Financial Services Authority Regulation Number 4 of 2017 on Multi-Asset Investment Funds in the Form of Collective Investment Contracts — OJK — ID

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 4 /POJK.04/2017
CONCERNING
MULTI-ASSET INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to support the implementation of Law Number 11 of 2016 concerning Tax Amnesty, specifically regarding the placement of repatriation funds and/or tax amnesty declarations in investment instruments in the Capital Market, it is necessary to provide alternative investment products; b. that in order to provide alternative investment products for investors who will place repatriation funds and/or tax amnesty declarations in investment instruments in the Capital Market, it is necessary to increase the diversity of investment products;
c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Multi-Asset Investment Funds in the Form of Collective Investment Contracts;
Recalling: 1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608); FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA

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:
Determining: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING MULTI-ASSET INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS.

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

Investor is a taxpayer, either an individual or a legal entity, who has obtained a tax amnesty certificate as referred to in Law Number 11 of 2016 concerning Tax Amnesty, based on Law Number 11 of 2016 concerning Tax Amnesty.
Multi-Asset Investment Fund in the Form of Collective Investment Contract, hereinafter referred to as Multi-Asset Investment Fund, is a vehicle used to gather funds from specific Investors to be subsequently invested by the Investment Manager into a Securities Portfolio and/or investment portfolios other than Securities.
Participation Unit is a unit of measurement indicating the interest portion of each Party in the collective investment portfolio.
Collective Investment Contract is a contract between the Investment Manager and the Custodian Bank that binds the Participation Unit holders, whereby the Investment Manager is authorized to manage the collective investment portfolio and the Custodian Bank is authorized to carry out Collective Safekeeping.
Investment Manager is a Party whose business activities involve managing Securities Portfolios for clients or managing collective investment portfolios for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on applicable regulations.
Public Offering is the activity of offering Securities conducted by the Issuer to sell Securities to the public according to procedures regulated in Law Number 8 of 1995 concerning the Capital Market and its implementing regulations.
Net Asset Value is the fair market value of a Security and other assets of the Multi-Asset Investment Fund minus all its liabilities.
Security is a negotiable instrument, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, Participation Units of collective investment contracts, futures contracts on Securities, and any derivatives of Securities.
Mutual Fund Security Selling Agent is a Party that sells Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund.
Securities Portfolio is a collection of Securities owned by the Party.
Custodian Bank is a commercial bank that has received approval from the Financial Services Authority as a Custodian Bank.
Collective Safekeeping is a safekeeping service for Securities conducted by the Issuer to sell Securities to the public according to procedures regulated in Law Number 8 of 1995 concerning the Capital Market and its implementing regulations.
Capital Market is activities related to Public Offerings and trading of Securities, Public Companies related to the Securities they issue, as well as institutions and professions related to Securities.
Mutual Fund is a vehicle used to gather funds from investor members of the public to be subsequently invested in a Securities Portfolio by an Investment Manager.

CHAPTER II
GUIDELINES FOR THE MANAGEMENT OF MULTI-ASSET INVESTMENT FUNDS
Section One
Offering of Participation Units of Multi-Asset Investment Funds
Article 2
Participation Units of Multi-Asset Investment Funds cannot be offered through a Public Offering.
Article 3
(1) The Investment Manager may sell Participation Units of Multi-Asset Investment Funds through cooperation with Mutual Fund Security Selling Agents that serve as gateways, provided they are not offered through a Public Offering. (2) Sales activities conducted by Mutual Fund Security Selling Agents to prospective Investors may be carried out through direct meetings, letters, and/or electronic media. (3) The sale of Participation Units of Multi-Asset Investment Funds must be based on a cooperation contract between the Mutual Fund Security Selling Agent and the Investment Manager as the manager of the Multi-Asset Investment Fund. (4) The cooperation contract as referred to in paragraph (3) must contain at least the following:
a. identity of each party involved in the contract; b. rights and obligations of each party;
c. the obligation of the Mutual Fund Security Selling Agent to provide data on holders of Participation Units of Multi-Asset Investment Funds to the Investment Manager, which may only be used for interests related to the activities of the Multi-Asset Investment Fund;
d. commissions received by the Mutual Fund Security Selling Agent and costs borne by the Mutual Fund Security Selling Agent and/or the Investment Manager; e. procedures for including information and data regarding the identity of the Mutual Fund Security Selling Agent, Investment Manager, and Custodian Bank in documents related to the ordering of sales or repurchase of Multi-Asset Investment Funds by holders of Participation Units of Multi-Asset Investment Funds; f. procedures for payment and delivery of funds related to the sale and repurchase of Multi-Asset Investment Funds; g. duration of the agency contract; h. designation of judicial institutions, alternative dispute resolution institutions in the Capital Market sector, or other alternative dispute resolution institutions as institutions to resolve disputes and civil litigation between the parties; and

i. provisions on contract termination.
Section Two
Name of the Multi-Asset Investment Fund
Article 4
(1) The name of the Multi-Asset Investment Fund must describe:
a. the name of the Investment Manager; and b. the denomination of foreign currency used, if using a currency other than the Rupiah.
(2) The name of the Multi-Asset Investment Fund is prohibited from:
a. being the same as the name of another Multi-Asset Investment Fund; b. containing expressions regarding certainty or promises of returns, or absence of investment risk;
c. containing expressions that the Investment Manager has certain advantages that may not be true;
and/or d. being inconsistent with the investment policy of the Multi-Asset Investment Fund.
Section Three
Net Asset Value of the Multi-Asset Investment Fund
Article 5
(1) The initial Net Asset Value of Participation Units of the Multi-Asset Investment Fund must be set at IDR 1,000.00 (one thousand Rupiah).
(2) In the event that the initial Net Asset Value of Participation Units of the Multi-Asset Investment Fund is set in a foreign currency denomination, the initial Net Asset Value of Participation Units of the Multi-Asset Investment Fund must be set at US$ 1 (one United States Dollar) or EUR 1 (one Euro).
Article 6
(1) The initial investment value of holders of Participation Units of the Multi-Asset Investment Fund must be determined at a minimum of IDR 50,000,000,000.00 (fifty billion Rupiah).
(2) In the event that Participation Units of the Multi-Asset Investment Fund are issued using a foreign currency denomination, the minimum investment as referred to in paragraph (1) is equal to the value equivalent to IDR 50,000,000,000.00 (fifty billion Rupiah) using the Bank Indonesia middle exchange rate at the time of the transaction. (3) The initial investment deposit of holders of Participation Units of the Multi-Asset Investment Fund may consist of Securities Portfolios and/or investment portfolios other than Securities with a value equivalent to IDR 50,000,000,000.00 (fifty billion Rupiah). (4) In the event that the initial investment deposit of holders of Participation Units of the Multi-Asset Investment Fund consists of Securities Portfolios and/or investment portfolios other than Securities as referred to in paragraph (3), then:
a. the initial investment value in the form of Securities Portfolios in the Multi-Asset Investment Fund must be valued based on fair market value calculated using methods referring to regulations in the Capital Market sector governing the fair market value of Securities in Mutual Fund portfolios; and/or b. the initial investment value in the form of investment portfolios other than Securities in the Multi-Asset Investment Fund must be valued based on fair market value available to the public or determined by an independent apprafter appointed by the Investment Manager.
Section Four
Requirements for Investment Managers Managing Multi-Asset Investment Funds
Article 7
The Investment Manager managing the Multi-Asset Investment Fund must meet the following provisions:

a. having at least 1 (one) employee with expertise in investment proven by:
1. Chartered Financial Analyst (CFA) certificate; or
2. individual license as a representative of the Investment Manager and having experience in managing Mutual Fund Securities Portfolios for at least 5 (five) years,
who are directly involved in the management of that Multi-Asset Investment Fund; and b. having an investment committee tasked with:
1. setting the investment policy and strategy of the Multi-Asset Investment Fund; and
2. supervising all investment activities of the Multi-Asset Investment Fund from the initial investment to divestment or during the validity period of the Collective Investment Contract.
Section Five
Management of Multi-Asset Investment Funds
Article 8
(1) The investment objectives and policy, investment strategy, and composition of the investment portfolio of the Multi-Asset Investment Fund must be determined by the Investment Manager and stated in the Collective Investment Contract and the disclosure document of the Multi-Asset Investment Fund. (2) The investment objectives and policy, investment strategy, and composition of the investment portfolio of the Multi-Asset Investment Fund as referred to in paragraph (1) may change provided they meet the following provisions:
a. having obtained approval from the holders of Participation Units of the Multi-Asset Investment Fund; and b. being incorporated into changes to the Collective Investment Contract and the disclosure document of the Multi-Asset Investment Fund.

(3) Changes to the Collective Investment Contract and the disclosure document of the Multi-Asset Investment Fund as referred to in paragraph (2) letter b must be submitted to the Financial Services Authority within a maximum of 10 (ten) working days since the changes to the Collective Investment Contract and the disclosure document of the Multi-Asset Investment Fund obtained approval from the holders of Participation Units of the Multi-Asset Investment Fund.
Article 9
Investment portfolios in the Multi-Asset Investment Fund may consist of:
a. Securities that:

are issued and offered through Public Offerings or not through Public Offerings;
are listed or traded on the Stock Exchange; and/or
are not listed or not traded on the Stock Exchange;
b. money market instruments;
c. deposits;
d. derivative instruments; e. other financial instruments designated by the Financial Services Authority as Securities; f. property or real estate assets; g. infrastructure assets; h. warehouse receipts; and
i. investment instruments other than Securities that are valid according to applicable regulations.
Article 10
In managing the Multi-Asset Investment Fund, the Investment Manager must:
a. have a risk diversification strategy for Securities Portfolios and/or investment portfolios other than Securities that are assets of the Multi-Asset Investment Fund; and

b. have adequate liquidity management for investments in Securities Portfolios and/or investment portfolios other than Securities that are assets of the Multi-Asset Investment Fund.
Article 11
The Investment Manager is prohibited from taking actions that may cause the Multi-Asset Investment Fund to:
a. issue debt-type Securities; b. place funds in investment instruments in the financial market and/or in investments outside the financial market outside the territory of the Unitary State of the Republic of Indonesia as referred to in Law Number 11 of 2016 concerning Tax Amnesty and its implementing regulations; and
c. invest in other Multi-Asset Investment Funds.
Article 12
(1) In managing the Multi-Asset Investment Fund, the Investment Manager may impose management fees based on performance.
(2) The imposition of performance-based management fees by the Investment Manager is set according to the level of difficulty of the investment strategy and techniques used by the Investment Manager to achieve the objectives stated in the disclosure document.

CHAPTER III
GUIDELINES FOR THE COLLECTIVE INVESTMENT CONTRACT OF MULTI-ASSET INVESTMENT FUNDS
Section One
Collective Investment Contract
Article 13
The Investment Manager is prohibited from being affiliated with the Custodian Bank, except for affiliation relationships arising from government capital participation in the Republic of Indonesia.
Article 14
The Collective Investment Contract of the Multi-Asset Investment Fund and its amendments must be made notarially.
Article 15
The Collective Investment Contract of the Multi-Asset Investment Fund must contain at least the following provisions:
a. name and address of the Investment Manager and Custodian Bank; b. composition of the investment portfolio, investment policy, and investment strategy of the Multi-Asset Investment Fund;
c. allocation of costs borne by the Investment Manager, Multi-Asset Investment Fund, and Participation Unit holders;
d. imposition of performance-based management fees by the Investment Manager (if any); e. obligations and responsibilities of the Investment Manager; f. obligations and responsibilities of the Custodian Bank; g. information regarding the rights, obligations, and authority of other related parties, as well as governance of management and administration of fund investments in Securities Portfolios and/or investment portfolios other than Securities; h. replacement of the Investment Manager or Custodian Bank in the Collective Investment Contract;
i. designation of sub-custodians (if any);
j. rights of Participation Unit holders;

k. procedures for execution and payment of Participation Unit transactions of the Multi-Asset Investment Fund;
l. investment return distribution policy;
m. procedures for calculating the Net Asset Value of the Multi-Asset Investment Fund; n. asset valuation methods in the investment portfolio; o. annual financial reports of the Multi-Asset Investment Fund; p. force majeure events beyond the control of the Investment Manager and/or Custodian Bank that cause the parties to be unable to perform their duties and obligations; q. dissolution and liquidation of the Multi-Asset Investment Fund; and r. designation of alternative dispute resolution institutions in the Capital Market sector or other alternative dispute resolution institutions as institutions to resolve disputes and civil litigation between the Investment Manager and the Custodian Bank.
Section Two
Obligations of the Investment Manager
Article 16
(1) The Investment Manager managing the Multi-Asset Investment Fund must:
a. separate the assets of the Multi-Asset Investment Fund from the assets of the Investment Manager; b. maintain all important records related to Participation Unit transactions of the Multi-Asset Investment Fund separately from the accounting and reporting of the Investment Manager;
c. maintain all important records related to investment transactions for the benefit of the Multi-Asset Investment Fund separately from the accounting and reporting of the Investment Manager;
d. appoint a replacement Custodian Bank when necessary; e. manage the Multi-Asset Investment Fund solely for the benefit of the holders of Participation Units of the Multi-Asset Investment Fund, in accordance with applicable regulations, the Collective Investment Contract, disclosure documents, and other related contracts for the Multi-Asset Investment Fund; f. submit reports on the Multi-Asset Investment Fund to the holders of Participation Units of the Multi-Asset Investment Fund and the Financial Services Authority; g. formulate procedures for purchasing Participation Units of the Multi-Asset Investment Fund; h. ensure that its systems generate information regarding daily operational activities, financial conditions, and Securities Portfolios and/or investment portfolios other than Securities that are underlying assets in the Multi-Asset Investment Fund;
i. have adequate risk management, risk monitoring procedures, and internal controls, including:

having adequate due diligence processes for selecting investment portfolios that are underlying assets in the Multi-Asset Investment Fund;
effective liquidity risk management in fulfilling the obligations of the Multi-Asset Investment Fund and adjusted to the Participation Unit transaction patterns set in the Collective Investment Contract; and
conducting continuous monitoring of investment portfolios that are underlying assets in the Multi-Asset Investment Fund;
j. provide information to prospective holders of Participation Units of the Multi-Asset Investment Fund regarding investment policy and investment risk in the disclosure document; k. ensure that holders of Participation Units of the Multi-Asset Investment Fund have understood and comprehended the investment policy and investment risk of the Multi-Asset Investment Fund, evidenced by a written statement from the holder of Participation Units of the Multi-Asset Investment Fund at the time of purchasing Participation Units; and
l. act in good faith and with full responsibility to perform duties as best as possible solely for the benefit of the holders of Participation Units of the Multi-Asset Investment Fund.
(2) In the event that the Investment Manager does not fulfill its obligations as referred to in paragraph (1) letter l, the Investment Manager is responsible for losses arising from its actions.
Section Three
Obligations of the Custodian Bank
Article 17
(1) The Custodian Bank administering the Multi-Asset Investment Fund must:
a. separate the assets of the Multi-Asset Investment Fund from the assets of the Custodian Bank; b. conduct accounting and reporting, including maintaining all important records related to financial reports and management of the Multi-Asset Investment Fund separately from the accounting and reporting of the Custodian Bank and separately from the accounting and reporting of other investment products;
c. calculate the Net Asset Value of the Multi-Asset Investment Fund at least once in 1 (one) month and submit it to the Financial Services Authority and make it available to holders of Participation Units of the Multi-Asset Investment Fund;
d. record all changes in assets in the Multi-Asset Investment Fund, number of Participation Units, withdrawals, management fees, interest income, or other income in accordance with Financial Services Authority regulations;

e. settle transactions conducted by the Multi-Asset Investment Fund according to Investment Manager instructions; f. pay management fees and other costs imposed on assets in the Multi-Asset Investment Fund according to the Collective Investment Contract; g. pay holders of Participation Units of the Multi-Asset Investment Fund for each distribution of investment returns related to the Multi-Asset Investment Fund; h. keep separate records showing all changes in the number of Participation Units of the Multi-Asset Investment Fund owned by each holder of Participation Units, name, nationality, address, and other identities of the Participation Unit holders;
i. provide Collective Safekeeping and custody services regarding the assets of the Multi-Asset Investment Fund;
j. compile and submit reports on the Multi-Asset Investment Fund to the Investment Manager, the Financial Services Authority, and holders of Participation Units of the Multi-Asset Investment Fund; k. reject Investment Manager instructions in writing with a copy to the Financial Services Authority if the instructions, upon receipt by the Custodian Bank, clearly violate applicable regulations and/or the Collective Investment Contract of the Multi-Asset Investment Fund; and
l. act in good faith and with full responsibility to perform duties as best as possible solely for the benefit of the Multi-Asset Investment Fund.
(2) In the event that the Custodian Bank of the Multi-Asset Investment Fund does not fulfill its obligations as referred to in paragraph (1) letter l, the Custodian Bank of that Multi-Asset Investment Fund is responsible for losses arising from its actions.

Section Four
Rights of Participation Unit Holders
Article 18
The rights of holders of Participation Units of the Multi-Asset Investment Fund must contain at least:
a. proof of ownership; b. annual financial reports of the Multi-Asset Investment Fund;
c. information regarding the Net Asset Value of the Multi-Asset Investment Fund; and
d. a share in liquidation proceeds.

CHAPTER IV
DISCLOSURE DOCUMENTS OF MULTI-ASSET INVESTMENT FUNDS
Article 19
The disclosure document of the Multi-Asset Investment Fund must contain at least:
a. information regarding the Collective Investment Contract of the Multi-Asset Investment Fund as referred to in Article 15; b. investment objectives and policy;
c. pattern, strategy, and/or investment focus;
d. investment limitations; e. types of Securities Portfolios and/or investment portfolios other than Securities; f. in the event that the Multi-Asset Investment Fund invests in Derivative Securities and/or structured products, the disclosure document must clearly state:
1. types and characteristics of derivatives and structured products that are portfolios of the Multi-Asset Investment Fund;
2. investment objectives in derivatives as a portfolio of the Multi-Asset Investment Fund; and
3. risk management to be applied;
g. in the event that the Multi-Asset Investment Fund invests in Securities not listed on the exchange and/or Securities not traded on the exchange, Securities that are instruments for corporate restructuring, and/or investment portfolios other than Securities, the disclosure document must clearly state:
1. that the Securities and/or investment portfolios other than Securities referred to have liquidity and valuation risks of the investment in question;
2. liquidity risk and risk of Net Asset Value fluctuation of the Multi-Asset Investment Fund; and
3. that investment in the types of Securities and/or investment portfolios other than Securities referred to is an investment with limited regulation;
h. a statement indicating that the performance of the Multi-Asset Investment Fund heavily depends on the expertise of the Investment Manager; and
i. other risks (if any).

CHAPTER V
VALUATION OF SECURITIES PORTFOLIOS AND/OR INVESTMENT PORTFOLIOS OTHER THAN SECURITIES IN MULTI-ASSET INVESTMENT FUNDS
Article 20
(1) The Investment Manager managing the Multi-Asset Investment Fund must calculate the fair market value of Securities in the portfolio of the Multi-Asset Investment Fund and submit it to the Custodian Bank no later than the last trading day of each month. (2) The valuation of Securities in the portfolio of the Multi-Asset Investment Fund must be conducted by the Investment Manager using methods referring to regulations in the Capital Market sector governing the fair market value of Securities in Mutual Fund portfolios.

Article 21
(1) The Investment Manager managing a Multi-Asset Investment Fund must determine the fair market value of the investment portfolio other than Securities, with the following provisions:
a. at the end of the last trading day of each month, for investment portfolios other than Securities whose fair market price is publicly available; or b. at the end of each year, for investment portfolios other than Securities whose fair market price is not publicly available. (2) The calculation of the fair market value of the investment portfolio other than Securities as referred to in paragraph (1) letter b must be based on an assessment conducted by an independent appraiser appointed by the Investment Manager managing the Multi-Asset Investment Fund. (3) The Investment Manager managing a Multi-Asset Investment Fund must submit the fair market value of the investment portfolio other than Securities to the Custodian Bank, with the following provisions:
a. at the latest 5 (five) trading days after the end of the month, for investment portfolios other than Securities whose fair market price is publicly available; or b. at the latest 2 (two) months since the end of the fiscal year of the Multi-Asset Investment Fund, for investment portfolios other than Securities whose fair market price is not publicly available.

CHAPTER VI
REGISTRATION OF COLLECTIVE INVESTMENT CONTRACTS FOR MULTI-ASSET INVESTMENT FUNDS

Article 22
(1) The Investment Manager managing a Collective Investment Contract for a Multi-Asset Investment Fund must submit a request for registration of the issuance of the Collective Investment Contract for a Multi-Asset Investment Fund to the Financial Services Authority (OJK) at the latest 10 (ten) working days since the date of signing the Collective Investment Contract. (2) The registration request as referred to in paragraph (1) is accompanied by:
a. the Collective Investment Contract made with a notarial deed by a notary registered with the Financial Services Authority; b. the disclosure documents of the Multi-Asset Investment Fund;
c. the resume list of Investment Manager employees directly involved in managing the Collective Investment Contract for a Multi-Asset Investment Fund, accompanied by:

a photocopy of the Chartered Financial Analyst (CFA) certificate; or
a photocopy of the individual license as a representative of the Investment Manager and a letter of recommendation regarding experience in managing Securities Mutual Fund portfolios for at least 5 (five) years from the company where the individual works; and
d. an audit report from the legal aspect and a legal opinion made by a legal consultant registered with the Financial Services Authority regarding the issuance of the Multi-Asset Investment Fund. (3) The Investment Manager managing a Multi-Asset Investment Fund must store and administer the following documents:
a. a statement signed by prospective Unit Holders or Unit Holders stating at least that the prospective Unit Holder or Unit Holder of the Multi-Asset Investment Fund understands and comprehends the investment structure of the Multi-Asset Investment Fund and the risks that may occur; and b. a statement signed by the authorized party according to the articles of association stating that the investment in the Multi-Asset Investment Fund is conducted by the authorized party on behalf of the corporation, in the event that the prospective Unit Holder of the Multi-Asset Investment Fund is in the form of a corporation.

Article 23
In processing the registration request for a Multi-Asset Investment Fund, the Financial Services Authority conducts an examination of the completeness of the registration documents.

CHAPTER VII
REPORTING OF COLLECTIVE INVESTMENT CONTRACTS FOR MULTI-ASSET INVESTMENT FUNDS

Article 24
(1) The calculation of the Net Asset Value of a Multi-Asset Investment Fund as referred to in Article 17 paragraph (1) letter c must be submitted by the Custodian Bank to the Financial Services Authority at the latest on the tenth trading day of the following month. (2) In the event that a Multi-Asset Investment Fund has an investment portfolio other than Securities whose fair market price is not periodically and publicly available, then for the calculation of the Net Asset Value of the Multi-Asset Investment Fund as referred to in paragraph (1), the fair market value of the investment portfolio used is the fair market value calculated based on the latest assessment results by an independent appraiser. (3) In the event that the Financial Services Authority has provided an electronic system for submitting the calculation of the Net Asset Value of a Multi-Asset Investment Fund, the submission of the calculation of the Net Asset Value of a Multi-Asset Investment Fund as referred to in paragraph (1) may be submitted through the aforementioned electronic system. (4) The report as referred to in paragraph (1) must be submitted to Unit Holders in writing or electronically with the approval of the Unit Holders. (5) Regulations regarding the reporting procedures to the Financial Services Authority and Unit Holders are regulated in a Circular Letter of the Financial Services Authority.

Article 25
(1) The Investment Manager together with the Custodian Bank must prepare the annual financial report of a Multi-Asset Investment Fund based on generally accepted accounting principles.
(2) The fiscal year of a Multi-Asset Investment Fund starts from January 1 and ends on December 31.
(3) The annual financial report of a Multi-Asset Investment Fund must be audited by an accountant registered with the Financial Services Authority.
(4) The annual financial report of a Multi-Asset Investment Fund must be signed by the members of the Board of Directors of the Investment Manager and the person in charge of the Custodian Bank. (5) The annual financial report of a Multi-Asset Investment Fund as referred to in paragraph (3) must be submitted to the Financial Services Authority by the Investment Manager at the latest at the end of the third month after the end of the annual financial report date and available to Unit Holders. (6) In the event that at the end of the annual financial report period of a Multi-Asset Investment Fund there are no Unit Holders, the audit obligation as referred to in paragraph (3) and the submission of the annual financial report of a Multi-Asset Investment Fund to the Financial Services Authority as referred to in paragraph (5) do not apply. (7) In the event that the Investment Manager submits a plan to dissolve a Multi-Asset Investment Fund before the end of the annual financial report period, the obligation to submit the annual financial report of a Multi-Asset Investment Fund to the Financial Services Authority as referred to in paragraph (5) does not apply. (8) In the event that the deadline for submitting the annual financial report of a Multi-Asset Investment Fund to the Financial Services Authority as referred to in paragraph (5) falls on a holiday, the report must be submitted at the latest on 1 (one) working day thereafter.

CHAPTER VIII
DISSOLUTION OF MULTI-ASSET INVESTMENT FUNDS

Article 26
A Multi-Asset Investment Fund must be dissolved in the following cases:
a. ordered by the Financial Services Authority in accordance with laws and regulations in the Capital Market sector; and/or b. the Investment Manager and Custodian Bank have agreed to dissolve the Multi-Asset Investment Fund after first obtaining approval from all Unit Holders.

Article 27
In the event that a Multi-Asset Investment Fund is dissolved due to conditions as referred to in Article 27 letter a, the Investment Manager must:
a. submit the dissolution, liquidation, and plan for the distribution of liquidation results of the Collective Investment Contract for a Multi-Asset Investment Fund to all Unit Holders of the Collective Investment Contract for a Multi-Asset Investment Fund at the latest 10 (ten) working days since being ordered by the Financial Services Authority and on the same day notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Multi-Asset Investment Fund; b. instruct the Custodian Bank to pay the liquidation results belonging to Unit Holders, with the calculation being done proportionally from the Net Asset Value at the time of dissolution, and the liquidation results are received by Unit Holders; and
c. submit a report on the results of dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund to the Financial Services Authority at the latest 60 (sixty) days since being ordered to dissolve by the Financial Services Authority, with the following documents:

a report on the results of dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund, accompanied by an opinion from a legal consultant registered with the Financial Services Authority;
financial reports related to the dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund, audited by an accountant registered with the Financial Services Authority; and
a deed of dissolution and liquidation of a Multi-Asset Investment Fund from a notary registered with the Financial Services Authority.

Article 28
In the event that a Multi-Asset Investment Fund is dissolved due to conditions as referred to in Article 27 letter b, the Investment Manager must:
a. submit to the Financial Services Authority within a time limit of at the latest 5 (five) working days since the agreement to dissolve the Multi-Asset Investment Fund by the Investment Manager and Custodian Bank, attaching:
1. the agreement to dissolve and liquidate a Multi-Asset Investment Fund between the Investment Manager and Custodian Bank;
2. approval from Unit Holders of a Multi-Asset Investment Fund;
3. reasons for dissolution; and
4. the latest financial condition of a Multi-Asset Investment Fund;
and on the same day submit a plan for the dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund to Unit Holders and notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Multi-Asset Investment Fund; b. instruct the Custodian Bank to pay the liquidation results belonging to Unit Holders, with the calculation being done proportionally from the Net Asset Value at the time liquidation is completed, and the liquidation results are received by Unit Holders; and
c. submit a report on the results of dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund to the Financial Services Authority at the latest 60 (sixty) days since the agreement to dissolve a Multi-Asset Investment Fund by the Investment Manager and Custodian Bank, with the following documents:
1. a report on the results of dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund, accompanied by an opinion from a legal consultant registered with the Financial Services Authority;
2. financial reports related to the dissolution, liquidation, and distribution of liquidation results of a Multi-Asset Investment Fund, audited by an accountant registered with the Financial Services Authority; and
3. a deed of dissolution and liquidation of a Multi-Asset Investment Fund from a notary registered with the Financial Services Authority.

CHAPTER IX
SANCTION PROVISIONS

Article 29
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form 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 administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letter c, letter d, letter e, letter f, or letter g.

Article 30
In addition to administrative sanctions as referred to in Article 29 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 31
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 29 paragraph (1) and certain actions as referred to in Article 30 to the public.

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

CHAPTER X
CLOSING PROVISIONS

Article 32
This Financial Services Authority Regulation comes into force on the date of enactment.

To be known by everyone, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on February 24, 2017
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Enacted in Jakarta on February 28, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 36

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 4/POJK.04/2017
CONCERNING
MULTI-ASSET INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS

I. GENERAL
Multi-Asset Investment Funds in the Form of Collective Investment Contracts, hereinafter referred to as Multi-Asset Investment Funds, are vehicles used to gather funds from specific Investors to be subsequently invested by Investment Managers in Securities Portfolios and/or investment portfolios other than Securities. This investment product is intended for specific Investors, particularly high net worth investors, and is not offered through Public Offerings. Multi-Asset Investment Funds aim to provide alternative investment products while also providing professional management services for Securities Portfolios and/or investment portfolios other than Securities for Investors. This Financial Services Authority Regulation regulates guidelines for management, Collective Investment Contracts, disclosure documents, registration, reporting, and dissolution of Multi-Asset Investment Funds. With the issuance of this Financial Services Authority Regulation, it is expected that the depth of the Indonesian Capital Market will be created through the investment management industry, simultaneously increasing the competitiveness of the investment management industry in Indonesia.

II. ARTICLE BY ARTICLE
Article 1
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Article 2
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Article 3
Paragraph (1)
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Paragraph (2)
In practice, the aforementioned "direct meeting" is also commonly called face to face.
Direct meetings can be conducted through electronic media such as teleconferences or video conferences.
Paragraph (3)
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Paragraph (4)
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Article 4
Paragraph (1)
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Paragraph (2)
Letter a
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Letter b
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Letter c
Examples of Multi-Asset Investment Fund names containing expressions implying that the Multi-Asset Investment Fund has benefits that may not be true include "Fleksi Multi-Asset Investment Fund XYZ Best". Letter d Sufficiently clear.

Article 5
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Article 6
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Paragraph (2)
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Paragraph (3)
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Paragraph (4)
Letter a
At the time this Financial Services Authority Regulation comes into force, the laws and regulations in the Capital Market sector regulating the fair market value of Securities in Mutual Fund portfolios in effect are Regulation Number IV.C.2, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number: Kep-367/BL/2012 dated July 9, 2012 concerning the Fair Market Value of Securities in Mutual Fund Portfolios. Letter b Sufficiently clear.

Article 7
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Article 8
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Article 9
Letter a
Securities as referred to in this letter provision include stocks/Mutual Fund Units or investment products similar to Mutual Funds and/or Collective Investment Contracts abroad such as unit trusts and mutual funds, Asset-Backed Securities, Real Estate Investment Fund Units, and other Collective Investment Contract Units determined by the Financial Services Authority. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Derivative instruments as referred to in this letter provision include derivative instruments on Securities or Security indices, as well as derivative instruments on non-Securities such as currency derivatives, interest rate derivatives, commodity or commodity index derivatives, and others. Letter e Sufficiently clear. Letter f Sufficiently clear. Letter g Sufficiently clear. Letter h Sufficiently clear. Letter i Sufficiently clear.

Article 10
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Article 11
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Article 12
Paragraph (1)
In practice, the aforementioned "performance-based management fees" are commonly called performance fees.
Paragraph (2)
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Article 13
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Article 14
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Article 15
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Article 16
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Article 17
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Article 18
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Article 19
Letter a
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Letter b
This explanation also covers specific features of Multi-Asset Investment Funds and the types of investments to be conducted by the Multi-Asset Investment Fund, along with investment allocations for each type of investment. Letter c This explanation contains patterns, investment strategies, and/or focuses to be applied by the Multi-Asset Investment Fund. Examples of investment patterns and strategies include investing in growth stocks/value stocks. Examples of investment focuses include focusing on specific global/regional/countries or focusing on emerging markets/developed markets. This section also includes explanations in the event that Multi-Asset Investment Funds use special investment strategies such as margin trading, short sales, repurchase agreements, and derivative transactions. Letter d Information on investment limits clearly contains descriptions of the diversification or concentration investment strategies to be conducted by the Investment Manager in managing Multi-Asset Investment Funds. Letter e Information on the types of Securities Portfolios and/or investment portfolios other than Securities of Multi-Asset Investment Funds contains all types and characteristics of Securities and/or investment portfolios other than Securities that will become asset portfolios in Multi-Asset Investment Funds. Examples include Securities that are equity and fixed income Securities traded on Stock Exchanges or off-stock exchanges (over the counter). Letter f In practice, the aforementioned "structured products" are also commonly called structured products. Number 1 Sufficiently clear. Number 2 Examples of the purpose of using derivatives as a Multi-Asset Investment Fund portfolio include hedging purposes or increasing investment returns. Number 3 Information on risk management to be applied as referred to in this number provision also covers risk management regarding risk exposure and methods for calculating risk exposure arising from the ownership of derivative Securities and/or in Multi-Asset Investment Funds. Letter g Number 1 Sufficiently clear. Number 2 Sufficiently clear. Number 3 The term limited regulation in this number provision refers to regulations on types of Securities or portfolios other than Securities that are not yet regulated or not yet fully regulated by authorities. Letter h Sufficiently clear. Letter i Sufficiently clear.

Article 20
Paragraph (1)
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Paragraph (2)
At the time this Financial Services Authority Regulation comes into force, the laws and regulations in the Capital Market sector regulating the fair market value of Securities in Mutual Fund portfolios in effect are Regulation Number IV.C.2, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number: Kep-367/BL/2012 dated July 9, 2012 concerning the Fair Market Value of Securities in Mutual Fund Portfolios.

Article 21
Paragraph (1)
Letter a
Examples of investment portfolios other than Securities whose fair market price is publicly available include precious metals and commodity fair market prices.
Letter b
Examples of investment portfolios other than Securities whose fair market price is not publicly available include direct investments in property and direct investments in infrastructure.
Paragraph (2)
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Paragraph (3)
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Article 22
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Article 23
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Article 24
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Article 25
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Article 26
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Article 27
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Article 28
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Article 29
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Article 30
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Article 31
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Article 32
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SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6024

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