Brokers reminded that banks must handle funds

Friday, April 18, 2008
The State Securities Commission (SSC) has ordered that stock brokerages must comply by October 1 with the Ministry of Finance regulation requiring investor capital to be held in commercial bank accounts, not in accounts controlled by the brokerages.
Ministry of Finance Decision No 27/QD-BTC of last year provided that securities companies were no longer allowed to hold client funds and mandated the companies to designate commercial banks as fiduciaries for client funds.
The securities companies were also required to announce the designated banks providing payment services within three days of signing contracts.
The State Securities Commission stated that nine stock brokerages have complied to these rules, including Gia Quyen, Ban Viet, Kim Eng, ACB, Au Lac, Sai Gon-Ha Noi, Viet, Dong Duong and Sen Vang securities companies. (VNS)