FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 49 /POJK.04/2015

ON

COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the regulation and supervision of financial service activities in the Capital Market sector, including Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange, have shifted from the Capital Market and Financial Institution Supervisory Board to the Financial Services Authority; b. that in order to provide clarity and certainty regarding the regulation of Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange, it is necessary to replace the Regulation concerning Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange issued prior to the establishment of the Financial Services Authority with a Financial Services Authority Regulation;
c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange;

Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Addition to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Addition to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:

To Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Participating Dealer is a Stock Exchange Member who signs an agreement with the Investment Manager managing the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange to sell or purchase the Participation Units of the aforementioned Mutual Fund, either for its own interest or for the interest of the holders of the Participation Units of the aforementioned Mutual Fund.

2. Sponsor is a Party who signs an agreement with the Investment Manager managing the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange to make contributions in the form of cash and/or Securities in the context of creating Participation Units of the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange.

CHAPTER II

COLLECTIVE INVESTMENT CONTRACT OF COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE

Article 2

The Collective Investment Contract of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange must comply with the legislation in the Capital Market sector regulating the Guidelines for Collective Investment Contracts and must contain the following provisions:

a. Collective custody of Participation Units; b. procedures for the creation of Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange, at least covering:
1. the type of Securities forming the basis of the aforementioned Mutual Fund; and
2. the minimum number of Participation Units to be listed on the Stock Exchange.
c. the method for resale (redemption) of Participation Units of Collective Investment Contract Mutual Funds to the Investment Manager, and that such resale is only permitted for Sponsors and Participating Dealers;
d. repurchase (redemption) by the Investment Manager from Sponsors and Participating Dealers on each trading day at most 10% (ten percent) of the total outstanding Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange;

e. investment policy must refer to the Financial Services Authority Regulation concerning Guidelines for Daily Disclosure of Net Asset Value of Open-End Mutual Funds or the Financial Services Authority Regulation concerning Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds, and must meet the following provisions:
1. the composition of Securities forming the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange must consist of liquid Securities; and
2. the liquidity level of Securities forming the portfolio of the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange must be determined jointly by the Investment Manager and the Custodian Bank;
f. the name of the Stock Exchange where the Participation Units of the Collective Investment Contract Mutual Fund will be listed; g. the obligation of the Investment Manager to announce on the Stock Exchange and report to the Financial Services Authority the Net Asset Value every day after the closing of Stock Exchange trading as an indication of the price of Participation Units of the Collective Investment Contract Mutual Fund listed on the Stock Exchange; h. the obligation of the Investment Manager to announce on the Stock Exchange the portfolio composition every day after the closing of Stock Exchange trading;
i. the obligation of the Investment Manager to announce on the Stock Exchange the number of Participation Units of the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange that are outstanding every time there is a change; and
j. the mechanism for the General Meeting of Participation Unit Holders of Mutual Funds whose Participation Units are traded on the Stock Exchange (if any).

CHAPTER III

PARTICIPATING DEALERS AND SPONSORS

Article 3

The Investment Manager must enter into a contract with Participating Dealers to realize market liquidity for Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange.

Article 4

Participating Dealers must have the ability to realize liquid trading of Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange.

Article 5

In order to create market liquidity, Participating Dealers are permitted to buy and sell Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange with the following provisions:
a. Participating Dealers must regularly or continuously submit sell offers or buy offers for the aforementioned Participation Units on the trading system provided by the Stock Exchange; and b. Participating Dealers must be able and willing to realize transactions in amounts in accordance with the commitments as stated in the Collective Investment Contract.

Article 6

In the event of a change in the number of Participating Dealers, the Investment Manager must announce it on the Stock Exchange.

Article 7

The Investment Manager must enter into a contract with the Sponsor if the creation of Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange involves a Sponsor, which at least contains:
a. the minimum amount of Securities or cash deposit by the Sponsor to be used to purchase Securities forming the portfolio of the aforementioned Mutual Fund; and b. the period of the Sponsor's commitment not to resell.

Article 8

Resale (redemption) of Participation Units of Collective Investment Contract Mutual Funds to the Investment Manager can only be carried out by Sponsors and Participating Dealers with the following provisions:
a. if the payment is made with Securities from the portfolio of the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange, then:
1. the basis for calculating the value of such Securities is the fair market value; and
2. if such Securities do not exist, then the payment is made in cash, with the provision that its value is calculated based on the Net Asset Value.
b. if the payment is made in cash, then its value is calculated based on the Net Asset Value.
c. The Investment Manager must announce the resale request by Participating Dealers and Sponsors on the Stock Exchange where the Participation Units of the Collective Investment Contract Mutual Fund are traded on the same day as the resale request.

CHAPTER IV

GENERAL MEETING OF PARTICIPATION UNIT HOLDERS

Article 9

In the event that the Collective Investment Contract of Mutual Funds whose Participation Units are traded on the Stock Exchange contains provisions regarding the General Meeting of Participation Unit Holders, then the provisions for the General Meeting of Participation Unit Holders must at least contain:
a. The General Meeting of Participation Unit Holders can be held upon the proposal of 1 (one) Holder of Participation Units of the aforementioned Mutual Fund or more who together represent 1/10 (one tenth) of the total number of outstanding Participation Units of the Collective Investment Contract Mutual Fund; b. Notification, Summons, and Time of Holding the General Meeting of Participation Unit Holders:
1. notification of the General Meeting of Participation Unit Holders must be done at the latest 14 (fourteen) days before the summons, and the summons must be done at the latest 14 (fourteen) days before the General Meeting of Participation Unit Holders through at least 1 (one) Indonesian language newspaper with national circulation;
2. the summons for the General Meeting of Participation Unit Holders must state the place, time of holding, procedures, and agenda of the meeting;
3. in the event that the first General Meeting of Participation Unit Holders fails to be held or fails to make a decision, then a second General Meeting of Participation Unit Holders will be held;
4. the summons for the second General Meeting of Participation Unit Holders must be done at the latest 7 (seven) days before the second General Meeting of Participation Unit Holders is held, stating that the first General Meeting of Participation Unit Holders was held but did not reach a quorum or could not make a decision; and
5. The second General Meeting of Participation Unit Holders must be held at least 10 (ten) days and at most 21 (twenty-one) days from the first General Meeting of Participation Unit Holders; and

c. quorum of attendance and decision of the General Meeting of Participation Unit Holders.

Article 10

Before the notification of the plan for the General Meeting of Participation Unit Holders is published in the newspaper, the Investment Manager must first submit the agenda of the meeting clearly and in detail to the Financial Services Authority at the latest 7 (seven) days before the notification.

Article 11

In the event that the agenda of the General Meeting of Participation Unit Holders is the replacement of the Investment Manager or Custodian Bank, then Participation Units of Collective Investment Contract Mutual Funds traded on the Stock Exchange held by the Investment Manager, Custodian Bank, and/or its Affiliated Parties do not have voting rights.

Article 12

The Investment Manager must:
a. submit the results of the General Meeting of Participation Unit Holders at the latest 2 (two) working days after the General Meeting of Participation Unit Holders is held to the Financial Services Authority; and b. announce the results of the General Meeting of Participation Unit Holders to the public through at least 1 (one) Indonesian language newspaper with national circulation and the Stock Exchange.

Article 13

Information as referred to in Article 9 letter b number 1 and number 2 as well as Article 12 must also be announced through media accessible to the public, namely at least:
a. the Investment Manager's website; and b. the website or electronic information dissemination media provided by the Stock Exchange where the Participation Units of the Collective Investment Contract Mutual Fund are traded.

CHAPTER V

PUBLIC OFFERING OF PARTICIPATION UNITS OF COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE

Article 14

To be able to conduct a Public Offering of Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange:
a. The Investment Manager must submit a Registration Statement to the Financial Services Authority by meeting the following provisions:
1. legislation in the Capital Market sector regulating the Registration Statement in the Context of Public Offering of Collective Investment Contract Mutual Funds;
2. submission of the preliminary listing agreement document between the Investment Manager and the Stock Exchange where the Participation Units of the Collective Investment Contract Mutual Fund whose Participation Units are traded on the Stock Exchange will be traded; and
3. submission of the agreement document between the Investment Manager and the Sponsor and between the Investment Manager and the Participating Dealer.
b. The Registration Statement of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange as referred to in letter a has become effective.

Article 15

The Prospectus of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange must meet the provisions as referred to in the legislation in the Capital Market sector regulating the Guidelines for the Form and Content of Prospectuses in the Context of Public Offering of Mutual Funds and must contain:
a. information as referred to in Article 2; b. the main points of the agreement between the Investment Manager and Participating Dealers and the names of Participating Dealers; and
c. the main points of the agreement between the Investment Manager and Sponsors and the names of Sponsors (if there is such an agreement).

CHAPTER VI

INITIAL LISTING OF PARTICIPATION UNITS OF COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE

Article 16

The initial listing of Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange must be carried out at the latest 10 (ten) working days since the effectiveness of the Registration Statement.

Article 17

Participation Units of Collective Investment Contract Mutual Funds whose Participation Units are traded on the Stock Exchange issued after the initial listing must be listed at the latest 1 (one) working day since the issuance of the aforementioned Participation Units.

CHAPTER VII

SANCTION PROVISIONS

Article 18

(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties that cause the violation to occur, in the form of:
a. Written warning; b. Fine, namely the obligation to pay a certain amount of money;
c. Restriction 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 can 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 can 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 19

In addition to administrative sanctions as referred to in Article 18 paragraph (1), the Financial Services Authority can take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 20

The Financial Services Authority can announce the imposition of administrative sanctions as referred to in Article 18 paragraph (1) and certain actions as referred to in Article 19 to the public.

CHAPTER VIII

CLOSING PROVISIONS

Article 21

At the time this Financial Services Authority Regulation comes into force, the Decision of the Chairman of the Capital Market Supervisory Board Number: KEP-133/BL/2006 dated December 4, 2006 concerning Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange, along with Regulation Number IV.B.3 which is its attachment, is repealed and declared invalid.

Article 22

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

To ensure that everyone knows it, order the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta
On December 23, 2015

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY

signed

MULIAMAN D. HADAD

Enacted in Jakarta
On December 29, 2015

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 400

Copy in accordance with the original
Director of Law 1
Ministry of Law

signed

Sudarmaji

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 49 /POJK.04/2015

ON

COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS WHOSE PARTICIPATION UNITS ARE TRADED ON THE STOCK EXCHANGE

I. GENERAL

That since December 31, 2012, the functions, duties, and authority for the regulation and supervision of financial service activities in the Capital Market, Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions have shifted from the Minister of Finance and the Capital Market and Financial Institution Supervisory Board to the Financial Services Authority.

In connection with the above, it is necessary to reorganize the structure of existing regulations, particularly those related to the Capital Market sector by converting Bapepam and LK regulations related to the Capital Market sector into Financial Services Authority Regulations. The reorganization is intended so that there are Financial Services Authority Regulations related to the Capital Market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background thinking and aspects mentioned above, it is necessary to replace the legislation in the Capital Market sector regulating Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange, namely the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board Number: KEP-133/BL/2006 dated December 4, 2006 concerning Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange, along with Regulation Number IV.B.3 as its attachment, into a Financial Services Authority Regulation concerning Collective Investment Contract Mutual Funds Whose Participation Units Are Traded on the Stock Exchange.

II. ARTICLE BY ARTICLE

Article 1

Clear enough.

Article 2

At the time this Financial Services Authority Regulation comes into force, the legislation in the Capital Market sector regulating the Guidelines for Collective Investment Contracts of Collective Investment Contract Mutual Funds that is in effect is Regulation Number IV.B.2, attachment of the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board Number KEP-553/BL/2010 dated December 30, 2010 concerning Guidelines for Collective Investment Contracts of Collective Investment Contract Mutual Funds.

Article 3

Clear enough.

Article 4

Clear enough.

Article 5

Clear enough.

Article 6

Clear enough.

Article 7

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

Letter a
Number 1
At the time this Financial Services Authority Regulation comes into force, the legislation in the Capital Market sector regulating the Registration Statement in the Context of Public Offering of Collective Investment Contract Mutual Funds that is in effect is Regulation Number IX.C.5, attachment of the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board Number: KEP-430 /BL/2007 dated December 19, 2007 concerning Registration Statement in the Context of Public Offering of Collective Investment Contract Mutual Funds.

Number 2
Clear enough.

Number 3
Clear enough.

Letter b
Clear enough.

Article 15

At the time this Financial Services Authority Regulation comes into force, the legislation in the Capital Market sector regulating the Guidelines for the Form and Content of Prospectuses in the Context of Public Offering of Mutual Funds that is in effect is Regulation Number IX.C.6, attachment of the Decision of the Chairman of the Capital Market Supervisory Board Number: KEP-22/PM/2004 dated May 28, 2004 concerning Guidelines for the Form and Content of Prospectuses in the Context of Public Offering of Mutual Funds.

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

Clear enough.

ADDITION TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5818