Criteria for a director or an executive officer of insurance brokerage company in Vietnam

Criteria for a director or an executive officer of insurance  brokerage company in Vietnam 

Criteria for a director or an executive officer of insurance  brokerage company in Vietnam:

1.Directors or executive officers of insurance  brokerage company include

a/ Chairperson of the Board of Directors (chairperson of the Members’ Council or company president); and members of the Board of Directors (or members of the Members’ Council);

b/ Head of the Supervisory Board; head of the Internal Audit Board; and supervisors (if no Supervisory Board is formed);
c/ Director general (director); deputy directors general (deputy directors);
d/ Head of the internal control division or internal audit division; chief accountant; head of branch; head of representative office.

2. Principles of assignment of positions
 

a/ A member of the Board of Directors or a member of the Members’ Council of an insurance brokerage company may not concurrently act as a member of the Board of Directors or a member of the Members’ Council of another business operating in the same field insurance brokerage;

b/ The director general (director) and deputy director general (deputy director) of an insurance business, a foreign branch or an insurance brokerage business may not concurrently work for another  insurance brokerage company operating in the same field in Vietnam; the director general (director) of an insurance brokerage business may not act as a member of the Board of Directors or a member of the Members’ Council of another insurance brokerage business operating in the same field in Vietnam;

c/ The director general (director) and deputy director general (deputy director), head of branch or head of representative office of an insurance brokerage company may concurrently act as the head of only one branch or representative office or professional division of such insurance brokerage company. The director or deputy director of a foreign branch may concurrently act as the head of only one professional division of such branch;

3. General criteria for a director or an executive officer

a. Not falling in the cases prescribed in Clause 2, Article 18 of the Law on Enterprises.

b. During 3 consecutive years before being appointed:
- Having not been administratively sanctioned in the field of insurance business in the form of being removed from the title of manager or executive officer approved by the Ministry of Finance, or being suspended from holding the title appointed by his/her insurance business, insurance brokerage business or foreign branch;

- Having not been disciplined in the form of dismissal due to a violation of the internal process of operation, assessment, claim, internal control, financial and investment management, or management of the reinsurance program in his/her insurance business or foreign branch, or the operational process of insurance brokerage, internal control or code of professional ethics in his/her insurance brokerage business;
- Having not directly been involved in any case that is prosecuted by a competent agency under law at the time of being appointed.

2.Criteria for a member of the Board of Directors, member of the Members’ Council, head of the Supervisory Board, supervisor, or head of the Internal Audit Board

a. The general criteria prescribed in Article 2 above.

b. Possessing a university or higher degree.

c. Having worked in the field of insurance, finance or banking for at least 5 years, for the chairperson of the Board of Directors or chairperson of the Members’ Council; 3 years, for a member of the Board of Directors or member of the Members’ Council, head of the Supervisory Board, supervisor (in case a Supervisory Board is not required to be formed), and head of the Internal Audit Board, or having at least 3 years’ experience in managing or administering a business operating in the field of insurance, finance or banking.

d. The number of members of the Board of Directors and Supervisory Board (for joint-stock companies) who permanently reside in Vietnam must comply with the Law on Enterprises and the company charter.

e. The head of the Supervisory Board and supervisors (in case a Supervisory Board is not required to be formed) shall work on a full-time basis at an insurance brokerage company.

3. Criteria for the director general (director) or at-law representative

a. The general criteria prescribed in Article 2 abov.

b. Possessing a university or higher degree.

c. Possessing a diploma or certificate of training in insurance, issued by an insurance training institution lawfully established and operating in Vietnam or overseas.

d. Having at least 5 years’ working experience in the field of insurance, finance or banking, with at least 3 years acting as a manager or an executive officer as prescribed in Article 25 of this Decree in an insurance business, a foreign branch or an insurance brokerage business, or being directly engaged in state management work in the field of insurance.

e. Residing in Vietnam during his/her term of office.

4. Criteria for a deputy director general (deputy director), chief accountant, head of branch or head of representative office

a. The general criteria prescribed in Article 2 above.

b. Possessing a university or higher degree.

c. Possessing a diploma or certificate of training in insurance, issued by an insurance training institution lawfully established and operating in Vietnam or overseas.

d. Having at least 3 years’ working experience in the field of insurance, finance or banking or in the professional field where he/she is expected to work.

e. For a chief accountant, in addition to the criteria prescribed in Clauses 1, 2 and 3 of this Article, he/she must satisfy the conditions and criteria for a chief accountant prescribed in legal documents on accounting, and have at least 3 years’ experience in the field of insurance accounting or audit.

f.  Residing in Vietnam during his/her term of office.

5. Criteria for the head of a professional division

a. The general criteria prescribed in Article 2 above.

b. Possessing a university or higher degree.

c. Possessing a diploma or certificate of training in insurance as suitable to the field he/she will take charge of, issued by an insurance training institution lawfully established and operating in Vietnam or overseas. The head of the reinsurance or investment division must possess a diploma or certificate of training in reinsurance or investment issued by an insurance training institution lawfully established and operating in Vietnam or overseas.

d. Having at least 3 years’ working experience in the field of insurance or professional field where he/she is expected to work.

e. Residing in Vietnam during his/her term of office.

6. Criteria for an insurance broker

An employee of an insurance brokerage company who directly carries out insurance brokerage activities prescribed in Article 90 of the Law on Insurance Business must possess a certificate of training in insurance or insurance brokerage issued by an insurance training institution lawfully established and operated in Vietnam or overseas.

Any informaton about criteria for a director or an executive officer of insurance  brokerage company in Vietnam, feel free to contact with us.

Source: Decree No.73/2016/ND-CP

LAWYER VN LAW FIRM

Related texts:
- Application files for forming a insurance  brokerage company in Vietnam, Click here.

- Conditions for setting up a insurance  brokerage company in Vietnam, Click here.