Tiếng Việt

Legal update relating to Finance and Credit (Monthly Legal Update – 08&09/2021)

by | Sep 1, 2021 | Banking, EN, Legal Update | 0 comments

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/08/2021

1.1. Decree No. 58/2021/ND-CP on provision of credit information service

  • Name of legal document: Decree 58/2021/ND-CP dated June 10, 2021 of the Government on provision of credit information service (referred to as the “Decree No. 58/2021/ND-CP”).

  • Effective date: 15/08/2021.

Some content should be noted:

  • Firstly, stipulating on operating principles of provision of credit information.

Specifically, Article 4 of Decree No. 58/2021/ND-CP stipulates: “Article 4. Operating principles of provision of credit information

  1. Credit information companies shall provide credit information only after receiving certificate issued by the SBV.

  2. Provision of credit information must comply with regulations and law, ensure truthfulness, objectivity, and not affect legal rights and benefits of relevant organizations and individuals.

  3. Agreements and commitments in provision of credit information specified under this Decree must be made into records or other equally legitimate forms as written documents as per the law.

  4. Credit information companies shall only collect credit information of debtors from participating organizations when the debtors allow the participating organizations to provide their credit information according to Annex I attached hereto.

  5. Principles of providing credit information products:a) Credit information companies shall provide credit information products according to Article 21 hereof;b) Credit information companies shall only provide credit information products which contain identification information of debtors to other participating organizations under consent of the debtors under Annex II attached hereto, except for cases where the organizations receive consent of the debtors according to Clause 4 of this Article;c) Credit information companies shall not provide credit information products which contain identification information of debtors to other organizations and individuals under Point dd Clause 1 Article 21 hereof.”

  • Secondly, stipulating on restrictions in provision of credit information service.

Specifically, Article 6 of Decree No. 58/2021/ND-CP stipulates: “Article 6. Restrictions in provision of credit information service

  1. Do not illegally collect, provide information classified as Government secret.

  2. Do not intentionally deviate credit information thereby affecting legal rights and benefits of relevant organizations and individuals.

  3. Do not exchange credit information, or provide credit information for the wrong individuals, for the wrong purposes or illegally.

  4. Do not exploit provision of credit information for personal gain, violating benefits of the Government, or legal rights and benefits of organizations and individuals.

  5. Do not obstruct legal collection and use of credit information of organizations and individuals.”

1.2. Decision No. 1172/QD-NHNN on the publication of administrative procedures to be amended, supplemented, and replaced in the field of credit information activities performed at the single-window divisions within the scope of the State of Vietnam’s management functions.

  • Name of legal document: Decision No. 1172/QD-NHNN issued on 07/07/2021 by the State Bank of Vietnam on the publication of administrative procedures to be amended, supplemented, and replaced in the field of credit information activities performed at the single-window divisions within the scope of the State of Vietnam’s management functions (referred to as the “Decision No. 1172/QD-NHNN”).

  • Effective date: 15/08/2021.

The content should be noted: Regulating on the list of administrative procedures to be amended and supplemented within the scope of management functions of the State Bank of Vietnam, including procedure for approving changes to the content of the Certificate of Credit Information Operations.

Specifically, Section 1, Part I Administrative procedures to be amended, supplemented and replaced within the jurisdiction of the State Bank of Vietnam (Issued together with Decision No. 1172/QD-NHNN) stipulates:

“PART I.

LIST OF ADMINISTRATIVE PROCEDURES

  1. List of administrative procedures to be amended and supplemented within the scope of management functions of the State Bank of Vietnam

No.

Case number of administrative procedures

Name of administrative procedures

The name of the legal document stipulating the content of amendments and supplements

Field

Implementing agencies

Administrative procedures are carried out at the State Bank of Vietnam

…

2

1.001157

Procedure for approving changes to the content of the Certificate of Credit Information Operations

Decree No. 58/2021/ND-CP dated on 10/06/2021 of the Government on provision of credit information service

Credit information activities

State Bank of Vietnam

”

1.3. Circular No. 13/2021/TT-NHNN on amendments to Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the State Bank of Vietnam on promulgation of the tariff of charges for payment services offered via the State Bank of Vietnam

  • Name of legal document: Circular No. 13/2021/TT-NHNN issued on 23/08/2021 by the State Bank of Vietnam on amendments to Circular No. 26/2013/TT-NHNN dated December 5, 2013 of the State Bank of Vietnam on promulgation of the tariff of charges for payment services offered via the State Bank of Vietnam (referred to as the “Circular No. 13/2021/TT-NHNN”).

  • Effective date: 01/09/2021.

The content should be noted: Amending regulations related to Charges for payment transactions performed via the IBPS is specified in Circular No. 26/2013/TT-NHNN.

Specifically, Article 1 of Circular No. 13/2021/TT-NHNN stipulates: “Article 1. Amendments certain articles of Circular No. 26/2013/TT-NHNN

Article 1a shall be added as follows:

“Article 1a:  The charges for payment services as prescribed in point 1.1, 1.2 Section 1 “Charges for payment transactions performed via the IBPS” in Part III “In-country payment service charges” in the Tariff of charges for payment services offered via the State Bank of Vietnam promulgated herewith will be reduced by 50 per cent from September 1, 2021 to June 30, 2022 inclusive.”.

2. LEGAL DOCUMENTS ARE ISSUED IN 07/2021

Circular No. 12/2021/TT-NHNN prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches

  • Name of legal document: Circular No. 12/2021/TT-NHNN issued on 30/07/2021 by the State Bank of Vietnam prescribing credit institutions and foreign bank branches’ trading of promissory notes, treasury bills, deposit certificates and bonds domestically issued by other credit institutions and foreign bank branches (referred to as the “Circular No. 12/2021/TT-NHNN”).

  • Effective date: 27/10/2021.

Some contents should be noted:

  • Firstly, regulating on rules for trading of financial instruments.

Specifically, Article 3 Circular No. 12/2021/TT-NHNN stipulates: “Article 3. Rules for trading of financial instruments

  1. Credit institutions/FBBs are allowed to carry out the trading of financial instruments according to the contents about trading of corporate bonds and/or other financial instruments specified in their licenses issued by SBV.

  2. Buyers and sellers shall assume legal responsibility for their compliance with regulations herein and relevant laws when carrying out trading of financial instruments.

  3. VND (Vietnamese Dong) shall be the currency used in trading of financial instruments.

  4. The financial instrument to be purchased or sold is under the lawful ownership of the seller and is not matured; the seller undertakes that the financial instrument is not in any disputes, is eligible for trading as prescribed by law, and is not undergoing any discounting or rediscounting.

  5. Credit institutions/FBBs shall carry out the trading of bonds in accordance with the Law on Credit Institutions, the Law on Securities, Government’s Decrees on issuance of corporate bonds, legislative documents providing guidance on the Law on Securities, relevant laws and this Circular.

  6. Credit institutions/FBBs shall only purchase promissory notes, treasury bills and deposit certificates whose remaining term to maturity is less than 12 months.  The remaining term to maturity is the length of time commencing on the date of payment for the financial instrument as prescribed in Clause 3 Article 4 hereof and ending on the maturity date of that financial instrument on which its principal and interest must be fully paid.

  7. FBBs shall not be allowed to purchase convertible bonds.

  8. Credit institutions/FBBs shall only carry out trading of financial instruments issued by finance companies or finance lease companies with organizations (including credit institutions/FBBs).”

  • Secondly, regulating on transaction information.

Specifically, Article 3 Circular No. 12/2021/TT-NHNN stipulates: “Article 4. Transaction information

The form of transactions in financial instruments must comply with relevant laws.  An agreement on trading of financial instrument shall, inter alia, include the following contents:

  1. Information about the seller and the buyer.

  2. Name of the financial instrument; issuer; term, maturity date and value determined according to face value of the financial instrument.

  3. Date of payment for financial instrument.

  4. Payment amount for financial instrument.

  5. Rights and obligations of the seller and the buyer.”