Update BRP Country Manual Products
Vietnam
out of Bank’s Country of Establishment (DEF, RO & BT)
| SOURCE OF CHANGES | ANSWERS |
|---|---|
| Law/Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual (CM) has been reviewed to ensure that the content of all the documents remain accurate and up to date.
Material changes
In alignment with the Country Manual Private Banking (CM PB), the provision of Macroeconomic information and Investment Research information/reports are only permitted onshore in Vietnam (at target) on a one-to-one and occasional basis as there are no formal rules or official positions from the local authorities in this regard. The CM P BT therefore now provides the answer “Grey zone/YES” in the relevant scenarios.
In further alignment, please note that the provision of investment services (including the provision of execution only services) as well as product-related marketing activities performed in Vietnam require a local license (for further information in this regard, please refer to the CM PB). Accordingly, the CM P BT therefore now provides the answer “NO” in the relevant target scenarios.
As a member of the WTO, Vietnam allows foreign (unlicensed) service providers to provide certain financial services on a cross-border basis to Vietnamese investors without a local license. However, the cross-border distribution into Vietnam (remote) of locally registered financial products is only possible via a locally incorporated/registered security trading company after the foreign (unlicensed) service provider has:
Obtained and registered a securities trading code number with Vietnamese securities depository and clearance corporation (VSDCC) via a depositary member; and
Opened an indirect investment capital account with a depositary bank duly licensed in Vietnam.
Accordingly, the CM P BT now answers the relevant scenarios with “Grey zone/YES – Via locally financial intermediaries” (for registered financial products) and “Grey zone/YES – Current interpretation of the regulatory framework” (for foreign (unregistered) financial products).
It is further highlighted that the “local distribution rules” do not need to be considered provided that the investor has not been induced/encouraged to leave its jurisdiction in order to receive the relevant product-related service and no marketing material has been sent into Vietnamprior to the visit and all the means/assets are booked abroad and do not trigger (respectively have already passed) the local currency control restrictions. The CM P BT therefore now answers the relevant source scenarios with “YES”.
Non-material changes
Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, April 15th, 2025