Financial Services Authority Regulation Number 38/POJK.05/2015 Concerning Registration and Supervision of Actuaries, Public Accountants, and Valuers Conducting Activities in the Non-Bank Financial Industry

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 38 /POJK.05/2015
CONCERNING
REGISTRATION AND SUPERVISION OF ACTUARIES,
PUBLIC ACCOUNTANTS, AND VALUERS WHO CONDUCT ACTIVITIES IN THE NON-BANK FINANCIAL INDUSTRY BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to realize a healthy and stable Non-Bank Financial Industry and to protect the interests of consumers and the public, it is necessary to have professional actuaries, public accountants, and valuers; b. that in order to provide legal certainty and increase professionalism for actuaries, public accountants, and valuers in conducting activities in the Non-Bank Financial Industry, it is necessary to regulate the registration and supervision of actuaries, public accountants, and valuers who conduct activities in the Non-Bank Financial Industry;
c. that to implement the provisions of Article 55 paragraph (3) of Law Number 40 of 2014 concerning Insurance, it is necessary to regulate the requirements and procedures for the registration of actuaries, public accountants, and valuers;

COPY

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 the Registration and Supervision of Actuaries, Public Accountants, and Valuers who Conduct Activities in the Non-Bank Financial Industry;

Recalling: 1. 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);
2. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);

DECIDING:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING REGISTRATION AND SUPERVISION OF ACTUARIES, PUBLIC ACCOUNTANTS, AND VALUERS WHO CONDUCT ACTIVITIES IN THE NON-BANK FINANCIAL INDUSTRY.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are meant:

1. Non-Bank Financial Institution which is hereinafter abbreviated as NBFIs is an institution that conducts activities in the insurance, pension fund, financing institution, and other financial services institutions sectors as referred to in Law Number 21 of 2011 concerning the Financial Services Authority, including those that conduct all or part of their business based on Sharia principles.

2. Non-Bank Financial Industry which is hereinafter abbreviated as NBFI is a financial industry consisting of NBFIs.

3. Actuary is an actuary who works at an actuarial consulting firm and provides services in the NBFI sector.

4. Public Accountant is a public accountant as referred to in Law Number 5 of 2011 concerning Public Accountants and provides services in the NBFI sector.

5. Valuer is a person who, with their expertise, conducts asset valuation activities and provides services in the NBFI sector.

6. Financial Services Authority which is hereinafter abbreviated as OJK is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
SCOPE OF REGISTRATION
OF ACTUARIES, PUBLIC ACCOUNTANTS, AND VALUERS
Section One
Obligation to Register Actuaries, Public Accountants, and Valuers
Article 2
(1) To be able to provide services to NBFIs, Actuaries, Public Accountants, and Valuers must first be registered with OJK as service providers in the NBFI sector.
(2) The services as referred to in paragraph (1) are services that are required by statutory regulations in the NBFI sector or based on OJK recommendations in the supervision of NBFIs.

Article 3
NBFIs are prohibited from using required services as referred to in Article 2 paragraph (2) from Actuaries, Public Accountants, and Valuers who are not registered with OJK.

Section Two
Period of Service Provision
Article 4
(1) Actuaries are prohibited from providing required services as referred to in Article 2 paragraph (2) to the same NBFI for more than 3 (three) consecutive times.
(2) In the event that an Actuary has provided required services as referred to in Article 2 paragraph (2) to the same NBFI for 3 (three) consecutive times, the respective Actuary can only provide the required services again to the same NBFI after not providing the required services for 1 (one) time.

Article 5
(1) Public Accountants are prohibited from providing required services as referred to in Article 2 paragraph (2) to the same NBFI for more than 5 (five) consecutive fiscal years. (2) In the event that a Public Accountant has provided required services as referred to in Article 2 paragraph (2) to the same NBFI for 5 (five) consecutive fiscal years, the respective Public Accountant can only provide the required services again to the same NBFI after 2 (two) fiscal years.

Article 6
(1) Valuers are prohibited from providing required services as referred to in Article 2 paragraph (2) to the same NBFI for more than 3 (three) consecutive fiscal years.
(2) In the event that a Valuer has provided required services as referred to in Article 2 paragraph (2) to the same NBFI for 3 (three) consecutive fiscal years, the respective Valuer can only provide the required services again to the same NBFI after 3 (three) fiscal years.

CHAPTER III
REQUIREMENTS AND PROCEDURES FOR REGISTRATION
OF ACTUARIES, PUBLIC ACCOUNTANTS, AND VALUERS
Article 7
To be registered with OJK as referred to in Article 2 paragraph (1), Actuaries, Public Accountants, and Valuers must meet the following requirements:
a. have a practice permit from the Minister of Finance; b. have never committed disgraceful acts and/or been sentenced for proven criminal offenses in the financial sector and do not have bad credit;
c. have experience and competence in the NBFI sector; and
d. have never been subjected to the revocation of the registration certificate as an Actuary, Public Accountant, or Valuer by OJK.

Article 8
(1) Registration of Actuaries, Public Accountants, and Valuers is based on a registration application.
(2) The registration application as referred to in paragraph (1) is submitted by the respective party to OJK and accompanied by the following documents:
a. photocopy of the practice permit from the Minister of Finance; b. the latest signed curriculum vitae;
c. photocopy of the final formal education diploma;
d. photocopy of the tax identification number; e. photocopy of the certificate of training programs in the NBFI sector; f. a stamped letter of statement stating that the respective party has never committed disgraceful acts and/or been sentenced for proven criminal offenses in the financial sector and does not have bad credit; and g. registration application form. (3) In the event that a Public Accountant or Valuer is already registered with OJK other than in the NBFI sector, the registration application as referred to in paragraph (1) is submitted by the respective party to OJK and accompanied by the following documents:
a. photocopy of the registration certificate issued by OJK; b. a stamped letter of statement stating that the respective party has never committed disgraceful acts and/or been sentenced for proven criminal offenses in the financial sector and does not have bad credit;
c. photocopy of the certificate of training programs in the NBFI sector; and
d. registration application form.
(4) Registration as referred to in paragraph (1) can be done electronically.
(5) Further provisions regarding the format and procedures for registration applications as referred to in paragraph (1) are regulated in an OJK Circular.

Article 9
(1) OJK approves or rejects the registration application as referred to in Article 8 paragraph (1) within a maximum period of 20 (twenty) working days from the date the complete registration application is received. (2) In the event that the registration application as referred to in Article 8 paragraph (1) is incomplete, OJK issues a notification letter to the applicant stating that the registration application is incomplete within a maximum period of 20 (twenty) working days from the date the registration application is received. (3) Applicants who do not complete the required document deficiencies within 20 (twenty) working days after the date of the notification letter as referred to in paragraph (2) are deemed to have cancelled the registration application. (4) In the event that the registration application as referred to in Article 8 paragraph (1) is approved, OJK issues a registration certificate to the applicant. (5) In the event that after 20 (twenty) working days from the date the registration application is received, OJK has not issued the notification letter as referred to in paragraph (2) or the registration certificate as referred to in paragraph (4), Actuaries, Public Accountants, or Valuers can provide services to NBFIs. (6) In the event that after an Actuary, Public Accountant, or Valuer provides services to NBFIs as referred to in paragraph (5) it is found that there are deficiencies or inconsistencies in the required documents as referred to in Article 8 paragraph (2), OJK issues a notification letter as referred to in paragraph (2) accompanied by a prohibition for the Actuary, Public Accountant, or Valuer to provide services to NBFIs.

(7) OJK announces Actuaries, Public Accountants, or Valuers who have registration certificates as referred to in paragraph (4) through the OJK website.

CHAPTER IV
OBLIGATIONS OF ACTUARIES,
PUBLIC ACCOUNTANTS, AND VALUERS
Article 10
(1) Every Actuary, Public Accountant, and Valuer who has a registration certificate as referred to in Article 9 paragraph (4) is obligated to:
a. behave independently, objectively, and professionally in providing their services; b. become a member of a professional association recognized by the Minister of Finance;
c. comply with professional standards and codes of ethics established by the professional association recognized by the Minister of Finance;
d. comply with statutory regulations in the NBFI sector; e. submit reports to OJK according to the report submission deadlines; f. participate in continuing education programs; and g. submit information regarding violations committed by NBFIs against applicable statutory regulations in the financial services sector and/or at OJK, as well as conditions or estimated conditions that can endanger the continuity of the NBFIs' business or the stakeholders. (2) The obligation to behave independently as referred to in paragraph (1) letter a is fulfilled at least by meeting the following conditions:
a. do not have material financial interests with NBFIs; b. do not have employment relationships with NBFIs;
c. do not have family relationships due to marriage and descent up to the second degree, both horizontally and vertically, with the Board of Directors and/or Board of Commissioners or equivalents at NBFIs;
d. do not have material business relationships with NBFIs, key employees of NBFIs, or controlling shareholders of NBFIs or equivalents; e. do not have legal disputes with NBFIs; and f. do not have other matters that can cause conflicts of interest between NBFIs and Actuaries, Public Accountants, or Valuers. (3) Reports as referred to in paragraph (1) letter e consist of:
a. reports on participation in continuing education programs; b. reports on changes in data and information of Actuaries, Public Accountants, or Valuers; and
c. reports regarding violations of applicable statutory regulations in the financial services sector and/or at OJK committed by NBFIs, as well as conditions or estimated conditions that can endanger the continuity of the NBFIs' business or the stakeholders as referred to in paragraph (1) letter g.
(4) Further provisions regarding the submission of reports as referred to in paragraph (1) letter e and continuing education programs as referred to in paragraph (1) letter f are regulated in an OJK Circular.

CHAPTER V
SUSPENSION OF SERVICE PROVISION, RESIGNATION,
AND INACTIVATION OF REGISTRATION CERTIFICATES
OF ACTUARIES, PUBLIC ACCOUNTANTS, AND VALUERS
Section One
Suspension of Service Provision for a Temporary Period upon Own Request
Article 11
(1) Actuaries, Public Accountants, or Valuers can submit an application for approval of suspension of service provision for a temporary period upon their own request to OJK.
(2) The application for approval of suspension of service provision for a temporary period as referred to in paragraph (1) is submitted by the respective Actuary, Public Accountant, or Valuer in writing to OJK by attaching:
a. reasons for suspension of service provision for a temporary period upon own request; b. a stamped letter of statement stating that the respective party is not currently in a contract with NBFIs; and
c. a form for suspension of service provision for a temporary period upon own request.
(3) OJK issues approval for suspension of service provision for a temporary period as referred to in paragraph (1) after Actuaries, Public Accountants, and Valuers submit applications as referred to in paragraph (2) within a maximum period of 20 (twenty) working days from the date the application is received completely.

(4) Further provisions regarding the format and procedures for applications for approval of suspension of service provision for a temporary period as referred to in paragraph (1) are regulated in an OJK Circular.

Article 12
Approval for suspension of service provision for a temporary period as referred to in Article 11 paragraph (1) is given for a minimum period of 1 (one) year.

Article 13
(1) The registration certificate of an Actuary, Public Accountant, or Valuer is declared inactive for a temporary period by OJK in the event:
a. the respective party has received a letter of approval for suspension of service provision for a temporary period as referred to in Article 11 paragraph (3); b. the respective party has approval for suspension of service provision for a temporary period issued by the Minister of Finance; or
c. the respective party has not renewed their practice permit from the Minister of Finance in the event the permit validity period has expired.
(2) Actuaries, Public Accountants, or Valuers are exempted from the obligations as referred to in Article 10 paragraph (1) during the period when the registration certificate in their name is declared inactive for a temporary period by OJK.

Article 14
(1) Actuaries, Public Accountants, or Valuers who will end the period of suspension of service provision for a temporary period as referred to in Article 11 paragraph (1) must first obtain reactivation of their registration certificate. (2) To obtain reactivation of the registration certificate as referred to in paragraph (1), Actuaries, Public Accountants, and Valuers must notify OJK by submitting:
a. an application for reactivation of the registration certificate; and b. proof of participation in continuing education programs attended for a maximum of 1 (one) year before the submission of the application for reactivation of the registration certificate. (3) OJK reactivates the registration certificate of an Actuary, Public Accountant, or Valuer by issuing a notification letter to the Actuary, Public Accountant, or Valuer within a maximum period of 20 (twenty) working days from the date the application for reactivation of the registration certificate as referred to in paragraph (2) letter a is received completely. (4) OJK has the authority to revoke the registration certificate of an Actuary, Public Accountant, or Valuer who does not submit an application for reactivation of the registration certificate as referred to in paragraph (1) until the end of the period of suspension of service provision for a temporary period as referred to in Article 11 paragraph (1). (5) Further provisions regarding the format and procedures for applications for reactivation of the registration certificate as referred to in paragraph (2) are regulated in an OJK Circular.

Article 15
(1) In the event that an Actuary, Public Accountant, or Valuer ends the period of suspension of service provision for a temporary period as referred to in Article 13 paragraph (1) letter b because they have a reactivation letter issued by the Minister of Finance, OJK issues a letter stating the reactivation of the registration certificate of the respective Actuary, Public Accountant, or Valuer. (2) In the event that an Actuary, Public Accountant, or Valuer ends the period of suspension of service provision for a temporary period as referred to in Article 13 paragraph (1) letter c because they have renewed their practice permit from the Minister of Finance, OJK issues a letter stating the reactivation of the registration certificate of the respective Actuary, Public Accountant, or Valuer.

Section Two
Resignation upon Own Request
Article 16
(1) Actuaries, Public Accountants, or Valuers can submit an application for resignation upon their own request to OJK.
(2) The resignation application as referred to in paragraph (1) is submitted by the respective Actuary, Public Accountant, or Valuer in writing to OJK accompanied by the following documents:
a. a stamped letter of statement stating that the respective party is resigning and has completed all obligations arising from OJK; b. a letter of statement stating that the Actuary, Public Accountant, or Valuer is not currently in a contract with NBFIs;
c. the original registration certificate of the Actuary, Public Accountant, or Valuer; and
d. a resignation form.

(3) Further provisions regarding the format and procedures for resignation applications as referred to in paragraph (1) are regulated in an OJK Circular.

Article 17
(1) OJK grants approval for resignation as referred to in Article 16 paragraph (1) by issuing a letter revoking the registration certificate of the Actuary, Public Accountant, or Valuer. (2) OJK rejects the resignation application as referred to in Article 16 paragraph (1) in the event the respective party:
a. is being investigated by the Ministry of Finance or OJK; b. has been subjected to written warnings by OJK 2 (two) times within the last 2 (two) years calculated from the time the complete application is submitted;
c. is fulfilling obligations that must be carried out based on recommendations from the Ministry of Finance or OJK; or
d. is serving sanctions from the Ministry of Finance or OJK.
(3) OJK issues the letter revoking the registration certificate as referred to in paragraph (1) within a maximum period of 20 (twenty) working days from the receipt of the complete resignation application as referred to in Article 16 paragraph (1). (4) In the event that the resignation application as referred to in Article 16 paragraph (1) is incomplete, OJK issues a notification letter to the applicant stating that the application is incomplete within a maximum period of 20 (twenty) working days from the date the application is received.

(5) Applicants who do not complete the required document deficiencies within 20 (twenty) working days after the date of the notification letter as referred to in paragraph (4) are deemed to have cancelled the resignation application. (6) Applicants can submit a new application by resubmitting the resignation application as referred to in Article 16 paragraph (2).

Section Three
Inactivation of Registration Certificate
Article 18
(1) The registration certificate of an Actuary, Public Accountant, or Valuer is declared inactive in the event:
a. OJK revokes the registration certificate based on own request as referred to in Article 16 paragraph (1); b. the respective party passes away;
c. the Actuary, Public Accountant, or Valuer's permit is revoked by the Ministry of Finance;
d. the respective party is sentenced for proven criminal offenses in the financial sector; or e. the respective party submits forged or falsified documents or false statements at the time of submitting the registration application. (2) OJK announces the registration certificate of an Actuary, Public Accountant, or Valuer that is inactive as referred to in paragraph (1) through the OJK website.

CHAPTER VI
SUPERVISION OF ACTUARIES,
PUBLIC ACCOUNTANTS, AND VALUERS
Article 19
(1) OJK conducts supervision over Actuaries, Public Accountants, or Valuers registered with OJK.
(2) In conducting supervision as referred to in paragraph (1), OJK can conduct ad hoc examinations of Actuaries, Public Accountants, or Valuers.
(3) Examinations as referred to in paragraph (2) are conducted both directly and indirectly.
(4) Examinations as referred to in paragraph (2) are conducted to assess the compliance of Actuaries, Public Accountants, or Valuers with the provisions in this OJK Regulation and its implementing regulations. (5) Examinations as referred to in paragraph (2) are conducted when there is information from internal or external OJK sources that needs to be followed up. (6) In the implementation of examinations as referred to in paragraph (2), the Actuary, Public Accountant, or Valuer being examined is obligated to:
a. fulfill requests to provide data and/or documents necessary for the smooth conduct of the examination according to the specified time limit; b. provide necessary explanations orally and/or in writing; and
c. provide necessary data, documents, and/or explanations from third parties that have a relationship with the Actuary, Public Accountant, or Valuer being examined.

(7) In conducting examinations as referred to in paragraph (2), OJK can assign other parties to conduct examinations on behalf of OJK.
(8) OJK is obligated to keep confidential data, documents, and/or explanations obtained from Actuaries, Public Accountants, or Valuers from unauthorized parties.

Article 20
In conducting supervision over Actuaries, Public Accountants, or Valuers as referred to in Article 19 paragraph (1), OJK can conduct coordination and information exchange with other parties related to Actuaries, Public Accountants, or Valuers.

CHAPTER VII
SANCTIONS
Section One
Types of Sanctions
Article 21
(1) Violations of the provisions of Article 2 paragraph (1), Article 4 paragraph (1), Article 5 paragraph (1), Article 6 paragraph (1), Article 10 paragraph (1), Article 14 paragraph (1), and Article 19 paragraph (6) of this OJK Regulation are subject to administrative sanctions in the form of:
a. written warnings; b. restrictions on business activities; and/or
c. revocation of the registration certificate.
(2) Violations of the provisions of Article 3 of this OJK Regulation are subject to administrative sanctions in the form of:
a. written warnings; b. restrictions on business activities; and/or
c. revocation of business licenses.

Article 22
(1) The imposition of warning sanctions as referred to in Article 21 paragraph (1) letter a may be imposed for a maximum of 3 (three) consecutive times, with a maximum duration of 30 (thirty) days for each warning. (2) In the event that an Actuary, Public Accountant, or Valuer has been subjected to the final warning, and within a period of 30 (thirty) days after the said warning, the Actuary, Public Accountant, or Valuer concerned still cannot overcome the cause of the sanction, the Actuary, Public Accountant, or Valuer concerned shall be subjected to sanctions as referred to in Article 21 paragraph (1) letter b.

Article 23
(1) Sanctions as referred to in Article 21 paragraph (1) letter b shall apply from the date of establishment for a maximum period of 12 (twelve) months.
(2) In the event that an Actuary, Public Accountant, or Valuer can overcome the cause of the sanction as referred to in Article 21 paragraph (1) letter b within the period as referred to in paragraph (1), the OJK shall revoke the sanction as referred to in Article 21 paragraph (1) letter b. (3) In the event that an Actuary, Public Accountant, or Valuer cannot overcome the cause of the sanction as referred to in Article 21 paragraph (1) letter b within the period until the end of the sanction as referred to in paragraph (1), it is concluded that the Actuary, Public Accountant, or Valuer is unable or unwilling to overcome the cause of the said sanction, and the OJK shall revoke the registration certificate of the Actuary, Public Accountant, or Valuer concerned.

Article 24
(1) The imposition of warning sanctions as referred to in Article 21 paragraph (2) letter a may be imposed for a maximum of 3 (three) consecutive times, with a maximum duration of 30 (thirty) days for each warning. (2) In the event that a Non-Bank Financial Institution (LJKNB) has been subjected to the final warning, and within a period of 30 (thirty) days after the said warning, the LJKNB concerned still cannot overcome the cause of the sanction, the LJKNB concerned shall be subjected to sanctions as referred to in Article 21 paragraph (2) letter b.

Article 25
(1) Sanctions as referred to in Article 21 paragraph (2) letter b shall apply from the date of establishment for a maximum period of 12 (twelve) months.
(2) In the event that an LJKNB can overcome the cause of the sanction as referred to in Article 21 paragraph (2) letter b within the period as referred to in paragraph (1), the OJK shall revoke the sanction as referred to in Article 21 paragraph (2) letter b. (3) In the event that an LJKNB cannot overcome the cause of the sanction as referred to in Article 21 paragraph (2) letter b within the period until the end of the sanction as referred to in paragraph (1), it is concluded that the LJKNB is unable or unwilling to overcome the cause of the said sanction, and the OJK shall revoke the business license of the LJKNB concerned.

CHAPTER VIII
TRANSITIONAL PROVISIONS

Article 26
During the first 12 (twelve) months since this OJK Regulation takes effect, the notification letter as referred to in Article 9 paragraph (2) and the registration certificate as referred to in Article 9 paragraph (4) shall be submitted by the OJK to the applicant within a maximum period of 45 (forty-five) working days.

Article 27
Service engagement contracts for Actuaries, Public Accountants, or Valuers that were agreed upon before the promulgation of this OJK Regulation may continue to be implemented until the expiration of the service contract period.

Article 28
(1) In the event that at the time this OJK Regulation takes effect, the Minister of Finance has not yet implemented regulations regarding practice permits for Actuaries, in the context of the registration application as referred to in Article 8 paragraph (1), Actuaries must fulfill the following provisions:
a. submit a photocopy of the Fellowship of the Society of Actuaries of Indonesia (FSAI) certificate or its equivalent at the time of submitting the application; and b. submit a photocopy of the practice permit from the Minister of Finance no later than 6 (six) months since the Minister of Finance implements regulations regarding practice permits for Actuaries. (2) The OJK shall issue a temporary registration certificate for Actuaries who have fulfilled the document requirements as referred to in paragraph (1) letter a and in Article 8 paragraph (2) letters b through g.

CHAPTER IX
CLOSING PROVISIONS

Article 29
(1) This OJK Regulation shall take effect after 9 (nine) months calculated from the date of promulgation.
(2) Actuaries, Public Accountants, or Valuers may carry out registration as referred to in Article 8 paragraph (1) no earlier than 6 (six) months from the date this OJK Regulation is promulgated.

In order that everyone may know it, it is ordered to promulgate this OJK Regulation by placing it in the State Journal of the Republic of Indonesia.

Determined in Jakarta on 21 December 2015

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

Promulgated in Jakarta on 28 December 2015

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

STATE JOURNAL OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 361 A copy in accordance with the original Legal Director 1 Ministry of Law signed Sudarmaji

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 38 /POJK.05/2015
ABOUT
REGISTRATION AND SUPERVISION OF ACTUARIES,
PUBLIC ACCOUNTANTS, AND VALUERS WHO CONDUCT ACTIVITIES IN THE NON-BANK FINANCIAL INDUSTRY

I. GENERAL
In conducting its business activities, Non-Bank Financial Institutions (LJKNB) require parties that can support the smoothness of the business process until the expected targets are reached. One of the parties playing a role in the smoothness of LJKNB business is the service provider profession, such as Actuaries, Public Accountants, and Valuers. In providing their services, Actuaries, Public Accountants, and Valuers are required to act professionally so that the services provided can be accounted for to stakeholders. In its development, service provider professions also play an important role in protecting the interests of consumers and the public as users of LJKNB services. Thus, regulations governing service provider professions are not only directed at insurance companies but also at LJKNBs other than insurance companies.

Article 55 paragraph (3) of Law Number 40 of 2014 concerning Insurance mandates more comprehensive provisions regarding the requirements and procedures for the registration of service provider professions for insurance companies. In that article, it is also explicitly stated that service provider professions for insurance companies consist of Actuaries, Public Accountants, and Valuers.

This Financial Services Authority Regulation contains regulations regarding the scope of service provider professions, requirements, and procedures for the registration of Actuaries, Public Accountants, and Valuers, including obligations to be fulfilled, provisions regarding the suspension of service provision, revocation of registration certificates, supervision by the Financial Services Authority, and the imposition of sanctions. This Financial Services Authority Regulation is expected to provide clear guidance in the implementation of the registration and revocation process for service provider professions conducting activities in the Non-Bank Financial Industry (IKNB), thereby providing legal certainty and increasing professionalism for Actuaries, Public Accountants, and Valuers in conducting activities in IKNB.

II. ARTICLE BY ARTICLE

Article 1
It is clear enough.

Article 2
Paragraph (1)
It is clear enough.
Paragraph (2)
Examples of provisions in this paragraph include valuation services by Actuaries regarding technical reserves of insurance companies, audit services provided by Public Accountants regarding financial reports of financing companies, and valuation services by Valuers on land and/or buildings as the basis for the valuation of investment types for financial reporting and pension fund investment reporting.

Article 3
It is clear enough.

Article 4
Paragraph (1)
The limit of a maximum of 3 (three) times in this paragraph is not influenced by the distance between frequencies. For example, if Actuary A provides actuarial valuation services for Pension Fund X every year, Actuary A can only provide services to that pension fund for actuarial valuation for 3 (three) consecutive years. If Actuary A provides valuation services for Pension Fund Y every 3 (three) years, then Actuary A can provide services for 3 (three) consecutive actuarial valuations. Paragraph (2) It is clear enough.

Article 5
Paragraph (1)
What is meant by "fiscal year" is a period of 1 (one) year reported in the annual report of the LJKNB.
Paragraph (2)
It is clear enough.

Article 6
It is clear enough.

Article 7
Letter a
What is meant by "practice permit" in this letter is an individual practice permit.
Letter b
It is clear enough.
Letter c
Examples of experience in the IKNB field include experience conducting audits on LJKNBs, both as a team leader and as a team member.
Letter d
What is meant by "cancellation of the registration certificate as an Actuary, Public Accountant, or Valuer from the OJK" in this letter is the cancellation of the registration certificate which results in the Actuary, Public Accountant, or Valuer being unable to provide services to the LJKNB, but does not include the cancellation of the registration certificate caused by resignation upon one's own request.

Article 8
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
It is clear enough.
Letter e
Certificates of training programs in the IKNB sector are not limited to certificates of participation as participants but can also be certificates of participation as training material providers. Letter f It is clear enough. Letter g It is clear enough. Paragraph (3) An example of provisions in this paragraph is if a Public Accountant already has a registration certificate for supporting professions in the Capital Market at the OJK and the Public Accountant concerned intends to provide services to an LJKNB, then that Public Accountant is required to fulfill the documents as referred to in this paragraph. Paragraph (4) Electronic registration (e-licensing) is conducted when the OJK's data communication network system is available. Paragraph (5) It is clear enough.

Article 9
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
An example is the OJK receiving a registration application from Public Accountant A on January 4, 2016. Until February 1, 2016, the OJK has not issued a notification letter or a registration certificate. In this case, Public Accountant A can provide services according to the service engagement contract with PT Asuransi X starting from February 2, 2016, without a registration certificate from the OJK. Paragraph (6) The meaning of "accompanied by a prohibition" in this paragraph is if Public Accountant A has already conducted a service engagement with PT Asuransi X as referred to in the example of paragraph (4), then on February 15, 2016, the OJK issues a notification letter to Public Accountant A stating that the application is incomplete accompanied by a prohibition on providing services, then Public Accountant A can no longer accept new service engagements from any LJKNB until obtaining a registration certificate from the OJK, but can still complete the service engagement with PT Asuransi X according to the agreed work contract. Paragraph (7) It is clear enough.

Article 10
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
This provision is not intended to reduce the obligations of Actuaries, Public Accountants, and Valuers to fulfill other provisions.
Letter e
It is clear enough.
Letter f
It is clear enough.
Letter g
It is clear enough.
Paragraph (2)
Letter a
What is meant by "material" in this paragraph is matters that influence Actuaries, Public Accountants, and Valuers in making decisions.
Letter b
It is clear enough.
Letter c
What is meant by "equivalent" in this letter includes management and/or supervisors in LJKNBs in the form of legal entity cooperatives.
Letter d
What is meant by "controlling shareholder" in this letter is an individual, legal entity, and/or business group that:

1. owns shares or capital in insurance companies, financing companies, or guarantee companies amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights; or
2. owns shares or capital in insurance companies, financing companies, or guarantee companies less than 25% (twenty-five percent) of the issued shares and has voting rights but the concerned party can be proven to have controlled the insurance company, financing company, or guarantee company, either directly or indirectly.
   Examples of "equivalent" to controlling shareholders are the founders of pension funds and members of the Member Representative Body (BPA) for business entities in the form of joint ventures. Letter e It is clear enough. Letter f It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) Provisions to be regulated in an OJK Circular include the form, procedures, and time limits for submitting reports, as well as the mechanism for fulfilling obligations to follow continuing education programs for Actuaries, Public Accountants, or Valuers.

Article 11
It is clear enough.

Article 12
It is clear enough.

Article 13
It is clear enough.

Article 14
It is clear enough.

Article 15
It is clear enough.

Article 16
It is clear enough.

Article 17
It is clear enough.

Article 18
It is clear enough.

Article 19
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.
Paragraph (7)
It is clear enough.
Paragraph (8)
What is meant by OJK in this paragraph includes parties assigned by the OJK to conduct examinations on behalf of the OJK.

Article 20
It is clear enough.

Article 21
Paragraph (1)
Letter a
It is clear enough.
Letter b
What is meant by "restriction on business activities" in this provision is a restriction on providing services.
Letter c
It is clear enough.
Paragraph (2)
It is clear enough.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
It is clear enough.

Article 28
It is clear enough.

Article 29
It is clear enough.

SUPPLEMENT TO THE STATE JOURNAL OF THE REPUBLIC OF INDONESIA NUMBER 5807