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Banks facilitate connection for move of securities accounts

In Uncategorized on September 18, 2008 at 6:05 pm

To facilitate connection for the move of investors’ accounts from securities firms to banks under the Finance Ministry’s decision, many banks have offered solution packages to securities companies.

The Bank for Investment and Development of Vietnam (BIDV) have launched BIDV@Securities solution that enables it to connect to 10 securities companies, namely Bao Viet, Artex, Gia Phat, Euro Capital, Thien Viet, BSC, Ban Viet, Dai Viet, Cho Lon and Dong A.

Meanwhile, MobiVi Securities solution deployed by VPBS and VP Bank allows one securities company to connect to investors’ accounts at different banks of the same system.

The connection solutions aim to speed up the shift of securities accounts to banks before the deadline of Oct. 1.

So far, only 20 out of 80 securities companies have shifted investors’ accounts to banks for management, according to initial statistics.

The slowness is attributed to the incompatibility between the systems of banks and securities companies. Another reason is the lack of specific regulations defining related parties’ responsibilities to investors in case of incidents.

Some experts say securities companies delay the move since they do not want to lose a huge profit earned from investors’ accounts.

At a seminar held in late August in Hanoi, representatives from the Hanoi Stock Trading Centre and the State Securities Commission said that moving investors’ accounts to banks for better management is necessary for the protection of investors’ interests and urged the enforcement of the regulation.

Securities companies which succeeded in connecting to banks said thanks to advanced technology solutions, connection failures rarely happened and if happening, they were solved quickly.

Connection to banks has opened up new investment opportunities and increased the competitive edge of securities companies, they said.-