Vietnam drafts rules to upgrade professional standards for securities practitioners

Vietnam’s securities regulator has proposed amendments to licensing rules aimed at improving the quality and oversight of market professionals, including shifting from paper-based to electronic practising certificates and recognizing certain international qualifications.

The State Securities Commission (SSC) is drafting a circular to replace Circular 197, issued by the Minister of Finance in 2015, regulating securities practice.

The draft is part of the country's 2030 stock-market development strategy approved by the Prime Minister's Decision 1792 in 2023. It follows nearly a decade of applying current rules on examinations, licensing, and practitioner management.

According to the drafting board, the existing framework has helped strengthen transparency in licensing exams, supply more qualified professionals, and support the growth of securities firms, fund managers, and other financial institutions.

However, regulators noted rising cases of applicants holding international credentials such as CIIA, ACCA, CPA and CFA, or those already licensed overseas. To attract high-quality talent, the draft proposes recognizing certain certificates as equivalent to domestic qualifications.

Electronic certificates to replace paper ones

One of the key changes is the introduction of electronic practising certificates. The SSC will issue e-certificates once its new IT system is operational, after which paper certificates will no longer be granted.

Practitioners will have one year to convert their paper certificates to electronic ones; paper versions will become invalid after that period and may be revoked after three years if not converted.

The electronic system will serve as the legal basis for recording and supervising individual licensing status. Individuals and organizations will be able to verify a practitioner’s certificate online, helping prevent unqualified individuals from offering investment advice.

International certificates recognized

The draft also adds provisions to deem CIIA and CFA Level II and above as equivalent to the Fund and Asset Management Certificate and the Derivatives and Derivatives Market Certificate, as the international programs already cover most of the required content.

Mandatory annual training defined

The draft introduces detailed rules for annual continuing-education requirements, an obligation already set out in the Securities Law but not previously guided. Practitioners must complete training within each calendar year; those newly certified are exempt in their first year.

The SSC will publish an annual training framework before December 31. The Securities Research and Training Center will coordinate implementation with the Vietnam Stock Exchange and Vietnam Securities Depository and Clearing Corporation.

Minimum training duration is eight hours a year, consistent with international practice. Names of practitioners failing to meet requirements will be publicly disclosed on the SSC news portal.