Decision No. 63/2007/QD-TTg dated May 10, 2007 of the Prime Minister on functions, duties, powers and organizational structure of the State Securities Commission under the Ministry of Finance

DECISION

ON FUNCTIONS, DUTIES, POWERS AND ORGANIZATIONAL STRUCTURE OF THE STATE SECURITIES COMMISSION UNDER THE MINISTRY OF FINANCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated 25 December 2001; Pursuant to the Law on Securities dated 29 June 2006;

Pursuant to Decree 86/2002/ND-CP of the Government dated 5 November 2002 on functions, duties, powers and organizational structure of ministries and ministerial equivalent bodies;

Pursuant to Decree 66/2004/ND-CP of the Government dated 19 February 2004 transferring the State

Securities Commission to the Ministry of Finance;

Having considered the proposal of the Minister of Finance,

DECIDES:

Article 1. Position and functions

1. The State Securities Commission is an organization under the Ministry of Finance which is responsible to assist the Minister of Finance in undertaking the function of State administration of securities and securities market; which directly manages and supervises securities and securities market activities; and which manages services activities in the securities and securities market sector in accordance with law.

2. The State Securities Commission shall enjoy legal entity status, may use a seal with the national emblem and open accounts at the State Treasury in accordance with law; it shall have its head office in Hanoi; and have the English transaction name being State Securities Commission of Vietnam (abbreviated to SSC).

Article 2. Duties and powers

The SSC shall perform the duties and powers stipulated in the Law on Securities and the following specific duties and powers:

1. To submit to the Minister of Finance for promulgation within its own authority or the Minister of Finance shall submit to a competent body for promulgation, legal instruments on securities and the securities market, and strategies, master plan, policies, and long-term, medium term and annual developmental plans on securities and the securities market.

2. To organize the implementation of the strategies, master plan and policies for development of the securities market after they are issued.

3. To provide guidelines on professional procedures for securities and the securities market and to provide guidelines on sample forms in accordance with regulations of law and of the Minister of Finance.

4. To issue, extend, suspend and withdraw licences and certificates relating to securities activities and the securities market; to approve changes relating to securities and the securities market activities.

5. To administer and supervise the operation of the Stock Exchange, Securities Trading Centres, Securities Depository Centres and subsidiary institutions; and to temporarily suspend trading and depository operations of the Stock Exchange, Securities Trading Centres and Securities Depository Centres when there are indications of an adverse impact on the lawful rights and interests of investors.

6. To conduct inspections and supervision, to deal with administrative breaches and to resolve complaints and denunciations in securities and securities market activities.

7. To keep statistics on, and to make forecasts about securities and securities market activities; to organize the management and application of information technology; and to modernize activities in the securities and securities market sector.

8. To conduct scientific research; to provide and disseminate information on securities and the securities market; to organize, and co-ordinate with the relevant bodies and organizations to provide, professional training for a team of senior officials and staff who manage securities and securities business practitioners; and to disseminate to the public information about securities and the securities market.

9. To conduct international co-operation in the securities and securities market sector in accordance with law.

10. To direct and facilitate securities organizations and associations to implement their purposes, principles and charter on organization; to inspect the performance of regulations of the State, to deal with or recommend that the competent State body deal with breaches of law by securities associations in accordance with law and in accordance with delegation of authority from the Minister of Finance.

11. To implement the regime on reporting securities and the securities market in accordance with law and management delegation from the Minister of Finance.

12. To carry out administrative reform in accordance with the targets and contents of the administrative reform program of the State Securities Commission approved by the Minister of Finance.

13. To manage and organize the apparatus, staffing arrangements, staff and officials and to carry out regimes and policies applicable to staff and officials of the State Securities Commission in accordance with law and management delegation from the Minister of Finance.

The State Securities Commission shall formulate a specific mechanism in respect of the recruitment, employment and management of staff and officials working in the securities sector and shall submit same to the competent body for its promulgation.

14. To manage expenditure sourced from the State budget and other sources of expenditure and assets allocated in accordance with law; to be entitled to use proceeds from specialized and professional activities of securities and the securities market in order to serve specialized and professional work and to implement regimes and policies on recruitment of and entitlements of experts, staff and officials in accordance with the financial management regime stipulated by the Ministry of Finance.

15. To perform other duties assigned by the Minister of Finance.

Article 3. Organizational structure and staffing arrangements

1. The leadership team of the State Securities Commission shall consist of the Chairman and Vice- Chairmen.

The Chairman of the State Securities Commission shall be appointed or removed by the Prime Minister at the request of the Minister of Finance and shall be responsible before the Minister of Finance for the entire operation of the State Securities Commission.

Vice-Chairmen of the State Securities Commission shall be appointed or removed by the Minister of Finance at the request of the Chairman of the State Securities Commission and shall be responsible before the Chairman of the State Securities Commission for their assigned work sectors.

2. Professional and administrative organizations:

(a) Administrative organizations:

- Securities Market Development Department;

- Securities Issuance Management Department;

- Securities Business Management Department;

- Department of Management over Fund Management Companies and Securities Investment Funds;

- Securities Market Supervision Department;

- Legal Affairs Department;

- Supervision and Enforcement Department;

- International Co-operation Department;

- Human Resources Management Department;

- Planning and Finance Department;

- Office;

- Representative of the State Securities Commission in Ho Chi Minh City

(b) Professional subsidiary organizations:

- Securities Research and Training Center;

- Securities Information Technology Center;

- Vietnam Securities Review.

(c) Professional organizations to be converted:

- Securities Depository Center;

- Hanoi Securities Trading Center;

- Ho Chi Minh City Securities Trading Center.

The Securities Depository Center and Securities Trading Centers whose organizational scale and method of operation have not been converted in accordance with the Law on Securities shall remain profit-making professional organizations under the State Securities Commission in accordance with law.

The stipulation of functions, duties, powers and organizational structure of divisions and organizations under the State Securities Commission shall be implemented in accordance with regulations of the Minister of Finance.

3. The arrangement of staff and officials to the State Securities Commission shall be decided by the Minister of Finance within the total permanent staff of the Ministry of Finance.

Article 4. Effectiveness

This Decision shall be of full force and effect fifteen (15) days from the date of its publication in the Official Gazette and shall replace Decision 161-2004-QD-TTg of the Prime Minister dated 7 September 2004 stipulating functions, duties, powers and organizational structure of the State Securities Commission.

Article 5. Responsibility for implementation

Ministries, Heads of ministerial equivalent bodies, Heads of Government bodies, Chairmen of People's Committees of provinces and cities under central authority and the Chairman of the State Securities Commission shall be responsible for implementation of this Decision.