Regulatory AlertsOJK Regulation No. 15 of 2025 on Mutual Fund and Investment Manager Assessment
The Financial Services Authority (OJK) issued Regulation No. 15 of 2025 to establish the legal framework for mutual fund and investment manager assessments, aiming to enhance investor literacy and transparency amidst digital marketing growth. The regulation mandates the use of licensed assessment agencies to evaluate fund quality and liquidity, requiring investment managers to disclose these ratings to help investors make informed decisions based on risk rather than just expected returns. It details the operational mechanisms, behavioral guidelines, reporting obligations, and contractual requirements for both the assessment organizers and the investment managers involved in the evaluation process.
Financial Services Authority Regulation Number 15 of 2025 concerning Assessment of Mutual Funds and Assessment of Investment Managers
Abstract: The number of Mutual Fund investors has recorded positive development, indicated by significant growth in the number of investors. This growth in the number of investors is inseparable from the role of development in the digitalization of Mutual Fund marketing. Innovation in online sales of Mutual Funds is able to utilize opportunities for technological development in expanding the investor base. Ease of access in transacting Mutual Funds can be signaled to increase public interest in transacting Mutual Funds. Amidst this development, public understanding of Mutual Funds must continuously be improved. Limitations of information on investment products can result in low levels of public financial literacy. The public needs to understand the risks of Mutual Funds and investment considerations should not be based solely on expected returns. Disclosure of information related to Mutual Funds more comprehensively, such as increased information openness, transparency of Mutual Fund quality and liquidity through the provision of assessments for Mutual Funds and the implementation of Investment Manager Assessment. This Financial Services Authority Regulation is issued to serve as a legal basis for the activities of Mutual Fund Assessment and Investment Manager Assessment, so that the public obtains an understanding of Mutual Funds and Investment Managers from institutions that have licenses to conduct Mutual Fund Assessment and Investment Manager Assessment from the Financial Services Authority. The legal basis for this Financial Services Authority Regulation is: Law No. 8 of 1995 as amended by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023. This Financial Services Authority Regulation regulates among others: a. organizers of mutual fund assessment and investment manager assessment; b. mechanisms for mutual fund assessment and investment manager assessment; c. code of conduct for assessment organizers; d. reporting obligations and document maintenance for assessment organizers; e. agreements between investment managers and assessment organizers; and f. requirements for the use of mutual fund assessment and investment manager assessment. Note: This Financial Services Authority Regulation takes effect on the date of promulgation. This Financial Services Authority Regulation was promulgated on July 1, 2025 and was established on June 20, 2025.