Government outlines deposit insurance regulations
Government outlines deposit insurance regulations
Decree 68/2013/ND-CP: New guidance on deposit insurance
The Government on June 28 issued Decree 68/2013/ND-CP, detailing and guiding the Law on Deposit Insurance applicable to deposit insurers, organisations participating in deposit insurance, insured depositors and other related individuals and organisations.
Accordingly, deposit insurers are state financial institutions established by the Prime Minister at the proposal of the Governor of the State Bank of Viet Nam as not-for-profit institutions with the legal entity status and self-financed operation. Their revenues are tax free.
Eligible for participating in deposit insurance are credit institutions and foreign bank branches receiving individual deposits, including commercial banks, co-operative banks, people's credit funds; and foreign bank branches established and operating in accordance with the law on credit institutions.
Micro-finance organisations must acquire deposit insurance for individual deposits, including voluntary deposits of micro-finance customers.
Policy banks are not obliged to buy deposit insurance.
At least fifteen days before commencing their operation, organisations participating in deposit insurance must submit their dossiers of application for deposit insurance participation certificate as prescribed in Clause 3, Article 14 of the Law on Deposit Insurance to deposit insurers, and may obtain such certificate within five working days after their dossiers are accepted.
Institutions participating in deposit insurance may be authorised by deposit insurers to pay insurance sums to insured depositors.
This Decree will take effect on August 19.
Circular 87/2013/TT-BTC: Online securities trading services
From August 15, securities companies whose operations are being suspended and transactions stopped for termination of their membership in the domestic stock exchanges or those placed under special control by the State Securities Commission (SSC) will no longer be allowed to provide on-line securities trading services.
This is provided in the Ministry of Finance's Circular 87/2013/TT-BTC of June 28, guiding e-transactions on the securities market.
Accordingly, securities companies providing on-line securities trading services must be members of and connected with the transaction system of the stock exchanges and register such services with the SSC.
The new regulation also requires securities companies to provide services directly to investors but does not permit them to entrust or hire unlicensed organisations to provide such services.
In the meantime, these companies must preserve and ensure the integrity of original electronic records and orders, record and preserve customer orders made via telephones for at least 10 years, and keep confidential information of organisations and individuals involved in on-line securities trading.
The Circular details the application of digital signatures and certification by securities companies in on-line transactions.
Both securities companies and investors are entitled to select digital signatures and certifications in on-line securities transactions.
This Circular replaces Circular 50/2009/TT-BTC of March 16, 2009. — Vietnam Law.
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