FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 50/POJK.04/2015

REGARDING

LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

IN THE NAME OF THE ALMIGHTY GOD,

THE COMMISSIONERS 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 services activities in the Capital Market sector, including the licensing of Mutual Fund Sales Agent Representatives, has shifted from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that in order to provide clarity and certainty regarding the regulation of licensing for Mutual Fund Sales Agent Representatives, it is necessary to replace the licensing regulations for Mutual Fund Sales Agent Representatives 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 the Licensing of Mutual Fund Sales Agent Representatives;

Taking into account:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Additional 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, Additional State Gazette of the Republic of Indonesia Number 5253);

DECIDES:

To Establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Financial Services Authority Regulation, the term "Mutual Fund Sales Agent Representative" refers to an individual who has obtained a license from the Financial Services Authority to act as a seller of Mutual Fund Securities.

CHAPTER II

REQUIREMENTS AND LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

Article 2

To obtain a license as a Mutual Fund Sales Agent Representative, an individual must:
a. possess a certificate of passing the proficiency examination for Mutual Fund Sales Agent Representatives organized by the association related to Mutual Funds, or possess another professional proficiency certificate recognized by the Financial Services Authority to conduct Mutual Fund Securities sales activities; b. have the legal capacity to perform legal acts;
c. possess good ethics and morals; and
d. never have committed disgraceful acts and/or been sentenced for proven criminal offenses in the field of finance or the Capital Market.

Article 3

The proficiency material in the examination and proficiency certificates as referred to in Article 2 letter a must at least include:
a. Structure/institutional framework of the Capital Market; b. Securities Knowledge;
c. Knowledge of Mutual Fund products and activities;
d. Laws and regulations in the field of the Capital Market; e. Marketing strategies; and f. Investment strategies.

Article 4

If deemed necessary, the Financial Services Authority may add other proficiency materials as referred to in Article 3.

Article 5

An individual holding a license as a Mutual Fund Sales Agent Representative functions solely to market and/or sell Mutual Fund Securities and is prohibited from performing the functions of a Securities Company Representative.

Article 6

The sale of Mutual Fund Securities may only be conducted by individuals holding a license as a Securities Company Representative or a Mutual Fund Sales Agent Representative.

CHAPTER III

PROCEDURES FOR APPLICATION FOR LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

Article 7

(1) An application for a license as a Mutual Fund Sales Agent Representative is submitted by the applicant to the Financial Services Authority using the Application Form for Licensing of Mutual Fund Sales Agent Representatives as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation. (2) The application for licensing as referred to in paragraph (1) must be accompanied by the following complete documents:
a. a curriculum vitae; b. a photocopy of the Identity Card or passport;
c. a photocopy of the highest formal education diploma;
d. a certificate of proof of having attended education and training for Mutual Fund Sales Agent Representatives (if available); e. a certificate of proof of passing the proficiency examination for Mutual Fund Sales Agent Representatives organized by the association related to Mutual Funds, or another professional proficiency certificate recognized by the Financial Services Authority to conduct Mutual Fund Securities sales activities; f. a reference letter from the company where the applicant works (if available); g. one (1) recent color photograph, size 4x6 cm, with a red background; and h. a statement letter from the applicant stating that the applicant has the legal capacity to perform legal acts, possesses good ethics and morals, and has never committed disgraceful acts and/or been sentenced for proven criminal offenses in the field of finance or the Capital Market, according to the format of the Applicant's Statement as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation.

Article 8

If the application for a license as a Mutual Fund Sales Agent Representative is incomplete or does not meet the requirements, then within a maximum period of 45 (forty-five) days from the receipt of the application, the Financial Services Authority must provide a notification letter to the applicant stating that:
a. The application is incomplete; or b. The application is rejected.

Article 9

An applicant who does not complete the required document deficiencies within 45 (forty-five) days after the date of the notification letter as referred to in Article 8 letter a is deemed to have cancelled the application for a license as a Mutual Fund Sales Agent Representative.

Article 10

If the application for a license as a Mutual Fund Sales Agent Representative as referred to in Article 7 has met the requirements, then within a maximum period of 45 (forty-five) days from the receipt of the application, the Financial Services Authority issues a decision letter granting the license as a Mutual Fund Sales Agent Representative.

Article 11

In the context of selling Mutual Fund Securities, a Securities Company Representative or a Mutual Fund Sales Agent Representative must be able to show proof of assignment from a Securities Company or a Mutual Fund Sales Agent.

CHAPTER IV

OBLIGATIONS OF MUTUAL FUND SALES AGENT REPRESENTATIVES

Article 12

An individual holding a license as a Mutual Fund Sales Agent Representative must:
a. participate in the Continuing Professional Education program organized by the association related to Mutual Funds at least once every 2 (two) years to enhance knowledge related to Mutual Fund regulations and products; and b. report to the Financial Services Authority within a maximum of 14 (fourteen) days from the date of completing the Continuing Professional Education program, accompanied by supporting evidence.

Article 13

If a Mutual Fund Sales Agent Representative does not participate in the Continuing Professional Education program as referred to in Article 12, their license as a Mutual Fund Sales Agent Representative will be revoked.

Article 14

If in 2 (two) years the Continuing Professional Education program is not organized by the association related to Mutual Funds, the Financial Services Authority may establish other regulations concerning the obligation to participate in the Continuing Professional Education program and the organization of the Continuing Professional Education program.

CHAPTER V

SANCTION PROVISIONS

Article 15

(1) Without prejudice to criminal provisions in the field of the Capital Market, 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) letters b, c, d, e, f, or 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) letters c, d, e, f, or g.

Article 16

In addition to administrative sanctions as referred to in Article 15 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 17

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 15 paragraph (1) and certain actions as referred to in Article 16 to the public.

CHAPTER VI

CLOSING PROVISIONS

Article 18

Upon the enactment of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-09/BL/2006 dated August 30, 2006 concerning the Licensing of Mutual Fund Sales Agent Representatives, along with Regulation Number V.B.2 as its appendix, are revoked and declared invalid.

Article 19

This Financial Services Authority Regulation takes effect upon being enacted.

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

Established in Jakarta on December 23, 2015

CHAIRMAN OF THE COMMISSIONERS
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 401

Copy matches the original
Legal Director 1
Legal Department

Signed,
Sudarmaji

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 50/POJK.04/2015

REGARDING

LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

I. GENERAL

Since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the Capital Market, Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions have shifted from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In light of the above, it is necessary to reorganize the structure of existing regulations, particularly those related to the Capital Market sector, by converting Capital Market Supervisory Agency and Financial Institutions regulations related to the Capital Market sector into Financial Services Authority regulations. This reorganization is conducted to ensure that there are Financial Services Authority regulations concerning the Capital Market sector that are consistent with Financial Services Authority regulations in other sectors.

Based on the background and aspects mentioned above, it is necessary to replace the legislation in the Capital Market sector regulating the Licensing of Mutual Fund Sales Agent Representatives, namely the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-09/BL/2006 dated August 30, 2006 concerning the Licensing of Mutual Fund Sales Agent Representatives, along with Regulation Number V.B.2 as its appendix, with a Financial Services Authority Regulation concerning the Licensing of Mutual Fund Sales Agent Representatives.

II. ARTICLE BY ARTICLE EXPLANATION

Article 1
Clear enough.

Article 2
Clear enough.

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
Clear enough.

Article 15
Clear enough.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Clear enough.

ADDITIONAL STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5819

APPENDIX

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 50/POJK.04/2015

REGARDING

LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

APPLICATION FOR LICENSING OF MUTUAL FUND SALES AGENT REPRESENTATIVES

Number: .................... ........, ................... 20.....
Appendix: ....................
Subject: Application for License
Mutual Fund Sales Agent Representative

To
The Executive Head of Capital Market Supervision Financial Services Authority in Jakarta.

Hereby we submit an application for a license as a Mutual Fund Sales Agent Representative as follows:

1. Applicant Name : ...............................................................
2. Applicant Address : ...............................................................
   ...............................................................
   .................................................- 
3. Company where working : ...............................................................
   (if already working at a Securities Company or Mutual Fund Sales Agent)
4. Company Address : ...............................................................
   ...............................................................
   .................................................- 
5. Telephone Number
   home/office : ...............................................................
   ...............................................................
   .................................................- 

To complete this application, we attach the following documents:

1. Curriculum vitae;
2. Photocopy of Identity Card or passport;
3. Photocopy of the highest formal education diploma;
4. Certificate of proof of having attended education and training for Mutual Fund Sales Agent Representatives (if available);
5. Certificate of proof of passing the proficiency examination for Mutual Fund Sales Agent Representatives organized by the association related to Mutual Funds, or another professional proficiency certificate recognized by the Financial Services Authority to conduct Mutual Fund Securities sales activities;
6. Reference letter from the company where working (if available);
7. 1 (one) recent color photograph, size 4x6 cm, with a red background; and
8. Applicant's Statement Letter.

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

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

Name: ………………….
Photo
4x6 cm

APPLICANT'S STATEMENT

INSTRUCTIONS FOR ANSWERING QUESTIONS

1. All questions must be answered by the applicant.

2. Place a check mark () in the box in front of the word "yes" if your answer is "yes," or place a check mark () in the box in front of the word "no" if your answer to the following questions is "no."

3. In the past 10 (ten) years, have you ever been sentenced for:
   a. criminal offenses related to the Capital Market?
    yes  no b. or other crimes?
    yes  no

4. Has the Financial Services Authority ever:
   a. stated that you made a false statement or were negligent?
    yes  no b. found you involved in violations of laws and regulations in the field of the capital market?
    yes  no

5. Has the Stock Exchange ever:
   a. found you making false statements or negligent in providing information that should have been provided?
    yes  no b. found you involved in violations of Stock Exchange Regulations?
    yes  no

6. Do you work part-time at another Securities Company?
    yes  no

7. Before working at the current company, where was my last employment?
   Company: ……………………………….
   Position/Duties: ……………………………….

8. Highest formal education ……………………………….

This statement is made truthfully so that it may be used as appropriate.

.........., ...................... 20.....
(place and date)

The person making the statement,
..............................................
(clear name)
Stamp

Established in Jakarta on December 23, 2015

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY

Signed,
MULIAMAN D. HADAD

Stamp

Copy matches the original
Legal Director 1
Legal Department

Signed,
Sudarmaji