Restructuring on right track, securities commission says
The State Securities Commission (SSC) said the restructuring of
securities companies is keeping in the right direction, taking in
cautious steps with respect for market rules.
The State Securities Commission (SSC) said the restructuring of
securities companies is keeping in the right direction, taking in
cautious steps with respect for market rules.
The move reduced the rate of loss-suffering companies from 60 percent to 20 percent with loss slashed remarkably from 4,200 billion VND to 200 billion VND.
Meanwhile, the profitability rate increased 1.5 times and the average index of the financial safety expanded by 15 percent, the SSC said.
As of the end of the third quarter, 43 fund management companies were in operation, of which 23 companies ran profitably with a joint sum of 132 billion VND while 20 others suffered a combined loss of 64 billion VND.
The companies took responsibility for a total asset of 109 trillion VND.
According to the commission, the open-end funds, which replaced the closed-end funds, are operating in a more flexible and transparent manner with mechanisms to better protect investors.
As of December, 2014, the market saw the presence of 25 mutual funds with two of them being Exchange-Traded Fund (ETF), 15 open-end funds and eight member funds. Their total mobilisation value is over 7 trillion VND.
The SSC said that it has to date issued all mechanisms and policies related to the organisation and operation of securities businesses in line with international practices, especially using BASEL II financial safety criteria, CAMEL early warning criteria and international-standard risk management system.
In 2015, the SSC said it would work with other relevant agencies to develop standard accountancy criteria applied to organisations which trade securities, and an accountancy system used by securities companies.
The SSC will also amend circular 210 on organising the operation of securities companies and take measures to keep the securities market operating stably, safely, and effectively.-VNA
The move reduced the rate of loss-suffering companies from 60 percent to 20 percent with loss slashed remarkably from 4,200 billion VND to 200 billion VND.
Meanwhile, the profitability rate increased 1.5 times and the average index of the financial safety expanded by 15 percent, the SSC said.
As of the end of the third quarter, 43 fund management companies were in operation, of which 23 companies ran profitably with a joint sum of 132 billion VND while 20 others suffered a combined loss of 64 billion VND.
The companies took responsibility for a total asset of 109 trillion VND.
According to the commission, the open-end funds, which replaced the closed-end funds, are operating in a more flexible and transparent manner with mechanisms to better protect investors.
As of December, 2014, the market saw the presence of 25 mutual funds with two of them being Exchange-Traded Fund (ETF), 15 open-end funds and eight member funds. Their total mobilisation value is over 7 trillion VND.
The SSC said that it has to date issued all mechanisms and policies related to the organisation and operation of securities businesses in line with international practices, especially using BASEL II financial safety criteria, CAMEL early warning criteria and international-standard risk management system.
In 2015, the SSC said it would work with other relevant agencies to develop standard accountancy criteria applied to organisations which trade securities, and an accountancy system used by securities companies.
The SSC will also amend circular 210 on organising the operation of securities companies and take measures to keep the securities market operating stably, safely, and effectively.-VNA
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