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The State Securities Commission (SSC) warns investors about risks when dealing with unlicensed trading websites and apps. Photo: Internet

The State Securities Commission (SSC) issued a warning notice about capital mobilisation, fund management and securities portfolio management by websites and apps (Passion Invest, Finhay; Tikop, Infina, Savenow, BUFF) that the SSC does not license.

Some said that some small investors had been surprised because these applications have been operated for many years and are widely published, but the SSC has warned them.

The Ministry of Finance said that the SSC had grasped information about some enterprises using mobile trading apps to help stock investors invest in financial products.

However, it will take some time to collect documents to prove whether these enterprises violate or not and give appropriate warnings to investors.

These enterprises are not units established and managed by the SSC but licensed by the Departments of Planning and Investment of provinces and cities under the Enterprise Law.

The operation of these units is performed online by providing a technology platform, including a website system and mobile trading apps. Therefore, it is not easy and time-consuming to collect information and documents related to the operation of these enterprises to make assessments.

In addition, these enterprises use media and press tools to promote and attract investors' capital, but in the form of business cooperation contracts under Civil Law. This causes difficulties in monitoring, verifying and clarifying signs of violations. As a result, the SSC has to work directly with one of these enterprises at the SSC's headquarters of the SSC to collect additional evidence to clarify the operation of the enterprises and similar units.

After investigating and verifying, to protect the interests of investors and create a healthy competitive environment for legitimate fund management companies, the SSC has issued a warning to investors about the operation of these companies.

By handling organisations showing signs of illegal securities trading, warning investors about the risks when dealing with these organisations will direct investors' capital flows to licensed fund management companies, facilitating the development of securities investment funds.

Some distribution agents of fund management companies have developed technology applications and signed contracts to provide services to fund management companies. However, investors must carefully research organisations' information and ask their partners to provide legal documents before investing. Investors can search the list and information of securities companies, fund management companies and securities investment funds on the SSC's website.

Fintech companies need to use the technology platform and operate their role as technology service providers for fund management companies, complying with the provisions of the law to encourage the development of Fintech technology while ensuring safety for investors.