Decree No. 36/2007/NĐ-CP On Administrative Sanctions for Violations in the Securities and Securities Market Sector

DECREE

On administrative sanctions for violations in the securities and stock market sector

(ii) Method for calculating provisions: and the stock market

__________

 

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Securities Law dated June 29, 2006;

Pursuant to the Administrative Violations Handling Ordinance dated July 2, 2002;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree stipulates on administrative sanctions for violations in the securities and stock market sector, forms of administrative sanctions, measures to remedy consequences, levels of fines, sanctioning authorities, and procedures for imposing sanctions.

2. Administrative violations in the securities and stock market sector as prescribed in this Decree include:

a) Violations concerning public offerings of securities;

b) Violations concerning public companies;

c) Violations concerning the listing of securities;

d) Violations concerning the organization of securities trading markets;

đ) Violations concerning securities business activities and securities practice certificates;

e) Violations concerning securities transactions;

g) Violations concerning registration, custody, netting, and settlement of securities, and supervisory banks;

h) Violations concerning information disclosure;

i) Violations concerning reporting;

k) Violations obstructing inspection.

Article 2. Applicability

Individuals, domestic and foreign organizations (hereinafter referred to collectively as individuals and organizations) who violate laws on securities and the stock market but not to the extent of criminal prosecution shall be subject to administrative sanctions as prescribed in this Decree, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise, in which case such treaties shall apply.

Article 3. Principles of administrative sanctions

1. The principles of administrative sanctions in the securities and stock market sector shall be implemented according to Article 3 of the Administrative Violations Handling Ordinance.

2. An organization that is subject to administrative sanctions for its own administrative violations, after executing the sanction decision, shall identify the individual responsible for causing the administrative violation to determine their legal responsibility and financial obligations according to the law.

Article 4. Time limit for administrative sanctions

1. The time limit for administrative sanctions in the securities and stock market sector is two years, counted from the date the administrative violation was committed. If beyond this period, no sanctions will be imposed, but remedial measures as provided for in Clause 3, Article 7 of this Decree will still be applied.

2. For individuals whose actions violate securities and stock market laws and have been initiated for criminal prosecution, indicted, or decided to be brought to trial under criminal proceedings, but subsequently have a decision to terminate investigation or close the case, if they commit administrative violations, they will be subject to administrative sanctions as prescribed in this Decree. The authority issuing the termination decision must simultaneously send the decision to the authority with sanctioning power. In this case, the time limit for administrative sanctions is three months, counted from the date the authority with sanctioning power receives the termination decision and the case file.

3. Within the time limits specified in Clauses 1 and 2 of this Article, if individuals or organizations again commit new violations in the securities and stock market sector or deliberately evade or obstruct the imposition of sanctions, the time limits specified in Clauses 1 and 2 of this Article will not apply. The time limit for administrative sanctions will be counted from the date of committing the new violation or the date of ceasing to evade or obstruct the imposition of sanctions.

Article 5. Period considered as not having been subject to administrative sanctions

Individuals and organizations subject to administrative sanctions, if within one year from the date of completing the execution of the sanction decision or from the date the sanction decision's enforcement period expires without reoffending, shall be considered as not having been subject to administrative sanctions.

Article 6. Mitigating and aggravating circumstances

When imposing administrative sanctions in the securities and stock market sector, only the following circumstances shall be considered mitigating or aggravating circumstances:

1. Mitigating circumstances

a) The violator has taken action to prevent or reduce the damage caused by the violation or voluntarily remedied the consequences and compensated for the losses;

b) The violator has voluntarily reported and acknowledged the violation;

c) The violation was committed under duress or dependency, either materially or mentally;

d) The violation was committed due to lack of knowledge;

đ) The violation was committed due to another person's violation.

2. Aggravating circumstances

a) Organized violation;

b) Repeated or recidivist violations in the same field;

c) Compelling a dependent person, either materially or mentally, to commit a violation;

d) Taking advantage of positions or powers to violate;

đ) Committing a violation during the period of implementing a decision on handling administrative violations;

e) Continuing the administrative violation despite being ordered to stop by the competent authority;

g) Evading or concealing the violation after it has been committed.

Article 7. Forms of administrative sanctions and measures to remedy consequences

1. For each administrative violation in the securities and stock market sector, the violator must bear one of the following main forms of administrative sanctions:

a) To issue warnings;

b) Fine.

2. Depending on the nature and severity of the violation, the violator may also be subject to one or more supplementary forms of administrative sanctions as follows:

a) Confiscation of all revenues derived from the implementation of the violations and the securities used for the administrative violation;

b) Suspension or revocation of a public offering of securities if deficiencies or violations are not remedied within forty-five days;

c) Suspension or permanent revocation of the Securities Offering Certificate; Securities Company Establishment and Operation License; Investment Fund Management Company Establishment and Operation License; Securities Custody Registration Certificate; Securities Practice Certificate. During the suspension period of the certificate, license, and practice certificate, individuals and organizations are not allowed to conduct the business activities listed in the certificate, license, and practice certificate.

3. In addition to the forms of punishment prescribed in Clauses 1 and 2 of this Article, depending on the nature and degree of violation, individuals and organizations that violate may also be subject to one or more of the following measures to remedy the consequences:

a) Compel compliance with the provisions of law regarding administrative violations;

b) Compel the correction or cancellation of false or inaccurate information;

c) Compel the issuing organization to recall securities that have been offered for sale and refund the deposit or purchase price of securities to investors within thirty days from the date when the right to use the Certificate of Offering Securities to the Public is revoked.

Article 8. Apply the provisions of the law on administrative sanctions in related fields.

Administrative violations concerning securities and the securities market in other areas, which are specifically provided for in current laws regarding the form and level of punishment, shall be handled according to those provisions.

Chapter II

ADMINISTRATIVE VIOLATIONS, FORMS OF PUNISHMENT AND LEVELS OF PUNISHMENT

Section 1

VIOLATIONS OF REGULATIONS ON PUBLIC OFFERINGS

OF SECURITIES

Article 9. Punishments for violations of regulations on public offerings of securities

1. A fine of from ten million to twenty million Vietnamese dong shall be imposed on the issuing organization, its General Director or Chairman, Chief Accountant, and other relevant persons of the issuing organization, the underwriting organization, and the advisory organization for preparing registration documents for offering securities to the public containing false information, causing misunderstanding, or lacking necessary information as required by law, affecting investors' decisions.

2. A fine of from twenty million to fifty million Vietnamese dong shall be imposed on the issuing organization, its General Director or Chairman, Deputy General Director or Deputy Chairman, Chief Accountant, and other relevant persons of the issuing organization, the underwriting organization, and the advisory organization for committing one of the following violations:

a) Intentionally publishing false information or concealing the truth;

b) Using information outside the Prospectus to conduct market research before being permitted to offer securities to the public;

c) Distributing securities not in accordance with the contents of the registration for offering regarding the type of securities, issuance period, and minimum quantity as stipulated;

d) Announcing the issuance through mass media not in accordance with the content and time specified;

đ) The underwriting organization conducting underwriting with a total value of securities exceeding the ratio prescribed by law;

3. A fine of from one percent to five percent of the total amount of illegal fundraising shall be imposed on the issuing organization, its General Director or Chairman, Chief Accountant, and other relevant persons of the issuing organization, the underwriting organization, the advisory organization, the approved auditing organization, the auditor signing the audit report, and other organizations and individuals confirming the registration documents for offering securities to the public if there is falsification in the registration documents for offering securities to the public, causing damage to investors.

4. A fine of from one to five times the amount of illegal income shall be imposed on the issuing organization offering securities to the public without a Certificate of Offering Securities to the Public.

5. Additional forms of punishment

a) Suspend the public offering of securities for forty-five days in cases of violations as prescribed in Clauses 2 and 3 of this Article;

b) Revoke the Certificate of Offering Securities to the Public if the violations are not remedied within the suspension period as prescribed in point a of this Clause;

c) Compel the cancellation of the public offering in cases of violations as prescribed in Clause 4 of this Article;

d) Suspend the underwriting activities for forty-five days in cases of violations as prescribed in point đ of Clause 2 of this Article;

đ) Confiscate all illegal gains of individuals and organizations for violations as prescribed in Clauses 3 and 4 of this Article.

6. Measures to rectify consequences shall be applied:

a) The organization offering securities to the public must recall the securities that have been offered, refund the deposit or purchase price of securities plus interest on demand deposits without notice to investors if they request to cancel their purchase within thirty days from the date of suspension of the public offering as prescribed in point a of Clause 5 of this Article;

b) The organization offering securities to the public must recall the issued securities, refund the deposit or purchase price of securities plus interest on demand deposits without notice to investors within thirty days from the date of revocation of the Certificate of Offering Securities to the Public or compelled to cancel the public offering as prescribed in points b and c of Clause 5 of this Article.

Section 2

VIOLATIONS OF REGULATIONS ON JOINT-STOCK COMPANIES

Article 10. Punishments for violations of regulations on joint-stock companies

1. A warning shall be given to a joint-stock company that violates for the first time and has mitigating circumstances as prescribed in Clause 1 of Article 6 of this Decree for failing to submit registration documents to the State Securities Commission within ninety days from the date it becomes a joint-stock company as prescribed in point c of Clause 1 of Article 25 of the Securities Law.

2. A fine of from five million to ten million Vietnamese dong shall be imposed on a joint-stock company for committing one of the following violations:

a) Failing to submit registration documents to the State Securities Commission within ninety days from the date it becomes a joint-stock company as prescribed in point c of Clause 1 of Article 25 of the Securities Law;

b) Registration documents submitted by the joint-stock company to the State Securities Commission contain false information or lack necessary information as prescribed in Clause 1 of Article 26 of the Securities Law;

c) Failing to register and centralize securities at the Securities Depository Center as prescribed in Articles 52 and 53 of the Securities Law;

d) Failing to comply with corporate governance regulations as prescribed in Clause 1 of Article 28 of the Securities Law.

3. A fine of from ten million to twenty million Vietnamese dong shall be imposed on a joint-stock company for committing one of the following violations:

a) Becoming a public company under the provisions of point c, Clause 1, Article 25 of the Securities Law for over one year but failing to submit registration documents to the State Securities Commission as required;

b) Failing to disclose information as prescribed in Article 101 of the Securities Law;

c) Violating the accounting system applicable to public companies or failing to have annual financial statements audited or not applying corporate governance systems as stipulated by the Enterprise Law for over one year since becoming a public company;

d) Registering and depositing securities with the Securities Depository Center in violation of regulations on registration and depositing of securities, resulting in complaints and disputes over ownership rights affecting the interests of shareholders of public companies.

4. Apply remedial measures:

Compel compliance with legal provisions for violations stipulated in Clauses 1, 2, and 3 of this Article.

Article 11. Punish violations concerning major shareholders of public companies whose shares are listed on the Stock Exchange or Securities Trading Center.

1. Impose a fine of from ten million to twenty million Vietnamese dong on organizations and individuals who become major shareholders of public companies whose shares are listed on the Stock Exchange or Securities Trading Center and commit any of the following violations:

a) Organizations, individuals, and related groups becoming major shareholders of public companies whose shares are listed on the Stock Exchange or Securities Trading Center must report their major shareholder status to the public company, the State Securities Commission, and the Stock Exchange or Securities Trading Center where the company's shares are listed within seven working days from the date they become major shareholders, but fail to do so;

b) Reporting major shareholder status incompletely or inaccurately regarding the contents prescribed in Clause 2, Article 29 of the Securities Law;

c) Organizations, individuals, and related groups being major shareholders of public companies whose shares are listed on the Stock Exchange or Securities Trading Center must report changes in the number of shares held exceeding one percent (1%) of the total number of shares in circulation within seven working days from the date of change, but fail to submit amended reports to the public company, the State Securities Commission, and the Stock Exchange or Securities Trading Center where the shares are listed;

d) Members of the Board of Directors, General Managers, Chief Accountants, Supervisors of listed companies and related persons must report transactions involving the company's own shares to the Stock Exchange or Securities Trading Center within seven working days before the transaction and three working days after its completion, but fail to do so;

2. Apply measures to rectify consequences

a) Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

b) Members of the Board of Directors, General Managers or Deputy General Managers, Deputy General Managers or Deputy Deputy General Managers, finance officers, accounting officers, and other managers in the management structure of public companies who have profited from buying and selling or selling and buying the company's securities within six months from the date of purchase or sale must return all profits obtained to the company;

Article 12. Punish violations concerning public companies whose shares are listed on the Stock Exchange or Securities Trading Center purchasing their own shares;

1. Impose a fine of from ten million to twenty million Vietnamese dong on public companies whose shares are listed on the Stock Exchange or Securities Trading Center committing any of the following violations:

a) Failing to publicly disclose information about the purchase of their own shares at least seven working days before the purchase date as prescribed in Clause 2, Article 30 of the Securities Law;

b) Disclosing incomplete information regarding the purpose of the purchase, the number of shares to be purchased, the source of funds for the purchase, and the time frame for implementation, or registering and disclosing information about the purchase but failing to execute it within the specified period;

c) Selling purchased shares before six months from the purchase date, except in cases permitted by the Ministry of Finance;

2. Apply measures to rectify consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

Section 3

VIOLATIONS OF LISTING SECURITIES

Article 13. Punish violations concerning listing securities on the Stock Exchange or Securities Trading Center;

1. Impose a fine of from twenty million to fifty million Vietnamese dong on listed organizations, General Managers or Deputy General Managers, Deputy General Managers or Deputy Deputy General Managers, Chief Accountants, and related persons of listed organizations, listing advisory organizations, approved auditing organizations, audit report signatories, and organizations or individuals confirming listing applications committing any of the following violations:

a) Listing application documents submitted to the Stock Exchange or Securities Trading Center contain misleading information or lack sufficient information as required;

b) Listed organizations issue additional shares without completing supplementary listing registration procedures or fail to report to the Stock Exchange or Securities Trading Center where the shares are listed when splitting or consolidating shares;

c) Listed organizations fail to comply fully with regulations on the timing, content, and means of disclosing information about listing;

2. Impose a fine of from fifty million to seventy million Vietnamese dong on listed organizations, General Managers or Deputy General Managers, Deputy General Managers or Deputy Deputy General Managers, Chief Accountants, and related persons of listed organizations, listing advisory organizations, approved auditing organizations, audit report signatories, and organizations or individuals confirming listing applications that falsify listing application documents causing serious misunderstanding;

3. Measures to remedy consequences:

Cancel listing for violations stipulated in Clause 2 of this Article.

4. Apply remedial measures:

Compel compliance with the provisions of the law for cases violating the provisions set forth in Clause 1 and Clause 2 of this Article.

Section 4

VIOLATIONS OF THE PROVISIONS ON MARKET ORGANIZATION

SECURITIES EXCHANGE MARKET

Article 14. Punish violations of the provisions on organizing securities exchange markets

1. Impose a fine of from twenty million to fifty million dong on organizations and individuals who organize securities trading markets contrary to the provisions of Clause 3 of Article 33 of the Securities Law in cases where there is no illegal income.

2. Impose a fine of from one to five times the amount of illegal income on organizations and individuals who organize securities trading markets contrary to the provisions of Clause 3 of Article 33 of the Securities Law in cases where there is illegal income.

3. Additional forms of punishment:

a) Compel the cancellation of the organization of securities trading markets contrary to the law;

b) Confiscate all illegal income of individuals and organizations due to violations of the provisions of Clause 2 of this Article.

4. Measures to address consequences:

Compel compliance with the provisions of the law for cases violating the provisions set forth in Clause 1 and Clause 2 of this Article.

Article 15. Punish violations of the provisions on management of listing by the Stock Exchange or the Securities Trading Center

1. Impose a fine of from twenty million to fifty million dong on the Stock Exchange, the Securities Trading Center for committing one of the following violations:

a) Approving or canceling the listing of applications that do not comply with the conditions regarding capital, business results, financial capacity, and the number of shareholders or security holders;

b) Failing to detect organizations that do not maintain the necessary listing conditions, failing to warn or disclose information as required, thereby affecting the price of securities in the market.

2. Apply measures to rectify consequences:

Compel compliance with the provisions of Clause 4, Clause 6 of Article 37 and Clause 1 of Article 40 of the Securities Law.

Article 16. Punish violations of the provisions on management of members by the Stock Exchange or the Securities Trading Center

1. Impose a fine of from twenty million to fifty million dong on the Stock Exchange, the Securities Trading Center for committing one of the following violations:

a) Approving or canceling the membership status of securities companies that do not meet the prescribed conditions regarding capital, technical equipment, and the number of professional staff as stipulated in the Membership Regulations;

b) Failing to detect members that do not maintain the necessary membership conditions or do not fully comply with the obligations of members as stipulated in Clause 2 and Clause 4 of Article 39 of the Securities Law.

2. Apply measures to rectify consequences:

Compel compliance with the provisions of Clause 5 of Article 37 and Clause 2, Clause 4 of Article 39 of the Securities Law.

Article 17. Punish violations of the provisions on trading, supervision, and disclosure of information by the Stock Exchange or the Securities Trading Center

1. Impose a fine of from twenty million to fifty million dong on the Stock Exchange, the Securities Trading Center for committing one of the following violations:

a) Organizing new types of securities trading, changing and applying new trading methods, putting new trading systems into operation without approval from the State Securities Commission;

b) Failing to promptly detect violations of trading regulations or failing to properly supervise trading activities as required, resulting in serious impacts on the fairness, transparency, and openness of the market;

c) Failing to temporarily suspend, halt, or cancel securities trading according to the Trading Rules of the Stock Exchange, the Securities Trading Center when necessary to protect investors, or failing to promptly issue warning signals or disclose information about significant market fluctuations affecting the securities market.

2. Apply measures to rectify consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

Article 18. Punish violations of the provisions on organizing securities trading at securities companies

1. Impose a fine of from twenty million to fifty million dong on securities companies that organize securities trading within the company for committing one of the following violations:

a) Not publicly announcing at headquarters, branches, and agents accepting orders the contents related to trading methods, placing orders, transaction margin, settlement time, trading fees, and services related to listed securities trading at the Securities Trading Center; the list of professional staff authorized to trade listed securities at the Securities Trading Center as trading members of the Securities Trading Center;

b) Not fully complying with the obligation to report and disclose information on listed securities trading at the Securities Trading Center as required.

2. Impose a fine of from fifty million to seventy million dong on securities companies that organize listed securities trading at the Securities Trading Center as trading members of the Securities Trading Center contrary to the Trading Regulations of the Securities Trading Center as stipulated in Point b, Clause 2 of Article 41 of the Securities Law.

3. Additional forms of punishment:

Confiscate all illegal income and compel the cessation of securities trading organization activities at the securities company.

4. Apply remedial measures:

Compel compliance with the provisions of the Trading Regulations of the Securities Trading Center for cases violating the provisions of Clause 1 and Clause 2 of this Article.

Section 5

VIOLATIONS OF THE PROVISIONS ON SECURITIES BUSINESS OPERATIONS

AND SECURITIES PRACTICE CERTIFICATES

Article 19. Punish violations of the provisions on Securities Business Licenses and Registration Certificates for Representative Offices

1. Issue a warning to securities companies, fund management companies, investment securities companies; foreign securities companies' branches operating in Vietnam for committing one of the following violations:

a) Using company or branch names that do not comply with the license;

b) Failing to notify changes in the headquarters location.

2. Impose a fine of from five million to ten million dong on securities companies, fund management companies, investment securities companies; foreign securities companies' branches operating in Vietnam for committing one of the following violations:

a) Organizing the opening of operations before meeting all conditions as required by law;

b) Operating in violation of the company charter, fund charter, or failing to report amendments or supplements to the charter.

3. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on securities companies, investment fund management companies, securities investment companies; branches of foreign securities companies and foreign investment fund management companies in Vietnam for carrying out any of the following violations:

a) Conducting business activities and providing securities services without having been granted a license;

b) Lending, leasing, or transferring a license;

c) Engaging in business activities and providing securities services in areas not specified in the license or where the license has expired;

d) Altering or tampering with a license;

đ) Implementing changes related to securities and the securities market without the approval of the State Securities Commission;

4. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on securities companies and investment fund management companies for implementing mergers, divisions, consolidations, conversions of companies without the approval of the State Securities Commission;

5. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on representative offices of foreign securities companies and foreign investment fund management companies in Vietnam for directly participating in securities trading activities contrary to the provisions of the law;

6. Additional forms of punishment:

a) Confiscation of all illegal revenues arising from violations stipulated in points a, b, and c of Clause 3 and Clause 5 of this Article;

b) Revocation of the right to use the License for Establishment and Operation of securities companies, investment fund management companies, securities investment companies, branches of securities companies, and foreign investment fund management companies in Vietnam for a period of forty-five days in cases of violation of point b of Clause 2; points b, c, and d of Clause 3 and Clause 4 of this Article;

c) Revocation of the License for Establishment and Operation of securities companies, investment fund management companies, securities investment companies, branches of securities companies, and foreign investment fund management companies in Vietnam if they fail to rectify the violations within the time limit for revocation of the right to use the license as stipulated in point b of this clause;

d) Revocation of the Certificate of Registration for Operation of the Representative Office of securities companies and foreign investment fund management companies in Vietnam in cases of violation of Clause 5 of this Article;

7. Apply measures to address the consequences:

Compel compliance with the provisions of the law in cases of violation of Clauses 2, 3, 4, and 5 of this Article;

Article 20. Imposing penalties on violations concerning the operation of securities companies;

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on securities companies for carrying out any of the following violations:

a) Not establishing internal control systems, risk management, and monitoring mechanisms to prevent conflicts of interest within the company and in transactions with related parties as prescribed by law;

b) Not managing separately the securities of each investor, separating the funds and securities of investors from those of the securities company as prescribed;

c) Not entering into written contracts with customers when providing services; not providing full and truthful information to customers;

d) Not prioritizing customer orders before placing proprietary trades as prescribed; contravening customer instructions;

đ) Not adequately collecting information about the financial situation, investment objectives, and risk tolerance of customers; not regularly assessing and classifying customers based on their risk tolerance; recommendations and investment advice provided to customers do not ensure compatibility with the classification criteria of customers based on their risk tolerance;

e) Not implementing customer information confidentiality as prescribed by law;

2. A fine of from VND 20,000,000 to VND 50,000,000 shall be imposed on securities companies for carrying out any of the following violations:

a) Not maintaining the required level of available capital as prescribed;

b) Investing or participating in capital contributions exceeding the limits prescribed by law;

c) Not purchasing professional liability insurance for securities business operations at the company; not fully setting aside a fund to compensate investors for losses caused by technical failures and negligence of company employees;

d) Not properly retaining documents; not accurately reflecting detailed transactions of customers and the company as prescribed;

3. A fine of from VND 50,000,000 to VND 70,000,000 shall be imposed on securities companies for carrying out any of the following violations:

a) Selling or allowing customers to sell securities without holding such securities as permitted by law;

b) Allowing customers to borrow securities to sell contrary to the provisions of the law;

c) Allowing customers to borrow money to buy securities, except as otherwise prescribed by the Ministry of Finance;

4. Additional forms of administrative punishment:

a) Revoking the right to use the License for Establishment and Operation of the securities company for thirty days in cases of violation of Clause 2 of this Article;

b) Revoking the right to use the License for Establishment and Operation of the securities company for forty-five days in cases of violation of Clause 3 of this Article;

c) Confiscating illegal revenues arising from violations stipulated in Clause 3 of this Article;

5. Apply measures to address the consequences:

Compel compliance with the provisions on securities business operations in cases of violation of Clauses 1, 2, and 3 of this Article;

Article 21. Imposing penalties on violations concerning the operation of investment fund management companies;

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed on investment fund management companies for carrying out any of the following violations:

a) Not establishing internal control systems, risk management, and monitoring mechanisms to prevent conflicts of interest within the investment fund management company and in transactions with related parties as prescribed by law;

b) Not managing separately the securities in the management of each fund;

c) Not entering into written contracts with customers for entrusted investments;

d) Not providing full and truthful information to customers in service provision as prescribed;

d) Failing to organize the full collection of information on the financial situation of the investment partner; conducting investments that are not consistent with the determined investment objectives; providing entrusted investment advisory services that do not comply with regulations regarding profit distribution and other commitments.

2. A fine of from twenty million dong to fifty million dong shall be imposed on a fund management company for committing any of the following violations:

a) Failing to comply with the fund charter; failing to implement provisions protecting the rights of investors;

b) Failing to purchase professional liability insurance for fund management activities at the company; failing to establish a reserve fund to offset risks and compensate investors for losses due to technical issues or negligence of employees within the fund management company;

c) Organizing the retention of incomplete documentation, failing to accurately and specifically reflect all transactions in fund asset investments as prescribed.

3. A fine of from fifty million dong to seventy million dong shall be imposed on a fund management company for committing any of the following violations:

a) Determining the net asset value of a securities investment fund inaccurately in order to maintain stability in the market price of certificates;

b) Using funds or assets of a securities investment fund to lend or guarantee issuance;

c) Using funds and assets of this investment fund to invest or purchase assets of another fund managed by itself;

d) Using funds and assets of an investment fund to participate in capital contributions, hold shares, borrow or lend to the fund management company;

đ) Using funds and assets of an investment fund to invest in certificates of the same public fund or of another investment fund;

e) Using funds and assets of an investment fund to invest in securities of an issuing organization exceeding fifteen percent of the total value of securities currently circulating of that organization;

g) Using funds and assets of an investment fund to invest more than twenty percent of the total value of the fund's assets in securities currently circulating of an issuing organization;

h) Using funds and assets of an investment fund to invest more than ten percent of the total value of a closed-end fund in real estate; investing open-end fund capital in real estate;

i) Using funds and assets of an investment fund to invest more than thirty percent of the total value of a public fund's assets in companies within the same group of companies that have ownership relationships with each other;

k) Using funds and assets of an investment fund to lend or guarantee any loan;

l) Engaging in borrowing to finance the operations of a public fund contrary to the provisions of the law.

4. Additional forms of administrative punishment:

a) Revoking the right to use the License for Establishment and Operation of a Fund Management Company for a period of thirty days in cases of violation of the provisions set forth in point a and point b, Clause 2 of this Article;

b) Revoking the right to use the License for Establishment and Operation of a Fund Management Company for a period of forty-five days in cases of violation of the provisions set forth in Article 3 of this Law;

c) Confiscating illegal revenues arising from violations stipulated in Clause 3 of this Article;

5. Apply measures to address the consequences:

Compel compliance with legal provisions for violations stipulated in Clauses 1, 2, and 3 of this Article.

Article 22. Imposing penalties for violations of regulations on establishment, offering of public fund certificates, and stock of securities investment companies

1. A fine of from ten million dong to twenty million dong shall be imposed on a fund management company, a securities investment company, an underwriting organization, a supervisory bank, and related individuals for committing any of the following violations:

a) The registration documents for establishment, offering of public fund certificates, and offering of securities investment company stocks submitted to the State Securities Commission contain misleading information or lack important contents that may affect investor decisions;

b) Using information outside the prospectus to conduct market research before being permitted to offer public fund certificates and securities investment company stocks to the public;

c) Distributing public fund certificates and securities investment company stocks to the public before completing the announcement of issuance;

d) Announcing the offering of public fund certificates and securities investment company stocks through media channels not in accordance with regulations, not in accordance with the prescribed content, time, and deadline;

đ) An underwriting organization underwriting the total value of public fund certificates and securities investment company stocks exceeding the prescribed ratio;

2. A fine of from twenty million dong to thirty million dong shall be imposed on a fund management company, a securities investment company, an underwriting organization, and individuals signing reports participating in drafting the establishment fund and securities investment company registration documents, including the combined portion of the fund management company's contribution and the work of individuals within the fund management company, to meet the minimum registered capital requirement;

3. A fine of from thirty million dong to fifty million dong shall be imposed on a fund management company, a securities investment company, an underwriting organization, and individuals signing reports participating in drafting the establishment fund and securities investment company registration documents and offering public fund certificates and securities investment company stocks containing falsified documents;

4. A fine of from fifty million dong to seventy million dong shall be imposed on a fund management company, a public securities investment company, and an underwriting organization for offering public fund certificates and securities investment company stocks to the public without approval from the State Securities Commission;

5. Additional forms of punishment:

a) Suspending the offering of public fund certificates and securities investment company stocks to the public for a period of forty-five days in cases of violation of the provisions set forth in Article 3 of this Law;

b) Canceling the offering of public fund certificates and securities investment company stocks to the public if the violations are not rectified within the suspension period specified in point a of this clause;

c) Compelling the cancellation of the offering of public fund certificates and securities investment company stocks to the public in cases of violation of the provisions set forth in Article 4 of this Law;

d) Confiscating all unlawful proceeds of organizations and individuals due to violations of the provisions set forth in Article 3 and Article 4 of this Law.

6. Measures to rectify consequences shall be applied:

a) The fund management company must organize the recovery of certificates, and the securities investment company must organize the recovery of shares that have been offered for sale, refunding the deposit money or certificate purchase price to investors if the investor requests cancellation of the purchase within fifteen days from the date the offering of public fund certificates or securities investment company shares is suspended according to the provisions of point a, Clause 5, Article this;

b) The fund management company must recover fund certificates, and the securities investment company must recover shares that have been offered for sale, refunding the deposit money or certificate or securities investment company share purchase price to investors within thirty days from the date the offering of public fund certificates or securities investment company shares is ordered to be cancelled according to the provisions of points b and c, Clause 5, Article this.

Article 23. Penalty for violations related to the establishment of member funds

1. A fine of from twenty million dong to fifty million dong shall be imposed on the fund management company and relevant individuals who commit one of the following violations:

a) The documents submitted to the State Securities Commission for the establishment of a member fund contain false information or lack the required contents as stipulated, affecting the rights of participating members;

b) The asset management and supervision agreement between the fund management company and the supervisory bank does not comply with regulations, contravenes the fund's charter, causing losses to capital contributors;

c) Failure to report or timely report abnormal risks or asset losses that seriously affect the rights of capital contributors.

2. Apply measures to rectify consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

Article 24. Penalty for violations related to securities practice certificates

1. A warning penalty shall be imposed on securities companies, fund management companies, and securities investment companies that commit one of the following violations:

a) Failure to promptly report changes in securities practitioners;

b) Failure to assign personnel to attend training courses on laws, trading systems, and new types of securities as required.

2. A fine of from five million dong to ten million dong shall be imposed on securities companies, fund management companies, and securities investment companies that commit one of the following violations:

a) Assigning persons without a securities practice certificate to perform tasks that require such a certificate under the law;

b) Failing to transfer or reassign personnel who have had their securities practice certificate revoked by an authorized agency.

3. A fine of from ten million dong to twenty million dong shall be imposed on securities practitioners who commit one of the following violations:

a) Simultaneously working for another organization that has ownership ties with the securities company or fund management company where they work;

b) Work simultaneously for another securities company or fund management company;

c) Simultaneously serving as Director or General Manager of an organization issuing securities to the public or listed on a stock exchange;

d) Working at one securities company but opening a securities trading account at another securities company;

đ) Individuals holding a securities practice certificate who are members of the Board of Directors, Management Board, or Supervisory Board of a securities company investing in another securities company.

4. A fine of from thirty million dong to fifty million dong shall be imposed on securities practitioners who commit one of the following violations:

a) Misusing their position to lend money or securities from customer accounts without authorization, or using customer securities as collateral or using money or securities in customer accounts without being entrusted by the customer;

b) Directly or indirectly engaging in fraudulent activities, creating false information, or omitting necessary information leading to serious misunderstandings affecting the issuance, listing, trading, securities business, investment, and securities market services;

c) Lending or renting out securities practice certificates;

d) Altering or tampering with securities practice certificates.

5. Additional forms of punishment:

a) Revocation of the right to use the securities practice certificate indefinitely for cases violating the provisions of Clause 3 and Clause 4 of this Article;

b) Confiscation of all illegal gains of securities practitioners due to violations of the provisions of Clause 4 of this Article.

6. Measures to rectify consequences shall be applied:

Compel compliance with the law for cases violating the provisions of Clauses 1, 2, 3, and 4 of this Article.

Chapter 6

VIOLATIONS OF SECURITIES TRADING REGULATIONS

Article 25. Penalty for violations of prohibitions on participating in stock trading

1. A fine of from thirty million dong to fifty million dong shall be imposed on individuals and a fine of from fifty million dong to seventy million dong shall be imposed on organizations prohibited by law from directly or indirectly holding or buying and selling stocks through name changes or using other people's names to trade securities.

2. Additional forms of punishment:

Confiscation of all illegal gains and the number of shares used for the violation.

3. Apply remedial measures:

Compel compliance with the law for cases violating Clause 2 of Article 126 of the Securities Law.

Article 26. Penalty for fraudulent and deceptive activities in securities trading

1. A fine of from thirty million dong to fifty million dong shall be imposed on individuals and a fine of from fifty million dong to seventy million dong shall be imposed on organizations engaged in securities investment that commit one of the following violations:

a) Directly or indirectly participating in fraudulent activities, creating false information, or omitting necessary information leading to serious misunderstandings affecting the issuance, listing, trading, securities business, investment, and securities services;

b) Directly participating in the publication of false information aimed at enticing or inciting the buying or selling of securities or failing to promptly and fully disclose information about events affecting the price of securities on the market.

2. Additional forms of punishment:

Confiscation of all illegal gains of individuals and organizations engaged in securities investment due to violations of Clause 1 of this Article.

3. Apply remedial measures:

Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

Article 27. Penalty for violations of internal trading regulations in securities trading

1. A fine of from thirty million dong to fifty million dong shall be imposed on individuals and a fine of from fifty million dong to seventy million dong shall be imposed on organizations engaged in securities investment that commit one of the following violations:

a) Using insider information to execute securities purchases or sales for joint-stock companies or investment funds for oneself or a third party;

b) Disclosing, providing insider information, or advising a third party to buy or sell securities based on insider information.

2. Additional forms of punishment:

Confiscation of all illegal gains of individuals and organizations engaged in securities investment due to violations of Clause 1 of this Article.

3. Apply remedial measures:

Compel compliance with internal transaction regulations in cases of violation of the provisions of Clause 1 of this Article.

Article 28. Punish acts of manipulating the securities market

1. A fine of from thirty million dong to fifty million dong shall be imposed on individuals and a fine of from fifty million dong to seventy million dong shall be imposed on organizations engaged in securities investment that commit one of the following violations:

a) Colluding in securities transactions to create false supply and demand;

b) Engaging in securities transactions through collusion, enticing others to continuously buy or sell in order to manipulate security prices;

c) Combining or using other trading methods to manipulate security prices.

2. Additional forms of punishment:

Confiscation of all illegal gains of individuals and organizations engaged in securities investment due to violations of Clause 1 of this Article.

3. Apply remedial measures:

Compel compliance with legal provisions for violations stipulated in Clause 1 of this Article;

Article 29. Punish violations of public tender offer regulations

1. A fine of from twenty million dong to fifty million dong shall be imposed on organizations or individuals making a public tender offer for voting shares leading to ownership of twenty-five percent or more of the issued shares of a joint-stock company or failing to submit a registration of the public tender offer to the State Securities Commission as required or implementing a public tender offer without approval from the State Securities Commission.

2. A fine of from fifty million dong to seventy million dong shall be imposed on organizations or individuals making a public tender offer for voting shares leading to ownership of twenty-five percent or more of the issued shares of a joint-stock company or failing to implement the public tender offer when the target is compelled to sell the shares they own and commits one of the following violations:

a) Directly or indirectly purchasing or committing to purchase the shares being offered outside the tender offer period;

b) Selling or committing to sell the shares they are offering;

c) Treating shareholders holding the same type of shares being offered unfairly;

d) Providing private information to certain shareholders or providing information to shareholders at different levels or at different times;

đ) Implementing the public tender offer period not in accordance with the provisions of the law;

e) Implementing the public tender offer when the target is compelled to sell the securities they own;

g) Not applying the terms of the public tender offer to all shareholders of the joint-stock company;

h) Refusing to purchase shares from any shareholder according to the terms of the public tender offer.

3. Additional forms of punishment:

a) Suspend the public tender offer period for forty-five days in cases of violation of the provisions of Clause 1 and Clause 2 of this Article;

b) Cancel the public tender offer if the violations are not corrected within the suspension period specified in point a of this clause.

4. Measures to remedy consequences:

Compel compliance with public tender offer regulations in cases of violation of the provisions of Clause 1 and Clause 2 of this Article.

Section 7

VIOLATIONS OF REGULATIONS ON REGISTRATION, DEPOSITORY, NETTING

AND SETTLEMENT OF SECURITIES, REGARDING SUPERVISION BANKS

Article 30. Punish acts violating regulations on registration, depository, netting, and settlement of securities

1. A fine of from ten million dong to twenty million dong shall be imposed on the Securities Depository Center, securities depository members who commit one of the following violations:

a) Organizing the implementation of registration, depository, netting, and settlement of securities while not meeting the material and technical conditions required for these activities according to the regulations;

b) Not establishing complete operational procedures and risk management for each business activity according to the regulations;

c) Not having measures to protect data and retain original documents related to registration, depository, netting, and settlement of securities according to the regulations.

2. A fine of from twenty million dong to fifty million dong shall be imposed on the Securities Depository Center, securities depository members, and employees of these organizations who commit one of the following violations:

a) Violating the storage and retention system for securities; the registration, depository, netting, and settlement system for securities according to the regulations causing losses to customers;

b) Violating the confidentiality system for customer securities accounts according to the regulations;

c) Not providing complete, timely, and accurate lists of shareholders, stockholders, and related documents upon request of the joint-stock company.

3. A fine of from fifty million dong to seventy million dong shall be imposed on the Securities Depository Center, securities depository members who violate the settlement time, transfer of ownership of securities, or tampering, loss, or forgery of documents in settlement and transfer of ownership of securities causing material damage to customers.

4. Additional forms of administrative punishment:

a) Revoking the Certificate of Registration for Securities Depository Activities for a maximum of ninety days for depository members violating the provisions of point a of Clause 2 and Clause 3 of this Article;

b) Confiscating all illegal revenues of organizations registering, depository, netting, and settling securities and their employees due to violations of the provisions of Clause 2 and Clause 3 of this Article.

5. Apply measures to address the consequences:

Compel compliance with the law in cases of violation of the provisions of Clause 2 and Clause 3 of this Article.

Article 31. Punish violations of the responsibilities of supervision banks

1. A fine of from ten million dong to twenty million dong shall be imposed on supervision banks performing supervisory bank functions under conditions that do not ensure material and technical facilities, have not established operational procedures, and risk management to fully fulfill the duties of a custodian bank as prescribed by law.

2. A fine of from twenty million dong to fifty million dong shall be imposed on supervision banks committing one of the following violations:

a) Conducting collection, payment, settlement, and transfer of money and securities not promptly and accurately as required;

b) Confirming reports on collective investment fund assets or securities investment company assets managed by the fund management company or securities investment company inaccurately or with discrepancies.

3. A fine of from fifty million dong to seventy million dong shall be imposed on supervision banks committing one of the following violations:

a) Storing collective investment fund assets or securities investment company assets contrary to the charter of the collective investment fund or the charter of the securities investment company as prescribed.

b) Failing to separately store assets of this investment fund from those of other investment funds as prescribed;

c) The supervisory bank, members of the Board of Directors, managers, and employees of the supervisory bank have ownership, loan, or lending relationships with the fund management company, securities investment company, and vice versa;

d) The supervisory bank, members of the Board of Directors, managers, and employees of the supervisory bank directly perform the task of monitoring the purchase and sale of assets of public funds and securities investment companies;

4. Additional forms of administrative punishment:

a) Revoking the Securities Custody Business Registration Certificate for a period of thirty days in cases of violation of the provisions of Clause 3 of this Article;

b) Reclaiming the Securities Custody Business Registration Certificate if, after the revocation period prescribed in point a of this clause, the violations are not rectified;

5. Apply measures to address the consequences:

Compel compliance with legal provisions for violations stipulated in Clauses 1, 2, and 3 of this Article.

Section 8

VIOLATIONS OF INFORMATION DISCLOSURE PROVISIONS

Article 32. Imposing penalties on acts violating information disclosure provisions

1. Imposing a fine of between 10,000,000 VND and 20,000,000 VND on issuers, public companies, listed organizations, securities companies, fund management companies, securities investment companies, Stock Exchanges, and Securities Trading Centers that commit any of the following violations:

a) Disclosing information but failing to report to the State Securities Commission about the disclosed contents as required by law;

b) The person disclosing information does not have the authority as prescribed by law.

2. Imposing a fine of between 20,000,000 VND and 30,000,000 VND on issuers, public companies, listed organizations, securities companies, fund management companies, securities investment companies, Stock Exchanges, and Securities Trading Centers that commit any of the following violations:

a) Organizing information disclosure on information dissemination means not in accordance with the provisions of law;

b) Disclosing incomplete, untimely, or overdue information as required by law.

3. Imposing a fine of between 30,000,000 VND and 50,000,000 VND on issuers, public companies, listed organizations, securities companies, fund management companies, securities investment companies, Stock Exchanges, and Securities Trading Centers that commit any of the following violations:

a) Disclosing information containing false information that causes severe price fluctuations in the market;

b) Disclosing confidential documents or data belonging to non-disclosed or yet-to-be-disclosed information;

c) Deliberately delaying the disclosure of extraordinary information as required or at the request of the State Securities Commission.

4. Apply remedial measures:

Compelling compliance with the legal provisions on information disclosure for cases of violations stipulated in Clauses 1, 2, and 3 of this Article.

Section 9

VIOLATIONS OF REPORTING PROVISIONS

Article 33. Imposing penalties on acts violating reporting provisions

1. Issuing a warning or imposing a fine of between 5,000,000 VND and 10,000,000 VND on Stock Exchanges, Securities Trading Centers, Central Depositories, public companies, listed organizations, securities companies, fund management companies, securities investment companies, and supervisory banks that commit any of the following violations:

a) Reporting incomplete content as required by law;

b) Reporting beyond the deadline as required by law;

c) Reporting not in accordance with the prescribed form.

2. Imposing a fine of between 10,000,000 VND and 20,000,000 VND on Stock Exchanges, Securities Trading Centers, Central Depositories, public companies, listed organizations, securities companies, fund management companies, securities investment companies, and supervisory banks that commit any of the following violations:

a) Ceasing operations without reporting or having reported but not obtaining approval from the State Securities Commission;

b) Failing to report or reporting untimely when extraordinary events occur that significantly affect financial capacity and business operations, securities services.

3. Apply remedial measures:

Compelling compliance with the legal provisions on reporting systems for cases of violations stipulated in Clauses 1 and 2 of this Article.

Section 10

VIOLATIONS OF PROVISIONS THAT OBSTRUCT INSPECTION

Article 34. Imposing penalties on acts obstructing inspection

1. Issuing a warning to issuers, listed organizations, securities companies, fund management companies, securities investment companies, supervisory banks, Stock Exchanges, Securities Trading Centers, Central Depositories, and other organizations and individuals related to securities activities and the securities market who delay, evade, or fail to provide complete and timely information, documents, electronic data as requested by the Inspection Team and inspectors.

2. Imposing a fine of between 5,000,000 VND and 10,000,000 VND on issuers, listed organizations, securities companies, fund management companies, securities investment companies, supervisory banks, Stock Exchanges, Securities Trading Centers, Central Depositories, and other organizations and individuals related to securities activities and the securities market who obstruct inspection activities, use violence, or threaten members of the Inspection Team while performing their duties.

3. Imposing a fine of between 10,000,000 VND and 20,000,000 VND on issuers, listed organizations, securities companies, fund management companies, securities investment companies, supervisory banks, Stock Exchanges, Securities Trading Centers, Central Depositories, and other organizations and individuals related to securities activities and the securities market that commit any of the following violations:

a) Concealing, altering documents, records, or changing evidence during inspection;

b) Removing, moving, or taking other actions that change the sealed condition of money, securities, books, files, accounting documents, or other sealed items or means.

Chapter III

AUTHORITY AND PROCEDURES FOR IMPOSING ADMINISTRATIVE PENALTIES FOR VIOLATIONS

Article 35. Competence to impose administrative penalties

1. The Director of the State Securities Commission's Inspectorate has the authority:

a) To issue warnings;

b) To impose a maximum fine of 70,000,000 VND.

2. The Chairman of the State Securities Commission has the right:

a) To issue warnings;

b) To impose a maximum fine of 70,000,000 VND;

c) For violations stipulated in Clause 3 and Clause 4 Article 9 and Clause 2 Article 14 of this Decree, penalties shall be imposed in accordance with current laws.

d) Apply additional penalties and measures to remedy consequences as prescribed in Clause 2 and Clause 3 Article 7 of this Decree.

Article 36. Delegation of Administrative Violation Penalties

In cases where those authorized to impose administrative violation penalties as stipulated in Article 35 of this Decree are absent, they may delegate their authority in writing to their direct deputy to impose administrative violation penalties. The delegation shall be carried out in accordance with Article 11 of the Administrative Violation Handling Ordinance and Article 14 of Decree No. 134/2003/NĐ-CP dated November 14, 2003, detailing certain provisions of the Administrative Violation Handling Ordinance.

Article 37. Suspension of Administrative Violations

Upon discovering an administrative violation, the authorized person must issue an immediate written order to suspend the violation.

Article 38. Establishment of Administrative Violation Records

1. After issuing an order to suspend the administrative violation according to the procedure prescribed in Article 53 of the Administrative Violation Handling Ordinance, the authorized person must establish a record and proceed with punishment; if it exceeds their authority, it must be transferred to the competent authority for decision on punishment in accordance with Decree No. 81/2005/NĐ-CP dated June 22, 2005, regarding the organization and operation of Financial Inspection.

2. The establishment of administrative violation records applies to all cases of violations in the securities and securities market sector, except for warnings or violations determined from criminal cases transferred for administrative handling.

3. The administrative violation penalty record must be established in at least two copies according to the prescribed form. The record must be signed by the recorder, the violator, or the representative of the violating entity. If there are witnesses, victims, or representatives of victimized entities, they must also sign the record. If the record consists of multiple pages, those specified in this clause must sign each page of the record. In case the violator, representative of the violating entity, witness, victim, or representative of the victimized entity refuse to sign the record, the recorder must clearly state the reason in the record.

4. Once completed, the record must be handed over to the violating organization or individual one copy; if the violation exceeds the authority of the recorder to impose administrative violation penalties, the recorder must send the original violation record and all related documents and files to the competent authority for punishment within three working days from the date of establishing the administrative violation record.

Article 39. Administrative Violation Penalty Decision

1. The penalty decision must be established in at least five copies according to the prescribed form (for warning penalties) and in at least six copies according to the prescribed form (for monetary penalties).

2. The deadline for issuing an administrative violation penalty decision is ten working days from the date of establishing the administrative violation record; for cases with complex circumstances, the deadline is thirty days. If additional time is needed for verification and evidence collection, the authorized person must report in writing to their direct superior to request an extension. The extension must be in writing; the extended period cannot exceed thirty days. Beyond this deadline, the authorized person has no right to issue a penalty decision; in such cases, measures to remedy consequences as prescribed in Clause 3 Article 7 of this Decree can still be applied.

3. When imposing a penalty on an individual or entity that commits multiple administrative violations, the authorized person shall issue only one penalty decision. For cases involving multiple individuals or entities committing similar violations without mutual involvement during the violation process, each individual or entity will be penalized with separate decisions. Based on the nature and severity of the violation by each individual or entity, the authorized person will determine specific penalties accordingly.

If the form and level of the penalty exceed the authority of the person imposing the penalty, that person must transfer the violation to the competent authority for punishment.

4. In cases where administrative violations fall under the authority of multiple persons to impose penalties, the person who first handles the case shall carry out the penalty.

5. The penalty decision takes effect from the date of signature, except when another effective date is specified in the decision.

6. The deadline for sending the penalty decision to the penalized organization or individual and the revenue collection agency is three working days from the date of issuing the penalty decision.

Article 40. Procedure for Imposing Monetary Penalties

1. Cases of imposing monetary penalties must be carried out strictly in accordance with the procedures prescribed in Articles 38 and 39 of this Decree. Within ten working days from the date of receiving the penalty decision, the penalized organization or individual must pay the fine amount stated in the decision into the State Treasury and obtain a receipt for the fine payment.

2. When imposing monetary penalties, the specific fine amount for a single administrative violation is the average of the fine range prescribed for that violation; if there are mitigating circumstances, the fine amount may be reduced but not below the minimum limit of the fine range; if there are aggravating circumstances, the fine amount may be increased but not above the maximum limit of the fine range.

Article 41. Procedure for Revoking Securities Business License and Certificate

1. The Chairman of the State Securities Commission has the authority to issue a decision to revoke the right to use the securities business license and certificate in accordance with Point c Clause 2 Article 7 of this Decree.

2. In the case of revoking a securities business license or certificate, the decision on administrative penalty must clearly state: name; type; number of the license; number of the certificate; period during which the right to use the license or certificate is revoked. If only a specific business activity is suspended, the person authorized to impose penalties must clearly specify in the administrative penalty decision the business activity that is suspended and the suspension period.

3. When discovering that a license has been issued beyond authority or contains content contrary to the law, the person authorized to impose penalties must immediately revoke it and report to the competent state agency issuing the license.

Article 42. Procedure for confiscating securities used for administrative violations and proceeds obtained from such violations

When implementing the supplementary administrative penalty measure of confiscating securities used for administrative violations and proceeds obtained from such violations, the person authorized to impose penalties must prepare a confiscation record according to the model prescribed for the Record of Confiscation of Contraband and Means of Administrative Violations. The record must be signed by the person conducting the confiscation, the person being penalized, a representative of the organization being penalized, or a witness.

Article 43. Procedure for suspending and cancelling public offerings of securities

When implementing the supplementary administrative penalty measure of suspending for a period or cancelling public offerings of securities, the person authorized to impose penalties must clearly state this in the administrative penalty decision.

Procedures for suspending and cancelling public offerings of securities shall be carried out in accordance with Articles 22 and 23 of the Securities Law.

Article 44. Enforcement of administrative penalty decisions by compulsion

1. Individuals or organizations subject to administrative penalties who do not voluntarily comply with the administrative penalty decision shall be enforced by compulsion through the following measures:

a) Deducting part of the salary or income, or deducting from a bank account;

b) Seizing assets of equivalent value to the fine amount for auction;

c) Applying other compulsory measures to enforce confiscation of contraband and means used for administrative violations, compelling restoration to the original condition altered by the administrative violation.

2. The person authorized to impose administrative penalties as stipulated in Article 35 of this Decree has the right to issue a compulsory enforcement decision and is responsible for organizing the enforcement.

3. Individuals or organizations receiving a compulsory enforcement decision must strictly comply with the decision.

4. State agencies, people's police forces, and People's Committees at all levels have the responsibility to cooperate in organizing compulsory enforcement when requested by the person authorized to impose administrative penalties as stipulated in Clause 2 of this Article.

5. Individuals or organizations subject to compulsory enforcement must bear all costs related to the implementation of compulsory measures.

Chapter IV

SUPERVISION AND INSPECTION IN ADMINISTRATIVE VIOLATION HANDLING,

SETTLEMENT OF COMPLAINTS, REPORTS AND HANDLING VIOLATIONS BY PERSONS

WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD

OF SECURITIES AND THE SECURITIES MARKET

Article 45. Supervision and inspection in administrative penalty imposition

The Minister of Finance is responsible for continuously supervising and inspecting the imposition of administrative penalties in the field of securities and the securities market within their management scope; promptly resolving complaints and reports related to administrative penalties involving persons authorized to impose penalties as stipulated in Article 35 of this Decree; handling persons who commit errors in administrative penalties within their management scope; and implementing reporting systems on administrative violations within their area of responsibility as required by competent authorities.

Article 46. Settlement of complaints and lawsuits regarding administrative penalty decisions and reports of illegal acts by persons authorized to impose administrative penalties

1. Individuals or organizations subject to administrative penalties in the field of securities and the securities market have the right to file complaints against the decision-making body for administrative violations to the competent state agency. Competent state agencies are responsible for resolving complaints in accordance with the Law on Complaints and Reports.

Initiating lawsuits regarding administrative penalty decisions before courts at various levels shall be carried out in accordance with the provisions of the law on procedures for resolving administrative cases.

During the complaint or lawsuit period, individuals or organizations subject to administrative penalties must still comply with the administrative penalty decision; once there is a decision on the complaint resolution by the competent state agency or a court judgment or decision that has taken legal effect, they must comply with the complaint resolution decision of the competent state agency or the court judgment or decision.

2. Reporting and resolving reports on illegal acts in the imposition of administrative penalties in the field of securities and the securities market shall be carried out in accordance with the Law on Complaints and Reports and other relevant laws.

Chapter V

IMPLEMENTING PROVISIONS

Article 47. Effectiveness of the Decree

This Decree takes effect fifteen days after its publication in the Official Gazette and replaces previous regulations on administrative penalties in the field of securities and the securities market.

Article 48. Responsibility to provide guidance

The Minister of Finance shall be responsible for providing detailed guidance on the implementation of this Decree.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.