HCM CITY (VNS) — Trinh Hoai Giang, deputy CEO of HCM Securities Corp. (HSC), has raised concerns about whether securities companies with foreign shareholders who own a 51 per cent stake or higher were defined as a local or foreign investor under a new draft decree.
Giang spoke at a seminar held yesterday by the State Securities Commission in HCM City to collect opinions on the decree, which addresses requirements for securities investment and trading.
"Our company plans to open up to foreign investors. Thus, we're interested in the status if foreign investors hold a dominant stake or even 100 per cent," he said.
He also wanted to know if his company would be able to invest in institutions that set limits for foreign investors, such as commercial banks.
In addition, he expressed concern about whether there would be differences between domestic and foreign-invested securities companies in activities like securities custody and settlement.
Giang also brought up issues related to tax, asset ownership and money transfer to other countries, and access to banking loans.
He proposed that the draft decree clearly define the institutions with foreign investment.
"Securities companies have recently been allowed to make investments outside Viet Nam and we want to invest in shares and derivatives. Therefore, securities companies should be licensed as fund management firms," he said.
Concerning fund management companies, Nguyen Dang Minh Khanh, deputy CEO of the VietFund Management (VFM), who also spoke at the meeting, said he wanted a clearer regulation for the draft.
He said that, under the draft, directors of departments that deal with professional activities within securities companies were not allowed to act at the same time as a staff member of another economic organisation.
Khanh wanted the decree to be more precise about whether a company could hire a foreigner who is an executive member of a company in his or her country.
He also said the regulation that forbids employees at a branch from working at the same time for another branch or at the headquarters was not suitable, as it could restrain the use of human resources and increase operational costs.
Nguyen The Trieu, who was representing Eastspring Investments Fund Management Company at the seminar, said that directors and deputy directors of fund management companies should be enabled to join investee companies because they represent the investing firms.
However, an investment consultant should not work simultaneously in the investment section, Trieu said. — VNS