The Dai Viet Securities Company (DVSC) inked Tuesday a deal with the Ho Chi Minh City Bao Minh Insurance Company to pioneer the first ever indemnity insurance for a brokerage in Vietnam.
The insurance contract is responsible for negligence including broker malpractice and misrepresentation, aiming to protect the benefits of both the broker and investors.
Under the one-year deal, the maximum compensation rate for investors suffering losses due to the broker could reach US$1 million.
DVSC, with a chartered capital of VND250 billion ($16 million), offers securities services like brokerage, securities custody, consulting and underwriting.
Vietnam has over fifty registered securities firms but only four of them – Saigon Securities Inc (SSI), Bao Viet Securities Company (BVS), Asia Commercial Bank Securities Company (ACBS) and the Bank for Investment and Development of Vietnam Securities Company - account for 71% of all trade.
The State Securities Commission in the first quarter received more than 30 license applications to set up securities firms.
The market regulator is considering temporarily icing over the issue of new permission due to the poor service quality at existing brokerages.
Source: VNA
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