Circular 38/2011/TT-BTC on Fees for Securities Business Activities

MINISTRY OF FINANCE

SOCIALIST REPUBLIC OF VIETNAM

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Independence - Freedom - Happiness

No.: 38/2011/TT-BTC

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Hanoi, March 16, 2011

CIRCULAR

Regulating the fee collection levels, collection and payment regime, management, and use of securities business fees applied at securities service business organizations.

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Pursuant to the Securities Law 2006; Pursuant to the Ordinance on Fees and Charges 2002; Pursuant to Government Decree No. 57/2002/NĐ-CP dated June 3, 2002, and Government Decree No. 24/2006/NĐ-CP dated March 6, 2006, detailing the implementation of the Ordinance on Fees and Charges; Pursuant to Government Decree No. 170/2003/NĐ-CP dated December 25, 2003, detailing the implementation of some articles of the Ordinance on Fees and Charges; and Government Decree No. 75/2008/NĐ-CP dated June 9, 2008, amending and supplementing some articles of Government Decree No. 170/2003/NĐ-CP dated December 25, 2003, detailing the implementation of some articles of the Ordinance on Fees and Charges; Pursuant to Government Decree No. 14/2007/NĐ-CP dated January 19, 2007, detailing the implementation of some articles of the Securities Law; Pursuant to Government Decree No. 118/2008/NĐ-CP dated November 27, 2008, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

After receiving opinions from relevant Ministries and sectors, the Ministry of Finance regulates the fee collection levels, collection and payment regime, management, and use of securities business fees applied at securities service business organizations as follows:

Article 1. Subjects liable for fees

Organizations and individuals using services related to the implementation of securities business activities, provided by securities companies, investment fund management companies, members of the Vietnam Securities Depository, supervising banks, designated payment banks, and commercial banks participating in the bond market, must pay securities business fees in accordance with this Circular.

Article 2. Fee collection levels

The fee collection levels are stipulated in the Securities Business Fee Schedule attached to this Circular.

Article 3. Organizations collecting, paying, and managing use

1. Securities business fees applied at securities service business organizations stipulated in this Circular are revenues not belonging to the state budget. The fee-collecting units are securities service business organizations that have the obligation to pay taxes on these fee revenues according to legal provisions and have the right to manage and use the fee revenue after paying taxes according to legal provisions.

2. Other regulations regarding collection, payment, management, use, collection documents, and public disclosure of the fee regime not mentioned in this Circular shall be implemented according to the guidance in Circular No. 63/2002/TT-BTC dated July 24, 2002, of the Ministry of Finance guiding the implementation of legal provisions on fees and charges, and Circular No. 45/2006/TT-BTC dated May 25, 2006, amending and supplementing Circular No. 63/2002/TT-BTC dated July 24, 2002.

Article 4. Effectiveness

1. This Circular takes effect from May 1, 2011. This Circular replaces Circular No. 01/2000/TT-UBCK dated April 17, 2000, providing temporary guidance on the fee regime for customers of securities service business organizations, and Circular No. 02/2000/TT-UBCK dated November 14, 2000, of the State Securities Commission amending and supplementing some points in Circular No. 01/2000/TT-UBCK dated April 17, 2000.

2. During implementation, if difficulties arise, organizations and individuals are requested to promptly report to the Ministry of Finance for research and supplementary guidance.

Distribution:

FOR THE MINISTER

• Central Office and Party Committees;
• National Assembly Office;
• Office of the President;
• Supreme People's Procuracy;
• Central Steering Committee on Anti-Corruption Office;
• Supreme People's Court;
• State Audit Office;
• Ministries, ministerial-level agencies, and agencies under the Government;
• Central organs of mass organizations;
• People's Councils and People's Committees;
• Provincial/City Finance Departments, Tax Departments, and State Treasury Offices;
• Official Gazette;
• Document Inspection Department (Ministry of Justice);
• Government Website;
• Ministry of Finance Website;
• Units under the Ministry of Finance;
• File: VT, Securities Market Department (CST5).

VICE MINISTER (Signed)

Do Hoang Anh Tuan

SECURITIES BUSINESS FEE SCHEDULE (Attached to Circular No. 38/2011/TT-BTC dated March 16, 2011, of the Ministry of Finance)

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No.	Name of Fee Item	Collection Level	Fee Collector	Subject Paying Fee
1	Underwriting Fee	From 0.5% to 2% of the total underwriting value for shares	Securities companies, commercial banks	Issuing organizations
2	Securities Buying/Selling Brokerage Fee<br>(Applicable to securities registered for trading on UPCOM (trading of securities of unlisted public companies registered for trading at the Hanoi Stock Exchange))		Securities companies	Clients
a	Shares, fund certificates	From 0.15% to 0.5% of the transaction value
b	Bonds	From 0.02% to 0.1% of the transaction value
3	Portfolio Management Fee	Maximum 2% of the average entrusted capital value/year	Fund management companies	Clients
4	Investment Fund Management Fee	Maximum 2% of the fund's net asset value (NAV) or portfolio net asset value/year	Fund management companies	Securities investment funds
5	Custody and Supervision Services Fee for Investment Fund/Securities Investment Company Assets	Maximum 0.15% of the supervised asset value	Supervising banks	Securities investment funds, securities investment companies
6	Bondholder Representative Fee	Maximum 0.1% of the total issued bond value	Commercial banks participating in the bond market	Bond issuing organizations
7	Fund Certificate Issuance Fee		Fund management companies	Securities investment funds
a	Total value of offered fund certificates under 500 billion VND	2% of raised capital/each fund certificate issuance
b	Total value of offered fund certificates from 500 billion VND to under 1,000 billion VND	1.5% of raised capital/each fund certificate issuance
c	Total value of offered fund certificates from 1,000 billion VND upwards	1% of raised capital/each fund certificate issuance
8	Securities Transaction Monetary Netting Fee		Designated payment banks	Securities depository members
a	Shares, fund certificates	0.01% of the net settlement value of each member/payment method/settlement day, but minimum not lower than 5,000 VND/day/member, maximum 300,000 VND/day/member
b	Bonds	0.001% of the net settlement value of each member/payment method/settlement day, but minimum 5,000 VND/day/member, maximum 300,000 VND/day/member