Regulatory AlertsAmendment to OJK Circular No. 19/SEOJK.04/2018 on Investment Manager Governance Implementation Reports
The Financial Services Authority (OJK) issued Circular No. 9/SEOJK.04/2023 to amend reporting requirements for Investment Manager governance, specifically addressing Sharia Supervisory Board (DPS) oversight. The regulation introduces new disclosure obligations regarding DPS authority, board meetings, and transparency of relationships, alongside mandatory self-assessments for Sharia-compliant investment managers. These changes align with recent POJK regulations to clarify DPS roles and enhance governance transparency through the ARIA reporting system.
Regulation / Regulation Search / Amendment to OJK Circular No. 19/SEOJK.04/2018 on Investment Manager Governance Implementation Reports
Sector: Capital Market
Sub-Sector: Public Documents and Reports; Other Regulations
Regulation Type: OJK Circular
Regulation Number: 9/SEOJK.04/2023
Effective Date: 3/15/2023
Attachment 1 SEOJK 9-04-2023.pdf Summary of SEOJK 9-04-2023.pdf
Page Content SUMMARY CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY NUMBER 9 /SEOJK.04/2023 CONCERNING AMENDMENT TO CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY NUMBER 19/SEOJK.04/2018 CONCERNING INVESTMENT MANAGER GOVERNANCE IMPLEMENTATION REPORTS
Background of the Amendment There are results from the identification of the Sharia Supervisory Board (DPS) Regulation Harmonization Study conducted by 3 divisions (banking, capital market, and non-bank financial industry) that regulations aimed at optimizing the implementation of DPS duties in the Sharia capital market need to be harmonized, specifically regarding concurrent positions, meeting regulations, and DPS remuneration policies.
Results of pre-Ijtima Sanawi discussions indicated that DPS faces constraints regarding the scope of authority, duties, and responsibilities related to the supervision of Sharia investment products, as well as limited access to data and information between DPS and the internal Investment Manager (IM); therefore, regulations are needed to clarify the position and authority of DPS within the IM.
That the Financial Services Authority Regulation Number 10/POJK.04/2018 on Investment Manager Governance Implementation has been amended by Financial Services Authority Regulation Number 2 of 2023 on Amendment to Financial Services Authority Regulation Number 10/POJK.04/2018 on Investment Manager Governance Implementation to more clearly regulate the duties, responsibilities, and authority of the Sharia Supervisory Board.
Main Provisions In this amendment to the OJK Circular on Investment Manager Governance Implementation Reports, additions and/or adjustments to the substance are made, as follows:
Addition of a new attachment, namely Attachment IA; Addition of disclosure forms regarding governance implementation, namely: Implementation of duties and responsibilities of the Board of Directors related to policies and implementation of meetings with the Sharia Supervisory Board, including the number of meetings held in 1 (one) year; Addition of disclosure forms regarding governance implementation related to the Sharia Supervisory Board for Sharia Investment Managers or Investment Managers that have Sharia investment management units; Transparency regarding disclosure of financial and/or family relationships between members of the Board of Directors and members of the Board of Commissioners with other members of the Board of Directors and/or members of the Board of Commissioners, members of the Sharia Supervisory Board, and/or shareholders of the Investment Manager; Transparency regarding disclosure of other important matters, namely resignation or dismissal of members of the Board of Directors, members of the Board of Commissioners, and members of the Sharia Supervisory Board; Addition of self-assessment regarding the implementation of duties and responsibilities of the Sharia Supervisory Board for Sharia Investment Managers; Addition of self-assessment regarding the implementation of duties and responsibilities of the Sharia Supervisory Board and implementation of duties of Sharia investment management units for Investment Managers that have Sharia investment management units; Addition of governance structure assessment, namely regarding the Sharia Supervisory Board; Addition of governance assessment factor weights for Investment Managers other than Sharia Investment Managers and Investment Managers that have Sharia investment management units; Addition of governance assessment factor weights for Sharia Investment Managers; Addition of governance assessment factor weights for Investment Managers that have Sharia investment management units; and Submission of business plan reports, business plan realization reports, and governance implementation reports through the Mutual Fund Industry Application System (ARIA).