Financial Services Authority Regulation Number 70/POJK.04/2017 on Document Maintenance by Clearing and Guarantee Institutions

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 70 /POJK.04/2017
ON
DOCUMENT MAINTENANCE BY CLEARING AND GUARANTEE INSTITUTIONS BY THE GRACE OF THE ALMIGHTY GOD, THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the capital market sector, including regulations regarding document maintenance by clearing and guarantee institutions, have shifted from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that to provide clarity and certainty regarding regulations on document maintenance by clearing and guarantee institutions, existing statutory regulations in the capital market sector concerning document maintenance by clearing and guarantee institutions, issued prior to the establishment of the Financial Services Authority, need to be converted into a Financial Services Authority Regulation;
c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation on Document Maintenance by Clearing and Guarantee Institutions;
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

Considering: 1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION ON DOCUMENT MAINTENANCE BY CLEARING AND GUARANTEE INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Securities are securities instruments, namely debt acknowledgment instruments, commercial paper, stocks, bonds, debt certificates, investment contract unit shares, futures contracts over Securities, and any derivatives of Securities.
2. Clearing and Guarantee Institution is a Party that provides clearing and guarantee services for the settlement of exchange transactions.
3. Exchange Transaction is a contract made by stock exchange members in accordance with the requirements determined by the stock exchange regarding the sale and purchase of Securities, borrowing and lending of Securities, or other contracts regarding Securities or the price of Securities.

CHAPTER II
DOCUMENT MAINTENANCE BY CLEARING AND GUARANTEE INSTITUTIONS
Article 2
Clearing and Guarantee Institutions are required to administer, store, and maintain records, books, data, and written information related to:
a. the status and activities of users of Clearing and Guarantee Institution services; b. records of Exchange Transaction clearing and fund guarantee books at the Clearing and Guarantee Institution;
c. the conduct of clearing and guarantee of Exchange Transactions; and
d. the administration and management of the Clearing and Guarantee Institution as a corporation.

Article 3
Documents as referred to in Article 2 letter a consist of at least:
a. a list of users of Clearing and Guarantee Institution services; and b. records of activities of users of Clearing and Guarantee Institution services, including financial difficulties faced by the company and violations previously committed.

Article 4
Documents as referred to in Article 2 letter b consist of at least:
a. the quantity and type of Securities cleared; b. records regarding the right to receive and the obligation to deliver Securities and funds; and
c. a list of names of users of Clearing and Guarantee Institution services who deposit guarantee funds and the amount of guarantees deposited.

Article 5
Documents as referred to in Article 2 letter c consist of at least:
a. a list of daily Securities clearing detailing the name of Securities cleared, price, and the number of units of each Security; b. reports regarding untimely or failed settlement of Exchange Transactions;
c. changes in clearing hours at the Clearing and Guarantee Institution;
d. temporary suspension of clearing for a Security; e. confidential information deemed by the Clearing and Guarantee Institution to have important and relevant influence on the market in general and/or specific Securities in particular; and f. settlement of disputes among users of Clearing and Guarantee Institution services.

Article 6
Documents as referred to in Article 2 letter d consist of at least:
a. the articles of association along with all amendments thereto; b. the register of shareholders and its storage administration;
c. minutes of the general meeting of shareholders, board of directors meetings and/or board of commissioners meetings, and committee or committee meetings;
d. changes in management up to 1 (one) level below the board of directors; e. the formation of committees or working groups and/or changes in the composition of members of such committees or working groups, if any; and f. other documents including correspondence, memorandums, papers, books, notifications, announcements, circulars, and other records made or received by the Clearing and Guarantee Institution in connection with the implementation of its business activities.

Article 7
Documents as referred to in Articles 2 through 6 must be available at all times for the purposes of examination by the Financial Services Authority.

Article 8
Documents as referred to in Article 7 must be stored for a minimum period of 5 (five) years.

CHAPTER III
SANCTION PROVISIONS
Article 9
(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed independently or concurrently with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 10
In addition to administrative sanctions as referred to in Article 9 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 11
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 9 paragraph (1) and specific actions as referred to in Article 10 to the public.

CHAPTER IV
CLOSING PROVISIONS
Article 12
Upon the enactment of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-67/PM/1996 concerning Document Maintenance by Clearing and Guarantee Institutions, along with Regulation Number X.B.2 which is its attachment, is revoked and declared invalid.

Article 13
This Financial Services Authority Regulation takes effect upon being enacted.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana

In order that everyone may know it, it is ordered to enact this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on December 21, 2017 CHAIRMAN OF THE COMMISSIONERS' COUNCIL FINANCIAL SERVICES AUTHORITY, signed WIMBOH SANTOSO

Enacted in Jakarta on December 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 291

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 70 /POJK.04/2017
ON
DOCUMENT MAINTENANCE BY CLEARING AND GUARANTEE INSTITUTIONS

I. GENERAL
That since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have shifted from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In light of the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting regulations of the Capital Market Supervisory Agency and Financial Institutions related to the capital market sector into Financial Services Authority Regulations. This reorganization is conducted to ensure that there are Financial Services Authority Regulations regarding the capital market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned above, it is necessary to replace the statutory regulations in the capital market sector regulating document maintenance by Clearing and Guarantee Institutions, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-67/PM/1996 concerning Document Maintenance by Clearing and Guarantee Institutions, along with Regulation Number X.B.2 which is its attachment, into a Financial Services Authority Regulation on Document Maintenance by Clearing and Guarantee Institutions.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.
Article 2
Sufficiently clear.
Article 3
Sufficiently clear.
Article 4
Sufficiently clear.
Article 5
Sufficiently clear.
Article 6
Sufficiently clear.
Article 7
Sufficiently clear.
Article 8
Sufficiently clear.
Article 9
Sufficiently clear.
Article 10
Sufficiently clear.
Article 11
Sufficiently clear.
Article 12
Sufficiently clear.
Article 13
Sufficiently clear.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6159