Decree No. 108/2013/ND-CP ("Decree 108") has just been issued and shall replace the Decree No. 85/2010/ND-CP on penalties against administrative violations in the securities and securities market ("Decree 85"). In comparison with Decree 85, Decree 108 includes some major changes as follows.

Decree 108 adds "forfeiture of using rights of the certificates of operation registration applicable to representative offices, securities business practicing certificates from over 03 months to 24 months" to the main forms of penalties.

The fine level stipulated in Decree 108 is also changed: (i) the maximum fine level for administrative violations is specified; accordingly, it shall be 02 billion VND with respect to an organization and 01 billion VND with respect to an individual; (ii) along with the maximum fine level, Decree 108 also provides the fine level on the basis of percentage and multiple of the unlawful incomes. For instance, the formation and verification of an application file for registration of a public offer of securities having fabrication shall be fined from 1% to 5% of the unlawful mobilized amount; the organization that conducts a public offer of securities without the certificate of acceptance of the public offer of securities shall be fined the amount that is from 01 to 05 time(s) as much as the unlawful income.

Pursuant to Decree 108, some new administrative violations are also supplemented such as breaches of provisions on private placement of shares within the territory of Vietnam by public company and breaches of provisions on issuing private bonds in Vietnam; breaches of provisions on bonds issuance in the international market, offers of securities in foreign countries and new placement of securities to offer securities depository certificates in foreign countries or to support the issuance of securities depository certificates in foreign countries on the basis of the issued shares in Vietnam. Decree 108 also stipulates that the Head of specialized inspection group of the State Securities Commission has the same authority to impose penalties for administrative offences as the Chief of the Inspectorate of the State Securities Commission does. Besides, the maximum fine level that the competent persons can impose is also remarkably increased: the Chief of the Inspectorate of the State Securities Commission can impose the fine up to 100 million VND in the case of an organization instead of 70 million VND as previously stipulated; the Chairman of the State Securities Commission shall have the right to impose a fine up to 02 billion VND with respect to an organization, and 01 billion VND with respect to an individual.

Decree 108 was promulgated on 23 September 2013 but it shall take effect on 15 November 2013.