The Government Inspectorate brought a final conclusion to the State Securities Commission’s wrongdoings last week.

On February 25, the Government Inspectorate (GI) wrapped up its investigation on the State Securities Commission (SSC), concluding that the SSC failed to construct and complete a legal institutional guideline in line with the active institutional securities market, in as much as the securities tools, transaction activities as well as the management system were found to be too simple and did not meet the practical requirements of the securities market.

SSC’s management of securities activities also failed to adequately recognise membership status and to issue membership registration certificates at the Hanoi Stock Exchange (HNX). It was further held that the Commission’s unusual inspections at the HoChiMinh Stock Exchange (HOSE), the Vietnam Securities Depository (VSD) and HNX have not been performed in accordance with the regulatory framework of the Ministry of Finance’s (MoF).

Additionally, SSC also delayed its plan to spend the VND45 billion ($2.1 million) fund to construct its headquarter.

Furthrmore, GI also determined that the SSC failed to set up a detailed assignment and budget for the commission’s six IT packages to enhance the SSC electronic portal.

GI thus proposed that the Prime Minister instruct the Ministry of Finance in conjunction with other relevant ministries to examine, amend and supplement the Securities Law in the direction of widening the scope of the Securities Law and to handle a number of practical issues with regard to the SSC’s authority in administrative investigations and in issuing regulations, conditions and procedures of the stock exchanges HNX, HOSE and VSD.

GI also requested the SSC to recover the outstanding public company management fees of VND4.8 billion ($224,299) and revise the plan to use the VND45 trillion ($2.1 million) to build its headquarters in accordance with the law.