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Personnel Requirements for a Derivatives Securities Business Eligibility Certificate

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Short answer: To be granted a Certificate of Eligibility for derivatives securities business, a securities company must satisfy personnel conditions: it must have a team of securities practitioners in sufficient number, holding appropriate practice certificates for derivatives operations, alongside conditions on capital, technical infrastructure, and risk management procedures (Decree 155/2020/ND-CP).

Legal basis

  • Law on Securities 2019 (amended by Law No. 56/2024/QH15);
  • Decree 155/2020/ND-CP providing detailed guidance.

Personnel conditions

  • Have a sufficient number of securities practitioners as required for each derivatives operation (proprietary trading, brokerage, advisory);
  • Practitioners must hold appropriate securities practice certificates;
  • The General Director (Director) must meet standards on qualifications and management experience as prescribed;
  • Have internal control and risk management units with independent, dedicated personnel.

Other accompanying conditions

  • Charter capital and owner’s equity meeting the minimum levels for derivatives operations;
  • Material and technological infrastructure ensuring trading, payment, and custody;
  • Written business procedures and risk management procedures, duly approved;
  • Not currently subject to administrative penalties or special control.

Dossier for the certificate application

  1. Application for the certificate of eligibility;
  2. Resolution of the Board of Directors on launching derivatives operations;
  3. List and files of personnel meeting the conditions (practice certificates, curriculum vitae);
  4. Description of material infrastructure and technology systems;
  5. Business procedures and risk management procedures.

If you need to determine the right approach for your specific situation, you should discuss it with a lawyer in advance for a review of your documents and advice on the course of action.

For quick advice, you can contact a lawyer at 0966.475.966.

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