Decision No. 79/2009/QD-TTg dated issuing regulations on organization and operation of the national finance supervisory council

DECISION

ISSUING REGULATIONS ON ORGANIZATION AND OPERATION OF THE NATIONAL FINANCE SUPERVISORY COUNCIL

THE PRIME MINISTER OF THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated 25 December 2001;

Pursuant to Resolution 03-2007-NQ-CP of the Government dated 19 January 2007 on; basic solutions for implementing the socio-economic plan and the State budget for year 2007;

Pursuant to Decision 34 of the Prime Minister of the Government dated 3 March 2008 establishing the National Finance Supervisory Council;

Having considered the proposal of the Chairman of the National Finance Supervisory Council,

DECIDES:

Article 1. To issue with this Decision the Regulations on Organization and Operation of the National Finance Supervisory Council.

Article 2. This Decision shall be of full force and effect as from 10 July 2009.

Article 3. The Chairman of the National Finance Supervisory Council, ministers, heads of ministerial equivalent bodies and Government bodies, and chairmen of people's committees of provinces and cities under central authority shall be responsible for implementation of this Decision.

REGULATIONS

ON ORGANIZATION AND OPERATION OF THE NATIONAL FINANCE SUPERVISORY COUNCIL
(Issued with Decision 79/2009/QD-TTg of the Prime Minister of the Government dated 18 May 2009)

Chapter 1

GENERAL PROVISIONS

Article 1

The National Finance Supervisory Council (hereinafter abbreviated to the Council) is the agency exercising the function of advising the Prime Minister of the Government on coordinating the operation of supervising the national financial market (banking, securities and insurance), and of assisting the Prime Minister in general supervision of the national financial market.

Article 2

The Council is an agency with legal entity status, with headquarters in Hanoi, and a seal bearing the national emblem; it is permitted to open accounts at the State Treasury and at commercial banks, and is permitted to arrange full-time administrative staff.

Article 3

The Council shall operate in accordance with the following principles:

1. Independence and objectivity in providing advice to the Prime Minister of the Government.

2. Working pursuant to the regime of one departmental head, ensuring that the activities of membership of the Council are democratic and subject to direct instruction from the Prime Minister.

3. Close working co-operation with State administrative bodies in the banking, securities and insurance sectors, and with other relevant ministries and branches in order to perform the Council's assigned functions and duties.

4. Not to change the functions and duties of specialized branch State administrative bodies.

Article 4

The State shall guarantee the Council its staffing, material and working facilities and other necessary working conditions in order for it to perform its assigned functions and duties.

Article 5

Funding for the operation of the Council shall be guaranteed by the State budget and allocated from funding for regular activities of the Government Office.

Article 6

The Vietnamese communist party, other mass organizations and socio-political organizations within the Council shall operate in accordance with their respective charters and provisions of law.

Chapter 2

MANAGEMENT APPARATUS

Article 7. Chairman and two deputy chairmen of the Council

1. The Chairman of the Council shall be the head of the Council and shall be entitled to the same regimes as ministers, shall be appointed or relieved of his or her duties by the Prime Minister of the Government, and shall be responsible before the Prime Minister of the Government and before the law for performance of his or her assigned duties and powers.

2. Deputy Chairmen of the Council shall be appointed or relieved of their duties by the Prime Minister of the Government on the proposal of the Chairman of the Council; shall be subject to direction from and delegation of authority by the Chairman of the Council; and shall be responsible before the law and the Chairman of the Council for performance of their delegated tasks.

Article 8. Duties and powers of Chairman of the Council:

1. To lead and direct the Council to perform its duties and powers as assigned by the Prime Minister in accordance with law.

2. To participate in regular government meetings and at other meetings pursuant to a request from the Prime Minister; and to participate in meetings of the National Advisory Council on Financial and Monetary Policies.

3. To request that the Chairman of the National Advisory Council on Financial and Monetary Policies convene a meeting of such Council when necessary.

4. To request ministers, heads of ministerial equivalent bodies and Government bodies and of other relevant organizations to work with the Council in order to exchange opinions on relevant issues and to service the work of the Council.

5. To make submissions to the Prime Minister to establish inter-branch working groups in order to perform the supervisory functions and duties which are assigned.

6. To establish working groups of the Council to examine activities of institutions operating in the banking, securities and insurance sectors in order to perform the supervisory functions and duties which are assigned.

7. To request ministries and branches to appoint some of their senior staff to convene when necessary in order to perform the supervisory functions and duties which are assigned.

8. To make decisions on hiring external consultants or auditors to provide assistance during specific activities relevant to the functions and duties of the Council, after obtaining approval from the Prime Minister.

9. To manage the Council's staffing apparatus including permanent staff; to implement the regimes on salary and rewards and other regimes and policies applicable to staff managed by the Chairman; to organize and instruct scientific research work within the Council's powers.

10. To specifically regulate the working relationship and co-ordination between leaders of the Council and its units on the one hand, with Party and other mass organizations within the Council.

11. To manage the Council's assets and use funding sources assigned to the Council by the State in accordance with law.

12. To perform other duties and powers assigned to the Council by the Prime Minister of the Government.

Article 9. Organizational structure of the Council shall comprise:

1. Office.

2. Committee for research and co-ordination of supervisory policies.

3. Committee for overall supervision.

4. Committee for supervision of economic groups.

5. Information Centre on national finance supervision.

The units prescribed in clauses 1, 2 and 4 inclusive above shall have the function of providing assistance and advice to the Chairman of the Council; while [the unit prescribed in clause 5 above, namely] the Information Centre shall be a professional entity under the Council; and the Chairman of the Council shall make a decision on the functions, duties and powers of all units under the Council.

All the units prescribed in this article shall have their own offices, and the Chairman of the Council shall make a decision on the number of offices and on their establishment and dissolution.

Article 10

The Office shall have a Head of Office and a number of Deputy Heads; all the Committees shall have a Head of Committee and a number of Deputy Heads; and the Information Centre shall have a Director and a number of Deputy Directors. The Chairman of the Council shall be responsible to make all these appointments.

Article 11

Senior staff of the Council shall exercise all the rights and discharge all the obligations stipulated by law as applicable to State employees.

State employees working at the Council shall be entitled to the salary and wages applicable to State employees working for the State Bank of Vietnam.

Chapter 3

OPERATIONAL ITEMS

Article 12

The Council shall assist the Prime Minister of the Government in the following supervisory activities:

1. General supervision of the national financial market; and overall supervision of the operations of finance groups.

2. Supervision of the conditions for operational licences to be granted to credit institutions, finance institutions and other institutions operating in the banking, securities and insurance sectors.

3. Supervision of the application of international practice and standards on regulatory operations of specialized branch inspectorates and other regulatory bodies in the banking, securities and insurance sectors.

4. The operational items stipulated in clauses 1, 2 and 3 above shall be exercised by the Council on a "remote" basis, and shall be exercised independently and ensuring the principle of not changing the functions and powers of specialized branch State administrative bodies.

Article 13. The Council shall assist the Prime Minister of the Government to coordinate specialized branch supervisory activities via the following activities:

1. By making recommendations to the Prime Minister to issue regulations on coordinating activities supervising the national financial market (banking, securities and insurance).

2. By coordinating specialized branch supervisory operations; by recommending that agencies correctly implement the supervisory rules and regimes, and correctly apply international practice and standards to regulation of the financial market.

3. By providing its opinion to the State Bank of Vietnam, the Ministry of Finance and other relevant agencies on formulation of regimes, policies and regulations on management, inspection and supervision of banking, securities and insurance operations; and on strategies and the developmental orientation of the banking industry, the securities market and the insurance market.

4. By making recommendations to competent bodies to conduct research and to issue and amend legal instruments relevant to banking, securities and insurance operations.

Article 14

The Council shall coordinate with the relevant ministries and branches to make submissions to the Prime Minister on the strategy and developmental orientation of the national financial market.

Article 15

The Council shall be responsible to establish a database system which collates, processes and supplies information on the national financial market; to analyse, make forecasts and provide warnings on the safety levels of the financial system and on the level of risks applicable to the national financial market and to propose solutions for promptly dealing with same; and to provide reports thereon to the Prime Minister on a periodic or one-off basis.

Article 16

The Council shall make recommendations to the Prime Minister, to ministries and branches concerned, to specialized branch inspectorates, to regulatory bodies and to other authorities on dealing with breaches by any organization or individual who fails to fully comply with the regulations and conditions applicable during banking, securities and insurance operations; and to deal with any organization or individual who breaches the regulations on provision of periodic or one-off information servicing the operation of supervising the national financial market.

Article 17

The Council shall preside over meetings, seminars, forums and discussions in order to exchange information about and debate issues within the scope of the powers assigned to it; and shall hold press conferences and announce information within the scope of its managerial authority in accordance with law.

Article 18

The Chairman of the Council shall provide reports to the Prime Minister on the activities and work, and exercise of powers by the Council, on a three month, six month and annual basis, and also whenever necessary at the one-off request of the Prime Minister.

Chapter 4

WORKING RELATIONSHIP

Article 19

The Council shall closely co-ordinate with the Ministry of Finance, the State Bank of Vietnam, with other ministries, branches and relevant agencies when providing advice to the Prime Minister on issues regarding management, inspection and supervision of banking, securities and insurance operations and of the national financial market.

Article 20

The Council shall be responsible to provide information and periodic reports and its analyses and forecasts both to the Prime Minister and also to other relevant bodies.

Article 21

The Ministry of Finance, the State Bank of Vietnam, relevant ministries and branches and other institutions operating in the banking, securities and insurance sectors shall be responsible to promptly provide complete data, information and statistics to the Council in accordance with regulations, on a periodic and one-off request basis.

Article 22

The Council shall exercise the functions of external relations and international co-operation and integration in accordance with law in order to assist the exercise of the functions, duties and powers assigned to it by the Prime Minister.

Chapter 5

IMPLEMENTING PROVISIONS

Article 23

The Chairman of the Council shall be responsible to organize implementation of these Regulations and to provide implementing guidelines.

Article 24

The Ministry of Finance, the State Bank of Vietnam and other relevant bodies shall be responsible to co- ordinate with the Council in implementing these Regulations.