OJK Further Elaborates upon Disgorgement Procedures

Through the issuance of Regulation No. 65/POJK.04/2020 on the Return of Unlawful Profits and Compensation Funds for Investor Losses Within the Capital-Market Sector (“ Regulation 65/2020 ”), [1] the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) introduced a regulatory framework that requires the returning of any profits which have been unlawfully obtained or the reimbursement of any losses which have been unlawfully avoided. This act of returning profits or reimbursing losses based on OJK orders is known as “disgorgement”, while any funds that are raised during the disgorgement process and that are to be distributed in order to compensate investors who have sustained losses are known as “disgorgement funds”. [2]