FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 24 /POJK.04/2017

CONCERNING

REPORTS OF COMMERCIAL BANKS AS CUSTODIANS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authority for the regulation and supervision of financial services activities in the capital market sector, including regulations regarding reports of commercial banks as custodians, have shifted from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that to provide clarity and certainty regarding regulations on reports of commercial banks as custodians, existing legislation in the capital market sector concerning reports of commercial banks as custodians issued prior to the establishment of the Financial Services Authority needs to be converted into a Financial Services Authority Regulation;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Reports of Commercial Banks as Custodians;

THE FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

Recalling: 1. 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);
2. 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 REPORTS OF COMMERCIAL BANKS AS CUSTODIANS.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Financial Services Authority Regulation, the following terms are defined as:

1. Custodian is a party that provides safekeeping services for Securities and other assets related to Securities, as well as other services, including receiving dividends, interest, and other rights, settling Securities transactions, and representing account holders who are its clients.

2. Commercial Bank is a bank that conducts business activities on a conventional basis and/or based on Sharia principles, which in its activities provides services in the payment circulation.

3. Custodian Bank is a Commercial Bank that has obtained approval from the Financial Services Authority to conduct business activities as a Custodian.

4. Public Accountant is a person who has obtained a license to provide services as regulated in legislation concerning public accountants and is registered with the Financial Services Authority.

5. Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, units of participation in collective investment contracts, forward contracts on Securities, and any derivatives of Securities.

CHAPTER II

REPORTS

Article 2

Custodian Banks are required to submit activity reports to the Financial Services Authority in the form of printed documents in at least 2 (two) copies, accompanied by an electronic document copy that includes:
a. reports on monthly activities containing a recapitulation of Securities recorded during that period; and b. annual reports which are the results of operational audits by Public Accountants.

Article 3

(1) Reports as referred to in Article 2 letter a include the quantity, type of Securities, recording frequency, and other necessary information, which are prepared using the format of the Custodian Bank Activity Report as stated in the Appendix which is an integral part of this Financial Services Authority Regulation. (2) Reports as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 12 (twelve) days after the end of the monthly reporting period. (3) Reports as referred to in Article 2 letter b must be submitted to the Financial Services Authority at the latest 90 (ninety) days after the end of the annual reporting period.

(4) In the event that the submission deadline for reports as referred to in paragraph (2) and paragraph (3) falls on a holiday, the report submission must be made on the next working day.

Article 4

In the event that the Public Accountant provides an opinion that the program implemented is not in accordance with sufficiently safe procedures, the Financial Services Authority may summon the person in charge of the Custodian Bank or conduct an examination to obtain further information.

Article 5

In the event that a Custodian Bank intends to open a Custodian service branch, the Custodian Bank is required to report the opening of the said Custodian service branch to the Financial Services Authority before the said Custodian service branch operates.

CHAPTER III

SANCTION PROVISIONS

Article 6

(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties that cause the violation to occur, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction on business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.

(2) Administrative sanctions as referred to in paragraph (1) 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 (1) letter a.

(3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 7

In addition to administrative sanctions as referred to in Article 6 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 8

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 6 paragraph (1) and specific actions as referred to in Article 7 to the public.

CHAPTER IV

CLOSING PROVISIONS

Article 9

Upon the enactment of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-73/PM/1996 concerning Reports of Commercial Banks as Custodians, along with Regulation Number X.G.1 which is its appendix, is revoked and declared invalid.

Article 10

This Financial Services Authority Regulation takes effect on the date of its enactment.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Yuliana

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

Established in Jakarta on June 21, 2017

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Enacted in Jakarta on June 22, 2017

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

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 124

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 24 /POJK.04/2017

CONCERNING

REPORTS OF COMMERCIAL BANKS AS CUSTODIANS

I. GENERAL

That since December 31, 2012, the functions, duties, and authority for the regulation and supervision of financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have shifted from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In relation to the above, it is necessary to restructure existing regulations, particularly those related to the capital market sector, by converting Capital Market Supervisory Agency regulations related to the capital market sector into Financial Services Authority Regulations. This restructuring is carried out so that there are Financial Services Authority Regulations related to the capital market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned, it is necessary to replace the legislation in the capital market sector regulating reports of Commercial Banks as Custodians, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-73/PM/1996 concerning Reports of Commercial Banks as Custodians, along with Regulation Number X.G.1 which is its appendix, into a Financial Services Authority Regulation concerning Reports of Commercial Banks as Custodians.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
In practice, "electronic document copy" is known as a soft copy.
Electronic document copies can be submitted using among other digital media such as compact discs, flash drives, or others.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Clear enough.

Article 6
Clear enough.

Article 7
The term "specific actions" includes among other orders to resubmit reports that have been corrected in accordance with the results of the Financial Services Authority's examination.

Article 8
Clear enough.

Article 9
Clear enough.

Article 10
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6071

APPENDIX

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 24 /POJK.04/2017

CONCERNING

REPORTS OF COMMERCIAL BANKS AS CUSTODIANS

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

CUSTODIAN BANK ACTIVITY REPORT

1. SETTLEMENT OF CUSTODIAN BANK TRANSACTIONS
   Custodian Name : .........
   Month & Year : .........

Security No	SETTLEMENT OF PURCHASE TRANSACTIONS					SETTLEMENT OF SALE TRANSACTIONS
	Frequency	Volume (Million Units)	Value (Billion Rupiah)	Investor Status (%)	Timely Investor Confirmation	Frequency	Volume (Million Units)	Value (Billion Rupiah)	Investor Status (%)	Timely Investor Confirmation
I	A					I	A
.......... , ................20.......
PT ...........
...................
(Full Name & Position)

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Yuliana

2. VALUE OF ASSETS UNDER CUSTODY
   Custodian Name : .........
   Month & Year : .........

	IN RUPIAH
	SHARES	BONDS	MUTUAL FUNDS	OTHERS	TOTAL ASSETS UNDER CUSTODY
.......... , ................20.......
PT ...........
...................
(Full Name & Position)

Established in Jakarta on June 21, 2017

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD