|Currently, there were 43 fund management companies which manage a combined VND100 trillion (US$4.72 billion) worth of assets. — File Photo
HA NOI (VNS) — Reducing the number of inefficient fund management companies, coupled with enhanced operational quality, contributed largely to the stock market's ongoing restructuring, said the State Security Commission (SSC).
The commission on Thursday announced the initial results of the restructuring of the fund industry.
SSC's statistics showed that during the 2013-14 period, six fund management companies were eliminated from the market through their dissolution, suspension of work or ending of operations.
Currently, there were 43 fund management companies which manage a combined VND100 trillion (US$4.72 billion) worth of assets. SSC said that these companies' capital adequacy ratio meets requirements.
During the last two years, two new fund management companies under foreign insurance companies were given licences, SSC said, in order to encourage financial institutions and insurance companies to join the market to diversify products.
The legal framework for the operation of funds were also improved during the last two years, said the commission, adding that restructuring was implemented with open-ended funds being encouraged to ensure transparency.
Restructuring of securities
Efforts to restructure securities firms will continue with the aim of eliminating those which did not ensure financial safety, said Pham Hong Son of the SSC at a meeting of the Ha Noi Stock Exchange last week.
The development of the equity market, especially the impending foundation of the derivatives market, will require securities firms to enhance their capacities.
So far, more than 20 securities firms have been dissolved or merged, reducing the number of existing securities firms to 84 firms, about 20 per cent of which are small-scale ones.
The Prime Minister had issued decision 1862/QD-TTg to approve the project of restructuring of the stock market and insurance companies in December 2012. — VNS