Traders talk to investors in a trading room of a securities firm. — Photo courtesy of SSI

HÀ NỘI — The draft amendments to the Securities Law propose introducing a regulatory sandbox for new technologies, products, services and business models in the securities sector, alongside administrative reforms to facilitate business activities and electronic procedures.

Minister of Finance Ngô Văn Tuấn presented the draft law on amendments and supplements to several articles of the Securities Law to the National Assembly last week, as authorised by the Prime Minister.

According to the minister, the draft focuses on amending and supplementing Article 44, adding one new article and retaining 91 articles of the existing law.

A key proposal is the addition of Article 6a, establishing a controlled testing mechanism, or sandbox, to provide a legal basis for limited trials of new technologies, products, services and business models in the securities sector before their wider deployment is considered.

Under the draft, testing would be subject to restrictions on scope, eligible participants, location and duration. Participating organisations would have to meet prescribed conditions and selection criteria, obtain a certificate and operate under the supervision of competent state authorities.

The relevant regulatory authorities would be empowered to issue, amend and revoke certificates, as well as extend, suspend or terminate testing activities.

The draft also stipulates that exemptions from or exclusions of liability for relevant organisations and individuals would be implemented in accordance with legislation on science, technology and innovation and the law on the digital technology industry. The Government would provide detailed regulations governing the mechanism.

Presenting the appraisal report, Phan Văn Mai, chairman of the National Assembly's Economic and Financial Committee, said the appraisal body basically agreed on the need to amend the law and supported the proposed revisions and additions.

However, regarding the sandbox mechanism, the committee called for greater clarity on the authority responsible for overseeing trials and the limits within which they could operate.

It also recommended specifying principles for voluntary participation, risk warnings, asset segregation and data protection, alongside supervision arrangements and procedures for dealing with unsuccessful trials.

The committee said provisions on exemptions from or exclusions of liability needed to be tightly drafted, stressing that they should not exempt testing organisations from liability to pay compensation for their own errors or violations.

It further recommended aligning provisions on trial duration and extensions, as well as limits on customers and transactions, with relevant legislation to ensure that testing activities could be effectively supervised.

Simplifying administrative procedures

The draft also proposes simplifying administrative procedures and investment and business conditions, while revising rules on securities offerings, applications for public-company registration and for registration of securities depository operations.

The changes are intended to make it easier to complete these procedures electronically. Administrative simplification measures would be incorporated into the law in line with Government Resolution No. 66.16/NQ-CP, while the reforms would be accompanied by stronger inspection, supervision and risk management.

The draft also revises provisions governing electronic transactions to ensure their safety in the securities sector. Regulations covering securities companies, fund management companies and securities practitioners would also be amended or supplemented.

For exchange-traded funds (ETFs), the draft proposes revising the definition to allow funds to acquire and exchange other assets, as stipulated by the Government, in return for fund certificates.

Within one year of the amended law taking effect, Prime Minister Lê Minh Hưng would issue a decision on the operating model of stock exchanges under the new regulations. During the transition, the existing entities would continue operating under current rules until the restructuring plan takes effect.

The draft law amending and supplementing several articles of the Securities Law has been submitted to the National Assembly for consideration and passage at its current session. It is scheduled to take effect on March 1, 2027. — BIZHUB/VNS