The Dai Viet Securities Company (DVSC) is in discussions to insure its brokerage services, and could become the first in Viet Nam to obtain such insurance.
Bui Van Tuynh, DVSC general director, said he was in discussion with French-British insurance broker Gras Savoye Willis Vietnam to find an appropriate insurer.
"We’re extremely interested in this kind of insurance since it will protect both brokers and customers, ensuring stability in the market," Tuynh said. The Securities Law prescribed such cover, he added.
"If more securities firms join us in the insurance contract, the premium will be lower," he told the Viet Nam News on the sidelines of a seminar on securities brokerage insurance last week in which DVSC and Gras Savoye Willis briefed securities companies on the advantages of insurance.
The insurance normally covers brokers’ malpractice including inappropriate recommendations, misrepresentation, unauthorised trading, failing to follow instructions, and price manipulation.
There are almost 40 securities companies providing brokerage services in Viet Nam while Vietnamese insurance companies do not offer policies for stockbrokers. However, DVSC’s policy would be with a local company that is in turn reinsured by a foreign insurer, possibly acting as a catalyst for the introduction of this product in the country.
Source: VNS
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