OJK Revises Investment Manager Business Regulation

The Financial Services Authority (“OJK”) is currently harmonizing the Draft Regulation of OJK on the Organization of Investment Manager (“IM”) Business Activities (“Draft Regulation”). The new regulation is expected to encourage investment managers to further develop their business in the investment management sector.

“The harmonization process is underway to strengthen the regulatory framework for the investment management industry, as well as investor protection and market confidence,” said Director of Harmonization of Laws and Regulations III ("HPP III"), Unan Pribadi.

In addition to regulating capital, the OJK is also increasing the number of sanctions for securities companies, IMs, or public companies that are late or fail to submit financial reports. In the future, IM business activities will not only be assessed from a formal legal aspect, but also from ethical and integrity standards in securities portfolio management, as well as customer relations. IMs are even prohibited from using customer funds for personal gain or for the benefit of affiliated parties.