Decision No. 71/2005/QD-BTC of the Ministry of Finance amends and supplements certain provisions in the Regulation on the Organization and Operation of Securities Investment Funds and Fund Management Companies, allowing fund management companies affiliated with insurance companies to manage capital and entrusted assets from insurance companies. This decision shall take effect fifteen days after its publication in the Official Gazette.
Scope of application
Fund management companies, insurance companies, State Securities Commission, and related parties.
Key points
- Fund management companies affiliated with insurance companies may manage capital and entrusted investment assets from insurance companies based on the entrustment investment contract between the two parties, in accordance with the laws on insurance business and securities.
- Entrusted investment capital and assets shall be deposited with a depositary member which is a commercial bank.
🌐 Social impact of this document
- Positive impact: Enhances flexibility in managing capital for insurance companies, creating conditions for more effective investments.
- Negative impact: May lead to financial risks if not managed strictly.
❓ Frequently asked questions
Can fund management companies affiliated with insurance companies manage capital and entrusted assets from insurance companies?
Yes, based on the entrustment investment contract between the two parties, in accordance with the laws on insurance business and securities.
Where are entrusted investment capital and assets deposited?
At a depositary member which is a commercial bank according to the deposit agreement.
When does this decision come into effect?
It takes effect fifteen days after its publication in the Official Gazette.
Who is responsible for implementing this decision?
The Chairman of the State Securities Commission, fund management companies, and related parties.
What requirements must insurance companies meet when entrusting capital to fund management companies?
According to the laws on insurance business, they must enter into an entrustment investment contract with fund management companies.
Full text
DECISION OF THE MINISTER OF FINANCE
REGARDING AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF THE REGULATIONS ON THE ORGANIZATION AND OPERATIONS OF SECURITIES INVESTMENT FUNDS AND SECURITIES MANAGEMENT COMPANIES (ISSUED PURSUANT TO DECISION NO. 73/2004/QD-BTC DATED SEPTEMBER 3, 2004 OF THE MINISTER OF FINANCE)
BASED ON THE GOVERNMENT DECREE NO. 144/ND-CP DATED NOVEMBER 28, 2003 ON SECURITIES AND THE SECURITIES MARKET;
AT THE PROPOSAL OF THE CHAIRMAN OF THE STATE SECURITIES COMMISSION,
THE MINISTER OF FINANCE
Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
TO SUPPLEMENT POINT d OF CLAUSE 2 OF ARTICLE 42 OF THE REGULATIONS ON THE ORGANIZATION AND OPERATIONS OF SECURITIES INVESTMENT FUNDS AND SECURITIES MANAGEMENT COMPANIES (ISSUED PURSUANT TO DECISION NO. 73/2004/QD-BTC DATED SEPTEMBER 3, 2004 OF THE MINISTER OF FINANCE) AS FOLLOWS:
"d. A securities management company that is a subsidiary of an insurance company, with controlling shareholders or contributing members being an insurance company, may manage capital and assets entrusted by such insurance company based on an investment trust agreement between the securities management company and the insurance company in accordance with the laws on insurance business and the laws on securities and the securities market. The entrusted investment capital and assets shall be deposited with a custodian member which is a commercial bank based on a deposit agreement."
DECISION:
Article 1. THE CHAIRMAN OF THE STATE SECURITIES COMMISSION, SECURITIES MANAGEMENT COMPANIES, AND RELATED PARTIES ARE RESPONSIBLE FOR IMPLEMENTING THIS DECISION.
"d. A fund management company affiliated with an insurance company, where the controlling shareholder or capital contributor is such an insurance company, manages the entrusted capital and assets from that insurance company based on an investment mandate agreement between the fund management company and the insurance company in accordance with the laws on insurance business and securities and the securities market. The entrusted investment capital and assets shall be deposited with a commercial bank settlement member based on a deposit agreement."
Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.
Article 3. The Chairman of the State Securities Commission, fund management companies, and related parties are responsible for implementing this Decision.
DEPUTY MINISTER
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