Regulatory AlertsDevelopment and Strengthening of Financing Companies, Infrastructure Financing Companies, and Venture Capital Companies
The Financial Services Authority (OJK) issued Regulation No. 46 of 2024 to implement mandates from the Financial Sector Development and Strengthening Law, establishing new rules for financing and venture capital entities. The regulation introduces significant operational changes, including converting branch office approvals to reporting requirements, redefining equity for capital adequacy, and imposing strict limits on financing facilities for productive sectors. It also mandates written agreements, enhances market-based discipline through industry associations, and sets clear procedures for liquidation following license revocation or merger.
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