To:
Investment Manager Representatives
At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 116 / SEOJK.04 / 2016 REGARDING RECOGNITION OF INVESTMENT MANAGER REPRESENTATIVE ASSOCIATIONS

In order to implement the provisions of Article 19 paragraph (3) of the Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634), it is necessary to regulate regarding recognition of Investment Manager Representative Associations in this Financial Services Authority Circular Letter as follows:

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

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 applicable legislation.
2. Investment Manager Representative is an individual who acts on behalf of the interests of a Securities Company conducting business as an Investment Manager.
3. Individual License as an Investment Manager Representative, hereinafter referred to as the Investment Manager Representative License, is a license granted by the Financial Services Authority to an individual to act on behalf of the interests of a Securities Company conducting business as an Investment Manager.
4. Investment Manager Representative Association, hereinafter referred to as the Association, is a legal entity in the form of an association consisting of holders of the Investment Manager Representative License.
5. Association Member, hereinafter referred to as Member, is an individual who holds an Investment Manager Representative License from the Financial Services Authority and has rights and obligations in accordance with the Articles of Association, Bylaws, and internal regulations of the Association.

II. REQUIREMENTS FOR THE ASSOCIATION TO OBTAIN RECOGNITION FROM THE FINANCIAL SERVICES AUTHORITY
To obtain recognition from the Financial Services Authority, the Association must meet the following requirements:

1. Has obtained approval as a legal entity association from the competent Government agency;
2. Has at least 500 (five hundred) Members at the time of submission to the Financial Services Authority;
3. Has an Association Code of Ethics;
4. Has an Association organizational structure;
5. Has a management board consisting of holders of the Investment Manager Representative License, comprising at least a chairman or other title, secretary or other title, and treasurer or other title;
6. Has working committees responsible for at least the following functions:
   a) research and development; b) ethical supervision; and c) implementation of Association activities;
7. Has standard operating procedures for the implementation of Association activities, at least covering:
   a) continuous education for holders of the Investment Manager Representative License; and b) implementation of other education and/or training to enhance the competence of Investment Manager Representatives;
8. Has membership regulations containing at least:
   a) requirements and procedures for accepting Members; b) restrictions on membership in similar Associations where a Member can only join 1 (one) Association; c) rights and obligations of Members; d) management and membership of the Association; e) funding of Association activities; f) membership fees; and g) sanctions;
9. Has an Association activity plan, at least:
   a) continuous education programs for holders of the Investment Manager Representative License; and b) plans for organizing other education and/or training to enhance the competence of Investment Manager Representatives;
10. Has adequate internal control systems, at least:
    a) supervision system against conflict of interest risks in the implementation of tasks and functions of the Association; b) supervision system against Members in implementing the code of ethics; and c) supervision system for the implementation of periodic and continuous evaluations of the implementation of Association activities;
11. Has a Member database containing at least:
    a) name; b) address; c) Investment Manager Representative License number; d) place of work (if any); and e) telephone number; and
12. Owns or controls adequate facilities and infrastructure, at least consisting of:
    a) building or room as the location of the Association office; and b) other supporting facilities such as computers, telephones, and fax machines.

III. PROCEDURE FOR APPLICATION FOR ASSOCIATION RECOGNITION

1. An application for recognition as an Association is submitted by the applicant in printed document form to the Financial Services Authority according to the format of the Application for Recognition of Investment Manager Representative Association as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.
2. In the event that the Financial Services Authority has provided an electronic system, the application for recognition as an Association can be submitted through said electronic system.
3. Applications for recognition as an Association as referred to in items 1 and 2 must be accompanied by complete documents as follows:
   a. photocopy of the document approving the Association as a legal entity association from the competent Government agency; b. data of holders of the Investment Manager Representative License as Members, at least 500 (five hundred) people at the time of submission to the Financial Services Authority according to the format Data of Holders of Investment Manager Representative Licenses as Members of Investment Manager Representative Associations as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter;
   c. copy of the Association's code of ethics;
   d. Association organizational structure and composition of management and working committees accompanied by documents:

1. latest signed curriculum vitae;
2. photocopy of valid Identity Card or Passport;
3. photocopy of valid Investment Manager Representative License;
4. latest color photograph size 4x6 cm with red background, 1 (one) sheet; and
5. integrity statement according to the format Integrity Statement Letter as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter,
   for each member of the management and committee leaders of the Association; e. standard operating procedures for the implementation of Association activities, at least covering:
6. continuous education for holders of the Investment Manager Representative License; and
7. implementation of other education and/or training to enhance the competence of Investment Manager Representatives;
   f. copy of the Association's membership regulations; g. Association activity plan, at least:
8. continuous education programs for holders of the Investment Manager Representative License; and
9. plans for organizing other education and/or training to enhance the competence of Investment Manager Representatives;
   h. documents related to adequate internal control systems, at least:
10. supervision system against conflict of interest risks in the implementation of tasks and functions of the Association;
11. supervision system against Members in implementing the code of ethics; and
12. supervision system for the implementation of periodic and continuous evaluations of the implementation of Association activities;
    i. documents related to Member database;
    j. domicile letter from building manager or competent agency; and k. photocopy of proof of ownership or lease agreement for the Association office.

4. In the event that the application for recognition is submitted by the applicant in printed document form to the Financial Services Authority as referred to in item 1, the application documents for recognition as an Association as referred to in item 3 must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact disc or others.
5. In processing the application for recognition as an Association, the Financial Services Authority reviews the completeness of the application documents.
6. In assessing the readiness of the applicant as an Association, the Financial Services Authority is authorized to:
   a. conduct inspections at the Association office; b. request the Association to present its activity plan; and/or
   c. request data and information needed.
7. Recognition of the Association is given by the Financial Services Authority no later than 20 (twenty) working days since receipt of the application for recognition of the Association that meets the requirements.
8. In the event that the application for recognition as an Association does not meet the requirements upon receipt, no later than 20 (twenty) working days since receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating:
   a. the application does not yet meet the requirements; or b. the application is rejected because it does not meet the requirements.
9. In the event that the application for recognition as an Association does not meet the requirements, the applicant must complete the deficiencies required in the notification letter as referred to in item 8 letter a no later than 20 (twenty) working days after the date of the notification letter.
10. Submission of changes to documents, additional information, and/or completion of missing requirements as referred to in item 9 is considered received by the Financial Services Authority on the date of receipt of said changes to documents, additional information, and/or completion of missing requirements.
11. Since receipt of changes to documents, additional information, and/or completion of missing requirements as referred to in item 10, the application for recognition as an Association is considered newly received by the Financial Services Authority and processed as referred to in item 7.
12. Applicants who do not complete the deficiencies required within the timeframe as referred to in item 9 are considered to have cancelled the application for recognition as an Association already submitted to the Financial Services Authority.

IV. DUTIES, AUTHORITIES, AND PROHIBITIONS OF THE ASSOCIATION

1. An Association that has obtained recognition from the Financial Services Authority has the following duties and authorities:
   a. organize continuous education for holders of the Investment Manager Representative License according to the established curriculum; b. organize other education and/or training to enhance the competence of Investment Manager Representatives;
   c. establish Association membership regulations;
   d. enforce the code of ethics for Members; e. supervise Members in practicing their profession as Investment Manager Representatives and ensure Members comply with Association membership regulations and Member code of ethics; f. monitor and evaluate the implementation of Association activities periodically every 6 (six) months; g. update the Member database periodically every 1 (one) month; h. have a website with an Indonesian domain name containing general information about the Association accessible to the public; and
   i. determine other matters supporting Association activities.
2. The organization of education as referred to in item 1 letters a and b can be conducted by the Association itself or in cooperation with other parties.
3. The Association is fully responsible for the organization of education for holders of the Investment Manager Representative License and other education and/or training to enhance the competence of Investment Manager Representatives conducted by other parties cooperating with the Association.
4. An Association that has obtained recognition from the Financial Services Authority is prohibited from:
   a. treating its members differently; and/or b. taking actions outside its duties and authorities as referred to in this Financial Services Authority Circular Letter, Articles of Association, Bylaws, and internal regulations of the Association.

V. FUNDING SOURCES

1. To support its activities, the Association may obtain funding from:
   a. registration fees and regular membership dues; b. fees for continuous education for holders of the Investment Manager Representative License;
   c. fees for organizing other education and/or training to enhance the competence of Investment Manager Representatives, such as workshops, seminars, and/or training related to the investment management industry; and
   d. other sources as long as determined in the Articles of Association/Bylaws or agreed upon by Members.
2. The Association must prepare financial accountability reports to Members at least once every 1 (one) year.

VI. REPORTING

1. An Association that has obtained recognition from the Financial Services Authority must submit reports to the Financial Services Authority:
   a. annual activity and budget plan report, no later than every December 15 of the previous year according to the format Annual Activity and Budget Plan Report as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter; b. mid-year implementation realization report, no later than every January 12 and July 12 according to the format Mid-Year Implementation Realization Report as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter;
   c. report on admission and/or termination of Members, no later than every January 12 and July 12 according to the format Mid-Year Report on Admission and/or Termination of Investment Manager Representative Association Members as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter; and
   d. report on changes to Articles of Association and/or management composition, no later than 30 (thirty) days since the occurrence of changes (if any).
2. In the event that the deadline for submitting reports as referred to in item 1 letters a, b, and c falls on a holiday, said reports must be submitted no later than 1 (one) working day thereafter.

VII. REVOCATION OF ASSOCIATION RECOGNITION

1. The recognition letter as an Association becomes invalid if:
   a. the legal entity of the party conducting activities as an Association housing Investment Manager Representatives dissolves; and/or b. the legal status of the Association is revoked by the competent agency.
2. The Financial Services Authority may revoke the Association recognition letter if there are circumstances as follows:
   a. the Association returns its Association recognition letter; b. the Association office cannot be found;
   c. the Association violates Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives and this Financial Services Authority Circular Letter;
   d. the Association does not carry out its duties for 12 (twelve) consecutive months; e. the Association has received 3 (three) warning letters but within 1 (one) month since the issuance of the third warning letter does not meet the provisions contained in the content of said warning letter; and/or f. does not meet the requirements as referred to in Section II.
3. In the event that revocation of the Association recognition letter is caused by the Association returning the recognition letter as referred to in item 2 letter a, the Association must submit a request letter for the return of the Association recognition letter to the Financial Services Authority accompanied by documents as follows:
   a. explanation regarding the reason for returning the recognition letter; b. the Association recognition letter from the Financial Services Authority; and
   c. statement of accountability letter from the Association management regarding the Association's obligations to third parties and/or Members.
4. In the event that revocation of the Association recognition letter is caused by the Association committing violations as referred to in item 2 letters b, c, d, e, and f, the Association must settle its obligations to Members and/or third parties.
5. The invalidity of the Association recognition letter as referred to in item 1 and revocation of the Association recognition letter as referred to in item 2 may be announced by the Financial Services Authority through mass media.

VIII. TRANSITIONAL PROVISIONS
Holders of Investment Manager Representative Licenses whose license validity period will expire less than 3 (three) months after an Association has obtained recognition from the Financial Services Authority are exempted from the obligation to submit photocopies of Association Membership Cards housing Investment Manager Representatives as referred to in Article 19 paragraph (3) letter g of Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives.

IX. CLOSING PROVISIONS
This Financial Services Authority Circular Letter takes effect on the date of determination.

Determined in Jakarta on May 20, 2016
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR, signature
NURHAIDA

Copy matches the original
Director of Legal Affairs 1
Legal Department signature
Yuliana

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 116 / SEOJK.04 / 2016 REGARDING RECOGNITION OF INVESTMENT MANAGER REPRESENTATIVE ASSOCIATIONS

APPLICATION FOR RECOGNITION
OF INVESTMENT MANAGER REPRESENTATIVE ASSOCIATION
Number : ..................... ...., ................ 20....
Attachments : .....................
Subject : Application for Recognition of Investment Manager Representative Association

To
Executive Head
Capital Market Supervisor
Financial Services Authority in Jakarta

Hereby we submit an application for recognition of the Investment Manager Representative Association. As consideration material, we provide the following data:

1. Association Name : ................................................................
2. Full Address : ................................................................
   ................................................................
   (Street Name and Number)
   ....................................... - □□□□□ (City and Postal Code)
3. Telephone Number : ................................................................
4. Number and Date of Deed of Establishment
   including amendments to Articles of Association : ................................................................
5. Number and Date of Approval /
   Consent / Notification from
   Minister in charge of
   Government affairs in the field of
   Law and Human Rights : ................................................................

Completing this application, we attach the following documents:
a. photocopy of the document approving the Association as a legal entity association from the competent Government agency; b. data of holders of Investment Manager Representative Licenses as Association Members;
c. copy of Association Code of Ethics;
d. Association organizational structure and composition of management and working committees containing:

1. latest signed curriculum vitae;
2. photocopy of valid Identity Card or Passport;
3. photocopy of valid Investment Manager Representative License;
4. latest color photograph size 4x6 cm with red background, 1 (one) sheet; and
5. integrity statement;
   for each member of the management and committee leaders of the Association. e. standard operating procedures for the implementation of Association activities, covering:
6. continuous education for holders of Investment Manager Representative Licenses; and
7. implementation of other education and/or training to enhance the competence of Investment Manager Representatives;
   f. copy of Association membership regulations; g. Association activity plan, covering:
8. continuous education programs for holders of Investment Manager Representative Licenses; and
9. plans for organizing other education and/or training to enhance the competence of Investment Manager Representatives;
   h. documents related to internal control systems, covering:
10. supervision system against conflict of interest risks in the implementation of tasks and functions of the Association;
11. supervision system against Members in implementing the code of ethics; and
12. supervision system for the implementation of periodic and continuous evaluations of the implementation of Association activities;
    i. documents related to Member database;
    j. domicile letter from building manager or competent agency; and k. photocopy of proof of ownership or lease agreement for the Association office.

Thus we submit this application and thank you for your attention.
Stamp Duty

DATA OF HOLDERS OF INVESTMENT MANAGER REPRESENTATIVE LICENSES AS MEMBERS OF INVESTMENT MANAGER REPRESENTATIVE ASSOCIATIONS As of: date/month/year No. Name Holder of Investment Manager Representative License Investment Manager Representative License Decision Letter No. Date of Decision Letter Company Place of Work*) *) if any
.........., ...................... 20.....

INTEGRITY STATEMENT LETTER
I, the undersigned:
Name : .................................................................................
Position :..................................................................................
Full Address : .................................................................................
(street name and number)
......................... -
(city and postal code)
Telephone Number : .................................................................................
hereby state that I:
a. have good character and morality; b. am capable/incapable*) to perform legal acts;
c. have/have not*) committed disgraceful acts and/or been punished for proven criminal offenses in the financial services sector;
d. have/have not*) been subject to license revocation, approval cancellation, and/or registration cancellation by the Financial Services Authority during the last 3 (three) years; e. have/have not*) been declared bankrupt or served as a manager declared guilty causing a company to be declared bankrupt; and f. have high commitment to comply with legislation. Thus this statement is made truthfully so that it can be used as appropriate.
.........., ...................... 20.....
Applicant,
Stamp Duty
Note:
*) strike out what is unnecessary

ANNUAL ACTIVITY AND BUDGET PLAN REPORT
YEAR....
Number : .................... (Place), (Date, Month) 20...
Attachments : ....................
Subject : Annual Activity and Budget Plan Report for Year....
TO
Executive Head
Capital Market Supervisor in Jakarta
Attention: Director
Investment Management
Association Name : ................................
The annual activity and budget plan for year .......... is as follows:
No. Activity Plan Implementation Period Budget
.........., ...................... 20.....

MID-YEAR IMPLEMENTATION REALIZATION REPORT
Number : .................... (Place), (Date, Month) 20...
Attachments : ....................
Subject : Mid-Year Implementation Realization Report for Period .......
TO
Executive Head
Capital Market Supervisor in Jakarta
Attention: Director
Investment Management
Association Name : ................................
The mid-year implementation realization for period .......... is as follows:
No. Activity Plan
Mid-Year Implementation Realization
(Fulfilled/Not Fulfilled)
Remarks
.........., ...................... 20.....

MID-YEAR REPORT ON ADMISSION AND/OR TERMINATION OF MEMBERS OF INVESTMENT MANAGER ASSOCIATION

Association Name:

Period:

Admission of Members

Investment Manager Association

No.	Name	Investment Manager License Number	Date of Membership

Termination of Members

Investment Manager Association

No.	Name	Investment Manager License Number	Date

Termination Decision Letter Number	Decision Date	Decision Letter Date

Total number of members holding Investment Manager Licenses: ...

.........., ...................... 20.....

Established in Jakarta
on the date of 20 May 2016

EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISORY AGENCY

ttd

NURHAIDA

Copy consistent with the original
Legal Director 1
Legal Department

Sudarmaji

Copy consistent with the original
Legal Director 1
Legal Department

ttd

Yuliana