MoF yet to provide investor protection
MoF yet to provide investor protection
The idea of setting up an investor protection scheme was presented to the Ministry of Finance three years ago by the Viet Nam Association of Financial Investors. So far, there has been no response.
The association (VAFI) recently repeated its proposal after the ministry on July 30 issued a circular providing guidance on the use and management of the insured persons protection fund.
According to VAFI secretary Nguyen Hoang Hai, the stock market longs to have a protection scheme for investors.
He said the ministry's delay was hard to accept.
The Law on Securities, which came into effect in 2007, requires securities companies to set up a mandatory investor protection fund to compensate investors if a company becomes insolvent or bankrupt - or its wrongdoings cause harms to investors.
Despite this, nothing has been done. "More than three years have passed since our proposal was sent, but the authority appears to have made no moves at all," Hai told the newspaper Dau tu chung khoan (Securities Investment).
"VAFI will continue to push the proposal to the ministry because it is an urgent requirement and in line with international practices," Hai said.
Already, wrongdoings by employees of some securities companies have caused heavy financial losses to investors. Abuse of investor accounts at Truong Son Securities Co, Dai Viet Securities Co and Beta Securities Co cost investors millions, even billions of dong.
When losses happen, investors do not know where to ask for help.
"We're very confused. We actually don't know which agency is responsible for protecting investors when securities companies appropriate our assets," said Le Thi Uyen.
She is one of the victims in the scandal at Dai Viet Securities Co. The company's employees are accused of abusing investor accounts to steal VND900 million (US$42,800).
The discrepancy was discovered in May, but so far nothing has been done.
Hai keeps his fingers crossed that the Ministry of Finance will eventually create a legal framework for the establishment and operation of an investor protection fund.
vietnamnews
