Financial Services Authority Regulation Number 39/POJK.04/2014 on Mutual Fund Securities Sales Agents

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHABILITY REGULATION
NUMBER 39/POJK.04/2014
ON
MUTUAL FUND SECURITIES SALES AGENTS
BY THE GRACE OF THE ALMIGHTY GOD,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to develop the Mutual Fund industry, it is necessary to expand the distribution channels for selling Mutual Funds, increase the domestic investor base, and enhance the capacity building of Mutual Fund Securities Sales Agents; b. that the expansion of distribution channels for selling Mutual Funds, increasing the domestic investor base, and enhancing the capacity building of Mutual Fund Securities Sales Agents as referred to in letter a, must be supported by the capability and readiness of marketing human resources to further ensure compliance and legal certainty and protect the interests of investor public from detrimental practices;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation on Mutual Fund Securities Sales Agents;
Recalling:

Law Number 8 of 1995 concerning Capital Markets (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:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION ON MUTUAL FUND SECURITIES SALES AGENTS.

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

Mutual Fund Securities Sales Agent is a Party that sells Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund.
Investment Manager is a Party whose business activities manage Securities Portfolios for clients or manage collective investment portfolios for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on applicable laws and regulations.
Company refers to a limited liability company as referred to in the Law concerning limited liability companies.

CHAPTER II
REQUIREMENTS FOR MUTUAL FUND SECURITIES SALES AGENTS
Article 2
Entities that may conduct activities as Mutual Fund Securities Sales Agents are:
a. Companies that have obtained business licenses from the Financial Services Authority as Securities Companies that conduct business activities as Underwriters of Securities and/or Securities Brokers; b. Commercial banks, companies conducting business in the post and giro sector, trading companies, insurance companies, financing companies, pension funds, and guarantee companies, provided they do not conflict with laws and regulations and have obtained a Registered Entity Letter from the Financial Services Authority as a Mutual Fund Securities Sales Agent in accordance with laws and regulations; and
c. Securities Companies that conduct business activities as Securities Brokers specifically established to market Mutual Fund Securities, which have obtained business licenses from the Financial Services Authority,
based on cooperation contracts with Investment Managers managing Mutual Funds.

Article 3
Mutual Fund Securities Sales Agents as referred to in Article 2 must:
a. have marketing personnel in each office and/or outlet that sells Mutual Fund Securities; b. have a responsible official for Mutual Fund Securities sales;
c. have and execute separate functions at least:

marketing and investor complaint handling functions; and
compliance and risk management functions;
d. ensure that the execution of the functions as referred to in letter c is based on written standard operating procedures; and e. have adequate facilities and infrastructure to support the implementation of the sales and repurchase process of Mutual Fund Securities.

Article 4
Marketing personnel of Mutual Fund Securities Sales Agents as referred to in Article 3 letter a must:
a. hold licenses as Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives; and b. receive specific written assignments from the Mutual Fund Securities Sales Agent to act as marketing personnel.

Article 5
(1) Securities Companies that conduct business activities as Securities Brokers specifically established to market Mutual Fund Securities as referred to in Article 2 letter c must:
a. have paid-up capital of at least IDR 500,000,000.00 (five hundred million rupiah); and b. have at least 1 (one) director who holds a license as a Securities Company Representative or Mutual Fund Securities Sales Agent Representative. (2) Securities Companies that conduct business activities as Securities Brokers specifically established to market Mutual Fund Securities as referred to in Article 2 letter c are exempt from fulfilling the obligations of Securities Companies conducting business activities as Securities Brokers as regulated in laws and regulations concerning Securities Companies conducting business activities as Securities Brokers.

Article 6
(1) Companies that have obtained business licenses from the Financial Services Authority as Securities Companies that conduct activities as Underwriters of Securities and/or Securities Brokers and conduct activities as Mutual Fund Securities Sales Agents must have adequate internal control systems. (2) Commercial banks acting as Mutual Fund Securities Sales Agents and Custodian Banks for the same Mutual Fund must have adequate internal control systems.

Article 7
(1) Adequate internal control systems for Companies that have obtained business licenses from the Financial Services Authority as Securities Companies that conduct activities as Underwriters of Securities and/or Securities Brokers and conduct activities as Mutual Fund Securities Sales Agents as referred to in Article 6 paragraph (1) must be documented in writing at least including:
a. separation of Underwriter of Securities and/or Securities Broker functions from Mutual Fund Securities Sales Agent functions; b. granting of authority and responsibilities that can avoid conflicts of interest;
c. periodic and continuous evaluation of activities as Mutual Fund Securities Sales Agents;
d. standard operating procedures for implementing Mutual Fund Securities Sales Agent activities; and e. efforts and actions taken to correct any deviations that occur. (2) Adequate internal control systems for commercial banks acting as Mutual Fund Securities Sales Agents and Custodian Banks for the same Mutual Fund as referred to in Article 6 paragraph (2) must be documented in writing at least including:
a. separation of commercial bank activities as Mutual Fund Securities Sales Agents and Custodian Banks, including:

separation of commercial bank officials and employees performing functions as Mutual Fund Securities Sales Agents from those performing functions as Custodian Banks; and
granting of authority and responsibilities that can avoid conflicts of interest;
b. periodic and continuous evaluation of activities as Mutual Fund Securities Sales Agents and Custodian Banks; and
c. efforts and actions taken to correct any deviations that occur.

CHAPTER III
NOTIFICATION, REGISTRATION, AND LICENSING
First Section
Notification of Conducting Activities as Mutual Fund Securities Sales Agents
Article 8
Companies that have obtained business licenses from the Financial Services Authority as Securities Companies that conduct activities as Underwriters of Securities and/or Securities Brokers as referred to in Article 2 letter a intending to conduct activities as Mutual Fund Securities Sales Agents must first notify the Financial Services Authority at least 15 (fifteen) working days before conducting activities as Mutual Fund Securities Sales Agents by attaching the following documents:
a. data of the head office, list of other offices and/or outlets that will sell Mutual Fund Securities along with office addresses and responsible persons, and lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives according to the format Head Office Data, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Responsible Persons, as well as Lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; b. documents of the responsible official for Mutual Fund Securities Sales Agents including:

the latest signed curriculum vitae;
photocopies of valid Identity Cards or Passports;
photocopies of Foreign Worker Employment Permits (IMTA), for foreign citizens;
photocopies of licenses as Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives;
photocopies of advanced professional education certificates (if any);
supporting documents showing experience in Mutual Fund Securities sales activities for at least 3 (three) years; and
latest 4x6 cm color photographs with a red background, 1 (one) sheet;
c. organizational structure diagram showing the lines of responsibility from each function to the responsible person or board members responsible for implementing Mutual Fund Securities sales activities along with job descriptions;
d. standard operating procedures for implementing Mutual Fund Securities Sales Agent activities; e. projected business plan for Mutual Fund Securities Sales Agent activities for at least 1 (one) year ahead, which must include at least the following information:
Mutual Fund Securities products to be offered;
investor targets according to the products to be offered;
sales value targets; and
sales methods for Mutual Fund Securities products to potential investors;
f. Mutual Fund Securities Sales Agent compliance strategy regarding capital market laws and regulations according to the format Mutual Fund Securities Sales Agent Compliance Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; and g. Mutual Fund Securities Sales Agent risk management strategy according to the format Mutual Fund Securities Sales Agent Risk Management Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation.

Second Section
Registration of Mutual Fund Securities Sales Agents
Article 9
Registration applications for Mutual Fund Securities Sales Agents as referred to in Article 2 letter b are submitted to the Financial Services Authority according to the format for applications for registration as Mutual Fund Securities Sales Agents as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the following documents:
a. photocopies of the establishment deed approved by the minister responsible for law and human rights, and the latest amendments to the articles of association as referred to in the Law concerning limited liability companies; b. photocopies of the Business Tax Identification Number (NPWP);
c. photocopies of business licenses from the competent authority;
d. data of the head office, list of other offices and/or outlets that will sell Mutual Fund Securities along with office addresses and responsible persons, and lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives according to the format Head Office Data, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Responsible Persons, as well as Lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; e. documents of the responsible official for Mutual Fund Securities Sales Agents including:

the latest signed curriculum vitae;
photocopies of valid Identity Cards or Passports;
photocopies of Foreign Worker Employment Permits (IMTA), for foreign citizens;
photocopies of licenses as Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives;
photocopies of advanced professional education certificates (if any);
supporting documents showing experience in Mutual Fund Securities sales activities for at least 3 (three) years; and
latest 4x6 cm color photographs with a red background, 1 (one) sheet;
f. organizational structure diagram showing the lines of responsibility from each function to the responsible person or board members responsible for implementing Mutual Fund Securities sales activities along with job descriptions; g. standard operating procedures for implementing Mutual Fund Securities Sales Agent activities; h. projected business plan for Mutual Fund Securities Sales Agent activities for at least 1 (one) year ahead, which must include at least the following information:
Mutual Fund Securities products to be offered;
investor targets according to the products to be offered;
sales value targets; and
sales methods for Mutual Fund Securities products to potential investors;
i. Mutual Fund Securities Sales Agent compliance strategy regarding capital market laws and regulations according to the format Mutual Fund Securities Sales Agent Compliance Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;
j. Mutual Fund Securities Sales Agent risk management strategy according to the format Mutual Fund Securities Sales Agent Risk Management Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; and k. photocopies of proof of payment for registration fees as Mutual Fund Securities Sales Agents.

Article 10
Application documents as referred to in Article 9 must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact disks or other media, or via email at pendaftaranaperd@ojk.go.id.

Article 11
(1) In order to process registration applications for Mutual Fund Securities Sales Agents, the Financial Services Authority examines the completeness of application documents. (2) In order to assess the readiness of applicants as Mutual Fund Securities Sales Agents, the Financial Services Authority is authorized to:
a. conduct inspections at the applicant's office; and b. request the applicant to present the business plan for the company's activities as a Mutual Fund Securities Sales Agent.

Article 12
If the registration application for Mutual Fund Securities Sales Agents as referred to in Article 9 meets the requirements, within at most 45 (forty-five) days from the receipt of the application, the Financial Services Authority issues a Registered Entity Letter as a Mutual Fund Securities Sales Agent to the applicant.

Article 13
If the registration application for Mutual Fund Securities Sales Agents as referred to in Article 9 does not meet the requirements, within at most 45 (forty-five) days from the receipt of the application, the Financial Services Authority issues a notification letter to the applicant stating that:
a. the application is incomplete; or b. the application is rejected.

Article 14
(1) Applicants must complete the required deficiencies as referred to in Article 13 letter a within 45 (forty-five) days after the date of the notification letter. (2) Applicants who do not complete the required deficiencies within 45 (forty-five) days after the date of the notification letter as referred to in paragraph (1) are considered to have cancelled their registration application for Mutual Fund Securities Sales Agents.

Third Section
Licensing of Securities Companies Conducting Business Activities as Securities Brokers Specifically Established to Market Mutual Fund Securities
Article 15
Applications for business licenses for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities as referred to in Article 2 letter c are submitted to the Financial Services Authority according to the format for Applications for Business Licenses for Securities Companies Conducting Business Activities as Securities Brokers Specifically Established to Market Mutual Fund Securities as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the following documents:
a. photocopies of the establishment deed of the Securities Company conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities, approved by the minister responsible for law and human rights, and the latest amendments to the articles of association as referred to in the Law concerning limited liability companies; b. photocopies of the Business Tax Identification Number (NPWP);
c. photocopies of proof of capital payment;
d. photocopies of bank statements; e. audited financial reports by accountants registered with the Financial Services Authority; f. domicile certificates from building managers or competent authorities, photocopies of proof of ownership if the business premises are owned, or lease agreements if the business premises are not owned, office layout, and photos of the Mutual Fund Securities Sales Agent office premises along with room usage descriptions; g. recommendation letters from relevant associations for Mutual Fund Securities sales; h. photocopies of Foreign Worker Employment Permits (IMTA), for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities that employ Foreign Citizens;
i. data of the head office, list of other offices and/or outlets that will sell Mutual Fund Securities along with office addresses and responsible persons, and lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives according to the format Head Office Data, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Responsible Persons, as well as Lists of Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;
j. lists of names and data of board members and responsible officials for Mutual Fund Securities sales activities, including:

signed curriculum vitae, including brief work history such as job titles, reasons for leaving or resignation, and brief descriptions of job duties and responsibilities;
photocopies of formal education diplomas and/or skill certificates;
photocopies of licenses as Securities Company Representatives and/or Mutual Fund Securities Sales Agent Representatives;
photocopies of advanced professional education certificates (if any);
photocopies of valid Identity Cards or Passports; and
latest 4x6 cm color photographs with a red background, 1 (one) sheet;
k. organizational structure diagram showing the lines of responsibility from each function to board members responsible for implementing Mutual Fund Securities sales activities along with job descriptions;
l. standard operating procedures for implementing Mutual Fund Securities Sales Agent activities;
m. projected business plan for Mutual Fund Securities Sales Agent activities for at least 1 (one) year ahead, which must include at least the following information:
Mutual Fund Securities products to be offered;
investor targets according to the products to be offered;
sales value targets; and
sales methods for Mutual Fund Securities products to potential investors;
n. Mutual Fund Securities Sales Agent compliance strategy regarding capital market laws and regulations according to the format Mutual Fund Securities Sales Agent Compliance Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; o. Mutual Fund Securities Sales Agent risk management strategy according to the format Mutual Fund Securities Sales Agent Risk Management Strategy as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; and p. photocopies of proof of payment for licensing fees for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities.

Article 16
Application documents for business licenses as referred to in Article 15 must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact disks or other media, or via email at perizinanaperd@ojk.go.id.

Article 17
(1) In order to process applications for business licenses for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities, the Financial Services Authority examines the completeness of application documents. (2) In order to assess the readiness of applicants as Mutual Fund Securities Sales Agents, the Financial Services Authority is authorized to:
a. conduct inspections at the applicant's office; and b. request the applicant to present the company's business plan.

Article 18
If the application for business licenses for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities as referred to in Article 15 meets the requirements, within at most 45 (forty-five) days from the receipt of the application, the Financial Services Authority issues business licenses for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities.

Article 19
If the application for business licenses for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities as referred to in Article 15 does not meet the requirements, within at most 45 (forty-five) days from the receipt of the application, the Financial Services Authority issues a notification letter to the applicant stating that:
a. the application is incomplete; or b. the application is rejected.

Article 20
(1) Applicants must complete the required deficiencies as referred to in Article 19 letter a within 45 (forty-five) days after the date of the notification letter. (2) Applicants who do not complete the required deficiencies within 45 (forty-five) days after the date of the notification letter as referred to in paragraph (1) are considered to have cancelled their business license application for Securities Companies conducting business activities as Securities Brokers specifically established to market Mutual Fund Securities.

CHAPTER IV
MUTUAL FUND SECURITIES SALES CONTRACTS
Article 21
Mutual Fund Securities sales activities as referred to in Article 2 must be based on cooperation contracts between Mutual Fund Securities Sales Agents and Investment Managers as managers of Mutual Funds.

Article 22
Cooperation contracts as referred to in Article 21...

Article 21 shall contain at least the following matters:
a. the identity of each party involved in the contract; b. the rights and obligations of each party;
c. the obligation of the Mutual Fund Sales Agent to provide information on Mutual Fund Holder data to the Investment Manager, which may only be used for activities related to the respective Mutual Fund;
d. the commissions received by the Mutual Fund Sales Agent and costs borne by the Mutual Fund Sales Agent and/or Investment Manager; e. the procedure for including information and data regarding the identity of the Mutual Fund Sales Agent, Investment Manager, and Mutual Fund Custodian Bank in documents related to the ordering, sale, or repurchase of Mutual Fund Securities by Mutual Fund Holders; f. the procedure for payment and delivery of funds related to the sale, repurchase, and transfer of Mutual Fund Securities; g. the duration of the agency contract; h. the designation of a court, capital market alternative dispute resolution institution, or other alternative dispute resolution institution as the body to resolve civil disputes and conflicts between the Parties; and
i. provisions on contract termination.

CHAPTER V
RESPONSIBLE OFFICIALS

Article 23
(1) A Mutual Fund Sales Agent is required to appoint at least:
a. 1 (one) responsible official for Mutual Fund Sales activities at the head office; and b. 1 (one) responsible official for Mutual Fund Sales activities at 1 (one) or more other offices and/or sales outlets other than the head office. (2) The responsible official for Mutual Fund Sales activities as referred to in paragraph (1) must hold a license as a Representative of a Securities Company and/or Representative of a Mutual Fund Sales Agent, and must have experience in Mutual Fund Sales activities for at least 3 (three) years. (3) The responsible official as referred to in paragraph (1) has duties and functions at least as follows:
a. ensuring that the sales and repurchase process of Mutual Fund Securities has run in accordance with:

the joint sales contract for Mutual Fund Securities made by the Mutual Fund Sales Agent with the Investment Manager managing the Mutual Fund;
the standard operating procedures of the Mutual Fund Sales Agent;
the joint contract made by the Mutual Fund Sales Agent with other parties having a wide network as sales outlets for Mutual Fund Securities, if the Mutual Fund Sales Agent uses sales outlets; and
capital market regulatory provisions; and
b. ensuring that documents regarding the sales and/or repurchase process of Mutual Fund Securities as referred to in letter a are complete.

Article 24
The responsible official of a Mutual Fund Sales Agent is prohibited from holding concurrent positions:
a. as Mutual Fund Sales marketing personnel; and/or b. working for another company.

CHAPTER VI
OTHER OFFICES OTHER THAN THE HEAD OFFICE AND/OR SALES OUTLETS FOR MUTUAL FUND SALES

Article 25
A Mutual Fund Sales Agent may conduct Mutual Fund Sales at other offices other than the head office and/or sales outlets.

First Section
Other Offices Other Than the Head Office

Article 26
(1) Sales of Mutual Fund Securities at other offices other than the head office may be conducted by a Mutual Fund Sales Agent after obtaining approval from the Financial Services Authority. (2) The request for approval for sales of Mutual Fund Securities at other offices other than the head office is submitted to the Financial Services Authority according to the format of the Request for Approval for Sales of Mutual Fund Securities at Other Offices Other Than the Head Office as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents as follows:
a. documents related to the responsible official of other offices other than the head office, including:

curriculum vitae;
photocopy of the Board of Directors' decision letter regarding the appointment or placement as a responsible official of other offices other than the head office;
supporting documents showing experience in Mutual Fund Sales activities for at least 3 (three) years;
photocopy of the license as a Representative of a Securities Company and/or Representative of a Mutual Fund Sales Agent in the name of the responsible official; and
photocopy of the latest continuing professional education certificate in the name of the responsible official (if any);
b. documents related to the Representative of a Securities Company and/or Representative of a Mutual Fund Sales Agent at other offices other than the head office, including:
photocopy of the Board of Directors' decision letter regarding the appointment or placement of the Representative of a Securities Company and/or Representative of a Mutual Fund Sales Agent at other offices other than the head office as marketing personnel;
photocopy of the license as a Representative of a Securities Company and/or Representative of a Mutual Fund Sales Agent in the name of the marketing personnel; and
photocopy of the latest continuing professional education certificate in the name of the person concerned (if any);
c. domicile letter for other offices other than the head office from the building manager or competent authority; and
d. a list of other offices other than the head office that will sell Mutual Fund Securities, along with the office addresses and responsible officials, and a list of Representatives of Securities Companies and/or Representatives of Mutual Fund Sales Agents, according to the format of Head Office Data, List of Other Offices Other Than the Head Office and/or Sales Outlets That Will Sell Mutual Fund Securities and Their Responsible Officials, and List of Representatives of Securities Companies and/or Representatives of Mutual Fund Sales Agents as stated in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 27
The request documents for approval for sales of Mutual Fund Securities at other offices other than the head office as referred to in Article 26 must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact disk (CD) or others, or via email at kantorlainaperd@ojk.go.id.

Article 28
(1) In processing the request for approval for sales of Mutual Fund Securities at other offices other than the head office, the Financial Services Authority examines the completeness of the request documents. (2) In assessing the readiness of other offices other than the head office of a Mutual Fund Sales Agent to conduct sales of Mutual Fund Securities, the Financial Services Authority is authorized to inspect the other offices other than the head office of the said Mutual Fund Sales Agent.

Article 29
In the event that the request for approval for sales of Mutual Fund Securities at other offices other than the head office of a Mutual Fund Sales Agent as referred to in Article 26 meets the requirements, the Financial Services Authority shall grant approval for sales of Mutual Fund Securities at other offices other than the head office of the Mutual Fund Sales Agent within a maximum of 45 (forty-five) days from the date of receiving the request.

Article 30
In the event that the request for approval for sales of Mutual Fund Securities at other offices other than the head office of a Mutual Fund Sales Agent as referred to in Article 26 does not meet the requirements, the Financial Services Authority shall, within a maximum of 45 (forty-five) days from the date of receiving the request, issue a notification letter to the applicant stating that:
a. the request is incomplete; or b. the request is rejected.

Article 31
An applicant who fails to complete the required document deficiencies within 45 (forty-five) days after the date of the notification letter as referred to in Article 30 letter a, is deemed to have cancelled the request for approval for sales of Mutual Fund Securities at other offices other than the head office of the Mutual Fund Sales Agent.

Article 32
The Financial Services Authority is authorized to order a Mutual Fund Sales Agent as referred to in Article 2 to cease sales activities of Mutual Fund Securities at other offices other than the head office based on matters including:
a. the other offices other than the head office cannot be found; b. the other offices other than the head office are found, but have been inactive in conducting Mutual Fund Securities transactions for 12 (twelve) consecutive months;
c. the other offices other than the head office do not have responsible officials and/or marketing personnel holding licenses as Representatives of Securities Companies or Representatives of Mutual Fund Sales Agents; and/or
d. the other offices other than the head office cannot meet the requirements as other offices other than the head office of a Mutual Fund Sales Agent in accordance with applicable regulations after the opportunity and time limit provided by the Financial Services Authority have expired.

Second Section
Sales Outlets

Article 33
(1) In conducting sales of Mutual Fund Securities, a Mutual Fund Sales Agent may open sales outlets for Mutual Fund Securities by cooperating with other parties having a wide network in their business, including cooperation in payment systems for the purpose of adding (top up) Mutual Fund Securities through systems available at sales outlets. (2) Cooperation with other parties to open sales outlets as referred to in paragraph (1) must be conducted after obtaining approval from the Investment Manager. (3) Sales of Mutual Fund Securities at sales outlets as referred to in paragraph (1) must be conducted by marketing personnel of the Mutual Fund Sales Agent who hold licenses as Representatives of Securities Companies or Representatives of Mutual Fund Sales Agents. (4) A Mutual Fund Sales Agent conducting sales activities of Mutual Fund Securities at sales outlets must report its sales activities to the Financial Services Authority no later than 2 (two) working days since the start of the sales activities.

CHAPTER VII
CONDUCT OF MUTUAL FUND SALES AGENTS

First Section
Obligations

Article 34
A Mutual Fund Sales Agent is required to:
a. become a member of the relevant association for Mutual Fund Sales, except for Mutual Fund Sales Agents as referred to in Article 2 letter a; b. conduct continuous supervision over all employees and/or other parties working for the Mutual Fund Sales Agent;
c. be responsible for all actions related to the sales of Mutual Fund Securities conducted by employees and/or other parties working for the Mutual Fund Sales Agent;
d. have a supervision system over the activities of Representatives of Mutual Fund Sales Agents and every employee to ensure compliance with all capital market regulatory provisions; e. ensure that marketing personnel have understood the Collective Investment Contract and the Mutual Fund Prospectus being marketed; f. ensure that the Prospectus used in marketing Mutual Funds complies with capital market regulatory provisions; g. provide the latest Prospectus issued by the Investment Manager to prospective Mutual Fund Holders; h. provide and deliver to prospective Mutual Fund Holders summary information about the marketed Mutual Fund Securities originating from the Prospectus and having obtained approval from the Investment Manager;
i. ensure that Mutual Fund Holders have the opportunity to read the Prospectus or other important information before or at the time of purchasing Mutual Fund Securities;
j. maintain the confidentiality of Mutual Fund Holders' transactions, except to the managing Investment Manager and Custodian Bank, the Financial Services Authority, and other parties if required by regulatory provisions; k. know the background, financial status, investment objectives, and risk profile of prospective Mutual Fund Holders;
l. prioritize the interests and suitability with the financial sources, financial capacity, and investment objectives of prospective Mutual Fund Holders when offering several Mutual Funds;
m. ensure that the Net Asset Value calculations used and/or received by Mutual Fund Holders comply with capital market regulatory provisions; n. have adequate facilities for conducting sales of Mutual Fund Securities; o. apply the know your customer principle as regulated in capital market regulatory provisions; p. perform duties with the best possible effort, in good faith, and with full responsibility in accordance with the joint contract with the Investment Manager and for the benefit of Mutual Fund Holders; q. be responsible for all losses arising from the failure to fulfill obligations; and r. have a work unit and/or function to handle and resolve complaints submitted by Mutual Fund Holders.

Article 35
Summary information as referred to in Article 34 letter h shall contain at least:
a. information that Mutual Funds are capital market products and not products issued by the Mutual Fund Sales Agent, and that the Mutual Fund Sales Agent is not responsible for claims and portfolio management risks of the Mutual Fund conducted by the Investment Manager; b. the type of Mutual Fund and risks attached to the Mutual Fund product, including the possibility of investment value losses suffered by Mutual Fund Holders due to fluctuations in Net Asset Value according to market conditions and the quality of underlying assets;
c. investment policies and portfolio composition;
d. costs arising from investments in Mutual Funds, including commissions received by the Mutual Fund Sales Agent; e. information regarding the Investment Manager managing the Mutual Fund and the Custodian Bank; f. information that confirmation of Mutual Fund Holders' investments will be issued by the Custodian Bank; g. information that the valid proof of ownership of Mutual Fund Securities is the confirmation from the Custodian Bank; and h. Mutual Fund performance information (if any).

Article 36
In the event that a Mutual Fund Sales Agent creates a comparison table between several Mutual Funds from several Investment Managers that it markets, such comparison must be made based on the same and comparable product types.

Second Section
Prohibitions

Article 37
A Mutual Fund Sales Agent is prohibited from:
a. issuing confirmations for sales (subscription) and repurchase (redemption) of Mutual Fund Securities conducted by Mutual Fund Holders; b. selling Mutual Fund Securities without instructions from Mutual Fund Holders;
c. providing incorrect explanations and exaggerated statements about a Mutual Fund;
d. ensuring or promising investment results; e. indicating investment results, unless stated in the Prospectus; f. providing recommendations to prospective or existing Mutual Fund Holders to buy and/or sell Mutual Fund Securities without considering investment objectives, financial status, and risk profiles; g. suggesting transactions that are excessive in Mutual Funds to obtain larger commissions; h. making negative statements about Investment Managers or specific Mutual Funds;
i. providing recommendations for specific Mutual Fund products to prospective or existing Mutual Fund Holders to obtain additional commissions or incentives;
j. providing commission discounts or gifts to prospective or existing Mutual Fund Holders taken from Mutual Fund assets; and/or k. receiving deposit funds for sales (subscription) and repurchase (redemption) of Mutual Fund Securities from prospective or existing Mutual Fund Holders.

CHAPTER VIII
REPORTING

Article 38
A Mutual Fund Sales Agent is required to submit a report on current year activity plans to the Financial Services Authority no later than every January 15, according to the format of Current Year Activity Plans as stated in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 39
A Mutual Fund Sales Agent is required to report to the Financial Services Authority every change related to:
a. company identity, including name and/or logo; b. compliance and risk management strategies;
c. head office or other offices other than the head office addresses;
d. closure of other offices other than the head office; e. addition or termination of sales cooperation with Investment Managers; f. addition or termination of sales outlet cooperation; and g. Responsible Officials and marketing personnel for Mutual Fund Securities, according to the format of Report on Changes to Responsible Officials and Marketing Personnel as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; no later than 7 (seven) working days since the occurrence of the change to the Financial Services Authority.

Article 40
A Mutual Fund Sales Agent is required to submit monthly reports to the Financial Services Authority as follows:
a. total value of Mutual Fund Securities sales transactions at each office and/or sales outlet according to the format of Mutual Fund Sales Report by Mutual Fund Sales Agents as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; b. Mutual Fund Investor profiles according to the format of Mutual Fund Investor Profile Report as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; and
c. a list of recapitulation of customer complaints and their handling (if any),
no later than on the 12th (twelfth) day of the following month.

Article 41
In the event that the deadline for submitting the current year activity plan report as referred to in Article 38 and the monthly report as referred to in Article 40 falls on a holiday, such reports shall be submitted on 1 (one) working day thereafter.

CHAPTER IX
ELECTRONIC SYSTEM FOR REGISTRATION, LICENSING, APPROVAL, AND REPORTING OF MUTUAL FUND SALES AGENTS

Article 42
In the event that the Financial Services Authority has provided an electronic system for requests for registration, licensing as a Mutual Fund Sales Agent, approval for sales of Mutual Fund Securities at other offices other than the head office, and/or reporting by Mutual Fund Sales Agents, requests for registration, licensing, approval, and/or reporting may be submitted through the said electronic system.

CHAPTER X
TERMINATION OF ACTIVITIES AS A MUTUAL FUND SALES AGENT CONDUCTED BY A SECURITIES COMPANY CONDUCTING ACTIVITIES AS A SECURITIES UNDERWRITER AND/OR SECURITIES BROKERAGE INTERMEDIARY

Article 43
(1) Activities as a Mutual Fund Sales Agent conducted by a Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary as referred to in Article 2 letter a shall end if the following occurs:
a. the legal entity of the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary is dissolved; b. the business license of the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary is revoked by the Financial Services Authority;
c. the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary cannot meet the requirements to conduct activities as a Mutual Fund Sales Agent after the opportunity and time limit provided have expired; or
d. the Financial Services Authority imposes an administrative sanction on the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary not to conduct activities as a Mutual Fund Sales Agent. (2) In the event of the termination of activities as a Mutual Fund Sales Agent as referred to in paragraph (1), the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary and conducting sales of Mutual Fund Securities must fulfill and complete all its obligations related to sales of Mutual Fund Securities with the following provisions:
a. before the legal entity of the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary is dissolved; b. before the business license of the Securities Company conducting activities as a Securities Underwriter and/or Securities Brokerage Intermediary is revoked by the Financial Services Authority; or
c. within the time limit specified in the Financial Services Authority sanction letter.

CHAPTER XI
CANCELLATION OF REGISTRATION CERTIFICATE FOR MUTUAL FUND SALES AGENTS

Article 44
The Financial Services Authority is authorized to cancel the Registration Certificate for Mutual Fund Sales Agents as referred to in Article 2 letter b if the following occurs:
a. the Mutual Fund Sales Agent returns its owned Registration Certificate; or b. the Mutual Fund Sales Agent violates capital market regulatory provisions.

Article 45
The Registration Certificate for Mutual Fund Sales Agents as referred to in Article 2 letter b becomes invalid if:
a. the legal entity of the party conducting activities as a Mutual Fund Sales Agent is dissolved; and/or b. the main business license of the party conducting activities as a Mutual Fund Sales Agent is revoked by the competent authority.

Article 46
(1) The return of the Registration Certificate as a Mutual Fund Sales Agent as referred to in Article 44 letter a must meet the following requirements:
a. the Mutual Fund Sales Agent submits a request letter for the return of the Registration Certificate as a Mutual Fund Sales Agent to the Financial Services Authority; and b. the Mutual Fund Sales Agent has completed all its obligations related to sales of Mutual Fund Securities, including payment of administrative sanctions in the form of fines within the time limit specified in the Financial Services Authority sanction letter. (2) The request for the return of the Registration Certificate as a Mutual Fund Sales Agent as referred to in paragraph (1) is accompanied by documents as follows:
a. a statement regarding the reasons for the return of the Registration Certificate; b. the Registration Certificate as a Mutual Fund Sales Agent; and
c. a report on the settlement of the rights and obligations of the Mutual Fund Sales Agent, accompanied by supporting documents.

Article 47
The cancellation of the Registration Certificate caused by violations of capital market regulatory provisions as referred to in Article 44 letter b is conducted, among others, if:
a. the head office of the Mutual Fund Sales Agent cannot be found; b. the Mutual Fund Sales Agent does not have employees holding licenses as Representatives of Securities Companies and/or Representatives of Mutual Fund Sales Agents;
c. the Mutual Fund Sales Agent has not conducted sales activities of Mutual Fund Securities for 12 (twelve) consecutive months; and/or
d. the Mutual Fund Sales Agent cannot meet the requirements as a Mutual Fund Sales Agent after the opportunity and time limit provided have expired.

Article 48

Article 48
A Mutual Fund Sales Agent whose Registration Certificate is revoked by the Financial Services Authority must fulfill and complete all obligations to the Investment Manager and/or Mutual Fund Holders.

CHAPTER XII
REVOCATION OF BUSINESS LICENSE OF A SECURITIES COMPANY CARRYING OUT BUSINESS AS A SECURITIES BROKERAGE INTERMEDIARY SPECIFICALLY ESTABLISHED TO MARKET MUTUAL FUND SECURITIES

Article 49
The Financial Services Authority revokes the business license of a Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities as referred to in Article 2 letter c if any of the following occur:
a. the business license is returned by the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities to the Financial Services Authority; b. violation of legislation in the field of Capital Markets; or
c. the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities is dissolved.

Article 50
The return of the business license of a Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities as referred to in Article 49 letter a must meet the following requirements:
a. submitting a written application for the return of the business license of the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities to the Financial Services Authority; b. having obtained approval from the General Meeting of Shareholders regarding the plan to apply for the return of the business license;
c. having announced the plan to return the business license in at least 1 (one) newspaper with national circulation containing among other things notification of the settlement of rights and obligations; and
d. having completed all obligations related to the sale of Mutual Fund Securities.

Article 51
The revocation of the business license of a Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities due to violation of legislation in the field of Capital Markets as referred to in Article 49 letter b includes:
a. administrative violations, including among others:

the office of the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities cannot be found;
the office of the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities is found, but for 2 (two) consecutive years has not carried out marketing activities for Mutual Fund Securities;
the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities has no employees; and/or
the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities cannot meet the deficiencies required according to applicable regulations after the opportunity and time limit given have expired; and/or
b. the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities is proven to have committed a criminal offense as referred to in Law Number 8 of 1995 concerning Capital Markets.

Article 52
The written application for the return of the business license of a Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities as referred to in Article 50 letter a is accompanied by the following documents:
a. information regarding the reasons for the return of the business license; b. the result of the General Meeting of Shareholders decision regarding approval of the plan to apply for the return of the business license;
c. the Decision of the Board of Commissioners of the Financial Services Authority regarding the Granting of Business License to the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities owned;
d. proof of announcement of the plan to return the business license in at least 1 (one) newspaper with national circulation containing among other things notification of the settlement of rights and obligations; and e. a report on the settlement of rights and obligations of the Securities Company carrying out business as a Securities Brokerage Intermediary specifically established to market Mutual Fund Securities to customers and Investment Managers managing Mutual Funds, along with supporting documents.

CHAPTER XIII
SANCTIONS

Article 53
(1) Without prejudice to criminal provisions in the field of Capital Markets, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this regulation, including parties who cause the violation to occur, consisting 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.
(2) Administrative sanctions as referred to in paragraph (1) letter b, letter c, letter d, letter e, letter f, or letter g may be imposed with or without prior imposition of an administrative sanction 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) letter c, letter d, letter e, letter f, or letter g.

Article 54
In addition to administrative sanctions as referred to in Article 53 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 55
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 53 paragraph (1) and certain actions as referred to in Article 54 to the public.

CHAPTER XIV
TRANSITIONAL PROVISIONS

Article 56
(1) Parties who have been registered as Mutual Fund Sales Agents before the implementation of this Financial Services Authority Regulation:
a. may continue to carry out activities as Mutual Fund Sales Agents without having to re-register as Mutual Fund Sales Agents; and b. must adjust to the provisions as referred to in this Financial Services Authority Regulation within a maximum of 3 (three) months from the implementation of this Financial Services Authority Regulation. (2) In the event that the substance regulated in this Financial Services Authority Regulation is the same as:
a. Regulation Number V.B.3, Appendix of the Decision of the Chairman of Bapepam and LK Number KEP-10/BL/2006 dated August 30, 2006 concerning Registration of Mutual Fund Sales Agents; and b. Regulation Number V.B.4, Appendix of the Decision of the Chairman of Bapepam and LK Number KEP-11/BL/2006 dated August 30, 2006 concerning Behavior of Mutual Fund Sales Agents, the substance regulated in this Financial Services Authority Regulation applies since it was promulgated.

Article 57
Parties who have been registered as Mutual Fund Sales Agents and Securities Companies carrying out activities as Underwriters and/or Securities Brokerage Intermediaries that currently carry out Mutual Fund Sales activities must submit reports as referred to in Article 38, Article 39, and Article 40 to the Financial Services Authority no later than 3 (three) months from the implementation of this Financial Services Authority Regulation.

CHAPTER XV
CLOSING PROVISIONS

Article 58
At the time this Financial Services Authority Regulation comes into force, provisions regarding the registration of Mutual Fund Sales Agents and the behavior of Mutual Fund Sales Agents are subject to this Financial Services Authority Regulation.

Article 59
At the time this Financial Services Authority Regulation comes into force:
a. the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number KEP-10/BL/2006 dated August 30, 2006 concerning Registration of Mutual Fund Sales Agents, along with Regulation Number V.B.3 which is its appendix; and b. the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number KEP-11/BL/2006 dated August 30, 2006 concerning Behavior of Mutual Fund Sales Agents, along with Regulation Number V.B.4 which is its appendix, are revoked and declared invalid.

Article 60
This Financial Services Authority Regulation comes into force on the date of its promulgation.

To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on December 29, 2014
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

Promulgated in Jakarta
On December 30, 2014
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA
Signed,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 396 Copy in accordance with the original Director of Legal Affairs I Ministry of Law and Human Rights, Signed, Tini Kustini

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 39/POJK.04/2014
CONCERNING
MUTUAL FUND SALES AGENTS

I. GENERAL
Based on legislation in the field of Capital Markets, particularly those related to the sale of Mutual Fund Securities, the sale of Mutual Fund Securities is not only conducted by Investment Managers but also opens the opportunity for other Parties to conduct sales, provided that they first enter into a sales contract with the Investment Manager and meet the established requirements.

In this regulation, the opportunity is opened for Parties other than Banks to become Mutual Fund Sales Agents (APERD), thereby providing broader opportunities to market Mutual Fund Securities to potential investors, which will ultimately increase the amount of Mutual Fund assets under management and expand the investor base. These Parties include: Securities Companies, companies conducting postal and giro business activities, pawnshop companies, insurance companies, financing companies, pension funds, guarantee companies, and Securities Companies specifically established to market Mutual Fund Securities.

In addition to expanding the Parties that can conduct the sale of Mutual Fund Securities, this regulation also regulates the capacity building of Mutual Fund Sales Agents through provisions related to the activities and behavior of Mutual Fund Sales Agents. This capacity building is expected to provide greater legal certainty and compliance of Mutual Fund Sales Agents with legislation, thereby ultimately protecting investor society from detrimental practices.

In light of the above, provisions regarding the Registration of Mutual Fund Sales Agents and the Behavior of Mutual Fund Sales Agents need to be improved.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
The term "adequate facilities and infrastructure" refers to equipment, tools, and/or systems that support the implementation of the sale and repurchase process of Mutual Fund Securities in accordance with relevant provisions on the sale and repurchase of Mutual Fund Securities, such as document forwarding and payment grace periods, and customer service in the form of, among others, providing Prospectuses, fund fact sheets, and other services.

Article 4
Clear enough.

Article 5
Clear enough.

Article 6
Clear enough.

Article 7
Paragraph (1)
Letter a
The separation of the functions of Underwriter and/or Securities Brokerage Intermediary from the function of Mutual Fund Sales Agent is carried out in the form of standard operating procedures.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Article 8
Clear enough.

Article 9
Clear enough.

Article 10
Clear enough.

Article 11
Clear enough.

Article 12
Clear enough.

Article 13
Clear enough.

Article 14
Clear enough.

Article 15
Clear enough.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Clear enough.

Article 20
Clear enough.

Article 21
Clear enough.

Article 22
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
At the time this Financial Services Authority Regulation is issued, the alternative dispute resolution institution in the field of Capital Markets that exists is the Indonesia Capital Market Arbitration Body (BAPMI).

Letter i
Clear enough.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
The term "other offices besides the head office" refers to Mutual Fund Sales offices besides the head office that carry out Mutual Fund Sales activities in Indonesia.

Article 26
Clear enough.

Article 27
Clear enough.

Article 28
Clear enough.

Article 29
Clear enough.

Article 30
Clear enough.

Article 31
Clear enough.

Article 32
Clear enough.

Article 33
Paragraph (1)
The term "other parties with a wide network in their business activities" includes, among others, minimarkets/supermarkets, property sales outlets, and telecommunications service outlets.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
The report must at least include the location and name of the sales outlet, a list of products sold, the date of sales activities, and a list of names of Responsible Officials and marketing personnel.

Article 34
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Letter i
Clear enough.

Letter j
Clear enough.

Letter k
Information regarding the background, financial condition, investment objectives, and risk profile of potential Mutual Fund Holders is obtained from the Mutual Fund Account Opening Form and the Mutual Fund Holder Risk Profile Form before making the first purchase of Mutual Fund Securities.

Letter l
Clear enough.

Letter m
Clear enough.

Letter n
Adequate facilities for conducting Mutual Fund Sales activities aim to support Investment Managers in providing good service to Mutual Fund Holders, and ensure that activities such as forwarding order forms or data and payments to Investment Managers or Custodian Banks, as well as the delivery of Mutual Fund Holder account reports and settlement to Mutual Fund Holders, are carried out within the timeframes specified in the Prospectus and this Financial Services Authority Regulation.

Letter o
Clear enough.

Letter p
Clear enough.

Letter q
Clear enough.

Letter r
Clear enough.

Article 35
Clear enough.

Article 36
Clear enough.

Article 37
Letter a
Clear enough.

Letter b
The term "instruction from Mutual Fund Holders" refers to instructions in written or unwritten form.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Letter i
Clear enough.

Letter j
Clear enough.

Letter k
Clear enough.

Article 38
Clear enough.

Article 39
Clear enough.

Article 40
Clear enough.

Article 41
Clear enough.

Article 42
Clear enough.

Article 43
Paragraph (1)
Letter a
Clear enough.

Letter b
The revocation of the business license of a Securities Company carrying out activities as an Underwriter and/or Securities Brokerage Intermediary can be caused by the return of the said business license to the Financial Services Authority or by the imposition of a business license revocation sanction by the Financial Services Authority.

Letter c
Clear enough.

Letter d
Clear enough.

Paragraph (2)
The settlement of obligations as referred to in this paragraph includes among others obligations to Mutual Fund Holders, Investment Managers managing Mutual Fund Securities, and/or the Financial Services Authority.

Article 44
Clear enough.

Article 45
Clear enough.

Article 46
Clear enough.

Article 47
Clear enough.

Article 48
Clear enough.

Article 49
Clear enough.

Article 50
Clear enough.

Article 51
Clear enough.

Article 52
Clear enough.

Article 53
Clear enough.

Article 54
The term "certain actions" includes among others orders to Mutual Fund Sales Agents to terminate cooperation with sales outlets.

Article 55
Clear enough.

Article 56
Clear enough.

Article 57
Clear enough.

Article 58
Clear enough.

Article 59
Clear enough.

Article 60
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5653

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 39 /POJK.04/2014
CONCERNING
MUTUAL FUND SALES AGENTS

APPLICATION FOR REGISTRATION AS A MUTUAL FUND SALES AGENT Number : .................... (Place), (Date, Month) 20...
Attachments : ....................
Subject : Application for Registration
As a Mutual Fund Sales Agent

TO
The Head of Executive
Capital Market Supervisor in Jakarta

Hereby we submit an application for registration as a Mutual Fund Sales Agent. As consideration material, we submit the following data:

Applicant Name : ...............................................................
Applicant Address : ...............................................................
...............................................................
(street name and number)
..................................................-

(city and postal code)
3. Applicant Telephone Number : ...............................................................
4. Company Name : ...............................................................
5. Company Address : ...............................................................
...............................................................
(street name and number)
..................................................
(city and postal code)
6. Company Telephone Number : ...............................................................
7. Taxpayer Identification Number (NPWP) : --- -
8. Contact Person : ...............................................................
(include letter of authority)
9. Business License already owned : ..........................................................
To complete this application, we attach the following documents:
a. photocopy of the deed of establishment that has been certified by the minister in charge of law and human rights, as well as the latest amendment to the articles of association as referred to in the law concerning limited liability companies; b. photocopy of the Corporate Taxpayer Identification Number (NPWP Badan);
c. photocopy of the business license from the competent authority;
d. data on the head office, a list of other offices besides the head office and/or outlets that will sell Mutual Fund Securities, along with office addresses and responsible persons, and a list of Securities Company Representatives and/or Mutual Fund Sales Agent Representatives according to the format of Head Office Data, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Responsible Persons, and List of Securities Company Representatives and/or Mutual Fund Sales Agent Representatives as stated in the Appendix of the Financial Services Authority Regulation concerning Mutual Fund Sales Agents; e. documents of the Responsible Official of the Mutual Fund Sales Agent which include:

the latest signed curriculum vitae;
photocopy of the Identity Card or Passport that is still valid;
photocopy of the Work Permit for Foreign Workers (IMTA) for foreign citizens;
photocopy of the license as a Securities Company Representative and/or Mutual Fund Sales Agent Representative;
photocopy of the advanced professional education certificate (if any);
supporting documents showing experience in Mutual Fund Sales activities for at least 3 (three) years; and
latest color photograph size 4x6 cm with a red background, 1 (one) copy;
f. an organizational structure diagram showing the line of responsibility from each function to the responsible person or director responsible for the implementation of Mutual Fund Sales activities, along with job descriptions; g. standard operating procedures for the implementation of Mutual Fund Sales Agent activities; h. a projection of the planned operation of Mutual Fund Sales Agent activities for at least 1 (one) year ahead which must at least include the following information:
Mutual Fund Securities products to be offered;
target investors according to the products to be offered;
target sales value; and
sales method of Mutual Fund Securities products to potential investors;
i. the Mutual Fund Sales Agent's compliance strategy with legislation in the field of Capital Markets according to the format of the Mutual Fund Sales Agent Compliance Strategy as stated in the Appendix of the Financial Services Authority Regulation concerning Mutual Fund Sales Agents;
j. the Mutual Fund Sales Agent's risk management strategy according to the format of the Mutual Fund Sales Agent Risk Management Strategy as stated in the Appendix of the Financial Services Authority Regulation concerning Mutual Fund Sales Agents; and k. photocopy of proof of payment of the registration fee as a Mutual Fund Sales Agent.

Thus this application is submitted, and we thank you for your attention.
Applicant,
..............................................
(full name and signature) stamp

HEAD OFFICE DATA, LIST OF OTHER OFFICES BESIDES HEAD OFFICE AND/OR OUTLETS THAT WILL SELL MUTUAL FUND SECURITIES AND RESPONSIBLE PERSONS, AS WELL AS LIST OF SECURITIES COMPANY REPRESENTATIVES AND/OR MUTUAL FUND SALES AGENT REPRESENTATIVES No Office Name (Head Office, Other Offices Besides Head Office and/or Outlet) Complete Address (Phone No. & Fax) Responsible Official List of Marketing Personnel No. & Date of WPE and/or WAPERD SK Date of Advanced Professional Education (if any)

MUTUAL FUND SALES AGENT COMPLIANCE STRATEGY
Legal Basis
(1)
Compliance
Obligations
(2)
Steps taken in fulfilling compliance obligations (3) Implementation Time (4) Responsible Person (5) Notes:
(1) Legal Basis includes among others Law Number 8 of 1995 concerning Capital Markets, Government Regulation Number 45 of 1995 concerning the Conduct of Activities in the Field of Capital Markets, and Financial Services Authority Regulations related thereto. (2) All compliance obligations of the Mutual Fund Sales Agent that must be fulfilled according to the provisions. (3) Steps that will be taken by the Mutual Fund Sales Agent to fulfill compliance obligations (Reference SOP Number…….concerning……..). (4) Implementation time of the steps that will be taken (every day/whenever necessary (ad hoc basis)/every month/every semester/every year). (5) Official/unit of work/employee responsible for the fulfillment of compliance provisions.

MUTUAL FUND SALES AGENT RISK MANAGEMENT STRATEGY Risk Identification (1) Causes of Risk (2) Possibility and Impact (3) Steps to Manage Risk (4) Responsible Person (5) Possibility of Occurrence Impact Risk Notes :
(1) Identification of all risks that may arise in company activities as a Mutual Fund Sales Agent.
(2) Explanation regarding the causes of the emergence of such risks.
(3) Identification of the possibility and impact of the occurrence of such risks.
(4) Steps that will be taken if such risks occur.
(5) Official/unit of work/employee responsible for risk handling.

APPLICATION FOR BUSINESS LICENSE FOR SECURITIES COMPANIES ACTING AS SECURITIES BROKER INTERMEDIARIES ESTABLISHED SPECIFICALLY TO MARKET MUTUAL FUND SECURITIES

Number: .................... (Place), (Date, Month) 20...
Attachment: ....................
Subject: Application for Business License for Securities Companies Acting as Securities Broker Intermediaries Established Specifically to Market Mutual Fund Securities

The Chief Executive
Capital Market Supervisor in Jakarta

Hereby we apply for a business license for a Securities Company Acting as a Securities Broker Intermediary established specifically to market Mutual Fund Securities. As consideration material, we submit the following data:

Applicant Name: ...............................................................
Applicant Address: ...............................................................
...............................................................
(street name and number)
.................................................- * (city and postal code)
Applicant Telephone Number: ...............................................................
Company Name: ...............................................................
Company Address: ...............................................................
...............................................................
(street name and number)
..................................................- (city and postal code)
Company Telephone Number: ...............................................................
Tax Identification Number: ---- *
Contact Person: ...............................................................
(include letter of authorization)
Business License already held: ..........................................................
For...

To complete this application, we attach the following documents:

a. photocopy of the deed of establishment of the Securities Company acting as a Securities Broker Intermediary established specifically to market Mutual Fund Securities, which has been approved by the Minister in charge of law and human rights, and the latest amendment to the Articles of Association as referred to in the Law on Limited Liability Companies;

b. photocopy of the Corporate Tax Identification Number;

c. photocopy of proof of capital deposit;

d. photocopy of bank statements;

e. financial reports audited by a public accountant registered with the Financial Services Authority;

f. domicile letter from the building manager or competent authority, photocopy of proof of ownership if the business premises are owned, or lease agreement if the business premises are not owned, office room layout, and photos of the Mutual Fund Sales Agent rooms accompanied by room designation;

g. recommendation letter from the relevant association for Mutual Fund Securities sales;

h. photocopy of the Permit to Employ Foreign Workers (IMTA), for Securities Broker Intermediaries established specifically to market Mutual Fund Securities that employ Foreign Citizens;

i. data on the head office, list of other offices besides the head office and/or outlets that will sell Mutual Fund Securities, along with office addresses and persons in charge, and list of Deputy Securities Companies and/or Deputy Mutual Fund Sales Agents according to the format Data on Head Office, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Persons in Charge, As Well as List of Deputy Securities Companies and/or Deputy Mutual Fund Sales Agents as stated in the Appendix of the Financial Services Authority Regulation on Mutual Fund Sales Agents;

j. list of names and data of board of directors members and officials in charge of Mutual Fund Securities sales activities, including:

list of...
curriculum vitae signed by the concerned party, including a brief work history covering: job title, reason for leaving or resignation, and a brief description of duties and responsibilities of the position;
photocopy of formal education diplomas and/or professional certificates;
photocopy of license as Deputy Securities Company and/or Deputy Mutual Fund Sales Agent;
photocopy of advanced professional education certificate (if any);
photocopy of valid Identity Card or Passport;

and

latest color passport-sized photo 4x6 cm with a red background, 1 (one) sheet;

k. organizational structure diagram showing the line of responsibility from each function to the Board of Directors responsible for the implementation of Mutual Fund Securities sales activities, along with job descriptions;

l. standard operating procedures for the implementation of Mutual Fund Sales Agent activities;

m. projection of the planned operational activities of the Mutual Fund Sales Agent for at least 1 (one) year ahead, which must at least include the following information:

Mutual Fund Securities products to be offered;
investor targets according to the products to be offered;
sales value targets; and
sales methods for Mutual Fund Securities products to prospective investors;

n. Mutual Fund Sales Agent compliance strategy regarding regulations in the Capital Market sector according to the format Mutual Fund Sales Agent Compliance Strategy as stated in the Appendix of the Financial Services Authority Regulation on Mutual Fund Sales Agents;

o. Mutual Fund Sales Agent risk management strategy according to the format Mutual Fund Sales Agent Risk Management Strategy as stated in the Appendix of the Financial Services Authority Regulation on Mutual Fund Sales Agents; and

p. photocopy of proof of payment of licensing fees as a Company established specifically to market Mutual Fund Securities.

Thus this application is submitted, and we thank you for your attention.

Applicant,
..............................................
(clear name and signature) stamp

APPLICATION FOR APPROVAL TO SELL MUTUAL FUND SECURITIES AT OTHER OFFICES BESIDES THE HEAD OFFICE

Number: .................... (Place), (Date, Month) 20...
Attachment: ....................
Subject: Application for Approval
Sale of Mutual Fund Securities at Other Offices Besides Head Office

The Chief Executive
Capital Market Supervisor in Jakarta

Hereby we apply for approval to sell Mutual Fund Securities at other offices besides the head office. As consideration material, we submit the following data:

Applicant Name: ..........................................................
Applicant Address: ..........................................................
..........................................................
(street name and number)
.............................................- (city and postal code)
Applicant Telephone Number: ..........................................................
Head Office Name: ..........................................................
Head Office Address: ..........................................................
..........................................................
(street name and number)
.............................................- (city and postal code)
Head Office Telephone Number: ..........................................................
Tax Identification Number: ---- *
Contact Person: ..........................................................
(include letter of authorization)

To complete this application, we attach the following documents:

a. documents related to the official in charge of other offices besides the head office, including:

list of curriculum vitae;
photocopy of Board of Directors decision letter related to the appointment or placement as official in charge of other offices besides the head office;
supporting documents showing experience in Mutual Fund Securities sales activities for at least 3 (three) years;
photocopy of license as Deputy Securities Company and/or Deputy Mutual Fund Sales Agent in the name of the official in charge;

and

photocopy of the latest advanced professional education certificate in the name of the official in charge (if any);

b. documents related to Deputy Securities Company and/or Deputy Mutual Fund Sales Agent at other offices besides the head office, including:

photocopy of Board of Directors decision letter related to the appointment or placement of Deputy Securities Company and/or Deputy Mutual Fund Sales Agent at other offices besides the head office as marketing personnel;
photocopy of license as Deputy Securities Company and/or Deputy Mutual Fund Sales Agent in the name of the marketing personnel;

and

photocopy of the latest advanced professional education certificate in the name of the concerned party (if any);

c. domicile letter for other offices besides the head office from the building manager or competent authority; and

d. list of other offices besides the head office that will sell Mutual Fund Securities, along with office addresses and persons in charge, as well as list of Deputy Securities Companies and/or Deputy Mutual Fund Sales Agents, according to the format Data on Head Office, List of Other Offices Besides Head Office and/or Outlets That Will Sell Mutual Fund Securities and Persons in Charge, As Well as List of Deputy Securities Companies and/or Deputy Mutual Fund Sales Agents as stated in the Appendix of the Financial Services Authority Regulation on Mutual Fund Sales Agents.

Thus this application is submitted, and we thank you for your attention.

Applicant,
..............................................
(clear name and signature) stamp

ANNUAL ACTIVITY PLAN

Number: .................... (Place), (Date, Month) 20...
Attachment: ....................
Subject: Annual Activity Plan for Period .......

The Chief Executive
Capital Market Supervisor in Jakarta

Name of Mutual Fund Sales Agent: ................................
Activity Plan for the year .......... is as follows:

No
Investment Manager
(1)
Mutual Fund Target Investor
Sales Method
Mutual Fund
(6)
Distribution Channel
Sales
(7)
Sales Value Target
(Asset Under
Management)
(8)
Type
(2)
Name
(3)
Segment
(4)
Quantity
(5)

A. Explanation:

(1) Filled with the name of the Investment Manager as the manager of the Mutual Fund in the Cooperation Agreement with the Mutual Fund Sales Agent.

(2) Type of Mutual Fund according to:

a. Bapepam and LK Regulation Number IV.C.3 Regarding Guidelines for Daily Announcement of Net Asset Value of Open-End Mutual Funds;

b. Bapepam and LK Regulation Number IV.C.4 Regarding Guidelines for Managing Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds.

(3) Filled with the name of the Mutual Fund.

(4) Investor Segment includes among others:

a. Individual

(i) High Net Worth Investor (Priority, Premier, Personal Banking, Private Banking)

(ii) Affluent

(iii) Mass

b. Institution.

(5) Filled with the target number of Mutual Fund investors.

(6) Mutual Fund Sales Methods include among others:

a. Investor Gathering

b. Mutual Fund Sales Agent Branch Network (Face-to-Face, Referral, Bundling Program)

c. Client Visit

d. Marketing tools (brochures, advertisements).

(7) Sales Distribution Channels include among others:

a. Regular Investment Scheme

b. E-Channelling (ATM, Internet Banking, Mobile Banking)

(8) Filled with the sales value target of the Mutual Fund.

(Place), (Date, Month) 20...
(Board of Directors/Official)
(………….……………….)
(name and signature)

REPORT ON CHANGES
IN PERSONS IN CHARGE AND MARKETING PERSONNEL

Name of Mutual Fund Sales Agent: PT ..........................

No
Sales Office
Name
Person in Charge
Number & Date
Deputy Securities Company/
Deputy Mutual Fund Sales Agent
Decision
Date
Advanced Professional
Education
Name
Marketing Personnel
Number & Date
Deputy Securities Company/
Deputy Mutual Fund Sales Agent
Decision
Date
Advanced Professional
Education
(if any)

MUTUAL FUND SALES REPORT
BY MUTUAL FUND SALES AGENT

Name of Mutual Fund Sales Agent: ............
Period: ..............

Table 1: Mutual Fund Sales Per Marketing Office

No
Head Office, Other Offices Besides
Head Office and/or Outlets
Sales
Sales Value
Outstanding Value
Number
Clients
Rp USD Rp USD I P
TOTAL

Explanation:
I : Institutional Clients
P : Individual Clients

Table 2: Mutual Fund Sales Per Marketing Personnel

No
Employee Name (Deputy Securities Company and/or Deputy Mutual Fund Sales Agent License) Head Office, Other Offices Besides Head Office and/or Outlets Sales Sales Value Rp USD TOTAL

MUTUAL FUND INVESTOR PROFILE REPORT

Name of Mutual Fund Sales Agent: ..........................
Period: ........................

Table 1: Individual Investor Profile

Investor Code
Name
Identity
Number
Identity Number
Tax ID Number
Place/Date of Birth
Gender
Marital
Status
Nationality
Occupation
Education
Religion
Source of Funds
Purpose
Income
Address1
City Code
Postal Code

Table 2: Institutional Investor Profile

Investor Code
Name
Domicile
Type
Characteristics
Tax ID Number
Business License or
Articles of Association
Source of Funds
Purpose
Income
Address
City Code
Postal Code

Determined in Jakarta on 29 December 2014
CHAIRMAN OF THE COMMISSIONER BOARD
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

Copy matches the original
Director of Legal Department I
Legal Department,
Signed,
Tini Kustini

Financial Services Authority Regulation Number 39/POJK.04/2014 on Mutual Fund Securities Sales Agents

Lineage: In force