FINANCIAL SERVICES AUTHORITY

REPUBLIC OF INDONESIA

COPY

FINANCIAL SERVICES AUTHORITY REGULATION

OF THE REPUBLIC OF INDONESIA

NUMBER 21 / POJK.04 / 2021

CONCERNING

MARKETING PARTNERS OF SECURITIES BROKER INTERMEDIARIES

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to increase the number of investors and optimize the potential of the Indonesian capital market and the marketing function of securities broker intermediaries, regulation is needed to support the improvement of the existing agency quality; b. that the very rapid development of financial technology can serve as a distribution channel for capital market products;
c. that in order to expand the capital market service network and increase synergy with other financial service institutions, it is necessary to expand the scope of agency activities;
d. that based on the considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Marketing Partners of Securities Broker Intermediaries;

Recalling:

Law 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);
Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:

To establish:
A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING MARKETING PARTNERS OF SECURITIES BROKER INTERMEDIARIES.

CHAPTER I

GENERAL PROVISIONS

Article 1

Securities Company is a party that conducts business activities as an underwriter of securities, securities broker intermediary, and/or investment manager.
Securities Broker Intermediary which is hereinafter abbreviated as PPE is a party that conducts business activities of buying and selling securities for its own interest or for the interest of other parties.
Stock Exchange Member is a PPE that has obtained a business license from the Financial Services Authority and has the right to use the stock exchange system and/or facilities in accordance with stock exchange regulations.
Regional Securities Company which is hereinafter abbreviated as PED is a Securities Company that conducts business activities as a PPE that administers client securities accounts and is specifically established in a certain province.
Marketing Partner of Securities Broker Intermediary which is hereinafter referred to as Marketing Partner PPE is a party that provides PPE marketing services to clients and/or prospective clients based on a cooperation contract.
General Bank is a bank that conducts business activities conventionally and/or based on Sharia principles, which in its activities provides services in payment flows.
Rural Bank is a bank that conducts business activities conventionally or based on Sharia principles, which in its activities does not provide services in payment flows.
Insurance Company is a general insurance company and a life insurance company.
Financing Company is a business entity that conducts financing activities in the form of providing funds or capital goods as referred to in legislation concerning financing companies.
Pawnshop Company is a business entity established to disburse loan funds to clients by accepting movable goods as collateral.
Guarantee Company is a legal entity that operates in the financial sector with the main business activity of providing guarantees.
Securities Company for Mutual Fund Marketing is a Securities Company that conducts business activities as a PPE that is specifically established to market mutual fund securities, which has obtained a business license from the Financial Services Authority.
Investment Advisor is a party that provides advice to other parties regarding the sale or purchase of securities in exchange for service fees.
Crowdfunding Service Provider is an Indonesian legal entity that provides, manages, and operates crowdfunding services.
Information Technology-Based Lending Service Provider is an Indonesian legal entity that provides, manages, and operates information technology-based lending services.
Individual License as Marketing Securities Broker Intermediary Representative which is hereinafter referred to as Marketing Securities Broker Intermediary Representative License is a license issued by the Financial Services Authority to an individual acting on behalf of the interest of a Securities Company conducting business activities as a PPE, which specifically performs marketing functions.
Individual License as Limited Marketing Securities Broker Intermediary Representative which is hereinafter referred to as Limited Marketing Securities Broker Intermediary Representative License is a license issued by the Financial Services Authority to an individual acting on behalf of the interest of a Securities Company conducting business activities as a PPE, which specifically performs limited marketing functions.
Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, units of participation in collective investment contracts, futures contracts over securities, and every derivative of securities.
Underwriting Representative is an individual who acts on behalf of the interest of a Securities Company conducting business activities as an underwriter of securities.
Investment Manager Representative is an individual who acts on behalf of the interest of a Securities Company conducting business activities as an investment manager.
Securities Broker Intermediary Representative is an individual who acts on behalf of the interest of a Securities Company conducting business activities as a PPE.
Mutual Fund Sales Agent Representative is an individual who has obtained a license from the Financial Services Authority to act as a seller of mutual fund securities and other investment products regulated based on capital market legislation.

CHAPTER II

SCOPE AND REQUIREMENTS FOR MARKETING PARTNERS OF PPE

Part One

Scope

Article 2

(1) PPEs that are Stock Exchange Members and PEDs, in conducting marketing activities, may cooperate with Marketing Partners of PPE.

(2) Marketing Partners of PPE consist of:
a. Individual Marketing Partners of PPE; and b. Institutional Marketing Partners of PPE.

(3) Individual Marketing Partners of PPE as referred to in paragraph (2) letter a may be conducted by individuals who hold licenses as:
a. Individual Investment Advisor; b. Underwriting Representative;
c. Investment Manager Representative;
d. Securities Broker Intermediary Representative; e. Marketing Securities Broker Intermediary Representative; f. Mutual Fund Sales Agent Representative; and/or g. Limited Marketing Securities Broker Intermediary Representative.

(4) Institutional Marketing Partners of PPE consist of:
a. Institutional Marketing Partners of PPE Level I; and b. Institutional Marketing Partners of PPE Level II.

(5) Institutional Marketing Partners of PPE Level I as referred to in paragraph (4) letter a may only be conducted by:
a. General Banks; b. Rural Banks;
c. Insurance Companies;
d. Financing Companies; e. Pawnshop Companies; f. Guarantee Companies; g. Securities Companies for Mutual Fund Marketing; h. Investment Advisors in the form of a company;
i. Crowdfunding Service Providers;
j. Information Technology-Based Lending Service Providers; and k. other parties determined by the Financial Services Authority, both those conducting business activities conventionally and those conducting business activities based on Sharia principles.

(6) Institutional Marketing Partners of PPE Level II as referred to in paragraph (4) letter b may only be conducted by:
a. PPEs that are not Stock Exchange Members; b. Institutional Marketing Partners of PPE Level I that submit a registration to become Institutional Marketing Partners of PPE Level II by meeting the required provisions as long as they do not conflict with legislation provisions; and
c. parties as referred to in paragraph (5) that are not Institutional Marketing Partners of PPE Level I and submit a registration to become Institutional Marketing Partners of PPE Level II, by meeting the required provisions as long as they do not conflict with legislation provisions.

Article 3

(1) Parties as referred to in Article 2 paragraph (3) may conduct activities as Individual Marketing Partners of PPE without having to first submit a registration application as an Individual Marketing Partner of PPE to the Financial Services Authority.

(2) Parties conducting activities as Institutional Marketing Partners of PPE Level I as referred to in Article 2 paragraph (5) and Institutional Marketing Partners of PPE Level II as referred to in Article 2 paragraph (6) letters b and c must first be registered as Institutional Marketing Partners of PPE at the Financial Services Authority before conducting activities as Marketing Partners of PPE.

(3) PPEs that are not Stock Exchange Members as referred to in Article 2 paragraph (6) letter a may automatically conduct activities as Institutional Marketing Partners of PPE Level II without having to first submit a registration application as an Institutional Marketing Partner of PPE to the Financial Services Authority.

Article 4

(1) Individual Marketing Partners of PPE may only conduct offering activities to prospective clients to become clients of PPEs that are Stock Exchange Members or PEDs.

(2) Institutional Marketing Partners of PPE Level I may conduct activities:
a. offering to prospective clients to become clients of PPEs that are Stock Exchange Members or PEDs; b. facilitating the filling out of client securities account forms and/or client fund accounts; and/or
c. due diligence in accordance with Financial Services Authority regulations regarding the implementation of anti-money laundering and counter-terrorism financing programs in the financial services sector for the benefit of PPEs that are Stock Exchange Members.

(3) Institutional Marketing Partners of PPE Level II may conduct activities:
a. those conducted by Institutional Marketing Partners of PPE Level I as referred to in paragraph (2); b. assisting in marketing Securities on behalf of PPEs that are Stock Exchange Members or PEDs; and/or
c. receiving client orders and forwarding transactions to PPEs that are Stock Exchange Members or PEDs.

Part Two

Requirements

Article 5

(1) Institutional Marketing Partners of PPE Level I must meet the following requirements:
a. have a responsible official at the head office who conducts Institutional Marketing Partners of PPE Level I activities; b. have employees at the head office and every other location conducting Institutional Marketing Partners of PPE Level I activities;
c. have an organizational structure showing lines of responsibility to a board member overseeing Institutional Marketing Partners of PPE Level I activities along with job descriptions;
d. have written standard operating procedures for the implementation of Institutional Marketing Partners of PPE Level I activities; e. have adequate internal control systems; and f. if the Institutional Marketing Partners of PPE Level I use electronic systems, such systems must meet the provisions for the implementation of electronic opening of securities accounts and client fund accounts in accordance with Financial Services Authority regulations regarding internal control of Securities Companies conducting business activities as PPEs and their implementing regulations.

(2) The responsible officials and employees as referred to in paragraph (1) letters a and b must meet the following provisions:
a. hold an individual license from the Financial Services Authority with the following provisions:

at minimum, an individual license as Marketing Securities Broker Intermediary Representative for the responsible official; and
at minimum, an individual license as Limited Marketing Securities Broker Intermediary Representative for employees; and
b. receive a specific written assignment from the Institutional Marketing Partners of PPE Level I to act as responsible officials and/or employees handling Institutional Marketing Partners of PPE Level I activities.

(3) Institutional Marketing Partners of PPE Level II must meet the following requirements:
a. have a responsible official at the head office who conducts Institutional Marketing Partners of PPE Level II activities; b. have a marketing function;
c. have employees at the head office and every other location conducting Institutional Marketing Partners of PPE Level II activities;
d. have an organizational structure showing lines of responsibility to a board member overseeing Institutional Marketing Partners of PPE Level II activities along with job descriptions; e. have employees conducting marketing activities and forwarding client orders; f. have written standard operating procedures for the implementation of Institutional Marketing Partners of PPE Level II activities; g. have adequate internal control systems; h. if the Institutional Marketing Partners of PPE Level II use electronic systems, such systems must meet the provisions for the implementation of electronic opening of securities accounts and client fund accounts in accordance with Financial Services Authority regulations regarding internal control of Securities Companies conducting business activities as PPEs and their implementing regulations; and
i. in the event that Institutional Marketing Partners of PPE Level II use their own electronic systems to forward client orders to PPEs that are Stock Exchange Members or PEDs and are not connected to the Stock Exchange, the forwarding system must first be assessed by a professional information technology auditor.

(4) The responsible official of Institutional Marketing Partners of PPE Level II as referred to in paragraph (3) letter a must hold an individual license from the Financial Services Authority at minimum as a Securities Broker Intermediary Representative.

(5) Employees conducting marketing activities and forwarding client orders as referred to in paragraph (3) letter e must hold an individual license from the Financial Services Authority at minimum as a Marketing Securities Broker Intermediary Representative.

(6) Adequate internal control systems as referred to in paragraph (1) letter e and paragraph (3) letter g must be made in writing containing at least:
a. the granting of authority and responsibility that can avoid conflicts of interest; b. standard operating procedures for conducting activities as Marketing Partners of PPE with marketing functions and forwarding client orders for Institutional Marketing Partners of PPE Level II; and
c. efforts and actions taken to correct deviations that occur.

(7) Responsible officials as referred to in paragraph (1) letter a and paragraph (3) letter a have duties and functions at least:
a. ensuring that Institutional Marketing Partners of PPE activities run in accordance with the cooperation contract made between the PPE and the Marketing Partner of PPE and the standard operating procedures of the Marketing Partner of PPE; and b. ensuring that Institutional Marketing Partners of PPE activities run in accordance with legislation provisions.

(8) Institutional Marketing Partners of PPE Level I and Institutional Marketing Partners of PPE Level II must have a function or unit handling consumer services.

CHAPTER III

PROCEDURES FOR REGISTRATION OF INSTITUTIONAL MARKETING PARTNERS OF PPE

Article 6

(1) Parties intending to conduct activities as Institutional Marketing Partners of PPE must submit a registration application electronically through the Financial Services Authority's electronic licensing system in accordance with the format of the Application for Registration of Institutional Marketing Partners of PPE contained in the Appendix which is an integral part of this Financial Services Authority Regulation.

(2) The registration application as referred to in paragraph (1) is accompanied by documents:
a. photocopy of the deed of establishment approved by the competent authority, and the latest amendment to the articles of association that has obtained approval or has been issued a notice of receipt of amendment to the articles of association from the competent authority; b. photocopy of the Corporate Tax Identification Number (NPWP);
c. photocopy of the business license;
d. data of the head office and list of other locations that will conduct Institutional Marketing Partners of PPE activities in accordance with the format of the List of Other Locations of Marketing Partners of Securities Broker Intermediaries contained in the appendix which is an integral part of this Financial Services Authority Regulation; e. documents related to the name, data, and information of responsible officials for Institutional Marketing Partners of PPE activities, including:

the latest signed curriculum vitae;
photocopy of the valid Identity Card or passport;
photocopy of the Work Permit for Foreign Workers for foreign nationals, if they are foreign workers;
photocopy of the board of directors' decision letter regarding appointment or placement as responsible officials for Institutional Marketing Partners of PPE activities at the head office;
photocopy of individual licenses from the Financial Services Authority at minimum:
a) Marketing Securities Broker Intermediary Representative License in the name of the concerned party, for Institutional Marketing Partners of PPE Level I; and b) Securities Broker Intermediary Representative License in the name of the concerned party, for Institutional Marketing Partners of PPE Level II; and
two (2) recent 4x6 cm color photographs with a red background;
f. documents of employees conducting Institutional Marketing Partners of PPE activities, including:
the latest signed curriculum vitae;
photocopy of the valid Identity Card or passport;
photocopy of the Work Permit for Foreign Workers if the employee is a foreign worker;
photocopy of the board of directors' decision letter regarding appointment or placement as employees conducting Institutional Marketing Partners of PPE activities at the head office and other locations; and
photocopy of individual licenses from the Financial Services Authority at minimum consisting of Limited Marketing Securities Broker Intermediary Representative License in the name of the concerned party;
g. organizational structure showing lines of responsibility to a Board Member overseeing Institutional Marketing Partners of PPE activities along with job descriptions; h. documents of standard operating procedures for the implementation of Institutional Marketing Partners of PPE activities as referred to in Article 5 paragraph (1) letter d and Article 5 paragraph (3) letter f which cover all activities of Institutional Marketing Partners of PPE as referred to in Article 4;
i. photocopy of the draft cooperation contract between Institutional Marketing Partners of PPE and PPEs that are Stock Exchange Members or PEDs;
j. projection of the planned operation of Institutional Marketing Partners of PPE activities for at least 1 (one) year ahead; and k. results of the assessment of the order forwarding system by a professional information technology auditor in the event that Institutional Marketing Partners of PPE Level II will use electronic systems to forward orders to PPEs that are Stock Exchange Members or PEDs as referred to in Article 5 paragraph (3) letter i.

(3) Applicants submitting registration applications through the electronic system as referred to in paragraph (1) must store printed copies of the registration applications as submitted through the electronic system.

(4) Institutional Marketing Partners of PPE Level II intending to restrict their activities as Institutional Marketing Partners of PPE Level I must submit notification to the Financial Services Authority by attaching adjustment documents as referred to in paragraph (2) letters g, h, i, and j.

(5) Institutional Marketing Partners of PPE Level I intending to upgrade their activities as Institutional Marketing Partners of PPE Level II must submit a registration application as Institutional Marketing Partners of PPE Level II, by attaching adjustment documents as referred to in paragraph (2) letters g, h, i, and j.

(6) Parties submitting registration applications as Institutional Marketing Partners of PPE must store the proof of receipt of the registration application as Institutional Marketing Partners of PPE along with all documents that are an integral part of the registration application.

(7) The storage of the proof of receipt of the registration application as Institutional Marketing Partners of PPE along with all documents that are an integral part of the registration application must be done within a time period in accordance with the Law concerning company documents.

Article 7

(1) In the event that the electronic licensing system as referred to in Article 6 paragraph (1) is not yet available, the registration application may be submitted to the Financial Services Authority and addressed to the Executive Head of Capital Market Supervision with a copy to the Head of Capital Market Supervision Department 2A via online email at mailingroomsumitro@ojk.go.id.

(2) In the event that online submission as referred to in paragraph (1) cannot be done due to technical problems, the applicant submits the registration application offline.

(3) Offline registration applications as referred to in paragraph (2) are accompanied by documents as referred to in Article 6 paragraph (2) in the form of electronic documents either using digital disk media or other electronic data storage media.

(4) Offline registration applications as referred to in paragraph (2) are sent to the Financial Services Authority and addressed to the Executive Head of Capital Market Supervision with a copy to the Head of Capital Market Supervision Department 2A.

Article 8

The Financial Services Authority may request additional data and/or information to complete the registration application as referred to in Article 6 paragraph (2).

Article 9

(1) In processing registration applications as Institutional Marketing Partners of PPE as referred to in Article 6 paragraph (1), Article 7 paragraph (1), and/or Article 7 paragraph (3), the Financial Services Authority conducts research on the completeness of application documents and compliance/consistency with applicable requirements/provisions.

(2) If the registration application as Institutional Marketing Partners of PPE as referred to in Article 6 paragraph (1), Article 7 paragraph (1), and/or Article 7 paragraph (3) does not meet the requirements, within a maximum of 30 (thirty) working days since the receipt of the application, the Financial Services Authority issues a notification letter to the applicant stating:
a. the application does not yet meet the document completeness requirements; or b. the application is rejected because it does not meet the requirements.

(3) Applicants must complete missing required documents as referred to in paragraph (2) letter a within a maximum of 30 (thirty) working days after the date of the notification letter.

(4) Applicants who fail to complete the document deficiencies as referred to in paragraph (3) are deemed to have cancelled their application for registration as an Institutional Marketing Partner of a Securities Broker (PPE).

(5) The Financial Services Authority (OJK) issues a registered certificate as an Institutional Marketing Partner of a Securities Broker (PPE) to applicants who submit registration applications as referred to in Article 6 paragraph (1), Article 7 paragraph (1), and/or Article 7 paragraph (3) within a maximum of 30 (thirty) working days since the application is received completely and meets the requirements.

Article 10
The Financial Services Authority (OJK) may conduct inspections at the applicant's office to assess the applicant's readiness as an Institutional Marketing Partner of a Securities Broker (PPE) to ensure compliance with the requirements for an Institutional Marketing Partner of a Securities Broker (PPE).

Article 11
(1) An Institutional Marketing Partner of a Securities Broker (PPE) is required to conduct Marketing Partner of a Securities Broker (PPE) activities within a period of 1 (one) year since obtaining the registered certificate from the Financial Services Authority (OJK).

(2) If during the period referred to in paragraph (1) the Institutional Marketing Partner of a Securities Broker (PPE) does not conduct Marketing Partner of a Securities Broker (PPE) activities, the Financial Services Authority (OJK) cancels the registered certificate of the Institutional Marketing Partner of a Securities Broker (PPE).

(3) The Financial Services Authority (OJK) may cancel the registered certificate of an Institutional Marketing Partner of a Securities Broker (PPE) that does not conduct activities as a Marketing Partner of a Securities Broker (PPE) for a consecutive period of 1 (one) year.

CHAPTER IV
COOPERATION CONTRACTS

Article 12
Marketing Partner of a Securities Broker (PPE) activities must be based on a cooperation contract between the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), and the Marketing Partner of a Securities Broker (PPE).

Article 13
(1) The cooperation contract as referred to in Article 12 must contain at least:
a. identity of the parties involved in the contract; b. rights and obligations of the parties;
c. revenue and cost sharing scheme between the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), and the Marketing Partner of a Securities Broker (PPE);
d. contract duration; e. designation of a court or other institution as an institution to resolve civil disputes between the parties as referred to in Financial Services Authority (OJK) regulations regarding alternative dispute resolution institutions in the financial services sector; f. contract termination provisions; and g. data and customer information utilization provisions, at least regulating:

the obligation to obtain customer consent;
limitations on the utilization of customer data and information;
media and methods used in obtaining data and information ensuring confidentiality, security, and integrity; and
customer consent termination mechanism.

(2) The cooperation contract as referred to in paragraph (1) must be made in writing using the Indonesian language.

(3) If necessary, the cooperation contract as referred to in paragraph (1) may be made using a foreign language alongside the Indonesian language.

Article 14
For Level II Institutional Marketing Partners of Securities Brokers (PPE), cooperation contracts must contain at least the matters referred to in Article 13 paragraph (1) and additionally:
a. customer Securities accounts are administered by the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), cooperating with the Level II Institutional Marketing Partner of a Securities Broker (PPE); b. all receipts, confirmations, reports, and other documents related to Securities accounts are issued by the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED);
c. the obligation of the Level II Institutional Marketing Partner of a Securities Broker (PPE) to provide a written statement to each prospective customer that the customer's Securities account is administered by the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), cooperating with them;
d. procedures for including information about the identity of the Level II Institutional Marketing Partner of a Securities Broker (PPE) in forms; e. approval from the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), not to directly accept customers handled by the Level II Institutional Marketing Partner of a Securities Broker (PPE) or not to offer such customers to open Securities accounts directly; f. provision of information accessible via terminals and monitors by the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), for the Level II Institutional Marketing Partner of a Securities Broker (PPE), enabling the Level II Institutional Marketing Partner of a Securities Broker (PPE) to monitor customer account positions, open orders, and Stock Exchange security prices; g. the obligation of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), to provide customers from the Level II Institutional Marketing Partner of a Securities Broker (PPE) with all information, documents, and records needed, similar to those provided to their own customers; and h. system security mechanisms, including non-repudiation or security measures against the order submission process.

CHAPTER V
OBLIGATIONS AND PROHIBITIONS

First Section
Obligations of Securities Brokers (PPE) and Physical Derivatives Exchanges (PED)

Article 15
In conducting cooperation with Marketing Partners of Securities Brokers (PPE), Securities Brokers (PPE) that are Stock Exchange Members and Physical Derivatives Exchanges (PED) are required to:
a. have a written cooperation contract with the Marketing Partner of a Securities Broker (PPE); b. be responsible for the behavior of individual Marketing Partners of Securities Brokers (PPE);
c. be responsible for cooperation agreements with Institutional Marketing Partners of Securities Brokers (PPE);
d. examine the fulfillment of specified requirements and the due diligence process for prospective Marketing Partners of Securities Brokers (PPE); e. ensure that Level I and Level II Institutional Marketing Partners of Securities Brokers (PPE) have officials responsible for Marketing Partner of a Securities Broker (PPE) activities; f. be responsible for the acts and actions of Marketing Partners of Securities Brokers (PPE) within the scope of services as stated in the cooperation agreement; and g. monitor and supervise Marketing Partner of a Securities Broker (PPE) activities directly, both periodically and incidentally.

Article 16
Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED) cooperating with Level II Institutional Marketing Partners of Securities Brokers (PPE) must meet the provisions as referred to in Article 15 and additional provisions:
a. providing marketing materials summarizing product information in accordance with Financial Services Authority (OJK) regulations regarding consumer protection in the financial services sector; b. opening Securities accounts and ensuring fund accounts for each customer for every prospective customer opened through Level II Institutional Marketing Partners of Securities Brokers (PPE) as referred to in Financial Services Authority (OJK) regulations regarding internal control of Securities Companies conducting business as Securities Brokers (PPE);
c. issuing receipts, confirmations, reports, and other documents related to Securities accounts, in the name of each customer from Level II Institutional Marketing Partners of Securities Brokers (PPE), with the provisions:

indicating that Level II Institutional Marketing Partners of Securities Brokers (PPE) act as agents for the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), and customer Securities accounts are maintained under the responsibility of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED);
stating the name, address, and telephone number of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED);
stating the name, address, and telephone number of the Level II Institutional Marketing Partner of a Securities Broker (PPE); and
sending or delivering directly to the customer of Level II Institutional Marketing Partners of Securities Brokers (PPE) with a copy of such documents to the Level II Institutional Marketing Partner of a Securities Broker (PPE);
d. processing orders forwarded by Level II Institutional Marketing Partners of Securities Brokers (PPE) in accordance with Financial Services Authority (OJK) regulations regarding internal control of Securities Companies conducting business as Securities Brokers (PPE); and e. withdrawal instructions and delivery of Securities and/or funds from customers originating from Level II Institutional Marketing Partners of Securities Brokers (PPE) are conducted directly with the custodian function of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED).

Article 17
(1) Securities account opening contracts for customers originating from Level I and Level II Institutional Marketing Partners of Securities Brokers (PPE) must be equivalent to Securities account opening contracts used for customers of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED) itself, with the provisions:
a. the form and requirements of the contract meet provisions in accordance with Financial Services Authority (OJK) regulations regarding internal control of Securities Companies conducting business as Securities Brokers (PPE); and b. the contract indicates that customer Securities accounts are maintained under the responsibility of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED).

(2) In addition to the provisions as referred to in paragraph (1), Securities account opening contracts for customers originating from Level II Institutional Marketing Partners of Securities Brokers (PPE) must meet the provisions:
a. the contract contains provisions regulating that customer orders are received by Level II Institutional Marketing Partners of Securities Brokers (PPE):

in written form via forms or in the form of recordings connected to the communication system of Level II Institutional Marketing Partners of Securities Brokers (PPE); or
online via the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED)'s online/electronic stock trading system, or the Level II Institutional Marketing Partner of a Securities Broker (PPE)'s system connected to the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED)'s online/electronic stock trading system;
b. the contract contains provisions regulating that customer orders as referred to in letter c are forwarded by Level II Institutional Marketing Partners of Securities Brokers (PPE) to the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), in written form via forms or in the form of recordings connected to the communication system of the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED);
c. the contract contains provisions stating that the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), is not responsible for errors made by Level II Institutional Marketing Partners of Securities Brokers (PPE) in forwarding customer orders to the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED);
d. the original contract is stored at the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), and copies are stored at Level II Institutional Marketing Partners of Securities Brokers (PPE); and e. customer order forms are stamped with a timestamp by Level II Institutional Marketing Partners of Securities Brokers (PPE).

Article 18
Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED) must give equal priority to customer orders originating from Level II Institutional Marketing Partners of Securities Brokers (PPE) as they do to their own customers.

Second Section
Obligations of Marketing Partners of Securities Brokers (PPE)

Article 19
(1) Individual Marketing Partners of Securities Brokers (PPE) in conducting activities are required to:
a. have an individual license from the Financial Services Authority (OJK) at least as Limited Marketing Securities Broker Representative; b. be responsible for all actions related to Marketing Partner of a Securities Broker (PPE) activities; and
c. perform duties as best as possible with good faith and full responsibility in accordance with the cooperation contract with the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED).

(2) Level I and Level II Institutional Marketing Partners of Securities Brokers (PPE) in conducting cooperation with Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED) are required to:
a. be responsible for all actions related to Institutional Marketing Partner of a Securities Broker (PPE) activities conducted by their employees; b. supervise employees working for Institutional Marketing Partners of Securities Brokers (PPE) to ensure compliance with all capital market laws and regulations;
c. ensure that employees working for Institutional Marketing Partners of Securities Brokers (PPE) understand professional ethics and receive sufficient training regarding market practices;
d. apply due diligence to prospective customers as referred to in laws and regulations governing the application of anti-money laundering and counter-terrorism financing programs in the financial services sector; e. implement customer data confidentiality principles at least for identity and transaction data; f. ensure customer consent in case of customer data exchange between Institutional Marketing Partners of Securities Brokers (PPE) and Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED); g. communicate any changes in data and information utilization purposes to customers in case of changes in data and information utilization purposes; h. have procedures in the form of statement forms during offers by Institutional Marketing Partners of Securities Brokers (PPE) that Institutional Marketing Partners of Securities Brokers (PPE) only conduct marketing activities and are not responsible for investment activities offered;
i. provide access to the Financial Services Authority (OJK) to supervise activities as Institutional Marketing Partners of Securities Brokers (PPE); and
j. ensure the reliability and security of electronic systems used by Institutional Marketing Partners of Securities Brokers (PPE) in accordance with laws and regulations, in case Institutional Marketing Partners of Securities Brokers (PPE) use electronic systems in conducting their business.

(3) In conducting their business, Level I Institutional Marketing Partners of Securities Brokers (PPE) must meet the requirements as referred to in Article 5 paragraph (1), paragraph (2), paragraph (6), paragraph (7), and paragraph (8).

Article 20
(1) Level II Institutional Marketing Partners of Securities Brokers (PPE) are required to be responsible for:
a. providing written statements to customers that Securities accounts in the customer's name are administered by the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), cooperating with the Level II Institutional Marketing Partner of a Securities Broker (PPE) in question; b. providing written statements to customers stating that the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), issues receipts, confirmations, reports, and other documents related to Securities accounts, in the name of each customer from Level II Institutional Marketing Partners of Securities Brokers (PPE);
c. ensuring that customers placing orders and/or instructions have a unique investor identification number;
d. making and storing records and/or recordings of every order and/or every customer instruction in chronological order; e. recording all communications related to customer orders and/or instructions and conducted through communication networks connected to the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED)'s communication system; f. ensuring customers are informed about products and all risks contained therein in accordance with applicable regulations; and g. forwarding customer orders to the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED), in accordance with the Securities accounts used by customers at the Securities Broker (PPE), which is a Stock Exchange Member or a Physical Derivatives Exchange (PED).

(2) All records and/or recordings of every order and/or every customer instruction as referred to in paragraph (1) letters d and e must be stored for at least 10 (ten) years.

(3) In conducting their business, Level II Institutional Marketing Partners of Securities Brokers (PPE) must meet the requirements as referred to in Article 5 paragraph (3) through paragraph (8).

(4) In case Level II Institutional Marketing Partners of Securities Brokers (PPE) use electronic systems to submit customer orders to Stock Exchange Members for forwarding to the Stock Exchange, the forwarding system must comply with direct order submission regulations as regulated by Stock Exchange regulations regarding approval for direct order facilities and/or application of automatic orders by Stock Exchange Members.

(5) The implementation of electronic systems by Level II Institutional Marketing Partners of Securities Brokers (PPE) as referred to in paragraph (4) must meet the provisions:
a. having human resources with competence in the field of information technology; b. conducting periodic capacity testing;
c. assessing the performance and weaknesses of the technology used;
d. having backup systems to overcome system failures; e. having procedures to overcome system problems; f. notifying the unit executing and providing substitute systems if online communication systems experience delays or malfunction; g. building and installing systems that can help detect and prevent unauthorized access; h. applying continuous supervision and crisis management procedures;
i. applying systems that can ensure data integrity whether stored, sent, or displayed on customer screens;
j. conducting regular security testing of information technology systems, either self-conducted or by third parties; k. using encryption, authentication, and non-repudiation techniques such as obtaining digital certificates from authorized certificate issuers;
l. keeping systems free from system disturbances such as computer viruses and/or other malicious software;
m. appointing professional information technology auditors to audit information technology systems whenever there are material changes in software or hardware; n. maintaining databases and applications that can be used to reconstruct financial transactions; o. maintaining records related to systems in case of problems; p. having systems used to handle customer complaints related to information technology infrastructure; and q. conducting education regarding the use of information technology systems used by Securities Brokers (PPE) to customers.

Third Section
Prohibitions for Marketing Partners of Securities Brokers (PPE)

Article 21
Individual Marketing Partners of Securities Brokers (PPE) are prohibited from:
a. facilitating the filling out of customer Securities accounts and/or fund accounts forms; b. receiving orders from customers or forwarding customer transactions;
c. collecting receipts from customers and sharing commissions with customers;
d. providing incorrect explanations and exaggerated statements regarding investments in the Capital Market; e. ensuring and promising investment results; f. suggesting transactions; g. making negative statements about specific Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED); h. providing recommendations on specific Securities to prospective customers for profit;
i. promising commission discounts to prospective customers;
j. acting as Marketing Partners of Securities Brokers (PPE) for more than 1 (one) Securities Broker (PPE) that is a Stock Exchange Member or a Physical Derivatives Exchange (PED); k. leaking and/or misusing customer data and orders for the benefit of themselves or others;
l. working at Securities Companies and financial services business actors, except as agents for other financial products; and
m. receiving powers of attorney to conduct transactions from customers.

Article 22
Level I Institutional Marketing Partners of Securities Brokers (PPE) and their employees are prohibited from:
a. collecting receipts from customers and sharing commissions with customers; b. providing incorrect explanations and exaggerated statements regarding investments in the Capital Market;
c. ensuring and promising investment results;
d. making negative statements about specific Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED); e. providing recommendations on specific Securities to prospective customers for profit; f. suggesting transactions; g. promising commission discounts to prospective customers; h. receiving orders from customers or forwarding customer transactions;
i. leaking and/or misusing customer data and orders for the benefit of themselves or others; and
j. receiving powers of attorney to conduct transactions from customers.

Article 23
Level II Institutional Marketing Partners of Securities Brokers (PPE) and their employees are prohibited from:
a. collecting receipts from customers and sharing commissions with customers; b. providing incorrect explanations and exaggerated statements regarding investments in the Capital Market;
c. ensuring and promising investment results;
d. making negative statements about specific Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED); e. providing recommendations on specific Securities to prospective customers for profit; f. promising commission discounts to prospective customers; g. recommending customers to open Securities accounts with only 1 (one) partner Securities Broker (PPE) that is a Stock Exchange Member or a Physical Derivatives Exchange (PED); h. storing and using customer data for purposes other than activities permitted as Level II Institutional Marketing Partners of Securities Brokers (PPE);
i. leaking and/or misusing customer data and orders for the benefit of themselves or others;
j. suggesting transactions; k. receiving powers of attorney to conduct transactions from customers; and
l. receiving or sending Securities and/or funds related to customer Securities accounts at Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED).

CHAPTER VI
REPORT SUBMISSION

First Section
Reports for Institutional Marketing Partners of Securities Brokers (PPE)

Article 24
(1) Institutional Marketing Partners of Securities Brokers (PPE) are required to submit incidental reports to the Financial Services Authority (OJK) electronically through the Financial Services Authority (OJK) reporting system.

(2) Incidental reports as referred to in paragraph (1) must be reported to the Financial Services Authority (OJK) within a maximum of 7 (seven) working days since formal changes occur or since the Marketing Partner of a Securities Broker (PPE) activities commence.

(3) Incidental reports as referred to in paragraph (1) and paragraph (2) are conducted in case of changes in supporting data as referred to in Article 6 paragraph (2).

Article 25
Institutional Marketing Partners of Securities Brokers (PPE) intending to open offices in other locations must report this information to the Financial Services Authority (OJK) within a maximum of 7 (seven) working days before the other location office begins operations.

Article 26
In case the electronic reporting system as referred to in Article 24 paragraph (1) and Article 25 is not yet available, incidental reports are submitted to the Financial Services Authority (OJK) in printed document form according to the format of Incidental Reports for Institutional Marketing Partners of Securities Brokers (PPE) contained in the Appendix, which is an integral part of this Financial Services Authority (OJK) Regulation.

Second Section
Reports by Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED)

Article 27
(1) Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED) are required to report every addition and termination of cooperation with Marketing Partners of Securities Brokers (PPE) to the Financial Services Authority (OJK).

(2) Reports of every addition and termination of cooperation as referred to in paragraph (1) must be submitted to the Financial Services Authority (OJK) within a maximum of 7 (seven) working days since the addition and termination of cooperation.

(3) Securities Brokers (PPE) that are Stock Exchange Members or Physical Derivatives Exchanges (PED) are required to report the progress of partnership activities with Marketing Partners of Securities Brokers (PPE) according to the format of Progress Reports on Marketing Partner of a Securities Broker (PPE) Activities contained in the Appendix, which is an integral part of this Financial Services Authority (OJK) Regulation.

(4) Progress reports on Marketing Partner of a Securities Broker (PPE) activities as referred to in paragraph (3) must be submitted to the Financial Services Authority (OJK) quarterly for the positions of March, June, September, and December, no later than the 12th (twelfth) working day after the end of the reporting month.

Article 28
In case the Financial Services Authority (OJK) has provided the Marketing Partner of a Securities Broker (PPE) electronic reporting system, reports as referred to in Article 27 must be submitted through the aforementioned electronic system.

CHAPTER VII
TERMINATION OF PARTNERSHIP ACTIVITIES

First Section
Termination of Individual Marketing Partners of Securities Brokers (PPE) Activities

Article 29
Individual Marketing Partners of Securities Brokers (PPE) activities end automatically if the individual license from the Financial Services Authority (OJK) in the form of licenses as Investment Advisors, Deputy Underwriters of Securities Issues, Deputy Investment Managers, Deputy Securities Brokers, Deputy Marketing Securities Brokers, Deputy Agents for Mutual Fund Securities Sales, and/or Deputy Limited Marketing Securities Brokers held are no longer valid or if the PPE partnership agreement ends.

Part Two

Cancellation or Return of Registration Certificates

Article 30
The registration certificate of an Institutional Marketing Partner of a Securities Intermediary Broker may be cancelled by the Financial Services Authority based on:
a. the registration certificate as an Institutional Marketing Partner of a Securities Intermediary Broker is returned to the Financial Services Authority; b. violation of provisions of legislation in the Capital Market sector;
c. the business license of the party conducting activities as an Institutional Marketing Partner of a Securities Intermediary Broker is revoked by the competent authority; or
d. the legal entity of the party conducting activities as an Institutional Marketing Partner of a Securities Intermediary Broker becomes bankrupt or dissolves.

Article 31
(1) A Level I Institutional Marketing Partner of a Securities Intermediary Broker or a Level II Institutional Marketing Partner of a Securities Intermediary Broker that intends to return its registration certificate to the Financial Services Authority must:
a. announce the plan to return the registration certificate along with the mechanism for settling all rights and obligations of the Institutional Marketing Partner of a Securities Intermediary Broker to customers, at least in 1 (one) daily newspaper in Indonesian with national circulation and on the website of the Institutional Marketing Partner of a Securities Intermediary Broker, if the Institutional Marketing Partner of a Securities Intermediary Broker has a website; b. settle the rights and obligations of the Institutional Marketing Partner of a Securities Intermediary Broker to customers; and
c. settle all financial obligations to the Financial Services Authority.

(2) The return of the registration certificate as referred to in paragraph (1) must be submitted in writing by the Level I Institutional Marketing Partner of a Securities Intermediary Broker or Level II Institutional Marketing Partner of a Securities Intermediary Broker to the Financial Services Authority accompanied by documents, data, and information:
a. information regarding the reason for the return of the registration certificate; b. the registration certificate from the Financial Services Authority that is being returned; and
c. proof of announcement regarding the return of the registration certificate on the website of the Institutional Marketing Partner of a Securities Intermediary Broker containing at least:

information regarding closure; and
the follow-up mechanism for the implementation of customer transactions until completion at the Securities Intermediary Broker that is a Stock Exchange Member and the Securities Exchange Dealer that is its partner.

CHAPTER VIII

ADMINISTRATIVE SANCTIONS

Article 32
(1) Any party that violates the provisions as referred to in Article 3 paragraph (2), Article 5 paragraph (2), paragraph (4), paragraph (5), paragraph (6), and paragraph (8), Article 6 paragraph (3), paragraph (4), paragraph (6), and paragraph (7), Article 11 paragraph (1), Article 12, Article 15, Article 16, Article 17, Article 18, Article 19, Article 20, Article 21, Article 22, Article 23, Article 24 paragraph (1) and paragraph (2), Article 25, Article 27, Article 28, and Article 31, shall be subject to administrative sanctions.

(2) Sanctions as referred to in paragraph (1) shall also be imposed on parties that cause the occurrence of violations as referred to in paragraph (1).

(3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority.

(4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration.

(5) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a.

(6) Administrative sanctions in the form of a fine as referred to in paragraph (4) letter b may be imposed alone or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, or g.

(7) The procedure for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with provisions of legislation.

Article 33
In addition to administrative sanctions as referred to in Article 32 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 34
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 32 paragraph (1) and specific actions as referred to in Article 33 to the public.

CHAPTER IX

TRANSITIONAL PROVISIONS

Article 35
(1) Parties that have been registered as Institutional Securities Intermediary Brokers may automatically act as Level I Institutional Marketing Partners of Securities Intermediary Brokers by meeting the requirements as regulated in Article 5 paragraph (1), paragraph (2), paragraph (6), paragraph (7), and paragraph (8).

(2) Parties as referred to in paragraph (1) must adjust to the provisions in this Financial Services Authority Regulation for a maximum period of 1 (one) year from the date this Financial Services Authority Regulation is promulgated.

(3) Parties as referred to in paragraph (1) must submit a report on the adjustments made as referred to in paragraph (2), using the form contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents of changes that have been made.

(4) In the event that within the time period as referred to in paragraph (2) the Institutional Securities Intermediary Broker does not make adjustments to the provisions in this Financial Services Authority Regulation and has not submitted a report to the Financial Services Authority regarding the adjustments made, the Financial Services Authority shall cancel the registration certificate of the Institutional Securities Intermediary Broker.

CHAPTER X

CLOSING PROVISIONS

Article 36
At the time this Financial Services Authority Regulation comes into force:
a. The Decision of the Head of the Capital Market Supervisory Board Number Kep-28/PM/2000 dated June 30, 2000 concerning Guidelines for Agreements between Stock Exchange Member Securities Company Agents and its Appendix Regulation Number V.D.9; and b. Financial Services Authority Regulation Number 24/POJK.04/2016 concerning Securities Intermediary Brokers (State Gazette of the Republic of Indonesia Year 2016 Number 127, Supplement to the State Gazette of the Republic of Indonesia Number 5896), are revoked and declared invalid.

Article 37
This Financial Services Authority Regulation comes into force on the date of its promulgation.

This copy is in accordance with the original.
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on November 25, 2021

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on November 25, 2021

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2021 NUMBER 259

EXPLANATION

OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 21 /POJK.04/2021
CONCERNING
MARKETING PARTNERS OF SECURITIES INTERMEDIARY BROKERS

I. GENERAL

In an effort to increase the number of Indonesian capital market investors and utilize market potential, regulations are needed to support the improvement of existing agency quality and the development of other strategies so that they can facilitate Securities Companies conducting business activities as Securities Intermediary Brokers (PPE) in optimizing their marketing functions. One of them is the development of institutions that can cooperate with PPE.

Current practices and regulations regarding agency cooperation in the capital market are cooperation between Non-Stock Exchange Member PPE and Stock Exchange Member PPE. This cooperation has been regulated in Regulation Number V.D.9 appendix of the Decision of the Head of the Capital Market Supervisory Board Number Kep-28/PM/2000 dated June 30, 2000 concerning Guidelines for Agreements between Stock Exchange Member Securities Company Agents.

In addition, there has been cooperation practice between Securities Intermediary Brokers (APPE) and Stock Exchange Member PPE as regulated in Financial Services Authority Regulation Number 24/POJK.04/2016 concerning Securities Intermediary Brokers. This regulation opens up opportunities for other parties consisting of individuals who have licenses as Individual Securities Intermediary Broker Representatives, Marketing Securities Intermediary Broker Representatives, Limited Marketing Securities Intermediary Broker Representatives to become Individual APPE, as well as legal entities that are financial service business actors such as Commercial Banks, Rural Banks, Investment Advisors, Custodian Banks, Pension Funds, Insurance Companies, Reinsurance Companies, Financing Institutions, Pawn Companies, and Guarantee Companies to become Institutional APPE to cooperate with PPE in conducting offering activities to the public to become PPE customers.

Considering the development of product and service innovations, as well as the utilization of technology in the financial services sector, a dynamic and technology-based financial system has been created. The financial industry is increasingly required to be able to innovate in providing services, including through the more efficient use of technology as an effort to ensure its sustainability. The presence of financial service providers such as financial technology (Fintech) shows an increasing public need for technology-based financial products and services. PPE as frontliners are expected to play an important role in the development of the capital market industry through the utilization of cooperation with financial technology organizers and increased synergy with other financial service sector institutions. With these considerations, changes are needed to Financial Services Authority Regulation Number 24/POJK.04/2016 concerning Securities Intermediary Brokers.

In this regulation, Stock Exchange Member PPE and Securities Exchange Dealers (PED) in conducting marketing activities can cooperate with other parties, namely Marketing Partners of PPE. Marketing Partners of PPE can be individuals (Individual Marketing Partners of PPE) consisting of individuals who have licenses as Individual Investment Advisors, Underwriting Securities Representative Representatives, Investment Manager Representatives, Securities Intermediary Broker Representatives, Marketing Securities Intermediary Broker Representatives, Mutual Fund Sales Agent Representatives, and Limited Marketing Securities Intermediary Broker Representatives. In addition, Marketing Partners of PPE can be institutional (Level I Institutional Marketing Partners of PPE and Level II Institutional Marketing Partners of PPE) which are legal entities such as Commercial Banks, Rural Banks, Insurance Companies, Financing Institutions, Pawn Companies, Guarantee Companies, Securities Companies specifically for Mutual Fund Marketing, Corporate Investment Advisors, Crowdfunding Service Organizers, and Technology-Based Information Money Lending Service Organizers.

This regulation expands the scope of cooperation activities from previously only being able to refer prospective customers to PPE to become PPE customers, expanded to being able to offer to prospective customers as customers of PPE who are Stock Exchange Members or PED, facilitate the filling out of customer Securities Account and/or customer Fund Account forms, conduct due diligence (Customer Due Diligence), help market Securities on behalf of PPE who are Stock Exchange Members or PED, receive customer orders and forward transactions to PPE who are Stock Exchange Members or PED.

In line with the expansion of the scope of cooperation activities, standards are also regulated regarding consumer protection aspects, operational infrastructure provision, providing access for regulators for supervisory purposes, conduct of business and business ethics provisions that must be implemented jointly between PPE and Marketing Partners of PPE when conducting marketing cooperation activities.

Considering the above, it is necessary to regulate Marketing Partners of PPE through the issuance of a Financial Services Authority Regulation concerning Marketing Partners of Securities Intermediary Brokers.

II. ARTICLE BY ARTICLE

Article 1
Clearly sufficient.

Article 2
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.

Paragraph (5)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.
Letter k
What is meant by "other party" is a party that has a wide marketing network, such as e-commerce and digital financial innovation organizers.

Paragraph (6)
Letter a
Clearly sufficient.
Letter b
What is meant by "provisions of legislation" includes among others sectoral provisions of legislation of the party concerned, for example for Commercial Banks, the provisions of legislation in the banking sector. Letter c Clearly sufficient.

Article 3
Clearly sufficient.

Article 4
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
What is meant by "facilitating the filling out of forms" is providing physical or electronic forms for opening Securities Accounts and/or customer Fund Accounts to be filled out by prospective customers and forwarded to the Securities Company. Letter c Due diligence is also known as customer due diligence (CDD).

Paragraph (3)
Letter a
Clearly sufficient.
Letter b
What is meant by "marketing Securities on behalf of PPE who are Stock Exchange Members or PED" includes among others:

acting as a sales agent in the primary market for Debt Securities; and
providing information on Securities that can be traded through the PPE that is its partner.
Letter c
Clearly sufficient.

Article 5
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
What is meant by "board member" is a board member for a limited liability company legal entity or equivalent to board members in legal entities other than limited liability companies. Letter d Clearly sufficient. Letter e Clearly sufficient. Letter f Implementing regulations of Financial Services Authority regulations regarding internal control of Securities Companies conducting business activities as PPE are Financial Services Authority Circular Letters concerning Guidelines for Opening Customer Securities Accounts and Customer Fund Accounts Electronically Through Securities Companies Conducting Business Activities as PPE. For the opening of customer fund accounts, it also meets among others the implementation provisions for opening customer fund accounts as referred to in Financial Services Authority Regulations concerning the Provision of Digital Banking Services by Commercial Banks.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Letter a
Clearly sufficient.
Letter b
Marketing functions can be carried out by:
a. the unit handling Institutional Marketing Partner of PPE activities, which among others is responsible for conducting offering activities to become customers, opening customer accounts, offering Securities Company products, and forwarding transactions; or b. the unit handling marketing functions at the home institution, provided there are clear limitations in the implementation of its duties. For example, if the Institutional Marketing Partner of Securities Intermediary Brokers is a Mutual Fund Sales Agent that already has marketing functions, then those marketing functions can be responsible for the marketing functions of the Marketing Partner of PPE. Letter c Clearly sufficient. Letter d What is meant by "board member" is a board member for a limited liability company legal entity or equivalent to board members in legal entities other than limited liability companies. Letter e Clearly sufficient. Letter f Clearly sufficient. Letter g Clearly sufficient. Letter h Implementing regulations of Financial Services Authority regulations regarding internal control of Securities Companies conducting business activities as PPE are Financial Services Authority Circular Letters concerning Guidelines for Opening Customer Securities Accounts and Customer Fund Accounts Electronically Through Securities Companies Conducting Business Activities as PPE. For the opening of customer fund accounts, it also meets among others the implementation provisions for opening customer fund accounts as referred to in Financial Services Authority Regulations concerning the Provision of Digital Banking Services by Commercial Banks.

Letter i
This system is intended for system connection to PPE but not always in the context of connection to the exchange system, for example for account opening.
An example of this system is the connection of Level II Institutional Marketing Partner of PPE to PPE that organizes a single dealer system for fixed income transactions.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Letter a
What is meant by "conflict of interest" is the difference in economic interests between the Marketing Partner of PPE and the personal economic interests of Board Members, Commissioners, employees/staff, and/or related parties with the Marketing Partner of PPE. An example of granting authority and responsibility that can avoid the emergence of conflicts of interest is that Board Members, Commissioners, employees/staff, and/or related parties with the Marketing Partner of PPE are prohibited from receiving priority over other customers. Letter b Standard operating procedures for internal control can be 1 (one) part of the standard operating procedures for the implementation of Level II Institutional Marketing Partner of PPE activities. Letter c Clearly sufficient.

Paragraph (7)
Clearly sufficient.

Paragraph (8)
Clearly sufficient.

Article 6
Clearly sufficient.

Article 7
Clearly sufficient.

Article 8
Clearly sufficient.

Article 9
Clearly sufficient.

Article 10
Clearly sufficient.

Article 11
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Criteria for Institutional Marketing Partners of PPE that do not conduct activities for a period of 1 (one) consecutive year include among others not having a cooperation contract with PPE who are Stock Exchange Members or PED for 1 (one) consecutive year.

Article 12
Clearly sufficient.

Article 13
Clearly sufficient.

Article 14
Clearly sufficient.

Article 15
Clearly sufficient.

Article 16
Letter a
Product disclosure statement summary is also known as product disclosure statement.
What is meant by "marketing materials for product disclosure statement summary in accordance with Financial Services Authority regulations concerning consumer protection in the financial services sector" includes among others marketing materials containing information regarding products and/or services that are accurate, honest, clear, and not misleading. Letter b Clearly sufficient. Letter c Number 1 Obligations as referred to are stated in the Securities Account opening contract signed by the customer. Number 2 Clearly sufficient. Number 3 Clearly sufficient. Number 4 Clearly sufficient. Letter d Clearly sufficient. Letter e Clearly sufficient.

Article 17
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.

Paragraph (2)
Letter a
Number 1
Clearly sufficient.
Number 2
Online/electronic stock trading is also known as online trading.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.

Article 18
Clearly sufficient.

Article 19
Paragraph (1)
Letter a
The Limited Marketing Securities Intermediary Broker Representative license can be replaced with a higher license, among others Individual Underwriting Securities Representative Representative, Investment Manager Representative, Securities Intermediary Broker Representative, Marketing Securities Intermediary Broker Representative, and/or Mutual Fund Sales Agent Representative. Letter b Clearly sufficient. Letter c Clearly sufficient.

Paragraph (2)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Data exchange is also known as sharing data.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Article 20
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Single investor identification is also known as single investor identification.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Automated ordering is also known as automated ordering.
An example of this system is a system connected to the single dealer system of a Securities Company conducting activities as a Stock Exchange Member PPE.

Paragraph (5)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Backup system is also known as backup system.
Letter e
Clearly sufficient.
Letter f
Online communication system is also known as online.
Letter g
Installing a system is also known as install.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.
Letter k
Encryption is also known as encryption.
Authentication is also known as authentication.
Non-repudiation techniques are also known as non-repudiation techniques.
Letter l
Malicious software is also known as malicious software/malware.
Letter m
Professional IT auditors are also known as professional IT auditors.
Letter n
Database is also known as database.
Letter o
Clearly sufficient.
Letter p
Clearly sufficient.
Letter q
Clearly sufficient.

Article 21
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Examples of exaggerated expressions related to Capital Market investments include making statements such as:

investing in the Capital Market has no investment risk; and
investing in the Capital Market will generate large profits in a short time.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.
Letter k
Clearly sufficient.
Letter l
An individual who has become a marketing partner of Securities Company A can be an independent insurance agent.
Letter m
What is meant by "receiving power of attorney to conduct transactions from customers" is the Marketing Partner of PPE receiving power of attorney from customers to conduct buy and/or sell Securities transaction activities for the benefit of customers.

Article 22
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
What is meant by "receiving power of attorney to conduct transactions from customers" is the Marketing Partner of PPE receiving power of attorney from customers to conduct buy and/or sell Securities transaction activities for the benefit of customers.

Article 23
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.
Letter k
What is meant by "receiving power of attorney to conduct transactions from customers" is the Level II Institutional Marketing Partner of PPE receiving power of attorney from customers to conduct buy and/or sell Securities transaction activities for the benefit of customers. Letter l Clearly sufficient.

Article 24
Paragraph (1)
Clearly sufficient.

Paragraph (2)
Examples of submitting reports within 7 (seven) working days since formal changes occur:
a. changes to standard operating procedures are reported after the implementation of the procedures is established; b. changes in management are reported after the Articles of Association and House Rules (AD/ART) are approved by the competent authority.

Paragraph (3)
Clearly sufficient.

Article 25
Clearly sufficient.

Article 26
Clearly sufficient.

Article 27
Clearly sufficient.

Article 28
Clearly sufficient.

Article 29
Clearly sufficient.

Article 30
Clearly sufficient.

Article 31
Paragraph (1)
Letter a
The daily newspaper in Indonesian with national circulation referred to can be in print or electronic form.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Article 32
Clearly sufficient.

Article 33
What is meant by "specific actions" includes among others restrictions on Marketing Partners of PPE from accepting new customers for a certain period determined by the Financial Services Authority.

Article 34
Clearly sufficient.

Article 35
Clearly sufficient.

Article 36
Clearly sufficient.

Article 37
Clearly sufficient.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6739

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 21/POJK.04/2021
REGARDING
MARKETING PARTNERS OF SECURITIES BROKERS
REGISTRATION APPLICATION
AS AN INSTITUTIONAL MARKETING PARTNER OF SECURITIES BROKER*)

Number : ..................................... ............., ...................20........
Attachment : ......................................
Subject : Registration Application
As a Marketing Partner of Securities Broker

To
The Executive Head of Capital Market Supervision Financial Services Authority

cc. Head of Department
of Capital Market Supervision 2A

I, the undersigned:

Name : ……………………………………………….........
Address : ………………………………………………........
………………………………………………........
(street name and number)
……………………………….........……-
(city and postal code)
Telephone Number : ……………………………………………….........

hereby on behalf of*):

Company Name : ……………………………………………….........
Company Address : ……………………………………………….........
……………………………………………….........
(street name and number)
……………………………….........……-
(city and postal code)
Company Telephone Number
: ……………………………………………….........
Tax Identification Number
: ……………………………………………….........
Business License Held
: ……………………………………………….........

submit an application for registration as a Level I/Level II*) Marketing Partner of Securities Broker. As consideration material and to complete the application, we hereby attach the following documents:

photocopy of the articles of incorporation approved by the competent authority, as well as the latest amendment to the articles of association;
photocopy of the Corporate Tax Identification Number;
photocopy of the business license;
data of the head office and a list of other locations that will conduct Marketing Partner of Securities Broker activities, containing office addresses and their responsible officials, as well as a list of employees conducting Marketing Partner of Securities Broker activities;
documents related to the name, data, and information of the responsible officials of the Marketing Partner of Securities Broker, including:
a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
c. photocopy of the Foreign Worker Employment Permit, for foreign citizens (if they are Foreign Workers);
d. photocopy of the Board of Directors' decision letter regarding the appointment or placement as responsible officials and employees conducting Marketing Partner of Securities Broker activities at the head office; e. photocopy of the individual license from the Financial Services Authority, at minimum as a Marketing Securities Broker Representative, in the name of the respective responsible official; and f. two (2) recent 4x6 cm color photographs with a red background;
employee documents conducting Marketing Partner of Securities Broker activities, including:
a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
c. photocopy of the Foreign Worker Employment Permit for foreign citizens (if they are Foreign Workers);
d. photocopy of the Board of Directors' decision letter regarding the appointment or placement as employees conducting Marketing Partner of Securities Broker activities at the head office and other locations; and e. photocopy of the individual license from the Financial Services Authority, at minimum as a Limited Marketing Securities Broker Representative, in the name of the respective individual;
organizational structure showing the line of responsibility from each function to the responsible official or Board member responsible for the implementation of Marketing Partner of Securities Broker activities, along with their job descriptions;)
standard operating procedure documents for the implementation of Marketing Partner of Securities Broker activities; )
photocopy of the institutional Marketing Partner of Securities Broker cooperation contract with a Securities Broker that is a Stock Exchange Member or a Securities Trading Exchange;)
projection of the planned Marketing Partner of Securities Broker activities for at least 1 (one) year ahead;)
assessment results of the order routing system by a professional information technology auditor, in the event that an Institutional Level II Marketing Partner of Securities Broker will use an electronic system to submit orders to a Securities Broker; )
or
assessment results or approval from the Stock Exchange regarding direct order facilities and/or the application of automated ordering by Stock Exchange Members, in the event that an Institutional Level II Marketing Partner of Securities Broker will use an electronic system to submit customer orders to a Stock Exchange Member Securities Broker. )

This application is submitted, thank you for your attention, Sir/Madam.

*) strike out one
) complete according to the level of Marketing Partner applied for

.........., ......................20........
(place and date)
.............................................
(clear name and signature)

Note:
*) the competent party representing the Marketing Partner of Securities Broker or their proxy

LIST OF OTHER LOCATIONS OF MARKETING PARTNERS OF SECURITIES BROKERS

No. Office Name (Other Offices
Besides Head Office and/or Other Locations)
Full Address
(Telephone Number and
Facsimile)
Responsible
Official
List of Marketing Partners of
Securities Broker Representatives
Number and Date of Letter
Decision of Securities Broker Representative

.........., ......................20........
(place and date)
.............................................
(clear name and signature)

REPORT ON THE DEVELOPMENT OF ACTIVITIES CONDUCTED BY MARKETING PARTNERS OF SECURITIES BROKERS PT .......... SECURITIES
PERIOD ......................

No. Name of Marketing Partner of
Securities Broker
(A)*
Contract
Number
(B)
Contract
Date
(C)
Effective
Date
(D)
Number of prospective clients proposed
(E)
Number of prospective clients approved to become clients (F) Transaction Value (G)

*) Column A-F is filled for all types of Marketing Partners of Securities Broker, including Individual Marketing Partners of Securities Broker ) Column G is filled only for Institutional Level II Marketing Partners of Securities Broker.

.........., ......................20........
(place and date)
.............................................
(clear name and signature)

INCIDENTAL REPORT FORMAT
INSTITUTIONAL MARKETING PARTNERS OF SECURITIES BROKERS

Number : ..................................... ............., ...................20........
Attachment : ......................................
Subject : Submission of Incidental Report

To
The Executive Head of Capital Market Supervision Financial Services Authority

cc. Head of Department
of Capital Market Supervision 2A in Jakarta

Based on Article 24 of the Financial Services Authority Regulation Number /POJK.04/20xx regarding Marketing Partners of Securities Brokers, we hereby:

Company Name : ……………………………………………….........
Registered Number : ……………………………………………….........

submit an incidental report containing:

No.
Data and Supporting Information Changes
Institutional
Explanation
(if necessary)
Date
Formal
Supporting
Documents/
Attachment
1 Change of articles of incorporation
.............
Photocopy of articles of incorporation along with the latest changes (valid since ...)
2 Change of responsible official of Marketing Partner of Securities Broker Replacement of responsible official of Marketing Partner of Securities Broker
.............
Organizational Chart and letter of decision for replacement of responsible official of Marketing Partner of Securities Broker 3 Change of Information on List of Other Locations*)
.............
.............
.............
4 .............
.............
.............
.............

*) Change of Information on List of Other Locations Marketing Partner of Securities Broker

No. Office Name
(Other Offices
Besides Head Office and/or Other Locations)
Full Address
(Telephone
Number and
Facsimile)
Responsible
Official
List of Marketing
Partners of
Securities Broker
Representatives
Number and
Date of Letter
Decision of Securities
Broker Representative

In connection with the submission of the report, we can state that this report is made correctly and can be accounted for. If later it is found that there are things that do not correspond to reality, all legal consequences arising become our full responsibility.

This submission letter is made in a conscious state and without coercion from any party to be used as appropriate.

.........., ......................20........
(place and date)
.............................................
(clear name, signature, and company seal)

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

Established in Jakarta on 25 November 2021

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Financial Services Authority Regulation Number 21/POJK.04/2021 Concerning Marketing Partners of Securities Broker Intermediaries

FINANCIAL SERVICES AUTHORITY

REPUBLIC OF INDONESIA

COPY

FINANCIAL SERVICES AUTHORITY REGULATION

OF THE REPUBLIC OF INDONESIA

NUMBER 21 / POJK.04 / 2021

CONCERNING

MARKETING PARTNERS OF SECURITIES BROKER INTERMEDIARIES

CHAPTER I

GENERAL PROVISIONS

Article 1

CHAPTER II

SCOPE AND REQUIREMENTS FOR MARKETING PARTNERS OF PPE

Part One

Scope

Article 2

Article 3

Article 4

Part Two

Requirements

Article 5

CHAPTER III

PROCEDURES FOR REGISTRATION OF INSTITUTIONAL MARKETING PARTNERS OF PPE

Article 6

Article 7

Article 8

Article 9

Part Two

Cancellation or Return of Registration Certificates

CHAPTER VIII

ADMINISTRATIVE SANCTIONS

CHAPTER IX

TRANSITIONAL PROVISIONS

CHAPTER X

CLOSING PROVISIONS

EXPLANATION

I. GENERAL

II. ARTICLE BY ARTICLE

Lineage: In force