Two more cases of securities companies under special control

According to new regulations in Circular165/2012/TT-BTCThe State Securities Commission has decided to place securities trading organizations under special control in 4 cases instead of 2 cases prescribed in Circular No.226/2010/TT-BTCbefore.

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Specifically, according to Circular 226/2010/TT-BTC, there are only 2 cases in which the State Securities Commission decides to place a securities business organization under special control: 1- The ratio of available capital is below 120%; 2- Failure to overcome the control status within 12 months.

In addition to the above 2 cases, the new Circular adds 2 more cases including: 1- Failure to report the financial safety ratio in 2 consecutive reporting periods, or failure to disclose information about the financial safety ratio report that has been reviewed and audited by an approved auditing organization according to regulations; 2- The financial safety ratio report for which the approved auditing organization gives an unacceptable opinion, refuses to give an opinion, or gives an opinion excluding some indicators of this report, if the excluded effects are excluded from the available capital, it will lead to an available capital ratio of less than 120%.

The special control period will also be reduced to no more than 4 months instead of 6 months as previously prescribed, from the date the securities business organization is placed under special control.

However, a securities business organization will be removed from special control status when the capital availability ratio for 3 consecutive months reaches 180% or more, not just reaching and exceeding 150% as prescribed in the old regulations, in which the capital availability ratio at the last reporting period must be audited by an approved auditing organization.

Within 24 hours from the time of requesting a securities business organization to temporarily suspend operations, the State Securities Commission shall publish information about this on the State Securities Commission's website.

These new regulations will come into effect from December 1, 2012.

(According to Chinhphu.vn) - LT