Promote the controlled testing mechanism when amending the Securities Law

During a working session with the working group of the National Assembly’s Economic and Financial Committee on the afternoon of June 15, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), said that one of the key points when revising the new legal framework lies in adding a new group of policies such as a controlled testing mechanism (sandbox) in the field of securities and bond payment guarantee organizations.

Sandbox is a mechanism that allows businesses to deploy new products, services or business models within limits of time, scale and customer group, under the supervision of management agencies. In the draft revised Securities Law, the addition of a sandbox is intended to create legal space to test new initiatives before widely applying them in the market.

This mechanism is expected to support innovation in the securities sector, especially with financial technology (fintech) applications, digital transactions and new investment products. Test results can also become the basis for regulators to assess risks and complete official legal frameworks in the future.

In addition to the sandbox, the draft amendments and supplements to the Securities Law focus on simplifying business investment conditions and administrative procedures. The law will also be amended in the direction of enhancing digital transformation, electronic transactions and information technology application in securities activities and activities of market intermediaries. Agencies also review and amend regulations to ensure uniformity and consistency of the legal system, facilitating the implementation and application process after promulgation.

SSC Chairman said that this study of amendments and supplements to the Securities Law aims to improve institutions, reduce and simplify administrative procedures, improve the business investment environment, and develop the private economy according to Resolution 68. At the same time, this also aims to develop a safe, transparent, effective and sustainable capital market.

Industry leaders share the goal of the Law project which is to select truly urgent contents, with clear political, legal and practical bases, for focused and focused amendments. At the same time, the new legal framework will also ensure the inheritance of appropriate regulations and handle current obstacles to market development and state management requirements in the coming period.

At the meeting, Mr. Nguyen Duc Chi, Deputy Minister of Finance, emphasized that amending the Securities Law needs to meet the requirements of institutional improvement, promoting capital market development and improving the efficiency of resource mobilization for the economy. In addition, new regulations must be carefully researched, referencing good international practices, thereby enhancing the attractiveness of the market and meeting the requirements for upgrading Vietnam’s stock market in the near future.