Circular No. 53/2017/TT-BTC guiding the implementation of Government Decree No. 69/2016/NĐ-CP dated July 1, 2016 on conditions for operating debt buying and selling services

CIRCULAR

Guidelines for implementing Decree No. 69/2016/ND-CP dated July 1, 2016 of the Government on conditions for operating debt purchase and sale services.

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

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 fall 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 the operation of debt purchase and sale services.

1. When commencing operations and throughout the course of operating debt purchase and sale services, enterprises must fully meet the conditions stipulated in Decree No. 69/2016/ND-CP corresponding to each type of debt purchase and sale service business and must publicly announce their compliance with the required capital and internal management regulations concerning organizational structure, internal rules on operating debt purchase and sale services, trading floor operation regulations at their main office and on their corporate 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 requirement set forth in Decree No. 69/2016/ND-CP corresponding to each type of debt purchase and sale service business.

Article 5. Provisions satisfy conditions regarding internal management regulations

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

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 charter of the enterprise, ensuring that they cover 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 from enterprises operating debt purchase and sale services to fully comply with the provisions set out in Points a, c, and d of Clause 3, Article 5 of Decree No. 69/2016/ND-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 the enterprise has operated debt purchase and sale services for at least one year up to the date of commencing operations of debt trading floor services and that the revenue from operating debt purchase and sale services in the immediately preceding year reached at least 500 billion VND.

2. The original explanatory document on technical facilities and information technology systems meeting the requirements for operating debt trading floor services to receive, update, and provide information on debt transactions among participants on the trading floor; management and monitoring software systems, including the provision and storage of information on debts expected to be listed on the trading floor.

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, enterprises operating debt purchase and sale services are responsible for reporting to the People's Committee of the province or centrally-run city where the enterprise's headquarters is located about their compliance with the conditions for operating debt purchase and sale services, business situation, 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 attached to this Circular.

2. Quarterly and in case of emergency, the registration agency is responsible for reporting to the People's Committee of the province or centrally-run city on the issuance and supplementation of Business Registration Certificates for debt purchase and sale 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 reports on the business situation and compliance with laws of enterprises operating debt purchase and sale services in their respective areas to the Ministry of Finance according to Appendix 02 attached to this Circular.

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, enterprises must fully meet the conditions for operating debt purchase and sale services as stipulated in Decree No. 69/2016/ND-CP and the guidelines provided in this Circular, complete the necessary documentation to prove compliance, and publicly announce their compliance with the conditions for operating debt purchase and sale services at their main office and on their corporate website.

b) Before July 1, 2017, enterprises must report to the registration agency on whether they meet or fail to meet the conditions for operating debt purchase and sale services. In cases where the conditions are not met, they must cease operations of debt purchase and sale services and report to the registration agency.

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