The Securities Commission has just fined Saigon - Hanoi Securities Joint Stock Company (SHS) nearly 1.4 billion VND.
Saigon - Hanoi Securities Joint Stock Company (SHS) has just been fined for administrative violations - Photo: SHS
On the last working day of the year of the Dragon, the State Securities Commission issued a decision to impose administrative sanctions on Saigon - Hanoi Securities Joint Stock Company (SHS).
Dedicated account confusion
The penalty decision clearly states that SHS failed to manage customer assets separately from securities company assets.
At some point, this securities company made a money transfer transaction between the dedicated account and the company's payment account. For this violation, SHS was fined 175 million VND.
According to current regulations, before trading, customers must transfer money to the securities company. Dedicated accounts are only for customer transactions.
Securities companies must separately manage each customer's securities trading deposits and separate customers' money from the securities company's money.
Also related to customer money, SHS was also fined for not reporting to the Securities Commission on time as required by regulations on opening a specialized account at a commercial bank to manage customers' securities trading deposits.
In addition, this securities company also violated the law by allowing customers to make margin transactions that exceeded the current purchasing power in the customer's margin trading account.
Regarding violations of regulations on receiving and executing customer trading orders, at some points, SHS allowed some customers to place orders to buy securities when they did not have enough money in their securities trading accounts.
According to the Securities Commission, this securities company also coordinated with a number of banks to provide services to some customers to borrow money to buy securities without the approval of the Securities Commission. This violation is subject to a fine of up to 250 million VND.
This securities company also committed violations when lending money to customers through the form of deposit payment according to contracts for searching and introducing customers to Hanoi Technology Finance Investment Joint Stock Company and contracts for buying and selling shares with Encapital Holdings but did not comply with the signed contracts, and did not repay the principal and fees.
Must stop taking money from banks to lend money to customers to buy securities
When providing securities services or other services, securities companies must report to the Securities Commission.
However, SHS performed the service of connecting and transferring money from customers who signed securities brokerage contracts to the securities trading accounts of other customers (Fintech) without reporting to the committee, so it was fined up to 225 million VND.
The Securities Commission has also requested that this securities company stop coordinating with banks such as BIDV and SHB to provide margin services.
In addition, the management agency requires SHS not to provide securities services or other services without reporting, without written opinions or without guidance from competent authorities.
According to the Securities Commission, SHS also disclosed incomplete information on transactions with related parties in the management reports for 2022, 2023 and the first 6 months of 2022, 2023, and 2024.
This company does not fully state the quantity and total value of transactions in the transaction section between the company and related parties; or between the company and major shareholders, insiders, and related parties of insiders...
According to the audited financial report for 2022, SHS has transactions to receive loans with a total transaction value of VND 5,381 billion and repay loans with a total transaction value of VND 7,118 billion with SHB (related party), greater than 35% of the company's total asset value on the 2022 financial report.
Source: https://tuoitre.vn/mot-cong-ty-chung-khoan-nhap-nhang-tien-khach-hang-vi-pham-khi-giao-dich-nghin-ti-voi-mot-ngan-hang-20250125074716098.htm
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