In 2014, restructuring removed 20 percent of weak securities companies from the market. This work will be accelerated in 2015. Eradicating 20 percent of securities companies
The State Securities Commission of Vietnam (SSC) said the restructuring achieved positive results in 2014. Corporate governance, risk management, financial capacity and infrastructure system of securities companies were strengthened. Securities companies managed over one million transaction accounts and transactions performed by their customers were guaranteed to be safe to ensure their legitimate interests.
The success of the restructuring programme provided a better regulatory framework for the stock market in general and securities firms in particular. The SSC intensified inspection and examination into securities companies and seriously handled violations. In 2014, the SSC inspected 22 securities companies. Violations were severely tackled.
Securities companies’ were reviewed and assessed. The SSC firmly handled brokerage houses disqualifying under financial safety criteria to reduce securities firms. So far, the number of securities firms has been reduced by 20 percent, with popular treatments including operational termination, suspension, dissolution and merger. Among them, 14 companies were placed under special control and two were put under control.
In addition, some companies downsized their operations, laid off employees and ended ineffective business operations. To date, nine securities firms withdrew their brokerage business, two ended their self-trading business, and four terminated underwriting business. Compared with 2011, securities companies closed 28 branches and 41 transaction offices.
Risk control and management was a top priority. Profitability and financial safety significantly improved. Return on equity (ROE) was 1.5, while financial safety ratio rose more than 20 percent on average. In 2014, loss-making securities companies decreased from 60 percent to less than 20 percent.
Market supervision strengthened
In 2015, given optimistic forecasts for macroeconomic stability and growth, the stock market is projected to have more sustainable development, thus providing a better foundation for continuing the securities company restructuring programme. The SSC will focus on reviewing and reassessing legal documents to complete mechanisms and policies to accelerate stock market restructuring, while bringing corporate governance of securities companies to keep up with international standards by implementing new accounting regulations and financial mechanisms for securities companies to improve their financial health, corporate governance and risk management.
M&As among securities companies are forecast to enhance their competitiveness. Weak brokerage houses will be forced to restructure.
One of the key objectives set by the SSC for 2015 is to strengthen inspection and supervision over the market, strictly handle violations and ensure order, fairness and transparency. It will combine market restructuring with restructuring the product base, investor base (developing open-ended funds, property funds), market base and new products (covered warrant, ETF products, bonds and structured products), and new markets (derivatives market).
Bao Chau
Đăng ký: VietNam News
