Withdrawal of Securities Business Operations by Securities Companies

The Withdrawal of Securities Business Operations by Securities Companies is a procedure that helps securities companies proactively restructure their activities, focusing resources on core business areas and improving governance efficiency. This article summarizes current regulations and provides specific instructions.

Cases requiring the procedure for withdrawing securities business operations.

• Voluntary Withdrawal: The company proactively restructures its business by withdrawing one or more licensed operations to optimize resources.
• Mandatory Withdrawal: The State Securities Commission (SSC) issues a decision to withdraw operations if the company fails to rectify violations. Specifically, if the company fails to remedy the suspension status within 06 months from the effective date of the suspension decision, the operation will be officially revoked. (Legal Basis: Clause 2, Article 94, Law on Securities 2019, amended 2024).

>>> See more: What are depository members in the stock market?

The competent authority is responsible for handling the procedure for withdrawing securities business operations of a securities company.

The State Securities Commission (SSC) – Ministry of Finance is the authority competent to receive the dossier and grant the adjusted License for Establishment and Operation of Securities Business. (Legal Basis: Clause 4, Article 186, Decree 155/2020/ND-CP, amended by Decree 245/2025/ND-CP).

Application for withdrawal of securities business license of a securities company.

According to Article 180 of Decree 155/2020/ND-CP (amended by Decree 245/2025/ND-CP), the dossier includes:

1. Request Form: Request for adjustment of the Establishment and Operation License (Form No. 69).
2. Decision: Decision of the General Meeting of Shareholders, Board of Members, or Owner regarding the withdrawal of operations.
3. Client Contract Report: Report on the settlement of contracts signed with clients (Form No. 70).
4. Proprietary Trading Report: Report on the settlement of proprietary trading accounts (if withdrawing proprietary trading).
5. Membership Termination Decision: Decision terminating membership at the Stock Exchange and VSDC (if the company is a member withdrawing brokerage operations).

Procedures for withdrawing securities business operations of a securities company.

According to Article 186 of Decree 155/2020/ND-CP (amended by Decree 245/2025/ND-CP):

Step 1: Submission The securities company submits the dossier to the SSC.

Step 2: Receipt The SSC’s One-Stop Shop checks the list of documents. If incomplete, guidance for supplementation is provided.

Step 3: Review Within 07 working days of receipt, the SSC reviews the validity. If an amendment is needed, a written request is sent to the company.

Step 4: Completion The company has 60 days from the SSC’s request to complete and resubmit the dossier.

Step 5: Adjustment Within 07 working days of receiving a complete and valid dossier, the SSC issues the Adjusted License.

• Note: If withdrawing brokerage, the SSC simultaneously revokes the Certificate of Depository Activity and Clearing/Settlement eligibility (if any).
• Refusal: A written reply stating the reason is provided.

>>> See more: Conditions for businesses to an IPO on the stock exchange

Long Phan Consulting provides consulting services on procedures for withdrawing securities business operations from securities companies.

Long Phan Consulting Company provides comprehensive support:

• Consulting: Assessing the dossier and conditions for withdrawal.
• Preparation: Assisting in preparing documents (Request Form, Reports, Decisions).
• Representation: Submitting the dossier to the SSC.
• Monitoring: Tracking progress and working directly with agencies to explain the dossier.
• Completion: Handling requests for additional information.

Frequently Asked Questions

Below, Long Phan Consulting provides some frequently asked questions related to the procedure for withdrawing securities business operations of a securities company. We invite interested clients to refer to this information:

What must be done with the Stock Exchange when withdrawing brokerage?

The company must terminate its membership and include the Membership Termination Decision from the Stock Exchange and VSDC in the dossier submitted to the SSC. (Legal Basis: Clause 5, Article 180, Decree 155/2020/ND-CP).

When is mandatory withdrawal triggered after suspension?

If the company fails to rectify the causes of suspension within 06 months from the effective date of the suspension decision. (Legal Basis: Clause 2, Article 94, Law on Securities 2019).

Is information disclosure required?

Yes. The decision to withdraw business operations is important information affecting investors and must be disclosed within 24 hours after receiving the competent authority’s decision/approval. (Legal Basis: Point b, Clause 1, Article 11, Circular 96/2020/TT-BTC, amended by Circular 68/2024/TT-BTC, Circular 18/2025/TT-BTC).

When can services to clients officially stop?

Legally, only after the SSC grants the Adjusted License. However, practically, the company must stop signing new contracts and notify clients beforehand to liquidate and settle accounts.

Conclusion

The Withdrawal of Securities Business Operations requires careful preparation and proper client contract settlement. Please contact Long Phan Consulting Company via Hotline 1900636389 for professional legal support.