Consolidated Document number 49/VBHN-BTC Circular guiding the implementation of Decree number 69/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating debt buying and selling services.

CIRCULAR[1]

GUIDELINES FOR IMPLEMENTING THE GOVERNMENT DECREE NO. 69/2016/ND-CP OF JULY 1, 2016 ON CONDITIONS FOR OPERATING DEBT PURCHASE AND SALE SERVICES

Circular No. 53/2017/TT-BTC dated May 19, 2017 of the Ministry of Finance guiding the implementation of Government Decree No. 69/2016/ND-CP dated July 1, 2016 on conditions for operating debt purchase and sale services, which took effect from March 1, 2017, has been amended and supplemented by:

Circular No. 84/2020/TT-BTC dated October 1, 2020 of the Ministry of Finance amending and supplementing regulations on periodic reporting systems within the authority of the Minister of Finance in the field of finance and banking, which took effect from November 15, 2020.

Pursuant to Government Decree No. 69/2016/ND-CP dated July 1, 2016 on conditions for operating debt purchase and sale services;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance issues this Circular guiding the implementation of Government Decree No. 69/2016/ND-CP dated July 1, 2016 on conditions for operating debt purchase and sale services..[2]

Article 1. Scope of Regulation

This Circular guides the implementation of Government Decree No. 69/2016/ND-CP dated July 1, 2016 on conditions for operating debt purchase and sale services (hereinafter referred to as Decree No. 69/2016/ND-CP).

Article 2. Applicability

1. Enterprises operating debt purchase and sale services within the scope regulated by Decree No. 69/2016/ND-CP.

2. Organizations and individuals wishing to operate debt purchase and sale services.

3. Relevant agencies, organizations, and individuals.

Article 3. General Provisions on Operating Debt Purchase and Sale Services

1. When commencing operations and throughout the course of operation, enterprises operating debt purchase and sale services must fully meet the conditions stipulated in Decree No. 69/2016/ND-CP corresponding to each type of debt purchase and sale service operation and must publicly announce their compliance with the conditions for operating debt purchase and sale services regarding capital, internal management regulations on organization, internal regulations on operating debt purchase and sale services, trading floor operation regulations at the main office and on the enterprise's website.

2. Enterprises must retain documentation evidencing full compliance with the conditions for operating debt purchase and sale services and must present such documentation when inspected by authorized authorities.

Article 4. Provisions on Meeting Capital Conditions

At all times during the operation of debt purchase and sale services, the registered capital/contributed capital recorded on the balance sheet of the enterprise must be equal to or greater than the minimum capital level prescribed in Decree No. 69/2016/ND-CP corresponding to each type of debt purchase and sale service operation.

Article 5. Provisions on Meeting Internal Management Regulation Conditions

1. At the time of commencing operations of debt purchase and sale services, enterprises must have internal management regulations on organization and internal regulations on operating debt purchase and sale services issued by the competent authority of the enterprise as stipulated in the enterprise’s charter.

2. For enterprises operating debt trading floor services, at the time of commencing operations of debt trading floor services, enterprises must have trading floor operation regulations issued by the competent authority of the enterprise as stipulated in the enterprise’s charter, ensuring that they include all the minimum contents prescribed in Clause 5, Article 8 of Decree No. 69/2016/ND-CP.

Article 6. Provisions on meeting conditions for business management personnel

At the time of being appointed as management personnel for businesses operating debt buying and selling services, the management personnel must have the following documents:

1. Criminal record clearance form.

2. Bachelor's degree (or higher) in one of the following fields: Economics, business administration, law, or the specialized field they will be responsible for.

3. A commitment letter with the business operating debt buying and selling services regarding compliance with the contents stipulated in points a, point c, and point d Clause 3 Article 5 Decree No. 69/2016/NĐ-CP.

Article 7. Provisions on additional conditions for businesses operating debt trading platform services

Prior to operating debt trading platform services, the business must have:

1. An audited financial report proving that it has operated debt buying and selling services for at least one year up to the start date of operating debt trading platform services, and the revenue from operating debt buying and selling services in the immediately preceding year before the year of operating debt trading platform services must reach at least 500 billion VND.

2. The original explanatory statement about technical infrastructure, information technology systems meeting the requirements of debt trading platform service operations to receive, update, and provide information on debt buying and selling activities among participating members of the trading platform; management and monitoring software systems including the provision and storage of information on debts expected to be listed on the trading platform.

3. Employment contracts signed with at least two employees holding a certified auditor certificate or at least two employees holding a valuation officer card issued by the Minister of Finance.

Article 8. Reporting System

1. Within thirty days from the end of the fiscal year and in case of emergency, the business operating debt buying and selling services is responsible for reporting to the People's Committee of the province or centrally-run city where the business headquarters is located about its compliance with the conditions for operating debt buying and selling services, business operation status, and compliance with laws according to the regulations of the People's Committee of the province or centrally-run city as specified in Appendix 01/BC accompanying this Circular.

2. Regularly every quarter and in case of emergency, the business registration agency is responsible for reporting to the People's Committee of the province or centrally-run city about the issuance and supplementation of the Business Registration Certificate for debt buying and selling service operations.

3. Within sixty days from the end of the fiscal year and in case of emergency, the People's Committee of the province or centrally-run city sends a report on the business operation status and compliance with laws of businesses operating debt buying and selling services within their jurisdiction to the Ministry of Finance according to Appendix 02/BC accompanying this Circular.

4.[3] Time of data closure and method of submitting reports:

a) Time of data closure for quarterly and annual reports: From the beginning of data collection until the end of data collection period (excluding data reflecting a specific point in time). The beginning of the data collection period is the first day of the quarter or year of the report (for cumulative data, it is the first day of the reporting year); the end of the data collection period is the last day of the quarter or year of the report.

b) Methods of submitting reports shall be carried out in one of the following ways:

- Direct submission in paper form; document;

- Submission through postal service in paper form; document;

- Sending via email systems or specialized information reporting software systems;

- Other methods as prescribed by law.

c) Content, time of data closure, and deadline for submitting emergency reports shall be implemented according to the requirements of the competent state management agency.

Article 9. Implementation Provisions

1. Effective date

This Circular takes effect from July 3, 2017.

2. Transitional Provisions

For businesses operating debt buying and selling services established and operating before the effective date of Decree No. 69/2016/NĐ-CP:

a) By July 1, 2017 at the latest, the business must fully meet the conditions for operating debt buying and selling services as prescribed in Decree No. 69/2016/NĐ-CP and the guidance provided in this Circular, complete all supporting documents, and publicly announce the fulfillment of these conditions at its main office and on its corporate website.

b) Before July 1, 2017, the business must report to the business registration agency about whether it meets or does not meet the conditions for operating debt buying and selling services. In cases where the conditions for operating debt buying and selling services are not met, the business must cease such operations and report to the business registration agency.

3. During implementation, if any issues arise, please reflect them to the Ministry of Finance for consideration and resolution./.

APPENDIX 01

(Issued together with Circular No. 53/2017/TT-BTC dated May 19, 2017 guiding certain provisions of Decree No. 69/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating debt buying and selling services)

I. Regarding Compliance with Conditions for Operating Debt Buying and Selling Services

II. Report on Business Operation Status:

III. Regarding Compliance with Legal Regulations: Any violations and measures taken to address them.

APPENDIX 02

(Issued together with Circular No. 53/2017/TT-BTC dated May 19, 2017 guiding certain provisions of Decree No. 69/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating debt buying and selling services)

I. On the situation of operating debt buying and selling services in the locality

1. Overall situation of operating debt buying and selling services in the locality

2. Situation of operations of units

3. Regarding violations in the business of buying and selling debts

(Provide detailed reports on issues arising in the locality, administrative penalties imposed on enterprises for violations, implementation of corrective measures and penalty enforcement within the authority...).

II. Local recommendations and suggestions