HOW TO OBTAIN A PROFESSIONAL STOCK INVESTOR CERTIFICATE? HOW TO DETERMINE PROFESSIONAL STOCK INVESTOR STATUS IF THE STOCKS ARE REGISTERED IN MULTIPLE ACCOUNTS AT DIFFERENT SECURITIES COMPANIES?

The process of professional securities investor determination has differences between organizational and individual investors, specifically:

155. For organizational securities investors: Decree 65/2022/ND-CP (“Decree 65”) remained the previous provisions of Decree 155/2020/ND-CP (“Decree 155”) on organizational securities investors to be considered as professional securities investors and the professional securities investor determination for organization has still been carrying out according to Article 4 and Article 5 of Decree 155.
156. For individual securities investors: Decree 65 has tightened conditions for buying bonds of individual securities investors. Accordingly, in addition to the requirements of (1) having taxable income in the latest year of at least 01 billion VND and (2) holding a  securities portfolio with a minimum value of 02 billion VND, the value of this securities portfolio must be the net value, excluding the borrowing value of escrow transactions and the value of securities for resale transactions, and must be determined for a minimum period of 180 days preceding the professional securities investor determination date. In addition, the determination in this case is only valid within 03 months from the date of confirmation.

According to Decree 65, private corporate bonds are required to be registered and deposited at the Vietnam Securities Depository (VSD) and traded  at the Stock Exchange. Under Article 4.2 of Decree 155, for private bonds that are centrally traded, the securities company  where the investors places the bond will be responsible for identify their professional securities investor status before making  a transaction.

In case an investor has securities on multiple accounts at different securities companies, the securities company responsible for the identification shall determine the value of the investor’s securities portfolio relying on the written confirmation of the securities portfolio value of the investor of other securities companies of which the investor’s accounts are opened.