OJK Drafts New Licensing Regulations for Capital Market Professionals

The Financial Services Authority (“OJK”) is currently preparing a Draft OJK Regulation (“RPOJK”) on the Licensing of Financial Sector Business Actor Professionals (Perizinan Profesi Pelaku Usaha Sektor Keuangan – “PPUSK”) in the Capital Market Sector. This regulation will establish a new framework governing the requirements and procedures for licensing, license renewal, and supervision of capital market professionals, including Securities Underwriter Representatives (Wakil Penjamin Emisi – “WPEE”), Securities Broker Representatives (Wakil Perantara Pedagang Efek – “WPPE”), Investment Manager Representatives (Wakil Manajer Investasi – “WMI”), and other related professions.

“OJK continues to promote the enhancement of human capital quality within the capital market sector through the strengthening of competency standards, professional certification, and continuing professional education, thereby enabling the industry to become more adaptive to market developments,” stated Hasan Fawzi, Chief Executive of Capital Market, Financial Derivatives, and Carbon Exchange Supervision at OJK.

Through this regulation, OJK seeks to strengthen the quality of human resources in the capital market industry while ensuring that each profession performing strategic functions possesses the requisite level of competence and integrity. One of the key changes introduced under the proposed regulation is the establishment of a three-year validity period for professional licenses, which may be renewed. Such renewal will be subject to the fulfillment of continuing professional education requirements as a condition for license extension.