SmartInvest Securities fined nearly 1.4 billion VND.

Báo Đầu tư•26/11/2024

The State Securities Commission has fined SmartInvest Securities Joint Stock Company for numerous violations in information disclosure, record keeping, lending, and other related activities.

On November 22, 2024, the State Securities Commission issued a decision imposing administrative penalties on SmartInvest Securities Joint Stock Company (code AAS, UPCoM exchange). Accordingly, the company was penalized for nine violations, with the heaviest penalty relating to service provision.

Specifically, SmartInvest was fined 275 million VND for providing services without written approval from the State Securities Commission. The company collaborated with a credit institution to provide services to several customers who borrowed money to buy securities without the approval of the State Securities Commission.

The company also provides securities services or other services that are required to be reported to the State Securities Commission before implementation, but has not reported them or has not received written opinions from the State Securities Commission or guidance regulations from competent state agencies.

The company collaborates with Sao Kim Financial Investment Joint Stock Company to provide financial services to a number of clients who borrow money to buy securities. In addition, it provides services to help investors open securities trading accounts with the company. The product is designed to optimize idle funds in securities trading accounts in the short term to earn flexible interest rates (under the name "Capital Optimization Product"), even before reporting to or obtaining written opinions from the State Securities Commission and before any guiding regulations from competent state agencies.

This violation also resulted in a fine of 275 million VND.

Additionally, the company was fined VND 187.5 million for failing to manage client assets separately from the securities company's assets. The company also violated regulations regarding margin trading accounts. At certain times, the company opened margin trading accounts for individuals who were not eligible. The fine imposed on this violation was VND 65 million.

Furthermore, Smart Invest violated regulations regarding margin trading restrictions and was fined VND 137.5 million. At certain times, the company disbursed margin trading loans for certain securities that were not on the list of securities permitted for margin trading published by the company.

The company was fined VND 187.5 million for violating regulations on lending restrictions. The company lent money to customers through deposits for bond purchases but did not actually buy or sell the bonds. Instead, it provided the money to customers for a specified period as agreed, with repayment of principal and fees. The company also lent money to Sao Thang Long Investment Joint Stock Company, an affiliated organization of a member of the Board of Directors, as an advance payment for the sale of securities on December 20, 2022.

The State Securities Commission fined the company 85 million VND for failing to maintain complete records, data, documents, and certificates related to the securities company's operations, and 92.5 million VND for failing to ensure the personnel structure in the internal control and internal audit departments, or for failing to ensure that the personnel structure meets the required conditions.

The company failed to report information that was required to be reported by law, resulting in a fine of 92.5 million VND.

The total amount of fines that SmartInvest Securities has to pay is nearly 1.4 billion VND.

Previously, this company had been repeatedly penalized by the tax authorities. On October 25, 2024, the company was fined 3.5 million VND for administrative violations related to taxes. Specifically, on October 8, 2024, the company submitted the contractor tax final settlement declaration (Form No. 01/NTNN) late, for the tax period of September 2024 - based on the number of transactions, with the deadline being October 7, 2024, and the number of days overdue was 1 day.

In May 2024, the company was also fined by the Hanoi City Tax Department for a series of errors in tax declaration and payment, with a total fine, back taxes, and late payment penalties exceeding 438 million VND.

In 2024, SmartInvest aims for a net profit of VND 240 billion, 1.8 times higher than the 2023 figure. The Q3 financial report shows that after nine months, net profit reached VND 73 billion, still far short of the target, mainly due to lower-than-expected revenue. This result is 13% lower than the same nine-month period in 2023. Undistributed net profit as of September 30th reached VND 188 billion.

Source: https://baodautu.vn/xu-phat-chung-khoan-smartinvest-gan-14-ty-dong-d230778.html