After nearly 10 years of application, Circular No. 197 has revealed many points that are no longer suitable for the rapid development of the Vietnamese stock market, especially in the requirements of standardizing human resources, strengthening supervision of practitioners and digital transformation in state management.
According to the Ministry of Finance , the stock market has expanded strongly in both scale and depth, with a high capitalization growth rate. In that context, adjusting regulations on securities practice has become necessary, especially when the regulations on equivalent practice certificates in Circular No. 197 have expired, and the requirement for knowledge training under the Securities Law has not been specifically guided at the circular level as before.
The new draft Circular clarifies the contents of professional certificates, equivalent practice certificates and requirements for knowledge updating training. The Ministry of Finance said that many individuals requesting the certificate currently possess prestigious international certificates such as Certified International Investment Analyst (CIIA), Association of Chartered Certified Accountants (ACCA), Certified Public Accountants (CPA), Chartered Financial Analyst (CFA) or have legally practiced abroad.
Because the training programs of these certificates are basically compatible with the content of a number of domestic certificates, the draft Circular continues to inherit and supplement regulations to facilitate practitioners participating in the Vietnamese market.
Regarding professional certificates, the draft maintains the 7 current certificates organized by the Securities Research and Training Center under the State Securities Commission, and adjusts them in the direction that the State Securities Commission approves the training program, while the curriculum is developed by the training institution. The clear division of responsibilities helps ensure the consistency of the program but increases the level of initiative for the training unit.
Another important content is the requirement for practitioners to participate in periodic training on securities law, trading systems and new products. Circular No. 197 previously did not provide detailed guidance, while the Securities Law clearly stipulates this responsibility.
This draft Circular supplements the mechanism for organizing training by the State Securities Commission, the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation, ensuring that practitioners are updated with knowledge in a timely manner according to market developments.
The draft Circular also devotes a large amount of space to regulating electronic securities practice certificates. With the number of practitioners increasing rapidly, paper-based management no longer meets the requirements of transparency, information updates and data integration. Switching to electronic certificates will help the system operate stably, shorten the time for processing procedures and create a synchronous platform for public services.
According to the draft, the State Securities Commission will stop issuing paper certificates when the information technology system for managing practitioners comes into operation; the certificate holder is responsible for converting within 1 year from the guidance of the State Securities Commission; after this period, the paper certificate is no longer valid and after 3 years it will be revoked according to the provisions of the Securities Law.
The draft Circular consists of 5 chapters and 12 articles, clearly defining the responsibilities of practitioners and organizations employing practitioners in updating information to the management system. Individuals and organizations can look up the status of securities practice on the information technology system of the State Securities Commission to ensure publicity, transparency and prevent cases where unqualified practitioners make recommendations or give advice that may affect the interests of investors.
The Ministry of Finance is publicly disclosing the draft Circular on the Ministry's Electronic Information Portal to solicit comments from organizations, experts and the business community, in order to perfect the legal framework for securities practice in the period of strong market development and increasingly deep digital transformation.
Source: https://nhandan.vn/standard-standard-and-transformation-to-digital-stock-certificates-post926596.html
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