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Decision 105/QD-UBCK on the risk management system for securities company

Decision 105/QD-UBCK of the State Securities Commission of Vietnam on promulgating the regulations on the establishment and operation of the risk management system for securities company

From February 26th 2013, securities companies are required to establish and operate the risk management system in accordance with the business conditions of the company.

To legalize the requirements for risk management in the securities companies, the State Securities Commission of Vietnam (SSC) has issued Decision 105/QD-UBCK on promulgating the regulations on the establishment and operation of the risk management system for securities company.

Accordingly, the SSC requested General Directors of the securities companies to establish the risk management department in accordance with the business conditions of the company, in which the risk management system has to handle at least five key types of risks being market risk, settlement risk, liquidity risk, operational risk and legal risk.

Securities company must ensure the risk management activities are carried out independently, impartially, honestly, consistently and must be made ​​in writing, at the same time to ensure the operation department and the risk management department are held separately and independently of each other.

This Decision will be one of the key compliance regulations to put operation of securities companies under tighter control.

ANT Lawyers

Tuan Nguyen

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