VSD is one of the organizations eligible for providing transfer agent and fund management services to open-ended funds and ETFs as stipulated in Circular No.183/2011/TT-BTC dated 16 December 2011 by the Ministry of Finance (MoF) providing guidelines on the creation and management of open-ended funds, Circular No.15/2016/TT-BTC dated 20 January 2016 by the MOF amending and supplementing some articles to Circular No.183/2011/TT-BTC dated 16 December 2011, Circular No.229/2012/TT-BTC dated 27 December 2012 by the MoF providing guidelines on the creation and management exchange-traded funds (ETFs).
Although fund service is not a core service in the current mandates of VSD and its revenue accounts for just a fraction of VSD total revenue. However, VSD still provides transfer agent services to investment funds for the common interest of the market. VSD’s provision of fund service is expected to help reducing expenses for investors and other stakeholders, giving fund managers more choices of service providers and supporting the intensive and extensive involvement by market participants in investment fund related services.
To do this, since 2012, VSD has focused research and investment on establishing business processes as well as software system. With the inherent advantages and experiences in system building and with the assistance of experts, in 2013, VSD’s open-ended fund management system was put into operation, providing transfer agent service to open-ended funds. In 2014, the ETF management system was also completed and officially provided ETF-related services.
Procedures, processes and related documents of ETF certificates and open-ended fund certificates are specified in:
- Guideline on creation/redemption transaction, registration, depository, clearing, settlement and corporate actions processing for exchange-traded funds issued with Decision no. 212/QD-VSD dated 18 December 2015 by VSD (attached);
- Decision no. 151/QD-VSD dated 12 September 2013 by VSD regulates the provision of transfer agent service for open-ended funds at VSD (attached).