On 07, November 2018, The Government issued Decree No.151/2018 amending, supplementing a number of regulations on investment, business conditions under state management of The Ministry of Finance (MoF). This Decree takes effect from the issued date.
Accordingly, in insurance and securities fields, Decree No.151/2018/ND-CP has reduced and simplified 75 conditions of investment and business within the scope of state management of the Ministry Finance, specifically as follows:
1. In insurance business fields:
Decree No.151/2018/CP-ND has reduced 19 conditions and simplified 7 investment conditions creating favorable conditions for enterprises who operate in other fields contributing capital to establishing insurance enterprises.
The decree also abolishes a number of initial conditions that non-life foreign enterprises set up the branch in Vietnam must meet; abolish a number of conditions for agents selling universal life insurance, pension insurance, fishery insurance.
A number of other business conditions have been modified in a simple way to suit practical conditions, easy to implement and at the same time create the initiative and self-responsibility of individuals and organizations proposing the establishment of insurance enterprises. Simplification of conditions for the insurance joint-stock company is expected to be established only need a minimum of 2 shareholders.
2. Insecurities fields:
Decree No.151/2018/ND-CP stipulates the reduction of the minimum charter capital requirement for securities dealing activities from VND 100 billion to VND 50 billion; cutting down the standard for general directors (directors) of securities business organizations; cancellation the conditions for organizations contributing capital to establishing securities business organizations without having accumulated losses; Abolishing financial conditions for securities companies to carry out escrow transactions, including conditions not having accumulated losses equal to or greater than 50% of charter capital and conditions for the ratio of total debts to equity to not exceeding 3 times.
Thus, it can be seen that Decree No. 151/2018 / ND-CP contains provisions to relax the conditions of insurance and securities business for organizations, especially foreign organizations, thereby creating favorable conditions, saving time and fee for operating of these organizations.