particularly in the case of individual bonds issued by credit institutions, the subjects of purchase are professional investors according to regulations, without dividing into organizations or individuals.

This means that individuals who meet the qualifications of professional securities investors can only buy individual bonds issued by credit institutions.

Law amending 7 laws: Need to focus on urgent issues

Sharing at the workshop, Mr. Dau Anh Tuan - Deputy General Secretary, Head of the Legal Department of VCCI said that the implementation of amending up to 7 laws of the Ministry of Finance this time has advantages. Because if waiting to amend them one by one, it will take a lot of effort and time with the current process while there are difficulties and obstacles, if waiting any longer, it will cause congestion affecting business operations. However, if the problem is large and has not been studied in depth, the change can have an undesirable impact on businesses.

“The VCCI itself has difficulty updating the latest drafts, so updating the draft for this major revision may also cause difficulties for businesses and experts in contributing their opinions. The workshop organized by the VCCI also focused on analyzing four laws that directly affect businesses and associations, including the securities law; accounting law; independent audit law and tax management law,” Mr. Tuan emphasized.

"The decision to amend seven laws by the Ministry of Finance shows the Government 's decisive move. This is not simple, especially when the workload is large and requires comparison with international practices.

We appreciate the efforts of the Government and the National Assembly , but we cannot ask for too much. Amendments need to focus on immediate difficulties and urgent “hot” issues.

Dr. Can Van Luc - economic expert

VCCI representative, Mr. Nguyen Minh Duc, Legal Department, Vietnam Chamber of Commerce and Industry (VCCI) said that he has received many comments from businesses about some provisions of the Draft that increase the responsibility of businesses.

With the provisions in the latest updated draft, the expected changes are still adding more restrictions to the issuance of securities such as the draft providing additional conditions for issuance, increasing restrictions on the issuance of securities. At the same time, the draft also adds more responsibilities to organizations related to the issuance of securities such as consulting organizations, auditing organizations, etc.; increases the level of administrative penalties for violations in the auditing field; adds more responsibilities of enterprises in the field of e-commerce related to tax management activities.

In the context of the law being drafted according to a shortened procedure, Mr. Duc emphasized that it is necessary to consider carefully. According to him, the drafting time is short, the activities of impact assessment, consultation, exchange, and contribution of opinions between the drafting agency and the affected subjects are not many, compared to drafting according to normal procedures. In addition, the goal of the amendment is to remove difficulties and promote economic growth. Are these regulations in line with the goal of the amendment? And above all, should we add regulations that increase obligations according to such a shortened drafting process?

The National Assembly will open its session early next week (October 21). The draft law needs to be carefully studied to ensure that the regulations when issued are reasonable, remove difficulties for businesses and contribute to economic growth.

Source: https://baodautu.vn/sua-doi-luat-chung-khoan-chinh-thuc-bo-de-xuat-nha-dau-tu-chuyen-nghiep-giao-dich-10-lan-moi-quy-d227738.html