Circular Letter of the Financial Services Authority Number 7/SEOJK.04/2017 Regarding Electronic Submission of Licensing, Registration, Recording, Approval, and Reporting Applications for Investment Management Industry Participants

To:

1. Investment Managers;
2. Investment Advisors;
3. Mutual Fund Sales Agents;
4. Deputy Investment Managers;
5. Deputy Mutual Fund Sales Agents;
6. Issuers of Asset-Backed Securities in the form of Participation Certificates; and
7. Parties intending to apply for licenses as Investment Managers, Investment Advisors, Mutual Fund Sales Agents, Deputy Investment Managers, and Deputy Mutual Fund Sales Agents;
   At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 7 /SEOJK.04/2017 REGARDING ELECTRONIC SUBMISSION OF APPLICATIONS FOR LICENSING, REGISTRATION, RECORDING, APPROVAL, AND REPORTING FOR PARTICIPANTS IN THE INVESTMENT MANAGEMENT FIELD

In order to improve the effectiveness and efficiency of the licensing, registration, recording, approval, and reporting processes as referred to in:
a. Law of the Republic of Indonesia 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); b. Regulation Number V.A.3, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-479/BL/2009 dated December 31, 2009 concerning Licensing of Securities Companies Conducting Business Activities as Investment Managers;
c. Regulation Number V.C.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-26/PM/1996 dated January 17, 1996 concerning Licensing of Investment Advisors;
d. Regulation Number IX.C.9, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-50/PM/1997 dated December 26, 1997 concerning Registration Statements in the Framework of Public Offerings of Asset-Backed Securities; e. Regulation Number IX.C.15, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-423/BL/2007 dated December 18, 2007 concerning Registration Statements in the Framework of Public Offerings by Real Estate Investment Funds in the form of Collective Investment Contracts; f. Regulation Number X.F.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-70/PM/2004 dated January 17, 1996 concerning Reports Required for Investment Advisors; g. Regulation Number X.N.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-283/BL/2012 dated May 24, 2012 concerning Monthly Activity Reports of Investment Managers; h. Financial Services Authority Regulation Number 23/POJK.04/2014 concerning Guidelines for Issuance and Reporting of Asset-Backed Securities in the form of Participation Certificates in the Context of Secondary Housing Financing (State Gazette of the Republic of Indonesia Year 2014 Number 358, Supplement to the State Gazette of the Republic of Indonesia Number 5632);
i. Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Deputy Investment Managers (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634);
j. Financial Services Authority Regulation Number 37/POJK.04/2014 concerning Mutual Funds in the form of Collective Investment Contracts with Limited Participation (State Gazette of the Republic of Indonesia Year 2014 Number 379, Supplement to the State Gazette of the Republic of Indonesia Number 5649); k. Financial Services Authority Regulation Number 39/POJK.04/2014 concerning Mutual Fund Sales Agents (State Gazette of the Republic of Indonesia Year 2014 Number 396, Supplement to the State Gazette of the Republic of Indonesia Number 5653);
l. Financial Services Authority Regulation Number 50/POJK.04/2015 concerning Licensing of Deputy Mutual Fund Sales Agents (State Gazette of the Republic of Indonesia Year 2015 Number 401, Supplement to the State Gazette of the Republic of Indonesia Number 5819);
m. Financial Services Authority Regulation Number 19/POJK.04/2016 concerning Guidelines for Investment Managers and Custodian Banks Conducting Management of Real Estate Investment Funds in the form of Collective Investment Contracts (State Gazette of the Republic of Indonesia Year 2016 Number 61, Supplement to the State Gazette of the Republic of Indonesia Number 5867); n. Financial Services Authority Regulation Number 23/POJK.04/2016 concerning Mutual Funds in the form of Collective Investment Contracts (State Gazette of the Republic of Indonesia Year 2016 Number 109, Supplement to the State Gazette of the Republic of Indonesia Number 5886); and o. Financial Services Authority Regulation Number 27/POJK.03/2016 concerning Competency and Propriety Assessment for Key Persons of Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 147, Supplement to the State Gazette of the Republic of Indonesia Number 5098),

as well as considering Regulation Number II.A.4, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-496/BL/2012 dated September 14, 2012 concerning the Implementation of Electronic Service Systems, a system is needed to support the implementation of licensing, registration, recording, approval, and reporting, as well as other related processes.

In relation to the above, the Financial Services Authority needs to regulate the process of electronic submission of applications for licensing, registration, recording, approval, and reporting, as well as other related processes, for participants in the investment management field in the Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS
A. In this Financial Services Authority Circular Letter, the following terms are defined as:

1. Investment Manager is a Party whose business activities manage Securities Portfolios for clients or manage collective investment portfolios for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on legislation.
2. Investment Advisor is a Party that provides advice to other Parties regarding the sale or purchase of Securities in exchange for service fees.
3. Asset-Backed Securities are Securities issued by Asset-Backed Securities Collective Investment Contracts whose portfolios consist of financial assets in the form of receivables arising from commercial securities, credit card receivables, future receivables, lending including home or apartment ownership loans, debt Securities guaranteed by the Government, Credit Enhancement/Cash Flow, and equivalent financial assets and other financial assets related to such financial assets.
4. Real Estate Investment Fund is a vehicle used to gather funds from investor public for subsequent investment in Real Estate Assets, Real Estate-Related Assets, and/or cash and cash equivalents.
5. Asset-Backed Securities in the form of Participation Certificates, hereinafter abbreviated as EBA-SP, are Asset-Backed Securities issued by an Issuer whose portfolio consists of a Pool of Receivables and represents proportional ownership evidence of the Pool of Receivables jointly owned by a group of EBA-SP holders.
6. Deputy Investment Manager is an individual who acts on behalf of the interests of the Securities Company conducting business activities as an Investment Manager.
7. Mutual Funds in the form of Collective Investment Contracts with Limited Participation, hereinafter referred to as Limited Participation Mutual Funds, are vehicles used to gather funds from professional investors for subsequent investment by the Investment Manager in Securities Portfolios based on Real Sector Activities.
8. Mutual Fund Sales Agent is a Party that sells Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund.
9. Deputy Mutual Fund Sales Agent is an individual who has obtained a license from the Financial Services Authority to act as a seller of Mutual Fund Securities.
10. Mutual Fund is a vehicle used to gather funds from the investor public for subsequent investment in Securities Portfolios by the Investment Manager.

B. With this Financial Services Authority Circular Letter, the Financial Services Authority fully implements and applies an electronic system for licensing, registration, recording, approval, and reporting, as well as other processes, which can be used by participants in the investment management field through:

1. Integrated Licensing and Registration System, hereinafter referred to as SPRINT; and
2. Mutual Fund Industry Application System, hereinafter referred to as ARIA.

II. LICENSING, REGISTRATION, RECORDING, APPROVAL, REPORTING, AND OTHER RELATED PROCESSES
A. Integrated Licensing and Registration System (SPRINT)

1. With the full implementation and application of SPRINT, the processes of licensing, registration, recording, approval, and reporting, as well as other related processes, as mandated by legislation in the Capital Market sector and submitted to the Financial Services Authority and processed through SPRINT are as follows:
   a. processing related to Investment Managers:

1. application for business license as an Investment Manager; and
2. corporate actions of Investment Managers, consisting of:
   a) planned changes in the composition of the Board of Directors, Board of Commissioners, and/or shareholders; b) notification of resignation of members of the Board of Directors and/or Board of Commissioners; c) reporting on changes in shareholder composition that require approval from the Financial Services Authority, Board of Directors, and/or Board of Commissioners, in accordance with the results of the General Meeting of Shareholders (GMS); d) reporting on capital changes; e) reporting on changes in headquarters and/or branch office addresses; f) reporting on name and logo changes; g) reporting on changes in coordinators and/or function executors; h) changes/additions in business activities; i) reporting on ongoing obligations; and j) return of business license; b. processing related to Investment Advisors, in the case of:
3. Investment Advisors in the form of individuals, including:
   a) application for business license as an Investment Advisor; and b) reporting on changes in business address; and
4. Investment Advisors in the form of companies, including:
   a) application for business license as an Investment Advisor; and b) corporate actions of Investment Advisors, consisting of:
   (1) changes in the composition of the Board of Directors, Board of Commissioners, and/or shareholders; (2) reporting on changes in business address; and (3) replacement of the Deputy Investment Manager license holder;
   c. registration statement for Asset-Backed Securities Collective Investment Contracts;
   d. registration statement in the framework of Public Offerings, recording in the framework of Limited Offerings, changes to Collective Investment Contracts, Prospectuses and/or Info Memos, and dissolution of Real Estate Investment Funds; e. registration statement in the framework of Public Offerings, recording in the framework of Limited Offerings, changes to Issuance Agreements, Prospectuses and/or Info Memos, and dissolution of Asset-Backed Securities in the form of Participation Certificates; f. applications for licenses, applications for license extensions, return of licenses, and submission of reports by holders of Deputy Investment Manager licenses; g. recording, changes to Collective Investment Contracts and/or disclosure documents, and dissolution of Limited Participation Mutual Funds; h. processing related to Mutual Fund Sales Agents:
5. applications for business licenses, registration, or notifications as Mutual Fund Sales Agents;
6. applications for approval of Mutual Fund sales through offices other than the headquarters;
7. cancellation of Registration Certificates, return of business licenses or Registration Certificates;
8. reporting on changes in headquarters and/or branch office addresses;
9. reporting on changes in responsible officials and marketers holding Deputy Mutual Fund Sales Agent licenses;
10. reporting on ongoing obligations; and
11. plans for implementing new activities, for Commercial Banks acting as Mutual Fund Sales Agents;
    i) applications for licenses and/or license revocations, and submission of reports by Deputy Mutual Fund Sales Agents; j) registration statements, changes to Collective Investment Contracts and/or Prospectuses, and dissolution of Mutual Funds in the form of Collective Investment Contracts; and k. other processes related to licensing, registration, recording, approval, and reporting in the investment management industry determined by the Financial Services Authority.

2. Licensing, registration, recording, approval, reporting, and other related processes in the investment management industry are submitted to the Financial Services Authority through SPRINT, which is available on the electronic services of the Financial Services Authority website.
3. Every party using SPRINT must read and comply with the procedures and methods of using SPRINT contained in the SPRINT application user guide, which can be downloaded through the Financial Services Authority website.
4. Every document submitted through SPRINT must be identical to its printed version.
5. If deemed necessary, the Financial Services Authority may request SPRINT users to also attach printed documents in addition to documents already submitted through SPRINT.
6. All documents submitted through SPRINT and/or data stored in the database on SPRINT have legal force equivalent to documents in printed form.
7. In the event that the Financial Services Authority declares and announces that the SPRINT provided and established by the Financial Services Authority experiences disturbances so that it cannot be used, then the submission of licensing, registration, recording, approval, reporting, and other related documents is submitted to the Financial Services Authority in printed form.

B. Mutual Fund Industry Application System (ARIA)

1. With the full implementation and application of ARIA, the reporting processes mandated by legislation in the Capital Market sector and submitted to the Financial Services Authority and processed through ARIA are as follows:
   a. reports by Investment Managers, including monthly activity reports of Investment Managers as referred to in legislation in the Capital Market sector regulating monthly activity reports of Investment Managers; and b. reports by Mutual Fund Sales Agents, including:

1. annual activity plan reports as referred to in the Financial Services Authority Regulation concerning Mutual Fund Sales Agents; and
2. monthly reports, consisting of:
   a) Mutual Fund sales reports by Mutual Fund Sales Agents; b) Mutual Fund investor profile reports; and c) recapitulation list of Mutual Fund customer complaints and their handling (if any), as referred to in the Financial Services Authority Regulation concerning Mutual Fund Sales Agents.

2. Reports as referred to in item 1 must be submitted to the Financial Services Authority through the ARIA system available on the electronic services of the Financial Services Authority website.
3. Every party using ARIA must read and comply with the procedures and methods of using ARIA contained in the ARIA application user guide, which can be downloaded through the Financial Services Authority website.
4. If deemed necessary, the Financial Services Authority may request ARIA users to also attach printed documents in addition to documents already submitted through ARIA.
5. All documents submitted through ARIA and/or data stored in the database on ARIA have legal force equivalent to documents in printed form.
6. In the event that the Financial Services Authority declares and announces that the ARIA system provided and established by the Financial Services Authority experiences disturbances so that it cannot be used, then reports are submitted to the Financial Services Authority in printed form.

III. DOCUMENT STORAGE
Every party conducting licensing, registration, recording, approval, reporting, and/or other related processes through SPRINT and ARIA must:

1. store printed documents of licensing, registration, recording, and approval documents that have been submitted through SPRINT for:
   a. Investment Managers, Investment Advisors, and Mutual Fund Sales Agents, for as long as such licensing, registration, and approval remain valid; b. Deputy Investment Managers and Deputy Mutual Fund Sales Agents, for as long as such licensing remains valid; and
   c. Asset-Backed Securities, Real Estate Investment Funds, Asset-Backed Securities in the form of Participation Certificates, Limited Participation Mutual Funds, and Mutual Funds, for a minimum period of 5 (five) years after such registration and recording are no longer valid;

2. store printed documents of reporting and other related processes that have been submitted through SPRINT and ARIA, for a minimum period of 5 (five) years; and

3. store electronic proof of receipt of licensing, registration, recording, approval, reporting, and other related documents, obtained from SPRINT and ARIA, for a minimum period of 5 (five) years.

IV. TRANSITIONAL PROVISIONS

1. Every party that has conducted licensing, registration, recording, and approval processes before this Financial Services Authority Circular Letter was issued is not required to repeat such processes through SPRINT.
2. Every party that has conducted licensing, registration, recording, approval, reporting, and other related processes through SPRINT before this Financial Services Authority Circular Letter was issued is not required to store electronic proof of receipt of documents as referred to in Section III item 3.
3. Mutual Fund Sales Agents are required to conduct trials for the electronic submission of monthly activity reports of Mutual Fund Sales Agents through the ARIA system for 3 (three) reporting periods after the establishment of this Financial Services Authority Circular Letter.
4. During the trial period as referred to in item 3, Mutual Fund Sales Agents remain required to submit monthly reports as regulated in the Financial Services Authority Regulation concerning Mutual Fund Sales Agents in printed form.
5. Mutual Fund Sales Agents are required to submit monthly reports and annual activity plan reports of Mutual Fund Sales Agents to the Financial Services Authority through the ARIA system after the end of the trial period as referred to in item 3.
6. Starting from:
   a. March 1, 2017, every party intending to conduct registration, recording, and reporting processes for Asset-Backed Securities, Real Estate Investment Funds, Asset-Backed Securities in the form of Participation Certificates, Limited Participation Mutual Funds, and Mutual Funds, as referred to in Section II letter A item 1 letters c, d, e, g, and j, must be submitted to the Financial Services Authority through SPRINT. b. December 1, 2017, every party intending to conduct licensing, approval, and reporting processes for Investment Managers and Investment Advisors, as referred to in Section II letter A item 1 letters a and b, must be submitted to the Financial Services Authority through SPRINT;
   c. March 1, 2017, every party intending to conduct licensing, registration, approval, and reporting processes for Mutual Fund Sales Agents, as referred to in Section II letter A item 1 letter h, must be submitted to the Financial Services Authority through SPRINT; and/or
   d. March 1, 2017, every party intending to conduct licensing, license extension, license return, and report submission processes by holders of Deputy Mutual Fund Sales Agent licenses, as referred to in Section II letter A item 1 letter i, must be submitted to the Financial Services Authority through SPRINT.
7. The Financial Services Authority is authorized to request printed documents for every licensing, registration, recording, approval, reporting, and other related process, in the event of the following:
   a. planned system changes or developments including the addition of system services and features that require adjustments to SPRINT and/or ARIA; b. failure of SPRINT and/or ARIA causing SPRINT and/or ARIA to be unusable; and/or
   c. temporary suspension of services to SPRINT and/or ARIA users.

V. CLOSING
This Financial Services Authority Circular Letter takes effect on the date of establishment.

Established in Jakarta on January 27, 2017
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR, signature
NURHAIDA

Copy matches the original
Legal Director 1
Legal Department signature
Yuliana