A view of the session. VNA/VNS Photo Doãn Tấn

HÀ NỘI — The National Assembly Standing Committee gave its opinions on the draft Law Amending and Supplementing a Number of Articles of the Law on Securities on the afternoon of September 3, broadly endorsing its objectives while calling for stronger safeguards as regulatory requirements are reduced.

Presenting the draft law, Deputy Minister of Finance Tạ Anh Tuấn said the amendments aim to reduce and simplify administrative procedures, business investment conditions and legal compliance costs in the securities sector, facilitate participation by organisations and individuals, and promote modernisation, digital transformation, information technology applications and electronic transactions in securities activities and the securities market.

According to Tuấn, the amendments will also further develop the legal framework for new issues, models and practical requirements arising from market development, in line with international practices. They are also intended to improve consistency across the legal system, strengthen the effectiveness and efficiency of State management and meet socio-economic development requirements in the new context.

The draft law comprises three articles. Compared with the 2019 Law on Securities, as amended and supplemented in 2024, it revises 23 articles, adds one new article and leaves 112 articles unchanged.

The draft is intended to institutionalise Party guidelines and policies relating to securities market development, while ensuring national defence and security requirements and consistency with international treaties to which Việt Nam is a party.

The proposed amendments refine provisions to support greater use of information technology and digital transformation, streamline the organisational structure and improve the efficiency of securities market operations, ensure consistency with current laws, align the market more closely with international standards and enhance its capacity to meet growth targets.

The revised provisions cover electronic transactions in the securities sector; standards for legal representatives of securities business organisations; the operations of securities companies, securities investment fund management companies, and branches and representative offices of foreign securities companies and fund management companies in Việt Nam; securities practice; securities investment funds; and market development policies.

The draft law also supplements and refines the legal framework for a controlled testing mechanism in the securities sector, supporting the implementation of national policies on science, technology, innovation and digital transformation.

Presenting the appraisal report, Chairman of the National Assembly's Committee for Economics and Finance Phan Văn Mãi agreed on the need to amend the law to further improve the legal framework, reduce administrative procedures and business investment conditions, provide a legal basis for controlled testing mechanisms and electronic transactions, support the application of new technologies and the development of new products and services, and improve the transparency, safety and efficiency of the securities market as Việt Nam seeks a market upgrade.

Regarding the reduction and simplification of administrative procedures and business investment conditions, the Standing Committee broadly endorsed the policy of removing unnecessary paperwork and requirements, but asked the drafting agency to clarify the grounds for doing so and specify post-reduction oversight mechanisms.

Lawmakers stressed that easing requirements must not weaken safety standards or shift risks from the pre-inspection stage to investors and the broader market.

On securities depository activities, the Standing Committee requested clarification of the management mechanism that would replace abolished conditions, criteria for selecting depository organisations, coordination between the State Bank of Việt Nam and the State Securities Commission, and arrangements for handling and transferring assets when a depository organisation no longer meets requirements.

Many opinions called for requirements relating to financial capacity, minimum capital adequacy ratios and infrastructure to be retained, while stressing that any relaxation of conditions must be accompanied by regular monitoring to ensure safety standards are not lowered.

On electronic transactions, lawmakers supported the overall direction of the amendments but called for clearer identification of specialised matters to be regulated by the Minister of Finance, ensuring proper legal authority and consistency with legislation on electronic transactions, data and cybersecurity.

They also sought clearer rules on responsibilities for audit trails, traceability, system continuity and incident response.

Regulations covering new technologies should remain open and technologically neutral, while the use of artificial intelligence, algorithmic trading and automated advisory services should be subject to mechanisms for model oversight, human intervention and clear assignment of responsibility, the committee said.

Speaking at the session, Deputy Prime Minister Lê Tiến Châu said the drafting agency would carefully review provisions on the reduction of business investment conditions and administrative procedures to ensure that the changes are substantive and feasible, accompanied by stronger post-inspection and oversight, and do not create gaps in State management.

The agency would also review the consistency of the draft with the broader legal system, its enforceability and transitional provisions to ensure stable and continuous securities market operations, while paying close attention to the law's proposed effective date. — VNS