What are the responsibilities of a securities company when performing stock brokerage operations? What are the responsibilities of a securities company to customers when performing brokerage operations? The article shares in detail the legal regulations surrounding the professional activities of securities companies according to current law. 

CSPL: Article 14, 15 Circular 121/2020/TT-BTC

1. Responsibilities of securities companies when performing securities brokerage operations

– Securities companies must arrange securities practitioners to work in the following positions:

+ Consulting, explaining contracts and implementing procedures for opening securities trading accounts for customers;

+ Securities transaction consulting for customers;

+ Receive orders and control customers’ securities trading orders;

+ Head of departments related to stock brokerage operations.

– Securities companies performing stock brokerage operations must not:

+ Giving opinions about increasing or decreasing stock prices without any basis to entice customers to participate in transactions;

+ Agree or offer specific interest rates or share profits or losses with customers to entice customers to participate in transactions;

+ Directly or indirectly establish fixed locations outside trading locations approved by the State Securities Commission to sign contracts to open trading accounts with customers, receive orders, execute securities trading orders or pay for securities transactions with customers, except in the case of online securities transactions;

+ Receive orders and pay transactions with people other than the person holding the transaction account without written authorization from the account holder;

+ Disclosing the contents of customers’ trading orders or other confidential information obtained when performing transactions for customers other than for information disclosure or as required by inspection or examination according to the provisions of law;

+ Using a customer’s name or account to register and trade securities;

+ Infringing on the property, rights and other interests of customers.

– Securities companies must comply with regulations on money laundering prevention according to current legal regulations.

– Data on brokerage accounts of Customers opening accounts at securities companies must be managed centrally and reserves must be kept at another location.

2. Responsibilities of a securities company to customers when performing brokerage operations

– When performing brokerage operations, a securities company must not:

+ Not make comments or guarantees to customers about the level of income or profit achieved on their investment or ensure that customers do not suffer losses, except in the case of investing in securities with fixed income regulations.

+ Must not disclose information about customers, unless agreed by the customer or at the request of a competent authority.

+ Must not commit acts that make customers and investors misunderstand about stock prices.

– Securities companies are obliged to update customer information changes when requested by the customer. requirements.

– Securities companies must sign contracts to open trading accounts with customers, directly conduct securities transactions for customers and be responsible before the law for these activities.

– Securities companies must monitor details of each customer’s money and securities, provide information on balances, cash and securities transactions to customers when requested by customers. requirements.

– Securities companies must announce securities transaction fees before customers make transactions, and must announce securities transaction fees on the company’s website.

– Securities companies must establish a specialized department responsible for communicating with customers and resolving customer questions and complaints.