Implementation of Continuing Education Programs for Investment Manager Representatives

To:

1. The Board of Directors of Securities Companies conducting business as Investment Managers;
2. The Management of the Association housing Investment Manager Representatives;
3. The Management of Specialized Educational Institutions in the Capital Market sector; and
4. Investment Manager Representatives,
   At their respective locations.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 55 /SEOJK.04/2016 CONCERNING THE IMPLEMENTATION OF CONTINUING EDUCATION PROGRAMS FOR INVESTMENT MANAGER REPRESENTATIVES

In view of the provisions of Article 16 of Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634), it is necessary to regulate provisions regarding the Implementation of Continuing Education Programs for Investment Manager Representatives in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS
In this Financial Services Authority Circular Letter, what is meant by Continuing Education Program, hereinafter abbreviated as PPL, is a form of program activity for the continuous improvement of knowledge and abilities systematically and measurably for Investment Manager Representatives.

II. IMPLEMENTERS OF CONTINUING EDUCATION PROGRAMS

1. Parties that can become implementers of PPL are:

a. associations housing Investment Manager Representatives that have received recognition from the Financial Services Authority; and b. other parties, namely Specialized Educational Institutions in the Capital Market sector as referred to in the legislation in the Capital Market sector regulating the procedures for requesting recognition of expertise certificates for Investment Manager Representatives by specialized educational institutions in the Capital Market sector, which have received recognition from the Financial Services Authority as PPL implementers.

2. PPL implementers as referred to in item 1 may cooperate with other parties in the implementation of PPL with the provision that the responsibility for implementation remains with the PPL implementer.

III. IMPLEMENTATION OF CONTINUING EDUCATION PROGRAMS

1. PPL can be conducted in person or not in person.

2. PPL conducted in person can be in the form of:
   a. training; b. workshops;
   c. panel discussions;
   d. seminars; e. conferences; or f. symposia.

3. PPL conducted not in person can be in the form of:
   a. writing articles, papers, or books with material determined by the PPL implementer and published; b. professional research or studies in fields determined by the PPL implementer;
   c. training through electronic media (online) determined by the PPL implementer, for example through web-based seminar services; or

d. serving as instructors in training, workshops, panel discussions, seminars, conferences, or symposia related to fields determined by the PPL implementer.

4. In the event that PPL not in person is conducted in the form of training through electronic media as referred to in item 3 letter c, the PPL implementer is required to ensure the existence of evaluation in the training process in the form of exam questions related to the material of said training.

5. Holders of Investment Manager Representative Licenses are deemed to have fulfilled PPL obligations if:
   a. they have attended 1 (one) PPL in person with a total duration of at least 360 (three hundred sixty) minutes effective; or b. they have attended PPL not in person equivalent to the implementation of PPL in person with a total duration of at least 360 (three hundred sixty) minutes effective and have received an assessment of the fulfillment of PPL obligations not in person from the PPL implementer, each 1 (one) license renewal period for Investment Manager Representatives.

6. The procedures for the implementation of PPL in person and not in person are regulated by the PPL implementer.

7. The implementation of PPL is required to:
   a. be carried out in accordance with standard operating procedures regarding the implementation of PPL; and b. be supported by adequate facilities and infrastructure.

IV. REQUIREMENTS AND PROCEDURES FOR APPLICATION FOR RECOGNITION OF OTHER PARTIES AS IMPLEMENTERS OF CONTINUING EDUCATION PROGRAMS

1. Applications for recognition as PPL implementers are submitted by other parties as referred to in item II item 1 letter b in printed document form to the Financial Services Authority according to the format of the Application for Recognition as Implementer of Continuing Education Programs for Investment Manager Representatives as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter and must be accompanied by complete documents as follows:
   a. standard operating procedures for the implementation of PPL for holders of Investment Manager Representative Licenses; b. PPL plans for holders of Investment Manager Representative Licenses; and
   c. a statement that they have not had their PPL implementation rights and/or other education/training implementation rights in the specific field of Capital Market revoked in the last 6 (six) months.

2. In the event that the Financial Services Authority has provided an electronic application system for obtaining recognition as a PPL implementer, the application may be submitted through said electronic system.

3. Recognition as a PPL implementer is given by the Financial Services Authority at the latest 20 (twenty) working days after receiving the application for recognition as a PPL implementer in complete form.

4. In the event that the application for recognition as a PPL implementer upon receipt does not meet the requirements, at the latest 20 (twenty) working days after receiving the application, the Financial Services Authority provides a notification letter to the applicant stating:
   a. the application does not yet meet the requirements; or b. the application is rejected because it does not meet the requirements.

5. In the event that the application for recognition as a PPL implementer does not meet the requirements, the applicant is required to complete the deficiencies required in the notification letter as referred to in item 4 letter a at the latest 20 (twenty) working days after the date of the notification letter.

6. The submission of document changes, additional information, and/or completion of requirement deficiencies as referred to in item 5 is deemed to have been received by the Financial Services Authority on the date of receipt of the document changes, additional information, and/or completion of requirement deficiencies.

7. Since the receipt of document changes, additional information, and/or completion of requirement deficiencies as referred to in item 6, the application for recognition as a PPL implementer is considered newly received by the Financial Services Authority and processed as referred to in item 3.

8. Applicants who do not complete the deficiencies required within the time period as referred to in item 5 are considered to have cancelled the application for recognition as a PPL implementer already submitted to the Financial Services Authority.

V. OBLIGATIONS OF IMPLEMENTERS AND PARTICIPANTS OF CONTINUING EDUCATION PROGRAMS

1. PPL implementers are required to create a PPL implementation plan every year.

2. The annual PPL implementation plan must be submitted to the Financial Services Authority at the latest on every January 12 according to the format of the Annual Plan for the Implementation of Continuing Education Programs as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.

3. The Financial Services Authority may request PPL implementers to make adjustments to the annual PPL implementation plan that has been submitted, including but not limited to the syllabus or PPL material.

4. PPL implementers are required to create periodic reports on the implementation of PPL.

5. PPL implementation reports must be submitted to the Financial Services Authority at the latest on every January 12 and July 12 according to the format of the Continuing Education Program Implementation Report and the format of the Continuing Education Program Certificate List Report as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter, accompanied by supporting documents in the form of participant attendance proof (in person) and other supporting documents for participants not in person.

6. PPL implementation reports as referred to in item 4 must meet the following provisions:
   a. for PPL in person, at least containing:

1. name of the institution or organization implementing PPL;
2. place and time of the activity;
3. syllabus or PPL material;
4. attendance list or PPL participant attendance; and
5. name, number, and date of the Investment Manager Representative License Decision of participants; and
   b. for PPL not in person, at least containing:
6. name of the institution or organization implementing PPL;
7. name, number, and date of the Investment Manager Representative License Decision of participants; and
8. report on PPL fulfillment.

7. In the event that the deadline for submitting the annual plan as referred to in item 2 and the submission of PPL implementation reports as referred to in item 5 falls on a holiday, the annual plan and reports are submitted on 1 (one) working day following.

8. The annual PPL implementation plan as referred to in item 2 and the PPL implementation reports as referred to in item 5 are submitted to the Financial Services Authority in the form of printed documents and may also be prepared in digital format using digital media such as compact disks (CD) or others.

9. Individuals holding Investment Manager Representative Licenses who have participated in PPL activities are required to submit reports to the Financial Services Authority at the latest 14 (fourteen) days calculated from the date they finished following the program according to the format of the Continuing Education Program Participation Report as contained in the Appendix which is an integral part of this Financial Services Authority Circular Letter.

10. In the event that the deadline for submitting reports as referred to in item 9 falls on a holiday, the reports are submitted on 1 (one) working day following.

11. In the event that individuals holding Investment Manager Representative Licenses submit the Continuing Education Program Participation Report past the deadline as referred to in item 10, the calculation of the number of days of delay in submitting the reports is calculated from the first day after the deadline for submitting reports as referred to in item 10.

12. In the event that the Financial Services Authority has provided an electronic system for the submission of annual PPL implementation plans, PPL implementation reports, and PPL participation reports as referred to in items 2, 5, and 9, the annual plans and reports must be submitted through the electronic system.

VI. EXAMINATION OF CONTINUING EDUCATION PROGRAM IMPLEMENTATION
The Financial Services Authority has the authority to conduct examinations regarding the implementation of PPL.

VII. REVOCATION OF RECOGNITION OF OTHER PARTIES AS IMPLEMENTERS OF CONTINUING EDUCATION PROGRAMS

1. The recognition letter of other parties as PPL implementers becomes invalid if:

a. the legal entity of the other party is dissolved; and/or b. the legal entity status of the other party is revoked by the competent authority.

2. The Financial Services Authority may revoke the recognition letter of other parties as PPL implementers if there are circumstances as follows:
   a. the other party as a PPL implementer returns their recognition letter; b. the office of the other party as a PPL implementer cannot be found;
   c. the other party as a PPL implementer cancels or postpones the schedule of PPL implementation resulting in holders of Investment Manager Representative Licenses being unable to submit continuing education documents in license renewal applications; and/or
   d. the other party as a PPL implementer has received 3 (three) warning letters but within 1 (one) month since the issuance of the third warning letter does not fulfill the provisions contained in the content of said warning letter.

3. The return of the recognition letter as referred to in item 2 letter a must be accompanied by documents as follows:
   a. information regarding the reasons for the return of said recognition letter; b. the recognition letter as the other party as a PPL implementer by the Financial Services Authority; and
   c. a statement of accountability from the other party as a PPL implementer regarding their obligations to third parties.

4. In the event that the revocation of the recognition letter of other parties as PPL implementers is caused by provisions as referred to in item 2 letter b, letter c, and letter d, the other party as a PPL implementer is required to settle their obligations to third parties.

5. The invalidity of the recognition letter of other parties as PPL implementers as referred to in item 1 and the revocation of the recognition letter of other parties as PPL implementers as referred to in item 2 may be announced by the Financial Services Authority through mass media.

VIII. OTHER PROVISIONS
Associations or other parties recognized by the Financial Services Authority as PPL implementers are required to:

1. record holders of Investment Manager Representative Licenses who register to follow continuing education; and
2. provide proof of registration to holders of Investment Manager Representative Licenses who register to follow continuing education, for PPL in person and not in person in the form of web-based seminar services organized by the PPL implementer.

IX. TRANSITIONAL PROVISIONS

1. Training, workshops, panel discussions, seminars, conferences, or symposia organized by associations housing Investment Manager Representatives before the issuance of this Financial Services Authority Circular Letter can be counted as credits in fulfilling the PPL obligations of Investment Manager Representatives (WMI).

2. The obligation to submit documents of having followed continuing education in the application for renewal of Investment Manager Representative Licenses is exempted if:
   a. PPL implemented by associations or other parties recognized by the Financial Services Authority has not been held; and/or b. holders of Investment Manager Representative Licenses applying for license renewal have registered to follow PPL, but the association or other party organizing the PPL cancels or postpones the PPL implementation schedule resulting in holders of Investment Manager Representative Licenses being unable to submit continuing education documents in license renewal applications, for PPL in person and not in person in the form of web-based seminar services organized by the PPL implementer.

3. Holders of Investment Manager Representative Licenses who do not follow PPL due to conditions as referred to in item 1 letter b are required to submit proof of registration as referred to in item VIII at the time of submitting the application for renewal of Investment Manager Representative Licenses.

4. The obligation to submit the annual PPL implementation plan to the Financial Services Authority as referred to in item V item 2 does not apply if the PPL implementer is recognized by the Financial Services Authority after January 12.

5. In the event that PPL implementers obtain recognition after January 12, the obligation to submit the annual PPL implementation plan to the Financial Services Authority is submitted at the latest 3 (three) months before the PPL implementation begins.

X. CLOSING PROVISIONS
This Financial Services Authority Circular Letter comes into force on the date of determination.

Determined in Jakarta on December 30, 2016
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR, signature
NURHAIDA

Copy matches the original
Director of Law 1
Legal Department signature
Yuliana