CONFIRMATION AS PROFESSIONAL SECURITIES INVESTOR

Professional stock investors with higher requirements on financial capacity, specializing in participating in some forms of stock investment, such as member funds, private securities offerings… One of the purposes of confirmation as professional securities investor is to limit and screen investors in some cases to ensure general safety for the securities market and investors participation in the market.

1. Who is professional securities investor?

Professional securities investor is an investor with financial capacity or expertise in securities.

It can be determined to include subjects with full conditions and supporting documents as follows:

No.	Subjects	Documents
1	Commercial banks;Foreign bank branches;Financial company; Insurance business organization;Securities Company;Securities investment fund management company;Securities investment company;Securities investment fund;International financial organizations;Off-budget state financial funds and state financial institutions may purchase securities in accordance with relevant laws.	Business registration certificate; or License for establishment and operation; or  Other equivalent documents.
2	The company has a contributed charter capital of over 100 billion VND; orListing organizations and trading registration organizations.	For listing organizations and trading registration organizatión: Decision on approval for listing and registration for trading.For other organizations: +   Business registration certificate or other equivalent documents; +   Audited annual financial statements or reviewed semi-annual financial statements.
3	People with certificate of securities practice.	Valid ID card/National ID card or passport;Valid securities practice certificate.
4	Individuals holding a portfolio of listed securities, registered for trading with a minimum value of 02 billion VND. Basis for determination: confirmation of the securities company at the time of determining the status of a professional securities investor.	Valid ID card/National ID card or passport;Confirmation of securities companies where investors open securities trading accounts on the market value of listed securities portfolios and securities registered for trading at the time of determining investor status professional securities.
5	Individuals with the most recent taxable income of at least 01 billion VND as of the time of determining their status as professional securities investors. Basis for determination: tax declaration documents submitted to the tax authority or tax deduction documents of the paying organization or individual.	Valid ID card/National ID card or passport;Tax declaration documents submitted to the tax authority or tax deduction documents of the paying organization or individual in the most recent year before the time of determining status as a professional securities investor.

2. Who are responsible for providing confirmation on professional securities investor?

– In case of private securities offering or registration to establish a member fund: The issuing organization or securities investment fund management company is responsible for determining the status of a professional securities investor participating in purchasing securities. when implementing or authorizing a securities company to implement through a contract according to regulations.

– In case of privately issued securities:

+       Centralized transactions on the trading system of the Stock Exchange: the securities company where the investor makes the securities purchase transaction is responsible for determining the status of a professional securities investor before doing transaction.

+       Not yet centrally traded: the registration and depository organization is responsible for determining the status of a professional securities investor before transferring ownership.

>> PROCEDURES FOR DISSOLUTION OF MEMBER FUNDS https://linconlaw.vn/procedures-for-dissolution-of-member-funds/

>> VALUATION OF CONTRIBUTED ASSETS INTO A COMPANY https://linconlaw.vn/valuation-of-contributed-assets-into-a-company/

3. Note 

Within 01 year from the time the securities company determines that they are a professional securities investor, the investor does not have to re-determine their status as a professional securities investor when participating in purchasing privately offered securities, member fund certificates.

Investors who have purchased privately offered securities or member fund certificates do not have to re-determine their status as professional securities investors when selling the purchased securities.