Regulatory Alerts2005-06-14
Bank Indonesia Circular Letter No. 11/36/DPNP on Risk Management for Banks Conducting Mutual Fund Activities
Bank Indonesia issued Circular Letter No. 11/36/DPNP to amend risk management requirements for commercial banks acting as Selling Agents or Custodian Banks for mutual funds. The regulation mandates detailed pre-activity reporting, including 60-day advance plans for becoming a Selling Agent or Custodian and 45-day sales plans, alongside quarterly periodic reports on execution. It establishes specific administrative sanctions for non-compliance and sets a 60-day transitional period for banks to regularize activities conducted after July 1, 2009.
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