VGP – The Government has recently promulgated Decree 86/2016/ND-CP (Decree 86) on conditions for offshore indirect investment of securities business institutions.
Decree 86 stipulates that securities business institutions which conduct offshore indirect investment have to comply with the Law on Indirect Investment and other related laws.
Securities business organizations must have plans on establishment of representative offices or branches in foreign countries. The plans have to be approved at the general meeting of shareholders in documents. They also have to ensure financial safety operations.
In addition, the branches and representative offices must get permission of the State Securities Committee and operate in accordance with the regulations on investment and management of foreign exchange./.
By Kim Loan