Current regulations mandate securities companies to sign written contracts when providing services to customers.
In the draft Law amending and supplementing a number of articles of the Securities Law, which is currently open for public comment, the Ministry of Finance proposes adding provisions that allow contracts between securities companies and investors to be executed online, rather than solely in written form.
The drafting agency points to the banking sector, which confirms customer consent for online account opening using biometric information, OTP codes sent to phone numbers, or through applications. Therefore, the agency believes that the current requirement for securities companies to sign written contracts for service provision is "inappropriate". Relying solely on this format also increases operating costs, record storage expenses, extends processing times, and fails to keep pace with the trend of end-to-end online service provision and the development of the digital economy.
Thus, according to the Ministry of Finance, supplementing the new regulation ensures synchronization with the Law on Electronic Transactions, facilitates customers, and meets digital transformation requirements.
 |
People opening securities accounts at a securities company in Ho Chi Minh City, 1/2020. Photo: Quynh Tran |
Many large securities companies already execute end-to-end electronic contracts with investors for services such as opening basic securities accounts, margin trading, and bond trading. These operations typically take 10-15 minutes via a phone application or website. Customers can activate their accounts for same-day trading without needing to send hard copies of documents to the securities company.
According to a representative from ACB Securities, the company uses digital certificate services provided by a third party to execute end-to-end electronic contracts, then sends confirmation emails to customers. However, the company still signs paper contracts at its branches for those who prefer them.
"Electronic contract execution only applies to domestic individuals; institutional and foreign investors still need to provide paper documents", the ACB Securities representative added.
According to data from the Vietnam Securities Depository and Clearing Corporation, as of the end of May, the stock market had 13.1 million accounts, most of which belong to domestic individual investors. From the beginning of the year until now, the market has seen approximately 1.3 million new accounts.
Phuong Dong
