SmartInvest Securities fined nearly 1.4 billion VND

The State Securities Commission has fined SmartInvest Securities Joint Stock Company for many violations in information disclosure, record keeping, lending...

On November 22, 2024, the State Securities Commission issued a decision on administrative sanctions against SmartInvest Securities Joint Stock Company (code AAS, UPCoM floor). Accordingly, this company has been sanctioned for 9 violations. Of which, the heaviest penalty is related to service provision.

Specifically, SmartInvest was fined VND275 million for providing services without written approval from the State Securities Commission. The company coordinated with a credit institution to provide services to a number of customers who borrowed money to buy securities without approval from the State Securities Commission.

The Company also provides securities services or other services that must be reported to the State Securities Commission before implementation, but have not yet reported or when there is no written opinion from the State Securities Commission or no guidance from a competent state agency.

The company cooperates with Sao Kim Financial Investment Joint Stock Company to provide financial services to some customers who borrow money to buy securities. Along with that, it provides services to help investors open securities trading accounts at the company. The product is to optimize idle money sources in short-term securities trading accounts to enjoy flexible interest rates (called Capital Optimization Product) when there is no report, no written opinion from the State Securities Commission and no guidance regulations from competent state agencies.

This violation also received a fine of 275 million VND.

In addition, the company was fined VND187.5 million for failing to manage client assets separately from the securities company's assets. The company violated regulations on opening margin trading accounts. At some point, the company opened margin trading accounts for a number of subjects who were not allowed to open margin trading accounts. The fine was VND65 million.

In addition, Smart Invest violated the regulations on margin trading restrictions and was fined VND137.5 million. At some point, the company disbursed margin trading loans for a number of securities that were not on the list of securities permitted for margin trading announced by the company.

The company was fined VND 187.5 million for violating regulations on lending restrictions. The company lent money to customers by making deposits to buy bonds but did not actually buy or sell but delivered money to customers within a certain period of time as agreed and had to repay the principal and fees. The company lent money to Sao Thang Long Investment Joint Stock Company, an organization related to a member of the Board of Directors, in advance for selling securities on December 20, 2022.

The State Securities Commission fined the company VND85 million for failing to keep complete records, data, documents, and certificates related to the securities company's operations and VND92.5 million for failing to ensure the personnel structure in the internal control and internal audit departments or failing to ensure the personnel structure meets the conditions.

The company failed to report information required by law with a fine of VND 92.5 million.

The total amount of money that SmartInvest Securities must pay in fines is nearly 1.4 billion VND.

Previously, this company was continuously fined by the tax authority. On October 25, 2024, the company was administratively fined VND 3.5 million for administrative violations of tax. Specifically, on October 8, 2024, the unit late submitted the contractor tax finalization declaration (Form No. 01/NTNN), tax period September 2024 - according to the occurrence, the deadline for submission of documents is October 7, 2024, the number of days overdue is 1 day.

In May 2024, this Company was also fined by the Hanoi Tax Department for a series of errors in tax declaration and payment with a total fine, arrears and late payment of more than 438 million VND.

In 2024, SmartInvest aims for a profit after tax of VND240 billion, 1.8 times higher than that of 2023. The third quarter financial report shows that after 9 months, the profit after tax reached VND73 billion, still far from the planned figure, mainly due to revenue not meeting expectations. This result is 13% lower than the same period in the first 9 months of 2023. Undistributed profit after tax as of September 30 reached VND188 billion.

Source: https://baodautu.vn/xu-phat-chung-khoan-smartinvest-gan-14-ty-dong-d230778.html