Vietnam's State Securities Commission (SSC) has issued a warning to stock market investors about using unlicensed online securities services.
The market watchdog said investors may be at risk when a dispute occurs without protection from the Securities Law. It recommended that investors be cautious when making securities transactions on trading apps, adding that they are responsible for the risks involved.
Recently, a number of businesses have set up websites and trading apps like Passion Invest, Finhay, Tikop, Infina, Savenow and BUFF, using media and press tools to promote products and services to raise capital from investors in the form of business cooperation contracts.
Such websites and trading apps have some features of fund and securities portfolio management but without a licence and oversight of SSC in line with the securities law.
Passion Invest, established in 2015, specializes in investing in the Vietnamese stock market. According to its advertisements, the company provides business cooperation products with investments ranging from VND300 million ($12,560) to over VND50 billion ($2.1 million). During the cooperation period, Passion Invest will send weekly reports to investors.
Finhay and Infina, meanwhile, focus on developing a financial management platform for individual investors with small investments as small as VND10,000 - 50,000 ($2.09).