License to Establish Security Company

Individuals or legal entity that intends to establish the Securities Company that can conduct the following businesses: 1. Financial Advisory Service (giving advice on the corporate restructuring, administrative and financial management of the company that is preparing to offer their shares to the public and registering in the Lao Securities Exchange); 2. Securities Broker (being an intermediary or agent for securities trading according to purchasing or selling orders of the customers and providing other financial advisors to the investors); and 3. Securities Underwriter (underwriting securities issued by means of assisting in the sale of securities or purchasing securities partially or entirely from an issuer for the remaining portion in order to guarantee the success of issuance of securities).

1. Having the minimum registered capital of 5 Billion LAK for the financial advisor service; 30 Billon LAK for the Broker services; and 100 Billion LAK for the securities underwriting services
2. For the broker and securities underwriting services, having at least one shareholder that is a commercial bank established under Lao PDR and that shareholder shall hold more than 30%; and for the financial advisor service, having the domestic investor holds more than 10% of the total registered capital
3. Having good reputation and having the management that has knowledge and experience in securities, financial-banking or accounting fields at least 5 years.
4. Having the business plan for the first 3 years after the establishment.
5. Having good financial conditions as audited by the audit firm
6. Not being convicted or adjudicated in a criminal trial relating to embezzlement, fraud and other securities-financial-banking and accounting crime.
7. The applicant for establishment of the securities company from abroad shall be securities company and shall obtain the approval from Securities and Exchange Commission from that origin country
8. For the securities company that provides securities broker and underwriting services shall have the cooperation agreement with at least one custodian bank to ensure the settlement.
9. After getting the Temporary License, the investor shall contribute their equity capital in full.
10. Having the location and operating equipment that is sufficient and appropriate for the securities business.
11. Having the operational, audit, internal management and risk assessment system for each division.
12. Having securities technical staffs that have certificate of the securities expertise in the service field of that enterprise and having sufficient amount of technical staff.
13. Having the organizational structure that comprises of board of management, special committees for the management (i.e. Internal Adit Committee and Compliance Unit Committee) that have the qualifications and conditions as defined under the Law.

• Regulation on the Establishment and Operation of Securities Company 002/LSCO · 24.07.2013
• Law on Securities 21/NA · 10.12.2012

Means of presentation

At the Authority Offices

Address of authority

Lao Securities Commission Office, Bank of Lao PDR

Processing time

60 1. Review process for the issuance of the Temporary License shall be completed within 30 days; and 2. The Permanent License shall be issued within 30 days after the fulfilment of all the required conditions (i.e. the full paid-up capital contribution).

Has an expiry date

NO

Renewal process

No renewal requirement for this Formality; however, the enterprise shall pay the Annual Management Fee within the first quarter of the following year from the year of establishment.

1. In case that the applicant cannot meet all the required conditions required for the obtainment of the Permanent License within 180 days after the receipt of the Temporary License, the Temporary License shall be revoked, except the applicant can give a justifiable explanation and LSCO may allow for the extension of time to complete all those requirements for the maximum of 90 days. 2. After receiving the Permanent License, the investor shall apply for Enterprise Registration Certificate. 3. Securities Company that obtains the Enterprise Registration Certificate shall notify the general public via mass media of their establishment within 5 days after the receipt of the Enterprise Registration Certificate.