Circular No. 114/2021/TT-BTC abolishes Circular No. 146/2014/TT-BTC dated October 6, 2014, issued by the Minister of Finance guiding the financial regime for securities companies and fund management companies.

CIRCULAR
Repeals Circular No. 146/2014/TT-BTC dated October 6, 2014 issued by the Minister of Finance guiding financial regulations for securities companies and fund management companies.

Pursuant to Decree No. 154/2020/NĐ-CP dated December 31, 2020 of the Government amending and supplementing certain articles of Decree No. 34/2016/NĐ-CP dated May 14, 2016 of the Government detailing some provisions and measures for implementing the Law on Legislative Regulatory Documents.
At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions

Based on the Law on Enactment of Legislative Acts dated June 22, 2015;

Based on the Law Amending and Supplementing Certain Provisions of the Law on Enactment of Legislative Acts dated June 18, 2020;

Pursuant to Decree No. 34/2016/NĐ-CP dated May 14, 2016 of the Government detailing certain provisions and implementing measures of the Law on Legislative Regulatory Documents;

The Minister of Finance issues this Circular to repeal Circular No. 146/2014/TT-BTC dated October 6, 2014 issued by the Minister of Finance guiding financial regulations for securities companies and fund management companies.

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Repeals Circular No. 146/2014/TT-BTC dated October 6, 2014 issued by the Minister of Finance guiding financial regulations for securities companies and fund management companies.

1. Securities companies, fund management companies, and foreign fund management company branches licensed to operate in Vietnam shall organize their operations and manage finances in accordance with the Securities Law 2019, Decree No. 155/2020/NĐ-CP dated December 31, 2020 of the Government detailing implementation of certain provisions of the Securities Law, Circular No. 121/2020/TT-BTC dated December 31, 2020 of the Minister of Finance on the operation of securities companies, Circular No. 99/2020/TT-BTC dated November 16, 2020 of the Minister of Finance on the operation of fund management companies, Circular No. 91/2020/TT-BTC dated November 13, 2020 of the Minister of Finance on safe financial expenditures and measures to handle securities business organizations that fail to meet safe financial expenditure requirements, Circular No. 48/2019/TT-BTC dated August 8, 2019 of the Minister of Finance on the establishment and handling of inventory reserve reductions, investment losses, difficult-to-collect receivables, and product, goods, service, and construction project warranties at enterprises, and any subsequent amendments, supplements, or replacements thereof.

Article 1. Repeal Circular

2. As for the surplus of the additional paid-in capital reserve fund established according to Circular No. 146/2014/TT-BTC, securities companies, fund management companies, and foreign fund management company branches licensed to operate in Vietnam shall increase their registered capital according to the Securities Law No. 54/2019/QH14, guiding documents, and the charter of organizational and operational activities of enterprises.

Article 2. Transitional Provisions

3. As for the surplus of the financial risk reserve fund established according to Circular No. 146/2014/TT-BTC, securities companies, fund management companies, and foreign fund management company branches licensed to operate in Vietnam shall either increase their registered capital or use it according to the decision of the Shareholders' Meeting, Board of Directors, or Chairman of the Company as stipulated in the Securities Law No. 54/2019/QH14, guiding documents, and the charter of organizational and operational activities of enterprises, ensuring compliance with the financial safety indicators prescribed by securities laws.

1. This Circular takes effect from February 1, 2022 and applies from the 2022 fiscal year.

2. The Director of the Ministry of Finance's Office, the Director of the Department of Financial Affairs of Banks and Financial Institutions, heads of relevant units under the Ministry of Finance, securities companies, fund management companies, and foreign fund management company branches licensed to operate in Vietnam, and related organizations and individuals are responsible for implementing this Circular.

Article 3. Effectiveness and Implementation

- Central Party Office and various Party Committees,

- General Secretary's Office;