“Professional ethics of some banks and securities companies is not high”

“The compliance and professional ethics of some service providers and intermediary organizations such as commercial banks and securities companies are not high, providing inadequate information to entice individual customers. “, stated the Ministry of Finance.

Compliance and professional ethics of some service providers are not high

Accordingly, the Ministry of Finance confirmed that there are cases where service providers and financial intermediaries assist businesses in preparing offering documents when the information is not accurate, or support legalization of investor identification documents. Professional stock investment to be bought corporate bonds (TPDN) individually.

Compliance and professional ethics of some service providers are not high, some intermediary organizations such as commercial banks and securities companies provide incomplete information to entice individual customers. , there are cases of supporting the preparation of offering documents with incorrect information, or supporting the legalization of documents to identify professional securities investors in order to purchase corporate bonds individually.

On the side of bond issuers, the Ministry of Finance affirmed that the compliance of some issuers is not high.

“There are places that intentionally violate and collude with securities companies and service providers to perform fraudulent acts in the market,” the report of the Ministry of Finance emphasized.

Moreover, “investors’ awareness is still limited, especially individual investors. Many individuals have invested in the form of capital contribution contracts, so they are not considered bondholders”. emphasized by the Ministry of Finance.

According to the report of the Ministry of Finance, the corporate bond market grows rapidly, so risks arise. A part of individual investors who do not have a clear understanding of the law has cheated when determining to become a securities investor. professional securities to buy individual corporate bonds.

Lead the case of Tan Hoang MinhThe Ministry of Finance affirmed that a number of securities companies, auditing companies, and valuation companies have not complied with legal regulations in consulting the offering documents, auditing financial statements, and valuing assets. ensure… These businesses are currently being inspected and examined by competent authorities to handle violations.

The stock market has grown too fast in the last 2 years, according to the Ministry of Finance, this has resulted in many behaviors subtle violationscheating, violating legal regulations while the regulations on sanctioning levels are still light, the sanctioning sanctions are not enough of a deterrent.

The report states: “The stock market and the derivatives market have had price manipulation phenomena, making prices more and more sophisticated.”

“Many securities codes have been pushed up in price, which is not associated with business activities, information disclosure obligations of some public enterprises, listed companies, and investors have not yet met the quality standards. The picture is the case of FLC and Louis”, emphasized the Ministry of Finance.

Regarding solutions to rectify and develop a transparent and efficient capital market, the Ministry of Finance proposed 5 solutions, in which the focus is on completing the legal and institutional framework.

Research on sanctions to tighten private bond issuance

For corporate bonds, a hot issue recently, the Ministry of Finance said that it is studying to soon submit to the Government to amend and supplement Decree No. 153/2020/ND-CP on offers and transactions. Individual corporate bonds in the domestic market and offering corporate bonds to the international market.

The amendment of Decree 153/2020, the Ministry of Finance said, focuses on strictly managing the identification of professional securities investors and the investment of individual investors. Besides, monitoring the bond distribution method to avoid selling to the wrong investors; require credit ratings and strengthen accountability and take measures to manage and supervise intermediaries.

The ministry also plans to review the Law on Securities and the Law on Enterprises to amend regulations on conditions for corporate bond issuance, conditions on professional securities investors, and sanctions and measures. to increase deterrence; and the authority of the State Securities Commission to supervise cash flows and manage and supervise activities on the stock market.