Is the fund operator of a securities investment fund management company required to have a securities practice certificate?

How many compliance control staff must a securities investment fund management company have?

Pursuant to Clause 5, Article 75 of the Securities Law 2019, it is stipulated as follows following:

Conditions for issuance of License for establishment and securities business operations of securities investment fund management company

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5. Personnel conditions include:

There is a General Director (Director), at least 05 employees with fund management practice certificates and at least 01 compliance control employee. The General Director (Director) must meet the following standards:

a) Not be subject to criminal prosecution or serving a prison sentence or banned from practicing securities according to the provisions of law;

b) Have at least 04 years of experience in the operational department of organizations operating in the fields of finance, securities, banking, insurance or in the finance department Finance, accounting, investment in other businesses;

c) Have a fund management practice certificate or equivalent certificate according to Government regulations;

d) Have not been sanctioned for administrative violations in the field of securities and stock market within the latest 06 months up to the time of application submission.

In case there is a Deputy General Director (Deputy General Director). Director) in charge of operations must meet the standards specified in Points a, b and d of this clause and have a securities practice certificate appropriate to the operations in charge.

Thus, according to the above regulations, a securities investment fund management company must have at least 01 compliance control employee.

Is the fund manager of a securities investment fund management company required to have a securities practice certificate?

Pursuant to Clause 3, Article 7 of Circular 99/2020/TT-BTC has the following provisions:

Executive board and employees of the fund management company

1. The fund management company must appoint a General Director (Director) and Deputy General Director (Deputy Director) in charge of securities business operations (if any) to meet the provisions of Clause 5, Article 75 of the Securities Law.

2. In addition to the General Director (Director) and Deputy General Directors (Deputy Directors), the fund management company must ensure that there are always at least 05 employees with fund management practice certificates during its operations.

3. The fund management company must arrange people with securities practice certificates at the following positions:

a) Fund operator; Heads and deputy heads of professional departments on investment analysis, investment appraisal, and investment decisions; Employees who directly perform investment analysis, investment appraisal, and investment decisions must have a fund management practice certificate;

b) Head and deputy head of the securities investment consulting department, employees who directly advise on securities investment; The head, deputy head of the investment department, and employees directly making investments for entrusting customers must have appropriate securities practice certificates.

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According to the above regulations, the fund management company must arrange people with securities practice certificates in positions including fund managers.

Therefore, the fund manager of the securities investment fund management company is required to have a securities practice certificate.

When changing the fund manager of a securities investment fund management company, is it necessary to notify the State Securities Commission?

Pursuant to Clause 5, Article 7 of Circular 99/2020/TT-BTC there are provisions as follows:

The executive board and employees of the management company fund

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5. Within 05 working days from the date of approving the decision to appoint, dismiss, change the General Director (Director), Deputy General Director (Deputy Director) in charge of securities business operations, change the fund manager, the fund management company must notify the State Securities Commission and attach the following documents:

a) Decision to appoint and dismiss the General Director (Director), Deputy General Director (Deputy Director) in charge of securities business operations, fund manager;

b) List of General Directors (Directors), Deputy General Directors (Deputy Directors) in charge of securities trading operations, and fund operators according to the form prescribed in Appendix I issued with this Circular; Valid copies of documents ensuring that the General Director (Director), Deputy General Director (Deputy Director) in charge of securities business operations, and the new fund operator meet the provisions of the law on securities.

Thus, according to the above regulations, when changing the fund manager of a securities investment fund management company, it must notify the State Securities Commission within 05 working days from the date of approval of the decision.