Circular No. 37/2011/TT-BTC guides the implementation of certain provisions of Government Decree No. 85/2010/NĐ-CP dated August 2, 2010 on administrative penalties for violations in the securities and securities market sector.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 85/2010/NĐ-CP dated August 2, 2010 of the Government on Administrative Sanctions for Violations in the Securities and Securities Market Sector

On Administrative Sanctions for Violations in the Securities and Securities Market Sector

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BASED ON THE SECURITIES LAW NUMBER 70/2006/QH11 OF JUNE 29, 2006;

Pursuant to the Administrative Offense Handling Law dated July 2, 2002 and the Law Amending and Supplementing Certain Provisions of the Administrative Offense Handling Law dated April 2, 2008;

Pursuant to Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government detailing the implementation of certain provisions of the Administrative Offense Handling Law 2002 and the Law Amending and Supplementing Certain Provisions of the Administrative Offense Handling Law 2008;

Pursuant to Decree No. 85/2010/NĐ-CP dated August 2, 2010 of the Government on Administrative Sanctions for Violations in the Securities and Securities Market Sector;

Pursuant to Decree No. 37/2005/NĐ-CP dated March 18, 2005 of the Government stipulating procedures for applying coercive measures to enforce administrative sanction decisions;

is a medicine production facility certified by the competent authority of a country participating in the EMA or ICH or PIC/s to meet EU-GMP or PIC/s-GMP standards or equivalent, and announced by the Ministry of Health (Drug Administration Department) on the Drug Administration Department's electronic information website.

The Ministry of Finance issues guidelines for implementing certain provisions of Decree No. 85/2010/NĐ-CP dated August 2, 2010 of the Government on Administrative Sanctions for Violations in the Securities and Securities Market Sector as follows:

PART I

GENERAL PROVISIONS

Article 1. Administrative Violations in the Securities and Securities Market Sector

Administrative violations in the securities and securities market sector (hereinafter referred to as administrative violations in the securities sector) are acts committed intentionally or negligently by individuals or organizations that violate laws and regulations on securities and the securities market without reaching the level of criminal prosecution and must be subject to administrative sanctions according to Decree No. 85/2010/NĐ-CP dated August 2, 2010 of the Government on Administrative Sanctions for Violations in the Securities and Securities Market Sector (hereinafter referred to as Decree 85).

Article 2. Application of Principles for Administrative Sanctions

1. The handling of administrative violations in the securities sector must be conducted promptly, openly, transparently, and thoroughly. All consequences caused by administrative violations in the securities sector must be remedied in accordance with the law.

2. When issuing an administrative sanction decision against individuals or organizations that have violated the law, the authority responsible for imposing sanctions must base their decision on the nature and severity of the violation, aggravating and mitigating circumstances as prescribed in Article 8 and Article 9 of the Administrative Offense Handling Law, Article 6 of Decree No. 128/2008/NĐ-CP dated December 16, 2008 of the Government detailing the implementation of certain provisions of the Administrative Offense Handling Law 2002 and the Law Amending and Supplementing Certain Provisions of the Administrative Offense Handling Law 2008 (hereinafter referred to as Decree 128), and the following specific provisions:

a) A single act of violation committed by the same individual or organization at the same time shall only be sanctioned once. If an individual or organization has been sanctioned for a violation but within one year from the date of completion of the execution of the administrative sanction decision or from the expiration of the enforcement period of the administrative sanction decision, they again commit the same violation, then the aggravating circumstance of recidivism as provided for in Clause 3 of Article 6 of Decree 128 shall be applied when issuing the administrative sanction decision.

b) Where multiple individuals or organizations jointly commit a single act of administrative violation, each individual or organization committing the violation shall be sanctioned for that act. The authority responsible for imposing sanctions bases its decision on the nature and severity of the violation, aggravating and mitigating circumstances, and issues an administrative sanction decision for each individual or organization jointly committing the administrative violation.

c) An individual or organization committing multiple acts of administrative violation shall be sanctioned for each separate act of violation. When deciding on an administrative sanction for an individual or organization committing multiple acts of violation, the authority responsible for imposing sanctions shall issue one administrative sanction decision in which the form and level of the sanction for each act of violation are decided; if the forms of sanction are fines, they shall be combined into a total fine.

3. In cases where an administrative violation in the securities sector is the result of another administrative violation in the same securities sector, only the more serious violation shall be sanctioned.

4. In cases where an administrative violation exhibits signs of a crime and the case file is transferred for criminal prosecution, any previous administrative sanction decision must be revoked; if no administrative sanction decision has been issued, no administrative sanction shall be imposed on that act.

Article 3. Calculation of Time Limits and Statute of Limitations for Sanctions

1. The statute of limitations for administrative sanctions in the securities sector:

a) For administrative violations in the securities sector, the statute of limitations for sanctions is two years, calculated from the date the violation was committed.

The determination of the time point for calculating the statute of limitations for certain violations is specified as follows:

- For violations concerning public offerings of securities as stipulated in Clause 4 and Clause 5 of Article 8 of Decree 85, the time point for determining the commission of the violation for calculating the statute of limitations is the end date of the registration period for purchasing securities; if payment for the purchase of securities has already been received, the time point for calculating the statute of limitations is the end date of the receipt of payment for the purchase of securities.

- For violations concerning the submission of registration documents for public companies as stipulated in Clause 1, Clause 2, and Point a of Clause 3 of Article 9 of Decree 85, the time point for determining the commission of the violation for calculating the statute of limitations is the date of submission of the registration documents for public companies to the State Securities Commission beyond the prescribed deadline.

b) For individuals who have been indicted, prosecuted, or had a decision made to bring them to trial under criminal proceedings, subsequently having a decision to terminate the investigation or discontinue the case, but where the violation has signs of administrative violations related to securities, within three days from the date of the decision to terminate the investigation or discontinue the case, the agency that issued the decision to terminate the investigation or discontinue the case must send the decision and case file to the competent authority for handling administrative violations in the securities field. In this case, the statute of limitations for handling violations is three months, from the date the competent authority for handling administrative violations in the securities field receives the decision to discontinue and the case file until the date of issuing the decision on handling.

c) Within the statute of limitations prescribed in points a and b of Clause 1 of this Article, if organizations or individuals violate again by committing new violations in the securities field or intentionally evade or obstruct punishment, then the statute of limitations prescribed in points a and b of Clause 1 of this Article shall not be applied. The statute of limitations for administrative penalties in the securities field will be recalculated from the date of the new violation or the date of ceasing to evade or obstruct punishment.

The date of ceasing to evade or obstruct punishment is the date when the violator voluntarily reports to the competent authority for handling administrative violations in the securities field and accepts the implementation of penalty measures. The competent authority for handling administrative violations in the securities field must record this in a report and retain one copy in the violation file and hand over one copy to the violator.

2. Method of determining the time limit and statute of limitations for administrative penalties in the securities field:

a) If the time limit and statute of limitations for administrative penalties in the securities field are prescribed in months or years, such period is calculated according to the Gregorian calendar, including holidays as stipulated by the Labor Code.

b) If the time limit is prescribed in days, such period is calculated according to working days, excluding holidays as stipulated by the Labor Code.

Article 4. Forms of Administrative Penalties

1. Principal forms of administrative penalty:

a) Warning:

The form of warning penalty is applied to administrative violations where Decree 85 prescribes a warning penalty or a fine for such behavior and when there are mitigating circumstances.

b) Fine:

When imposing a fine, the specific amount of the fine for a single violation is the midpoint of the fine range prescribed for such behavior; if there are mitigating circumstances, the fine amount may be reduced, but it cannot be reduced below the minimum fine level; if there are aggravating circumstances, the fine amount may be increased, but it cannot exceed the maximum fine level.

The midpoint of the fine range is determined by dividing the sum of the minimum and maximum fine levels by two.

When determining the fine amount for individuals or organizations violating laws in the securities field with both aggravating and mitigating circumstances, the principle of reducing one aggravating circumstance for every two mitigating circumstances is considered. After applying this principle, if there remains one aggravating circumstance and one mitigating circumstance, the competent authority will consider the nature and severity of the violation and the violator's attitude towards remedying the consequences, and apply the fine amount for either a case with one aggravating circumstance or a case without aggravating or mitigating circumstances.

2. Additional forms of punishment:

The confiscation of all illegal gains resulting from the commission of administrative violations as specified in point a, Clause 2, Article 6 of Decree 85 is guided as follows:

a) Organizations and individuals who derive illegal gains from the implementation of violations will have such gains confiscated and turned over to the state budget.

b) The confiscated illegal gains do not include legitimate assets of investors and taxes and fees required to be paid according to regulations.

c) The State Securities Commission will develop methods for calculating illegal gains appropriate to actual conditions and specific cases.

Chapter II

VIOLATIONS, FORMS OF PENALTIES AND AMOUNTS OF FINES

Article 5. Violations concerning registration documents for public securities offerings

1. The provisions of Clause 1, Article 7 of Decree 85 apply in the following situations:

a) One or more documents in the registration documents for public securities offerings contain inaccurate information. Such information causes misunderstanding and affects the decision to issue a Public Offering Registration Certificate by the State Securities Commission or the investment decisions of investors.

b) Failure to amend or supplement the registration documents for public securities offerings upon discovering inaccurate information or missing important content related to the documents or the occurrence of new events affecting the content of the submitted documents.

2. The provisions of Clause 2, Article 7 of Decree 85 apply to intentional violations aimed at concealing the truth about matters related to the registration documents for public securities offerings.

3. The act of "Creating or confirming false registration documents for public securities offerings" as stipulated in Clause 3, Article 7 of Decree 85 refers to the act of fabricating or confirming false documents for the purpose of registering public securities offerings.

Upon discovering the act as stipulated in Clause 3, Article 7 of Decree 85, the State Securities Commission must prepare a record and seize the documents in the false registration file. If these documents are licenses, they must notify the licensing authority in writing.

Article 6. Violations concerning the implementation of public securities offerings

1. The act of "Using information outside the Prospectus to conduct market inquiries" as specified in point a, Clause 2, Article 8 of Decree 85 refers to using information that does not exist or is inaccurate compared to the content in the Prospectus in the registration documents to conduct market inquiries before being permitted to implement public securities offerings.

2. The provisions of Clause 5, Article 8 of Decree 85 shall be applied in cases where an organization conducting a public offering of securities implements such an offering to the public while the State Securities Commission is examining the application for registration of the public offering of securities submitted by that organization.

3. The amount of fine imposed for violations of the provisions of Clause 5, Article 8 of Decree 85 shall be calculated based on the unlawful revenue derived from the implementation of the violation. Unlawful revenue is the difference between the total amount of money received from the issuance and the total value of the shares issued at the time of issuance, calculated according to their book value. In cases where applying the maximum fine of five times the unlawful revenue still results in a lower fine than the maximum fine applicable for the act of issuing securities to the public without registering with the State Securities Commission as stipulated in Point c, Clause 4, Article 8 of Decree 85, the maximum fine prescribed for this act shall be applied. The violator must recall the securities issued, refund investors the purchase price of the securities or the deposit (if any), plus interest calculated at the rate of non-term deposits of the bank where the issuer has an account for collecting the purchase price or deposit at the time of administrative penalty, within thirty days from the date of receipt of the investor's request.

Article 7. Violation of the provision on submitting the registration dossier for a publicly traded company

1. The level of fine for violating the provision on submitting the registration dossier for a publicly traded company as stipulated in Point a, Clause 3, Article 9 of Decree 85 is specifically guided as follows:

a) A fine of VND 30,000,000 to VND 40,000,000 for the act of submitting the registration dossier for a publicly traded company late by more than twelve months but not exceeding eighteen months from the prescribed deadline;

b) A fine of VND 40,000,000 to VND 50,000,000 for the act of submitting the registration dossier for a publicly traded company late by more than eighteen months from the prescribed deadline;

2. The provisions of Point b, Clause 3, Article 9 of Decree 85 shall be applied in the following circumstances:

a) Preparing a registration dossier for a publicly traded company containing inaccurate information regarding one or several contents prescribed in Clause 1, Article 26 of the Securities Law 2006;

b) Having been instructed to supplement or correct inaccurate information in the registration dossier for a publicly traded company but failing to comply or complying incorrectly with the requirements of the State Securities Commission.

Article 8. Violation of the provisions on listing and registering securities trading

1. The provisions of Point a, Clause 1, Article 11 and Clause 2, Article 16 of Decree 85 shall be applied in the following cases:

a) One or several documents in the listing registration dossier or securities trading registration dossier contain inaccurate information as prescribed by law. Such information leads to misunderstanding and affects the decision to approve listing or securities trading registration of the Stock Exchange/Securities Trading Center or the investment evaluation and decision of investors;

b) Failing to amend or supplement the listing registration dossier or securities trading registration dossier when discovering inaccurate information or missing important content related to the dossier or new events occurring that affect the content of the submitted dossier.

2. The provisions of Clause 2, Article 11 and Clause 3, Article 16 of Decree 85 shall be applied to acts of intentionally violating in order to conceal the truth about contents related to the listing registration dossier or securities trading registration dossier.

3. The act of "Creating or confirming false dossiers for listing or securities trading registration" as stipulated in Clause 3, Article 11 and Clause 4, Article 16 of Decree 85 is the act of fabricating or confirming false documents for listing or securities trading registration.

Upon discovering acts as prescribed in Clause 2 and Clause 3, Article 11, Clause 3 and Clause 4, Article 16 of Decree 85, the Stock Exchange/Securities Trading Center must prepare a record of confiscating false listing registration or securities trading registration dossiers, report to the State Securities Commission for handling in accordance with regulations. In cases where these documents are licenses, the State Securities Commission must notify the licensing authority in writing.

4. The supplementary penalty measure of "Cancelling listing" as stipulated in Clause 4, Article 11 and "Compelling cancellation of securities trading registration" as stipulated in Clause 5, Article 16 of Decree 85 shall only be applied to acts of creating or confirming listing registration or securities trading registration dossiers containing intentionally false information, concealing the truth, or fabricating false dossiers for listing or securities trading registration in cases where the Stock Exchange/Securities Trading Center has approved listing or securities trading registration for the violator.

Article 9. Violation of the provisions on organizing a securities trading market

1. The provisions of Clause 1 and Clause 2, Article 12 of Decree 85 shall be applied to cases where an organization establishes any location or form of information exchange to execute matching orders for buying and selling and trading securities outside the Stock Exchange/Securities Trading Center.

2. The amount of fine for violations of the provisions on organizing a securities trading market shall be calculated based on the total revenue obtained from the implementation of the violation by individuals or organizations. In cases where applying the maximum fine of five times the unlawful revenue still results in a lower fine than the fine prescribed in Clause 1, Article 12 of Decree 85, the person authorized to impose penalties shall apply the fine prescribed in Clause 1, Article 12 of Decree 85.

Article 10. Violation of the provisions on establishing and operating securities business

1. The act of "Using the name of a company, branch, representative office, or trading room in violation of regulations" as stipulated in Clause 1, Article 17 of Decree 85 refers to the securities company, fund management company, securities investment company, branch, or representative office of a foreign securities company or fund management company in Vietnam using a name that does not match the name recorded in the license for establishment and operation, approval for opening a branch, representative office, or trading room.

2. The act of "Establishing, confirming application files for issuance and supplementary operation licenses with false information" at point đ, Clause 4, Article 17 of Decree 85 is the act of securities companies, fund management companies, investment securities companies, branches of securities companies, foreign fund management companies in Vietnam establishing files, providing inaccurate information or omitting important contents related to the file, or failing to amend and supplement the file when new events occur that affect the content of the submitted file.

3. The act of "Failing to comply with corporate governance regulations as prescribed by law" at point d, Clause 1, Article 18 of Decree 85 is the act of securities companies, fund management companies not implementing or incorrectly implementing the provisions of the Corporate Charter on corporate governance or the corporate governance regulations applicable to public companies.

4. "Conducting acts that mislead customers and investors about the price of securities" at point e, Clause 3, Article 18 of Decree 85 is the act of securities companies intentionally providing customers and investors with inaccurate, incomplete information, concealing the truth about the price or factors affecting the price of one or more types of securities, leading to customers and investors misunderstanding the price of securities and making incorrect investment decisions.

5. The act of "Disobeying investor orders" at point b, Clause 4, Article 18 of Decree 85 is the act of securities companies intentionally failing to correctly execute investor stock trading orders, except in cases where the investor issues orders that do not comply with legal regulations.

Article 11. Violation of regulations on Representative Offices of Securities Trading Organizations

The provision at point a, Clause 2, Article 20 of Decree 85 applies in the following cases:

1. One or some documents in the application file for registration of representative office activities contain inaccurate information. These pieces of information affect the decision to issue the Registration Certificate for Representative Office Activities of the State Securities Commission.

2. Not amending or supplementing the registration offer filing for public issuance of securities when discovering inaccurate information or omitting important contents related to the file or when new events occur that affect the content of the submitted file.

Article 12. Penalty for violation of regulations on establishing member funds

The act of "Establishing, confirming member fund establishment files with false information" at Clause 1, Article 21 of Decree 85 is the act of fund management companies, organizations, individuals establishing files, providing inaccurate information or omitting important contents related to the file, or failing to amend and supplement the file when new events occur that affect the content of the submitted file.

Article 13. Violation of regulations on insider trading and market manipulation

1. The provision at Clause 1, Article 27 of Decree 85 applies to the following cases:

a) Using one or more of their own or others' trading accounts or colluding with each other to continuously buy and sell securities to create artificial supply and demand;

b) A person or group of people colluding with each other placing buy and sell orders for the same type of security on the same trading day or colluding with each other to trade securities without actually transferring ownership rights or ownership only circulating among members of the group to create security prices and artificial supply and demand;

c) Continuously buying or selling securities with controlling volumes at market opening or closing times to create new closing or opening prices for that type of security on the market;

d) Conducting securities transactions through collusion, enticing others to continuously place buy and sell orders for securities, significantly impacting supply and demand and security prices, manipulating security prices;

đ) Directly or indirectly expressing opinions through mass media about a type of security or the issuing organization of the security to influence the price of that type of security after having conducted transactions and held positions in that type of security;

e) Using other methods or conducting other acts of trading to create artificial supply and demand, manipulate security prices.

2. In addition to the main penalty in the form of a fine, organizations and individuals who conduct insider trading or manipulate security prices are also subject to confiscation of all illegal gains according to Clause 2, Article 26 and Clause 2, Article 27 of Decree 85. Illegal gains are profits generated from conducting insider trading or manipulating security prices, after deducting taxes and fees payable. If a person uses multiple accounts for insider trading or manipulating security prices, illegal gains are calculated based on the total of the accounts used for insider trading or manipulating security prices. If a group of people collude and conspire to conduct insider trading or manipulate security prices, illegal gains are calculated based on each account used for insider trading or manipulating security prices.

3. When considering illegal gains for insider trading or manipulating security prices, if the value of illegal gains or the degree of damage caused by the violation reaches the level of criminal liability, the case file must be transferred to the competent authority for examination and criminal prosecution according to the provisions of Clause 1, Article 16 of this Circular.

Article 14. Violation of regulations on registration of securities custody activities

The act of "Establishing securities custody activity registration files, branch custody activity registration files with false information" at point a, Clause 2, Article 30 of Decree 85 is the act of securities companies, commercial banks establishing files, providing inaccurate information or omitting important contents related to the file, or failing to amend and supplement the file when new events occur that affect the content of the submitted file.

Chapter III

AUTHORITY AND PROCEDURES FOR IMPOSING ADMINISTRATIVE PENALTIES FOR VIOLATIONS

Article 15. Determination of penalty jurisdiction

1. The administrative penalty authority for violations in the securities sector as stipulated in Clauses 1 and 2 of Article 37 of Decree 85 shall be applicable to a single administrative violation act. In cases of fines, the penalty authority shall be determined based on the maximum amount of the fine prescribed for each administrative violation act.

In cases where an individual commits multiple administrative violations in the securities sector, the penalty authority shall be determined as follows:

a) If the form of penalty and the level of fine prescribed for each violation all fall within the authority of the person authorized to impose penalties under Clauses 1 and 2 of Article 37 of Decree 85, then such authority remains with that person;

b) In cases where the amount of the fine or one of the additional forms of penalty or measures to remedy consequences does not fall within the authority or exceeds the authority, the person handling the violation case must promptly transfer the case to the person with the appropriate authority to impose penalties.

2. When discovering an administrative violation in the securities sector, the person authorized to impose penalties must compare it with the provisions of the Penal Code to determine whether it constitutes an administrative violation or a criminal offense.

Article 16. Transfer of files for criminal proceedings

1. When examining a violation case to decide on punishment, if it is found that the violation has characteristics of a crime, the file must be transferred to the competent criminal prosecution agency to consider initiating a criminal investigation.

2. In cases where the criminal prosecution agency informs about the decision to initiate a criminal investigation, the State Securities Commission must transfer the original violation file to the competent criminal prosecution agency within five working days from the date of receipt of the notification.

3. Beyond the three-day period from the end of the time limit specified in Article 103 of the Criminal Procedure Code, if the State Securities Commission has not received a notification from the competent authority regarding the initiation or non-initiation of a case, the person authorized to impose penalties under Article 37 of Decree 85 shall issue a decision on administrative punishment according to the law and notify the criminal prosecution agency of the administrative punishment decision.

4. The recalculation of the deadline for issuing a penalty decision as provided for in Clause 2 of Article 41 of Decree 85 shall be carried out as follows:

a) If the violation case has been extended the deadline for issuing a penalty decision as provided for in Clause 1 of Article 56 of the Administrative Violation Handling Ordinance before being transferred to the criminal prosecution agency, the deadline for issuing a penalty decision is ten working days from the date of recalculating the deadline for issuing a penalty decision; for complex administrative violation cases, the deadline for issuing a penalty decision is thirty working days and cannot be further extended;

b) If the violation case, prior to being transferred to the criminal prosecution agency, the person authorized to impose penalties did not request an extension of the penalty decision deadline as provided for in Clause 1 of Article 56 of the Administrative Violation Handling Ordinance, the deadline for issuing a penalty decision shall be recalculated according to the provisions of Clause 1 of Article 56 of the Administrative Violation Handling Ordinance and may be extended according to the law.

Article 17. Administrative Violation Penalty Decision

1. The penalty decision must be signed by the person authorized to impose administrative penalties and stamped with the seal of the authority of the person authorized to impose penalties for that violation.

2. In cases where an organization or individual commits multiple violations of laws in the securities sector, the person authorized to impose administrative penalties shall issue only one penalty decision. In cases where multiple organizations or individuals jointly commit administrative violations, the person authorized to impose administrative penalties shall base the decision on the nature and severity of the violations committed by each organization or individual to issue separate penalty decisions for each entity.

3. In cases where the form of penalty or the level of penalty exceeds the authority of the person imposing the penalty, that person must transfer the entire file and documents related to the violation to the higher authority with the power to impose penalties within five working days from the completion of the violation file.

The violation file includes:

- Administrative violation record (original);

- Draft of the Administrative Penalty Decision;

- All relevant files and documents relating to the violation;

- Record of confiscation of evidence and means of administrative violation (if any);

- Other necessary documents.

4. The penalty decision must be sent to the organization or individual subject to the penalty, the agency collecting the fine, and published publicly on the website of the State Securities Commission on the following working day from the date of issuance of the penalty decision.

Article 18. Suspension of violation acts

During inspections and checks, if any violation in the securities sector is discovered, the Head of the inspection and check team must issue a decision to suspend the violation act as stipulated in Article 39 of Decree 85 and immediately report in writing to the Chairman of the State Securities Commission and the Chief Inspector of the State Securities Commission.

Article 19. Transfer of cases to the person authorized to impose administrative penalties

1. Government management agencies, during inspections, checks, and investigations of individuals and organizations, if they discover administrative violations in the securities sector but these are outside their authority to impose penalties, must transfer the entire case file and propose handling in writing to the State Securities Commission for resolution.

The file includes: Original record of administrative violation, relevant financial documents, data, evidence... collected during inspections, checks, and investigations related to administrative violations in the securities sector.

2. For administrative violation cases in the securities sector transferred by government management agencies, the State Securities Commission is responsible for accepting the entire file and documents related to the administrative violation case and shall handle it as follows:

a) In cases where the file, documents, and records of the administrative violation case transferred do not comply with the procedures stipulated in this Circular, the file and documents must be returned to the agency that issued the administrative violation record and requested to make corrections and supplements. The deadline for returning the file for those requiring corrections and supplements is fifteen working days from the date of signing the letter transferring the file.

b) In case the file, documents, evidence are not sufficient to impose administrative penalties, the inspection and verification shall be conducted to supplement evidence.

c) In case the file, documents, and records of administrative violations transferred according to the prescribed procedures and have sufficient grounds for proving and concluding on the violation, a decision imposing administrative penalties shall be issued in accordance with the law.

Article 20. Procedure and procedure for imposing administrative penalties

When imposing administrative penalties in the securities field, the authority authorized to impose penalties must comply with the procedure and procedure for imposing administrative penalties stipulated in the Administrative Violations Handling Ordinance, Decree 128, Decree 85, and the guidelines set forth in this Circular.

Article 21. Model records and decisions used in imposing administrative penalties in the securities field

The models of records and decisions used in imposing administrative penalties in the securities field are specified in the list attached to this Circular.

Chapter IV

ENFORCEMENT OF DECISIONS IMPOSING ADMINISTRATIVE PENALTIES IN THE SECURITIES FIELD AND THE SECURITIES MARKET

Article 22. Basis for issuing enforcement decisions

Enforcement of decisions imposing administrative penalties in the securities field shall be applied to individuals and organizations responsible for implementing such penalty decisions that have exceeded the implementation deadline without voluntarily complying or engaging in asset dispersal or fleeing, necessitating enforcement measures to ensure the execution of the administrative penalty decision in the securities field.

Article 23. Authority to issue enforcement decisions

The Chairman of the State Securities Commission issues enforcement decisions and organizes their enforcement for administrative penalty decisions issued by himself or his subordinates.

Article 24. Enforcement decision

1. Enforcement of decisions imposing administrative penalties in the securities field can only be carried out when there is an enforcement decision from the authority specified in Article 23 of this Circular. The enforcement decision includes the following contents: date of issuance; basis for issuance; name, position, unit of the issuer; name, place of residence, headquarters of the individual or organization subject to enforcement; enforcement measures; time and location of implementation; leading agency for implementing the enforcement decision; agencies responsible for coordination; signature of the issuer, seal of the issuing agency.

2. Enforcement decisions for executing administrative penalty decisions in the securities field are established according to the model attached to this Circular.

Article 25. Circumstances for issuing enforcement decisions

1. For decisions applying remedial measures and supplementary sanctions:

a) More than thirty days from the expiration date of the remedial measures and supplementary sanctions recorded in the decision, if the individual or organization does not voluntarily comply;

b) The individual or organization has not complied with the administrative decision in the securities field and engages in asset dispersal or fleeing.

2. For decisions imposing fines: more than ten days from the expiration date of the fine decision, if the individual or organization does not voluntarily comply.

3. Individuals and organizations are not subject to enforcement measures during the period allowed for multiple payments of fines as stipulated in Clause 2, Article 42 of Decree 85.

Article 26. Enforcement measures

Enforcement measures for executing administrative penalty decisions in the securities field include:

1. Deduction of part of salary or income; deduction of money from bank accounts.

2. Seizure of assets or securities equivalent in value to the fine amount for auction.

3. Application of other enforcement measures to enforce the confiscation of unlawful gains resulting from the administrative violation.

Article 27. Principles for applying enforcement measures

1. The Chairman of the State Securities Commission bases on the content, nature, and degree of the obligation to execute the administrative penalty decision, the conditions for enforcing the enforcement decision against the subject, and the actual situation at the locality to decide on the sequential application of the enforcement measures stipulated in Article 26 of this Circular.

2. Enforcement shall not be organized on days off as prescribed by labor laws and outside regular working hours, fifteen days before and after Tet, except in cases where it is necessary to prevent the enforcement subject from dispersing, destroying assets, or evading enforcement.

Article 28. Responsibility for organizing enforcement

1. The State Securities Commission is responsible for coordinating with relevant agencies, organizations, and individuals to implement measures to enforce enforcement.

2. If it is deemed necessary to involve People's Public Security forces during the enforcement process, the State Securities Commission must send a request to the relevant public security agency five working days before enforcement to arrange personnel. When requested to ensure order and safety during enforcement, the People's Public Security forces are responsible for arranging personnel to promptly prevent disorderly behavior and resistance to law enforcement during the enforcement of the decision.

Article 29. Time limit for enforcing enforcement decisions

1. An enforcement decision takes effect within one year from the date of issuance.

2. In cases where individuals or organizations subject to enforcement measures intentionally evade or delay, the time limit for enforcement is recalculated from the point when the evasion or delay ends.

Article 30. Monitoring and urging payment of unlawful gains and fines

1. The State Securities Commission is responsible for monitoring and managing individuals and organizations required to pay unlawful gains and fines to urge payment and collect debts before applying enforcement measures.

2. Methods of urging payment of unlawful gains and fines:

a) Sending notifications requiring individuals or organizations to pay all unlawful gains and fines;

b) Publicizing on mass media the debtors of unlawful gains and fines; the amounts of unlawful gains and fines to be paid.

Article 31. The procedure for applying coercive measures to enforce administrative penalty decisions in the securities sector

The procedures for applying coercive measures to enforce administrative penalty decisions in the securities sector, measures to ensure the implementation of decisions, enforcement costs, complaints, denunciations, lawsuits, and handling violations related to enforcing administrative penalty decisions in the securities sector must comply with the procedures, formalities, and authorities stipulated in the Securities Law, Administrative Violation Handling Ordinance, Decree No. 37/2005/NĐ-CP dated March 18, 2005 of the Government on the procedures for applying coercive measures to enforce administrative penalty decisions, and Decree No. 85/2010/NĐ-CP dated August 2, 2010 of the Government on administrative penalties in the securities and securities market sectors.

Chapter V

IMPLEMENTATION

Article 32. Responsibilities for implementation

1. This Circular takes effect from May 10, 2011. Circular No. 97/2007/TT-BTC dated August 8, 2007 of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 36/2007/NĐ-CP dated March 8, 2007 of the Government on administrative penalties in the securities and securities market sectors is hereby abolished.

2. The Chairman of the State Securities Commission shall be responsible for organizing and directing the handling of administrative violations and enforcing administrative decisions in the securities sector to ensure compliance with the law.

3. During the implementation process, if there are difficulties or obstacles, they should be promptly reflected to the Ministry of Finance for consideration and resolution./.