Article 55 (Amended) Requirements for a Securities Operating License

A person, juristic person wishing to apply for a securities operating license shall be subject to the following requirements:

1. Being a domestic or foreign commercial bank, a domestic or foreign insurance company or a foreign securities company with shareholding of up to 100 percent of the company’s total outstanding shares. For other juristic persons and persons, a joint partnership with a commercial bank, insurance company or securities company is required, with a shareholding ratio determined by the Lao Securities Commission.

2. Having a registered capital as follows:

- At least five billion Kip for a financial advisory;

- At least thirty billion Kip for brokerage;

- At least one hundred billion Kip for underwriter.

3. Having a business plan for at least the first three years after the incorporation;

4. Having internal control system, risk management, information communication technology and preventative measures for dealing with conflict of interest within the company and with relevant persons or juristic persons, except for the securities company that is a financial advisory;

5. Having member of board of directors, chief and deputy chief executive directors who possess knowledge and experience in the field of securities business, finance, banking or law;

6. Having member of board of directors, chief and deputy chief executive directors who have not been sentenced by the court for criminal offences including fraud, embezzlement and financial misconduct;

7. Having adequate number of securities business professionals;

8. Having a sound financial status and been audited by an audit company approved by relevant authorities and never been sentenced for financial misconduct;

9. Meeting other requirements as prescribed in relevant laws and regulations