VCN - Speaking at the conference on the Securities Law (revised) on June 13, Minister of Finance Dinh Tien Dung said that the maintaining of the State Securities Commission (SSC) under the Ministry of Finance is consistent with the requirements of state management and is in line with the requirements of a multi-disciplinary management ministry on further reforming the state administrative apparatus in a streamlined and efficient manner.
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According to Article 9 of the draft Law on the Prime Minister's promulgating of functions, tasks and organizational structure of the SSC, the structure of the SSC under the Ministry of Finance inherits the achievements of the Securities Law 2006 and the revised Securities Law 2010, and is in compliance with Vietnam’s conditions and Party’s and National Assembly’s resolutions on the reform of the state administrative apparatus. The draft Law on Securities (revised) further strengthens the SSC's role to ensure independence in supervisory management and international practice for three reasons.Minister Dinh Tien Dung stated that regarding the organizational structure, tasks and powers of the SSC, there were 19 statements, of which 5 Deputies proposed the SSC to be a subordinate unit of the Government and 9 Deputies agreed to keep the current law and draft law. All Deputies agreed with increasing powers and professional independence for the SSC in the future to improve management efficiency in the field of securities and the securities market.
Firstly, since 2004, when the SSC was under the Ministry of Finance, the securities industry promoted outstanding results under the leadership of the Government and all levels and sectors. Specifically, in terms of the legal framework, the Ministry of Finance advised the Government to propose to the National Assembly for promulgating two documents on the Securities Law 2006 and 2010, 14 Government Decrees, 6 Prime Ministerial decisions and 78 circulars.
Regarding the organization of market operations, the securities market has gradually completed its structure, meeting the development requirements of the economy and international practices. So far, the securities market has fully covered markets of stocks, Government bonds and derivatives, as well as corporate bonds. The Government and the Ministry of Finance supported the modernization of infrastructure, information technology infrastructure for the SSC, Stock Exchanges, Securities Depository Centre, promoting safe and sustainable development of the securities market.
In terms of market capitalization, thanks to the direction and support of the Government, the Ministry of Finance, other ministries, sectors and agencies, the securities market has developed in all aspects. These include effectively supporting in attaching equitisation to listing and trading registrations to increase the supply of goods for the securities market; promoting and creating mechanisms for capital mobilization of the Government, local authorities, banks and businesses through the securities market; promulgating mechanisms on taxes, fees, service prices, accounting and auditing regimes to encourage and orient the development of the securities market; implementing commitments to expand the financial market in the WTO, free trade transactions to raise the level of securities market operations in international integration.
Secondly, the SSC under the Ministry of Finance still ensures independence in the management and supervision and implementation of international practices.
The International Securities Association was established with 128 members with the aim of exchanging information among members about experience for the development of the securities market. The association makes recommendations and encourages members in implementation. Accordingly, depending on their own conditions, each member has a suitable application method. Although it is not an international commitment, but in the process of developing the Securities Law 2006 and 2010 and amending Law on Securities, the Government aims to apply the best international practices recommended by the International Securities Association to develop a public, transparent and sustainable securities market.
The International Securities Association recommends that the agency in charge of the securities market must be independent and eligible for management and is not affected by objective factors. Regarding the organizational structure, the Association does not recommend that the management agency must be an independent agency of the Government.
Compared with the recommendations of the International Securities Association, the SSC's independence and accountability have been ensured. Under the current Securities Law, the SSC is independent in the process of managing and monitoring the securities market. Specifically, the SSC has the right to manage public companies in licensing for issuing securities to the public; has the right to inspect and handle violations of securities; is absolutely proactive in proposing policies to competent authorities for approval and issuance; is independent in issuing regulations and procedures on securities, directly managing and supervising Stock Exchanges, Securities Depository Centre.
"The Government and the Ministry of Finance have always respected the independence of the SSC and have not intervened in its operation," said Minister Dinh Tien Dung.
Dung noted that this draft Law also added 3 very important rights: the right to access information in inspection to ensure effectiveness and efficiency of market inspection and surveillance; the right to take the initiative in applying investor protection measures, security measures for the securities market when handling incidents, abnormal fluctuations in the securities market and the right to report directly to competent authorities about the securities market situation.
Thirdly, Vietnam is now in the process of restructuring the economy and renewing the growth model, so the restructuring of enterprises, strengthening of state owned enterprise equitisation and capital mobilization for State budget and development investment are key tasks.
Accordingly, the development of the securities market must be associated with the management of fiscal policies and closely coordinated with monetary policy to stabilize the macro economy and promote economic growth. Therefore, the continuation of the SSC under the Ministry of Finance is consistent with the requirements of state management, in line with the requirements of a multi-disciplinary management ministry in the spirit of Resolution No. 18 of the Central Committee and Resolution No. 56/2017 of the National Assembly on further reforming the state administrative apparatus in a streamlined and efficient manner, and also in line with the recommendations of the National Securities Association on independence in task performance.
"In terms of the authority to issue functions and tasks of the SSC, the draft Law on Securities (revised) submitted to the National Assembly clarifies the functions, tasks, powers and organizational structure of the SSC. However, we will work with the verification agency to review and supplement in the more specific way,” said Minister Dinh Tien Dung.
Regarding the authority to issue specific functions and tasks of the SSC, Dung said that in addition to the specific provisions of the Law on Securities, it is necessary to comply with the provisions of the Law on Organization of the Government.
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Accordingly, the Law on Organization of the Government stipulates that the Government stipulates the functions, tasks, powers and organizational structure of the ministries, ministerial-level agencies and agencies attached to the Government; the Prime Minister decides the functions, tasks, powers and organizational structure of the General Departments under the ministry. Currently, the functions and powers of the SSC are stipulated by the Prime Minister, therefore, the regulation of draft Law on "proposing to the Prime Minister to stipulate the functions and tasks of the SSC," is in accordance with the Law on Organization of the Government
By Thanh Nguyen/ Huyen Trang