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CIRCULAR NO 2422016TT BTC DATED NOVEMBER 11, 2016, REGULATIONS ON PRICES OF SECURITIES RELATED SERVICES APPLIED AT SECURITIES TRADING ORGANIZATIONS AND COMME242 2016 TT BTC 339342

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MINISTRY OFFINANCE ---SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness CIRCULAR REGULATIONS ON PRICES OF SECURITIES-RELATED SERVICES APPLIED AT SECURITIES TRADING ORGAN

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MINISTRY OF

FINANCE

-SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness

CIRCULAR

REGULATIONS ON PRICES OF SECURITIES-RELATED SERVICES APPLIED AT SECURITIES TRADING ORGANIZATIONS AND COMMERCIAL BANKS JOINING

VIETNAM’S SECURITIES MARKET

Pursuant to the Law on securities dated June 29, 2006 and the Law dated November 24, 2010 on amendments to a number of articles of the Law on securities;

Pursuant to the Law on fees and charges dated November 25, 2015;

Pursuant to the Law on pricing dated June 20, 2012;

Pursuant to the Decree No 177/2013/ND-CP dated November 14, 2013 and the Decree No

149/2016/ND-CP dated November 11, 2016 by the Government on amendments to some articles of the Government’s Decree No 177/2013/ND-CP dated November 14, 2013 elaborating and guiding the implementation of some articles of the Law on pricing;

Pursuant to the Decree No 58/2012/ND-CP dated July 20, 2012 and the Decree No

60/2015/ND-CP dated June 26, 2015 by the Government on amendments to some articles of the Government’s Decree No 58/2012/ND-CP dated July 20, 2012 elaborating and guiding the implementation of some articles of the Law on securities and the Law on amendments to some articles of the Law on securities;

Pursuant to the Government’s Decree No 86/2016/ND-CP dated July 01, 2016 on requirements for investment and trading in securities;

Pursuant to the Government’s Decree No.215/2013/ND-CP dated 23 December 2013 defining the functions, tasks, powers and organizational structure of Ministry of Finance;

At the request of Director of Department of Price Management and Chairman of the State

Securities Commission of Vietnam,

Minister of Finance promulgates a Circular providing for prices of securities-related services applied at securities trading organizations and commercial banks joining the Vietnam’s securities market.

Article 1 Scope

This Circular deals with regulations on prices of securities-related services applied at securities trading organizations and commercial banks joining the Vietnam’s securities market

Article 2 Regulated entities

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1 Providers of services in securities trading sector, including securities trading organizations (including securities companies, fund management companies, branches of foreign securities companies in Vietnam, and branches of foreign fund management companies in Vietnam), and commercial banks joining the Vietnam’s securities market in accordance with prevailing laws

2 Organizations and individuals using securities-related services provided by service providers mentioned in Clause 1 of this Article

3 Other organizations and individuals concerned

Article 3 Prices of securities-related services

1 The prices of services in securities trading sector applied at securities trading organizations and commercial banks joining the Vietnam’s securities market are elaborated in the Price Schedule and Appendix enclosed to this Circular

Providers of services in securities trading sector mentioned in Article 2 hereof shall, based on the maximum price and the price bracket prescribed in this Circular, decide specific prices in

conformity with their provision of services and in accordance with regulations of the Law on pricing and relevant laws

2 Prices of securities-related services prescribed hereof are not subject to value-added tax in

accordance with regulations in Point c Clause 8 Article 5 of the Law on value-added tax and related amendment documents (if any)

3 When collecting services fees in securities trading sector, securities trading organizations and commercial banks must use service invoices in accordance with regulations in the Government’s Decree No 51/2010/ND-CP dated May 14, 2010 on goods and services invoices, the Government’s Decree No 04/2014/ND-CP dated January 17, 2014 on amendments to the Government’s Decree

No 51/2010/ND-CP dated May 14, 2010 on goods and services invoices, the Circular No 39/2014/ TT-BTC dated March 31, 2014 by Minister of Finance guiding the implementation of the Decree

No 51/2010/ND-CP dated May 14, 2010 and the Decree No 04/2014/ND-CP dated January 17,

2014 by the Government on regulations on goods and services invoices, and their superseding or amending documents (if any)

4 Securities trading organizations and commercial banks joining the securities market shall manage and use the proceeds from their provision of securities-related services after deduction of amount payable to state budget as regulated by law in accordance with regulations of prevailing laws

5 Securities trading organizations and commercial banks joining the securities market may

themselves decide the prices of their services other than those prescribed in the Price Schedule hereof in conformity with actually provided services and in accordance with regulations of the Law

on pricing and relevant laws

6 Providers of services in securities trading sector must post and announce prices of their services, and comply with regulations of the Law on pricing, the Law on securities and their instructional documents

Article 4 Implementation

1 This Circular shall come into force as from January 01, 2017 and supersede the Circular No 38/2011/TT-BTC dated March 16, 2011 by Minister of Finance on securities-related service fees

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applied at securities service providers, the collection, management and use thereof; the Circular No 216/2013/TT-BTC dated December 31, 2013 by Minister of Finance on amendments to the Circular

No 38/2011/TT-BTC dated March 16, 2011; Clause 4 Article 14 of the Circular No 183/2011/TT-BTC dated December 16, 2011 by Minister of Finance providing guidance on the establishment and management of open funds and Clause 8 Article 1 of the Circular No 15/2016/TT-BTC dated January 20, 2016 by Minister of Finance on amendments to some articles of the Circular No 183/2011/TT-BTC

2 Difficulties that arise during the implementation of this Circular should be reported to the

Ministry of Finance for consideration./

PP MINISTER DEPUTY MINISTER

Tran Van Hieu

PRICE SCHEDULE OF SERVICES IN SECURITIES TRADING SECTOR APPLIED AT SECURITIES TRADING ORGANIZATIONS AND COMMERCIAL BANKS JOINING

VIETNAM’S SECURITIES MARKET

(Enclosed to the Circular No 242/2016/TT-BTC dated November 11, 2015 by Minister of Finance)

1 Price of underwriting service

From 0.5% to 2% of total value of shares issued through a guaranteed offering

Securities companies, commercial banks

Issuers

2 a) Price of brokerage

service to buy/sell

shares or fund

certificates (inclusive

of securities registered

for trading on Upcom)

From 0.15% to 0.5% of trading value

Securities companies

Clients

b) Price of brokerage

service to buy/sell

shares or fund

certificates in case of

withdrawal of state

capital

Not exceeding 0.03% of trading value and not exceeding VND 03 billion per transaction In special cases where the service fee exceeds the maximum price, service provider must submit report thereof

to the Minister of Finance

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for consideration and decision in accordance with regulations of the Law on pricing and relevant laws

3

Price of service of

managing public

securities investment

funds or public

securities investment

companies

Not exceeding 2% of the Net Asset Value (NAV)

of the fund or the portfolio per year

Fund management companies

Public securities investment funds

or public securities investment companies

4

Price of service of

supervising assets of

closed-end funds or

public securities

investment companies

Not exceeding 0.15% of the value of managing assets

Supervisory banks

Closed-end funds or public securities investment companies

5

Price of service of

representing

bondholders

Not exceeding 0.1% of total value of issued bonds

Commercial banks joining bond market

Bond issuers

6

Price of service of

issuance of certificates

of closed-end funds or

shares of public

securities investment

companies

Fund management companies

Closed-end funds or public securities investment companies

a)

Total value of fund

certificates or shares

issued for sale is less

than VND 500 billion

2% of the mobilized capital per issuance of fund certificates or shares

b)

Total value of fund

certificates or shares

issued for sale is from

VND 500 billion to less

than VND 1000 billion

1.5% of the mobilized capital per issuance of fund certificates or shares

c)

Total value of fund

certificates or shares

issued for sale is VND

1000 billion or above

1% of the mobilized capital per issuance of fund certificates or shares

7

Price of service of

issuance of certificates

of open-end funds or

ETFs

Not exceeding 5% of trading value

Fund management companies

Clients

8

Price of service of

redemption or switch of

certificates of open-end

funds or ETFs

Not exceeding 3% of trading value

Fund management companies

Clients

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service banks

members, organizations directly opening accounts

a) Shares, fund

certificates

0.01% of the netting value

of each member/ method

of settlement/ day of settlement provided it shall not be lower than VND 5,000/day/member and shall not exceed VND 300,000/day/member

b) Bonds

0.001% of the netting value of each member/

method of settlement/ day

of settlement provided it shall not be lower than VND 5,000/day/member and shall not exceed VND 300,000/day/member

10 Price of auction service

From VND 20 million per auction of shares or each type of securities to 0.3%

of total value of shares or securities of a type actually sold out

Organizations (other than stock exchanges) licensed to organize auction

of shares and other securities

as regulated by laws

Enterprises, organizations or individuals having shares or securities sold out in auction as regulated by laws

-This translation is made by L aw S oft and for reference purposes only Its copyright is owned by

L aw S oft and protected under Clause 2, Article 14 of the Law on Intellectual Property.Your

comments are always welcomed

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