Quyết định 1826/QD-TTg

DECISION

APPROVING THE SCHEME ON "RESTRUCTURING OF THE SECURITIES MARKET AND INSURANCE COMPANIES"

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Securities dated June 29, 2006; Law amending and supplementing a number of Articles of the Law on Securities dated November 24, 2010;

Pursuant to the Law on Insurance Business dated December 09, 2000; Law amending and supplementing a number of Articles of the Law on Insurance Business dated November 24, 2010;

Pursuant to the Law on Investment dated November 29, 2005;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to the Conclusion No.10-KL/TW dated October 18, 2011 of Third Conference of the Central Executive Committee of the XI session on the socio-economic situation, finance and state budget of five years, period  2006 - 2010 and 2011; plan of socio-economic development, finance and state budget of five years, period  2011 - 2015 and 2012;

Pursuant of the Resolution No.01/NQ-CP dated January 03, 2012 of the Government on the key measures of direction and administration of the implementation of plan of socio-economic development and the state budget estimate in 2012;

At the proposal of the Minister of Finance,

DECIDES:

Article 1. To approve the scheme of "Restructuring of securities market and insurance companies (hereinafter referred to as the Scheme)" with the following principal contents:

I. OBJECTIVES, ORIENTATION

To wholly restructure securities market and insurance companies in order to gradually improve the role and position of the securities market and insurance companies; to strive toward 2020, to make this market become an important channel of medium- and long-term capital for the economy; to positively support for the currency market in the process of restructuring the credit institutions:

1. To improve quality and to diversify products of securities and insurance; to improve quality of corporate governance, risk management at the issuing organizations; to assure publicity and transparency of the operations on the securities market.

2. To restructure the system of securities trading organizations, insurance companies in accordance with the needs, characteristics and development scale of the market; to strengthen activities, improve financial capacity, corporate governance and risk management in these organizations according to international rules.

3. To focus on development of organization investors; encourage individual investors; to attract foreign medium and long term capital flows indirectly-invested from foreign countries, and to enhance the monitoring and take appropriate and timely measures to actively cope with the volatility of the foreign invested flows.

4. To restructure market organization toward specialization of products and services with unified administration, governance structure, transparency and professionalism to ensure market healthy activity, stability, sustainability under the close management and supervision of the state.

II.VIEWPOINTS

1. Restructuring of the securities market and the insurance companies in accordance with the law provisions and on the basis of international standards and practices, in accordance with the restructuring plan of the banking and financial system, the economy and actual conditions in our country.

2. Restructuring of the securities market and insurance companies in a comprehensive, synchronous manner including: (i) Restructuring of the basic of goods, products and services; (ii) Restructuring of the basic of investors; (iii) Restructuring of the system of securities trading organizations and insurance companies, and (iv) Restructuring of market organization.

3. Restructuring of the securities market and insurance companies according to a specific, cautious, definite schedule, without disturbing market operations, to ensure the legitimate rights and interests of investors, customers and the safety of the whole system; to reduce social costs.

4. Restructuring of the securities market and insurance companies according to market principles on the basis of enterprises’ voluntary, self-responsibility; the state management agencies only play the role of management, monitoring, without working on behalf of enterprises.

III. SOLUTIONS

1. Restructuring of the basic of goods on the securities market

a) Improvement of quality and diversification of products on the market:

- To improve the conditions for listing, issuing, focus on the criteria of capital, profits, operating time; to simplify procedures of offer, issuance, registration, depository and listing or registration for transaction;

- To do research and development, to implement step by step new products such as derivative securities; to diversify the types of bonds and investment funds ... according to appropriate schedule in order to meet the requirements of market development;

- To improve mechanisms, policies of supporting the equitization of State-owned enterprises associated with listing on the securities market.

b) Enhancement of transparency on the stock market:

- To implement the application of the mechanism for information disclosure of the issuing organizations based on their capital scale and public status;

- To step-by-step apply standards of accounting, audit and financial report according to international rules for the issuing organizations.

c) Quality improvement of corporate governance, risk management in the issuing organizations:

- To build, guide the issuing organizations to apply the principles of corporate governance and risk management in accordance with international practices; to train and disseminate knowledge of corporate governance for the executives, managers in these organizations;

- To focus on the protection of minority shareholders; to propagate, disseminate knowledge of the rights and responsibilities of shareholders; to enhance the participation in supervision of market members for corporate governance at the issuing organizations.

d) To promote the inspection, supervision and handling of violations for activities related to the issuance, listing, information disclosure, corporate governance on the securities market.

2. Restructuring of government bond and corporate bond market

a) Promotion on the development of government bond market:

- To improve legal framework for the issuance of government bonds, bonds guaranteed by the government, local government bonds, corporate bonds;

- To improve methods, schedules, issuing terms and apply technical measures to increase the listing scale of the variety of government bonds;

- To upgrade specialized transaction system of government bonds toward linkage of primary auction market and secondary trading market; to implement the State treasury bill transaction on Government bond transaction system; to supplement technical solutions to support Repo transactions and other products, utility services; to improve modern payment system in order to reduce risks; to do research on building the curve of standard interest rate.

b) Step-by-step development of the corporate bond market:

- To improve the legal framework for issuing corporate bonds on the principles of the enterprises’ self-responsibility in raising capital on the basis of ensuring the efficiency and solvency; standardize administrative procedures relating to issuance and corporate bond transaction; diversify corporate bond products according to appropriate schedule;

- To do research and development of the legal framework on the establishment and operation of the credit rating organizations in Vietnam;

- To build a unified data center on secondary trading of corporate bonds

3. Restructuring of investors’ basis

a) To diversify the investors’ basis; to focus on the development of professional investment organizations, in order to create stable demand, help the market develop in a healthy and sustainable way; to strengthen confidence and encourage individual investors to actively participate in the market, increase market liquidity:

- To improve the legal framework uniformly guiding the securities investment fund products for different types of investors, multi-purpose investment funds connected with the bond market, currency market, real estate market;

- To study and build mechanisms and policies in order to develop a pilot of voluntary pension fund, additional pension fund;

- To study the mechanisms and tax policies to encourage the operation of variety of investment funds, to encourage investment in the new fund products; to study income tax policies from securities investment activities based on the period of the investment, the form of investment, investment products;

- To upgrade the market technical infrastructure, including transaction system, depository registration system, offset, information disclosure system, surveillance system to create the convenience in transaction and payment of the investors;

- To implement measures for improving information disclosure mechanism, improving the quality of published information, enhancing transparency in the stock market, strictly handling with the phenomenon of manipulation, fraud, cheating, creation and disclosure of false information on the securities market;

- To promote training, retraining, disseminating knowledge and information to the public for investment, raising social awareness on securities and securities market;

- To step up the inspection, supervision and handling of law violation on the securities market, especially the internal transaction behavior, scams, creation and disclosure of false information, manipulation of prices.

b) To attract medium and long term foreign indirect investment, to contribute to the development of the securities market, improve the international balance of payments, add capital investment for the modernization, industrialization of the country; enhance capacity, competitiveness and risk management of the banking and financial system and the economy, strengthen the management, supervision and take appropriate, timely solutions for actively dealing deal with the volatility of this capital flow:

- To study adjustment of provisions on participation rate of foreign investors in the Vietnamese enterprises; open market of securities services in accordance with international commitments, in accordance with the actual conditions of our country and the evolution of the securities market;

- To delimit direct investment and indirect investment; resolve the relationship between foreign direct investment and foreign indirect investment, including the conversion mechanism from foreign directly-invested enterprises to the joint-stock companies for listing;

- To develop mechanisms and policies to promote the reform of administrative procedures, create favorable conditions for foreign investors to easily access to the Vietnamese securities market;

- To apply technical measures to attract medium and long term investment flows, control short-term capital flow; monitore and proactive to take measures to handle the situation for the inflow of foreign indirect investment according to the project of foreign indirect investment management.

4. Restructuring of securities trading organizations

a) To classify securities trading organizations in four (04) groups on the basis of the risk level for the market in order to take appropriate handling solutions:

(i) The healthy operation group, including the organizations having available capital ratio over 180%;

(ii) The normal operation group, including the organizations having available capital ratio from 150% to 180%;

(iii) The controlled group, including the organizations having available capital ratio from 120% to 150%;

(Iv) The specially-controlled group, including the organizations having loss in business so that the available capital ratio under 120%.

b) Handling solutions:

(I) The solution for the securities trading organizations having healthy operation:

- To maintain, stabilize and gradually improve the financial capability: the securities trading organizations develop and deploy self-strengthening plan to preserve capital, enhance and gradually upgrade financial capacity;

- To restructure the business in order to improve competitiveness; gradually professionalize and modernize the services provided in accordance with international standards and practices; to expand the scale, scope and business location, encourage the provision of securities services for the international market in the region and the world; to use advanced technology and technical infrastructure in order to improve the quality of services provided to investors;

- To enhance control capacity and risk management; to apply risk management principles in accordance with international practices; restructure portfolio, reorganize the business activities to reduce risk; to focus on the main business area to be provision of securities services;

- To enhance capacity of administration and governance of the company; to restructure the management system, restructure organization, personnel; to apply the principles and  highest standards of professional ethics to the staffs and managers of these organizations; to take effective measures to prevent conflicts of interest;

- To facilitate the securities trading organizations to unify, merger, acquire by the voluntary principles for accumulation of capital, technology, expansion of the business areas, leverage of expertise and experience to create the rapid development of scale and professional activities; to encourage these organizations to participate in handling the securities trading organizations of the controlled group, specially-controlled group.

(ii) The solutions for the securities trading organizations having normal operation:

- The securities trading organization: build, implement recovery plans; restructure portfolio, collect debt, limit the investment activities and securities services having potential risks; simplify personnel department, reduce operation cost; strengthen capacity, enhance healthy finance, increase capital, sell debts, convert the debt into equity capital, limit profit distribution to shareholders, partners, bonuses, etc.;

- The State Securities Commission shall:

+ Closely monitor the activities of such organizations; increasing the frequency of report on the financial status; coordinate with the Stock Exchange, Securities Depository Center, tightly control the payment, transactions of these organizations;

+ Depending on the nature and level of risk, restrict or do not approve for these organizations to expand the business areas and scope of activity, add activities, distribute profit in cash; limit capital contribution, purchase of shares, investment in the assets of potential high risk;

+ Encourage and facilitate the securities trading organizations in this group to merge or consolidate with each other, or with the securities trading organizations having healthy operation; encourage the transfer of equity capital, shares of major shareholders, capital contributor to the banking and financial institutions, including the transfer to the foreign institutions under WTO commitments;

- Encourage the credit institutions, corporations having healthy financial situation to be the parent companies, creditors, or partners to support the enhancement of  financial situation of the securities trading organizations such as funding, adding capital, debt offset or converting the debts into equity, frozen debt;

(iii) The solutions for the controlled securities trading organizations:

In addition to application of solutions for the normal securities trading organizations, the State Securities Commission builds the detailed process for the restructuring of the organizations of this group to take place according to the order schedule to ensure safety for customers’ assets:

- Require the organizations of this group to enhance and strengthen their financial capacity: Increase capital, do not distribute profit or do not buy fund shares; restructure portfolio and business activities toward gradual reduction of the items of investment and services with high risk coefficient; narrow down areas of ​​operation, lay off staffs…;

- Require the organizations to reduce the securities business activities in accordance with the law provisions. When withdrawing securities brokerage, proactively with roadmap to take the technical measures, to handle the situation to ensure the safety for customers’ assets.

(Iv) Solutions for the securities trading organizations of the specially-controlled group:

After a period under special control, if the organizations could not guarantee the safety regulations and continue having financial losses (accumulated losses of over 50% of charter capital), their operation shall be suspended, licenses of establishment and operation shall be provoked; they shall be dissolved or declared bankrupt according to law. In case the organizations could not fixed the losses and accumulated losses are less than 50% of the charter capital, the securities trading activities shall be terminated, maintaining legal status to make financial obligations to customers and creditors; or they shall be dissolved or declared bankrupt according to law.

c) The supporting solutions:

- To study, promulgate the policies and regulations on the reduction of, exemption from corporate income tax for the securities trading organizations after the merge, consolidation; facilitate the foreign securities organizations to acquire the domestic securities trading organizations under WTO commitments;

- To study for building the mechanism allowing the securities trading organizations being revoked their licenses of establishment and operation to be converted into the securities investment companies operating under the securities laws or registering business for operating under the enterprises law in order to continue processing the pending issues, financial obligations to customers;

- The economic groups and state corporations that don’t operate in the field of finance, banking, insurance proactively draw up scheme, reasonable plan to withdraw the capital invested in the securities trading organizations under the scheme of restructuring SOEs focusing on the economic groups, corporations for the period 2011 - 2015, issued together with the Decision No.929/QD-TTg dated July 17, 2012.

d) Renovation of the operation of the securities trading organizations, enhancement of financial capacity, risk management under international practices and competitiveness:

- To upgrade the conditions for establishment of the securities trading organizations; to restrict the new establishment, maintain the number of the securities trading organizations in accordance with the needs of the market; encourage the transfer activities, commercial banks, insurance companies with healthy financial situation to hold dominant shares and control the activities of the securities trading organizations, gradually form the multi-purposes financial corporations according to international practices;

- To improve the organizational model and reinforce activities of the securities trading organizations in accordance with international practices:

+ To professionalize and modernize the securities services in accordance with international practices, focusing on three main areas: (i) securities brokerage and other support services, including investment consultation, account management, collateral loans…; corporate financial advisory, underwriting and other support services including self- trading, market making; (iii) asset management and other support services including investment advisory, risk management;

+ To develop a new plan, business strategy. To focus on improvement of securities service quality, limit the self-trading activities, self-investment and provision of financial services with potential high risks; shift business model in the direction of reducing the dependence on capital flow from the banking sector, actively attract the medium and long term capital from other domestic and overseas investors; create incentive mechanism for the securities trading organizations to expand the areas of ​​operation, supply securities services in the region and on the international market;

+ To innovate and improve efficiency, capacity of corporate governance, control systems, internal audit; restructure, reorganize the departments according to international practices to prevent conflicts of interest; manage separately the assets of the customer from the company's assets in order to avoid abusing client assets; enhance the transparency in management, administration and financial status of the securities trading organizations;

+ To build and apply the internal processes, professional processes, policies and controlling procedures and risk management in accordance with the principles, international standards, in which focus on market risk management, risk of payment, operational risk; perform the classification of liabilities and assets, making provision for adequate levels of risk. Improve capacity of assessment, quantitative evaluation, risk control according to principles consistent with international practices and the actual conditions of the market;

+ To build and apply professional ethics under international practices; enhance the sense of responsibility of practitioners; actively train and improve their professional skills for the team practicing securities trade;

+ To monitor the activities of the securities trading organizations based on the risk: (i) issue guidelines of risk management in these organizations; (ii) issue scorecard system on levels of risk; evaluate, rate, classify the securities trading organizations according to the criteria of capital, property, corporate governance, profitability, solvency and risk; (iii) step-by-step implement mechanism of inspection, monitoring of activities based on the levels of risk;

- To open securities services market in accordance with international commitments; encourage the financial corporations, big and prestigious banks to engage in restructuring of the securities trading organizations; allow these organizations to buy for owning the entire securities trading organization under the WTO commitments.

đ) Improvement of capacity, performance of management, monitoring of operations of the securities trading organizations:

- To build a system of classification, risk assessment of the securities trading organizations based on three pillars: (i) the level of available capital, to ensure the organizations to have sufficient capital as liquidity assets to absorb the risks that may occur; (ii) the ability to control and risk management in accordance with international practices; (iii) the level of transparency of financial information on the operation of management and administration of enterprise;

- Step-by-step implement the full application of the principles of management, supervision of the securities trading organizations based on the level of risk in accordance with international standards; develop the monitoring and early warning system for operation of the securities trading organizations according to international standards;

-  To improve the mechanism of monitoring the flow of capital from the banking sector to the securities market through the ownership relationship between the commercial banks and securities trading organizations; improve monitoring capacity and risk management at the commercial banks for capital flow from the banking system into the securities market;

- To focus on improving the quality and qualifications of the inspectors, supervisors, managers of the securities trading organizations; closely monitor and strictly handle violations in the management, administration and violations of law of the securities trading organizations and securities practitioner.

5. Restructuring of the insurance companies

a) To classify the insurance companies in four groups, namely: (i) Group 1 including insurance companies which ensure solvency, non-life insurance companies trading principal insurance with profits from two consecutive years or more; (ii) Group 2 including non-life insurance companies which ensure solvency and non-life insurance trading principal insurance without profits from two consecutive years; (iii) Group 3 including the insurance companies having risk of not-guaranteeing solvency; (iv) Group 4 including the insurance companies that are insolvent and placed in the status of special control. Apply the measures to restore solvency in accordance with the law:

- For the insurance companies under group 1: Continue to strengthen and maintain business operations, allow prudently extending the scope of activities, require the strengthening of internal inspection, control, review network and the organizational structure;

- For the insurance companies under group 2: Enhance financial capacity, corporate management capacity; efficiency and safety of investment and insurance business; request the enterprises to build and implement effective business plan, focusing on the market segment of strength; reduce operation and management costs, simplify the operating organization apparatus and exploiting network. After 24 months, if there are no still profits, insurance management agency shall narrow down the scope and content of the business of the insurance companies;

- For the insurance companies under group 3: Require the companies to develop and implement plans to restore the solvency; increase capital, enhance financial capacity; build the reinsurance plans; transfer insurance contracts; reform the operating organization apparatus; enhance efficiency and safety in the investments, insurance business; improve capacity of corporate governance;

- For the insurance companies under group 4: the Ministry of Finance establishes a supervisory board of solvency to apply measures to restore solvency in accordance with the Law on Insurance Business. In case after application of these measures was taken, the insurance company still does not restore solvency, insurance companies shall conduct bankruptcy procedures as prescribed by law;

- Issue and implement strictly the regulations on legal capital and the safety levels of solvency of insurance companies.

b) Strengthening the capacity of management and operation of the insurance companies:

- To consolidate and develop, strengthen the model of organization and operation of the insurance companies: diversify ownership to limit the self-contained business, monopolies in the insurance business. Require the corporations, state-owned companies, dominant state-owned commercial banks to continue withdrawal of capital from the insurance companies, ensuring that by 2015 the capital contributed by these institutions to the insurance companies shall not exceed 20% of the charter capital of the insurance companies;

- To raise the level of financial security and investment performance: Require the insurance companies to raise capital, to ensure compatibility with the scope and level of risk; maintain solvency capacity, investment efficiency, safety for assets;

- To promote the insurance business: Require the insurance companies to develop and implement a strategy of business focused on the strength market segment, ensuring high efficiency; improve and enhance the customer service quality; encourage enterprises to develop new products to meet the needs of the insurance participants;

- To enhance risk management in insurance companies according to international practices: Build and apply risk management processes, set up a information technology system for management and insurance business;

- To promote publicity and transparency of information of organizational structure, solvency and financial situation in order to serve the monitoring and ensure the interests of customers and investors.

c) To expand the products, insurance services; pilot the implementation of agricultural insurance, export credit insurance, insurance for medical examination and treatment facilities; improve compulsory insurance regime; step by step expand insurance products such as investment-linked insurance products, micro-insurance for low-income people, pension insurance.

6. Restructuring of the Stock Exchange and the Securities Depository Center

a) To study the establishment of the Vietnam Stock Exchange on the principles of (i) unification of the management and administration; (ii) unification of technology platform; (iii) unification and standardization of listing criteria, reporting regime, information disclosure, standards of members and transactions ...; (iv) separation and specialization of market according to commodity transactions, including a securities trading floor, a bonds trading floor, derivative securities.

b) To strengthen the independent operation model of the Securities Depository Center under the direction:

- To develop advanced system of payment, offset; fully establish control mechanism and risk management in payment, offset of securities: (i) to supplement a function of central payment partner (CCP) and securities borrowing - lending system (SBL); (ii) renew payment method, offset, firstly for government bonds. Gradually transfer the function of banks designing payment from commercial banks to the State Bank of Vietnam in accordance with international practices; (iii) study, apply completely immaterial securities certificates;

- To supplement other value-added services related to the registration, depository, offset payment, registration of securities transaction for property being deposited securities in the Securities Depository Center.

IV. ROADMAP FOR IMPLEMENTATION

1. Restructuring of commodity basis

a) Year 2012 - 2013:

- To promote and strengthen the disclosure of information on the securities market; improve the quality of listed securities, registered transaction; promote equitization program associated with the listing; promote government bonds market development; study, build criteria of corporate credit rating, gradually promote the corporate bond market development;

- To promulgate regulations guiding the accounting and auditing regime in accordance with the international standards; enhance the reform of administrative procedures for the issuance, listing, registration of securities transactions.

b) Year 2014 - 2015: Organize trading market of basis derivative securities products; study to establish a credit rating organization.

2. Restructuring of investor basis

a) Year 2012 - 2014:

- To promulgate regulations, guide the implementation of the new types of investment funds; build reasonable tax mechanism to encourage new fund products; study to implement the pilot of voluntary pension fund, supplemented pension fund;

- To promote the reform of administrative procedures in order to attract foreign indirect investment; open market of securities services according to WTO commitments; review the regulations on investment, gradually increase the ownership proportion, proceed to lift ownership restriction for foreign investors in the state-owned enterprises that the government does not need to keep dominant shares;

- To enhance the inspection, supervision and strictly handle violations of the provisions of the law on the securities market.

b) 2015: Modernize the infrastructure of market information technology, including trading system; monitoring system; system of registration, depository, offset payment; information disclosure system.

3. Restructuring of securities trading organizations and insurance companies

a) Year 2012 - 2014

- To classify the securities trading organizations and implement the appropriate measures to restructure these organizations. In short term, give priority for the self-restructuring solutions, including capital increase; consolidation, merger or acquisition; narrowing of the scope and area of ​​operation, termination of operation ... inc case of not overcoming, withdraw securities trading operations, revoke license for establishment and operation, wind up or declare bankruptcy;

- To issue procedures of control and risk management, assessing, monitoring system according to international standards; complete legal regulations, strengthen model of organization and operation of securities trading organizations, insurance companies;

- To promulgate regulations on establishing assessment criteria, classifying insurance companies; organize assessment, classify and implement appropriate solutions to restructure the insurance companies;

- To develop and promulgate regulations to monitor the activities of insurance companies based on three criteria: the level of financial safety; corporate governance risk; transparency of information;

- To require the economic groups, state corporations to actively build a reasonable plan and schedule to withdraw capital invested in the securities trading organizations and insurance companies under the scheme of restructuring SOEs focusing on the economic groups, corporations for the period 2011 - 2015, issued together with the Decision No.929/QD-TTg dated July 17, 2012.

b) 2015: Complete basically the restructure of the securities trading organizations and insurance companies.

4. Restructuring of market management organizations

a) Year 2012 - 2013: study to build and issue the project of restructuring the Securities Exchanges, Securities Depository Centers;

b) Year 2014 - 2015: Organize the implementation and complete the restructure of the Securities Exchanges, the Securities Depository Centers.

Article 2. Implementation Organization

1. Ministry of Finance

a) To focus on the implementation of measures to restructure the securities trading organizations and insurance companies; restructure commodity basis; restructure investor basis and restructure market;

b) To enhance the State management, inspect and supervise securities market and insurance market; preside over and coordinate with the Ministry of Public Security to strictly deal with organizations and individuals that violate the provisions of civil, criminal law; deceptive acts, fraud, abuse, losses of customers’ assets; preside over and coordinate with the Ministry of Justice, Ministry of Information and Communication to disseminate guidelines, policy on the securities market and the insurance market, policy of restructuring  securities trading organization, insurance companies in order to maintain the psychological stability, social consensus, avoiding negative impacts to the development of market;

c) To preside over and coordinate with the Ministry of Planning and Investment to review and evaluate the effectiveness of investment activities outside the sector of the economic groups and state corporations in the securities trading organizations, insurance companies and financial investment activities in general; build reasonable schedule to withdraw the invested capital in these organizations in accordance with the scheme of restructuring state-owned enterprises focusing on the economic groups, corporations companies in the period 2011 - 2015, issued together with the Decision No.929/QD-TTg dated July 17, 2012;

d) To preside over and coordinate with the Ministry of Labor, War Invalids and Social Affairs to study, and submit to the Government for issuing a legal framework for the establishment and operation of supplemented pension fund in Vietnam.

2. State Bank of Vietnam

a) To improve the legal provisions to closely monitor the flow of capital between the commercial banks to the securities market and insurance companies through securities trading organizations and insurance companies; build effective mechanism of controlling the financial investment activities, credit and entrustment of funds of credit institutions, especially the capital source of the credit institutions providing the above investment activities, the securities market and insurance companies through the securities trading organizations and insurance companies;

b) To coordinate with the Ministry of Finance to build mechanism, enhance coordination with inspection and supervision between the Ministry of Finance and the State Bank of Vietnam for financial – bank corporations, financial transactions and capital circulation flows between the credit institutions and the securities trading organizations, insurance companies, especially the securities trading organizations and insurance companies under the credit institutions;

c) To coordinate with the Ministry of Finance to study the scheme of securities payment through the State Bank of Vietnam.

3. Ministry of Labor, War Invalids and Social Affairs

To coordinate with the Ministry of Finance to study model, build legal regulations to implement the supplemented pension fund.

4. Ministry of Planning and Investment

a) To coordinate with the Ministry of Finance to build a roadmap of withdrawing investment capital of the groups, state corporations in the securities trading organizations, insurance companies; study, build mechanism to allow the securities trading organizations to register operation under law on enterprises when they have no longer needs to work in the field of securities;

b) To guide the scope of investment, investment sector, the percentage of ownership of shares in Vietnamese enterprises and specific areas. For some areas, consider to gradually increase the percentage of ownership, proceed to lift ownership restriction for foreign investors.

Article 3. Implementation provisions

1. This Decision takes effect from the date of signing.

2. The Finance Minister, ministers, heads of ministerial-level agencies, the heads of the Governmental agencies, Presidents of the People's Committees of provinces and cities directly under the Central Government, Chairmen of the Members’ Council of the Groups, state corporations and heads of concerned agencies shall implement this Decision. /.