Joint Circular No. 46/2009/TTLT/BTC-BCA guiding the coordination in handling violations of laws in the securities and securities market sectors.

JOINT CIRCULAR

Guidelines for Coordinating the Handling of Violations of Law in the Securities and Securities Market Sector

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Pursuant to the Securities Law No. 70/2006/QH11 dated June 29, 2006;

Pursuant to the Law on Public Security No. 54/2005/QH11 dated November 29, 2005;

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and Ministerial-Level Agencies;

Pursuant to Decree No. 36/2007/NĐ-CP dated March 8, 2007 of the Government on administrative penalties for violations in the securities and securities market sector;

The Ministry of Finance and the Ministry of Public Security hereby jointly issue guidelines on coordinating the handling of violations of law in the securities and securities market sector as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of Application These Circulars guide the coordination between the Ministry of Finance and the Ministry of Public Security in detecting and handling violations of law in the securities and securities market sector..

2. Explanation of Terms In this Circular, the following terms are understood as follows:

2.1 Causing serious consequences means causing significant damage to assets and non-material consequences (adversely affecting the implementation of the Party's policies and State's policies; adversely affecting fairness, transparency, and security of the securities market) as defined in legal regulations on securities and the securities market or other legal regulations defining and guiding serious consequences.

2.2 Voluntary remediation of consequences: refers to the act where the person violating securities laws who has caused damage to assets, economy, social order, and stability voluntarily acknowledges responsibility and voluntarily repairs, compensates for damages, and remedies consequences that are accepted by the aggrieved party and permitted by law.

3. Principles for Coordinating the Handling of Violations of Law in the Securities and Securities Market Sector

3.1 Within the scope of their functions, tasks, and authority as prescribed by law, the Ministry of Finance and the Ministry of Public Security shall have the responsibility to closely coordinate with each other in preventive work, detection, clarification, and handling of violations of law in the securities and securities market sector.

3.2 When examining cases of violations of law in the securities and securities market sector, competent authorities must clearly determine the nature of the case as civil, economic, administrative, or criminal to correctly identify jurisdiction and apply appropriate legal provisions, avoiding unnecessary inconvenience and damage to organizations and individuals participating in the securities market.

3.3 In cases where before the criminal act is discovered, the perpetrator voluntarily and promptly compensates for damages, remedies consequences resulting from committing violations of law in the securities and securities market sector, promptly reports the matter clearly, and contributes effectively to the inspection and investigation of the case, striving to minimize the consequences of the criminal act to the greatest extent possible, they may also be exempted from criminal liability.

3.4 A comprehensive, objective, and thorough assessment of the causes, nature, degree, and consequences of violations of law in the securities and securities market sector must be conducted; if necessary, expert appraisal must be requested from specialized agencies in accordance with the law.

II. SPECIFIC GUIDELINES

1. Lead Agency for Coordination The Ministry of Finance assigns the State Securities Commission, and the Ministry of Public Security assigns the Criminal Investigation Agency (the Economic and Administrative Crime Investigation Bureau) (hereinafter referred to as the Investigative Agency) to coordinate in implementing this Circular.

2. Content of Coordination in Handling Violations of Law in the Securities and Securities Market Sector

2.1 Content of Coordination:

a) Timely provision to each other of relevant legal regulations and information on administrative violations and crimes in the securities and securities market sector;

b) Coordination in handling acts of violation causing serious consequences or acts of violation with signs of crime.

2.2 Specific Activities of Coordination:

a) Transfer case files of violations with signs of criminal offenses for prosecution under criminal responsibility: - During the performance of inspection tasks or during the handling of legal violations, if discovering organizations or individuals committing violations with signs of criminal offenses, within five days from the date of discovering signs of criminal offenses, the State Securities Commission shall be responsible for transferring the case file to the competent investigative authority to initiate prosecution according to the provisions of criminal procedure laws and the guidance provided in Circular No. 03/2006/TTLT-VKSNDTC-TTrCP-BCA-BQP dated May 23, 2006, of the Supreme People's Procuracy, Government Inspectorate, Ministry of Public Security, and Ministry of National Defense on coordination relations in detecting, investigating, and handling cases with signs of criminal offenses reported by inspection agencies. - For cases where administrative violation penalty decisions have been issued, but subsequently it is discovered that the actions of the organization or individual involved have signs of criminal offenses without exceeding the statute of limitations for criminal prosecution, then the person who issued the administrative violation penalty decision must revoke such decision and transfer the case file to the competent investigative authority to initiate prosecution according to the law within three days from the date of revoking the decision. - The transferred case file includes: A letter transferring the case file to the Investigative Authority for handling; A record of the violation behavior (a copy); Appraisal results, verification results (if any); Other related documents (copies). The transfer of the case file must be recorded in a Record. - Based on the case file of violations with signs of criminal offenses transferred by the State Securities Commission, the Investigative Authority shall examine and handle the case and notify the State Securities Commission in writing about the decision to initiate prosecution or the decision not to initiate a criminal case. In the event that the State Securities Commission receives a decision not to initiate a criminal case, the authorized person to impose administrative penalties in the securities and securities market sector must issue a decision to impose penalties for the violation of the law according to the guidance provided in this Circular and inform the Investigative Authority about the imposition of administrative penalties. - For cases where the State Securities Commission has concluded that there are no signs of criminal offenses, but the Investigative Authority discovers signs of criminal offenses, communication with the State Securities Commission is required before initiating a criminal case according to the law. The State Securities Commission is responsible for providing case files, documents, and information collected during the inspection process and the conclusions of the State Securities Commission to the Investigative Authority for investigation and clarification of the crime.

b) Transfer case files of violations for administrative penalty according to the provisions of the law on securities and the securities market: - In cases where the case file of violations has been transferred to the Investigative Authority, but upon examination, it is found that the violation does not have sufficient signs of constituting a criminal offense or has not caused serious consequences, the authorized person of the Investigative Authority must issue a decision to return the case file of violations to the State Securities Commission for administrative penalty according to the law on securities and the securities market. The State Securities Commission issues a decision on penalty within ten days from the date of receiving the decision to return the case file of violations. If additional time is needed for verification and evidence collection, the person handling the case may request an extension of the deadline for issuing the penalty decision according to the provisions of Decree No. 36/2007/NĐ-CP of the Government on administrative penalties in the securities and securities market sector. - In cases where the Investigative Authority discovers violations of the law in the securities and securities market sector, but during the investigation process, it is found that the actions do not have signs of criminal offenses, they have the responsibility to transfer the case files and documents to the State Securities Commission for administrative handling according to their authority. The State Securities Commission must notify the Investigative Authority in writing about the results of the handling.

c) Cooperate in providing information on violations of the law in the securities and securities market sector: When the Investigative Authority discovers actions with signs of criminal offenses, they need to provide information and communicate with the State Securities Commission.

2. 3 The cooperative activities between the State Securities Commission and the Investigative Authority as stipulated in this Circular shall be documented in writing.

3. Violations of the law in the securities and securities market sector that need to be handled jointly, the State Securities Commission and the Investigative Authority are responsible for cooperating in detecting and handling violations of the law in the securities and securities market sector, specifically as follows:

3. 1 Organizations or individuals establishing false registration files to publicly offer securities causing serious consequences.

3. 2 Organizations or individuals establishing false files to list securities on the market causing serious consequences.

3. 3 Organizations or individuals organizing illegal securities markets causing instability in the securities market and causing serious consequences.

3. 4 Organizations or individuals engaging in securities business taking advantage of their responsibilities and duties using funds or securities in customer accounts without authorization from customers causing serious consequences.

3. 5 Organizations or individuals establishing investment funds without registering or reporting to the State Securities Commission and using those funds causing serious consequences.

3. 6 Violations of regulations on securities transactions causing serious consequences:

a) Organizations or individuals providing, disclosing, or using insider information to buy or sell securities or recommending others to buy or sell securities causing serious consequences;

b) Organizations or individuals committing fraudulent acts, fraud, providing false documents, forging, distorting, or destroying transaction documents to defraud or lure customers into buying or selling securities causing serious consequences; forging securities, circulating counterfeit securities;

c) Organizations and individuals committing prohibited acts to manipulate stock prices, create fictitious stock prices, engage in fictitious transactions, resulting in serious consequences;

3. 7 Organizations and individuals intentionally disseminating false information or fabricating, promoting false information for personal gain, affecting the securities market, disrupting the securities trading market, resulting in serious consequences;

3. 8 Other violations of laws in the field of securities and the securities market resulting in serious consequences.

III. IMPLEMENTATION

1. This Circular shall take effect 45 days from the date of signature.

2. During the implementation of this Circular, if difficulties and obstacles arise, they should be promptly reported to the Ministry of Finance and the Ministry of Public Security for study and supplementation as appropriate. KT. MINISTER OF PUBLIC SECURITY DEPUTY MINISTER Thượng tướng - Lê Thế Tiệm KT. MINISTER OF FINANCE DEPUTY MINISTER