Operations of a distribution agent shall include:
a) To gather and consolidate information on investors and beneficiaries as required by legal regulations on securities, regulations on anti-money laundering and prevention of terrorist financing;
b) To receive and transmit transaction orders to the fund management company, related services providers in a timely and accurate manner; the distribution agents are not allowed to consolidate, offset the trading orders, or receive funds directly and settle transactions of fund certificates for investors.
c) To support investors to conduct procedures to change information in the main register; to confirm investor’s ownership of fund units, to transfer of ownership as stipulated in Article 7 of this Circular;
d) To maintain a continuous and smooth communication channel with investor, to keep investors updated with accurate, adequate and timely information, to answer questions of investors about the offered fund products to consolidate the statement of trading accounts of fund certificates; to provide investors with prospectus, simplified prospectus, the fund’s financial statements, documents about general meeting of investors and other information; to conduct information disclosure and reporting as authorized by the fund management company;
e) To support the fund management company or related services providers to organize general meeting of investors; to receive delegation to participate and vote at general meeting of shareholders upon written requests of investors;
f) To synthesize, store data on investors and transactions of investors to the Fund management company, related services providers, the SSC upon request of the fund management company and SSC as required by these organizations.
Distributor's authority
Distributor's responsibility
Distribution place of open ended fund certificate must ensure:
a) Being legally business place of distribution agent as stipulated by the Enterprise Law, including head office, branches, transaction offices, representative offices;
b) Having at least two (02) staffs who have securities brokerage certificate, or have passed an examination for brokerage certificate held by the SSC, or being legitimate securities practitioners in foreign countries with certificate on legal framework on securities and securities market of Vietnam;
c) Having adequate facilities and necessary technical platforms for distribution of open-ended fund certificates as follows:
– Having office equipment and computer system supporting the distribution of fund certificates and management of investor database. This system shall ensure the database and information of investors are stored and maintained separately and not shared with other divisions;
– Having safe boxes to maintain and store documents, materials, transaction orders/instructions of investor;
– Having back up system to ensure that the receipt and transmission of orders is maintained smoothly in case of incidents.