Other Activities for Securities Companies Acting as Underwriters and Securities Trading Brokers

To:
Board of Directors of Securities Companies Conducting Business as Underwriters and/or Securities Trading Brokers

ATTACHED COPY

CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY
NUMBER 14/SEOJK.04/2018

REGARDING
OTHER ACTIVITIES FOR SECURITIES COMPANIES CONDUCTING BUSINESS AS UNDERWRITERS AND SECURITIES TRADING BROKERS

In relation to the provisions of Article 3 paragraph (4) and (5), Article 20, and Article 21 of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers (State Gazette of the Republic of Indonesia Year 2016 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 5868), it is necessary to regulate provisions regarding other activities for securities companies conducting business as underwriters and securities trading brokers in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. In this Financial Services Authority Circular, the following terms are defined as:
   a. Securities Company is a Party conducting business as an Underwriter, Securities Trading Broker, and/or Investment Manager. b. Underwriter is a Party that enters into a contract with an Issuer to conduct a Public Offering for the benefit of the Issuer with or without the obligation to purchase unsold Securities.
   c. Securities Trading Broker is a Party conducting business buying and selling Securities for its own behalf or for other Parties.
   d. Securities are securities, namely debt instruments, commercial paper, shares, bonds, debt certificates, Units of Collective Investment Contracts, futures contracts on Securities, and every derivative of Securities. e. Issuer is a Party conducting a Public Offering. f. Public Offering is the activity of offering Securities conducted by an Issuer to sell Securities to the public based on procedures regulated in Law Number 8 of 1995 concerning the Capital Market and its implementing regulations. g. Mutual Fund Selling Agent is a Party conducting the sale of Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund. h. Financial Services Institution is an institution conducting activities in the Banking, Capital Market, Insurance, Pension Fund, Financing Institution, and Other Financial Services Institution sectors.

2. Securities Companies holding a business license as Underwriters and/or Securities Trading Brokers may conduct:
   a. core activities; and b. other activities established and/or approved by the Financial Services Authority.

3. Other activities as referred to in item 2 letter b may be conducted after obtaining approval from the Financial Services Authority.

II. ACTIVITIES OF SECURITIES COMPANIES CONDUCTING BUSINESS AS UNDERWRITERS

1. Securities Companies conducting business as Underwriters may conduct core activities as follows:
   a. underwriting of Securities, namely underwriting of Securities issued through a Public Offering with an underwriting contract that can be in the form of full commitment or best effort; and b. other activities related to Public Offerings and/or corporate actions of companies that will or have conducted Public Offerings, the procedures for which are regulated in capital market legislation, such as the provision of advice by Underwriters to Issuers. Examples of other advisory activities include acting as a financial advisor for Securities issuance, mergers, consolidations, takeovers, restructuring, material transactions, and/or certain affiliated transactions and conflicts of interest.

2. Securities Companies conducting business as Underwriters that conduct other activities in the form of providing advice to Issuers as referred to in item 1 letter b must sign documents regarding the provision of such advice. Examples of documents that must be signed by financial advisors include prospectuses for Securities issuance or information disclosure documents in the context of mergers, consolidations, takeovers, restructuring, material transactions, and/or certain affiliated transactions and conflicts of interest of the Issuer.

3. Securities Companies conducting business as Underwriters may conduct other activities besides core activities as follows:
   a. underwriting activities for Securities offered not through a Public Offering issued by Indonesian legal entities. Securities offered not through a Public Offering issued by Indonesian legal entities include deposit certificates, debt-type Securities with a maturity of less than 1 (one) year, and debt-type Securities with a maturity of more than 1 (one) year regulated by other authorities or not yet regulated and supervised by any authority; b. activities as arrangers for the issuance of Securities offered not through a Public Offering as referred to in letter a, issued by Indonesian legal entities;
   c. activities as financial advisors to any Party other than the Issuer; and
   d. financing activities related to underwriting, such as capital participation and/or pre-Public Offering financing. Examples of such activities include acting as a sponsor for Small and Medium Enterprises (SMEs) before a Public Offering.

4. Securities Companies conducting business as Underwriters may apply for other activities besides those already established as referred to in item 3, provided that the other activities:
   a. do not conflict with legislation; and b. are based on adequate risk management to mitigate arising risks.

III. ACTIVITIES OF SECURITIES COMPANIES CONDUCTING BUSINESS AS SECURITIES TRADING BROKERS

1. Securities Companies conducting business as Securities Trading Brokers may conduct core activities as follows:
   a. Securities transactions for their own behalf and/or other Parties regarding Securities through Public Offerings, Securities whose trading is supervised by the Financial Services Authority, and/or Securities listed on the Stock Exchange; and/or b. marketing of Securities for the benefit of other Securities Companies, including:

1. Securities Companies that are not Stock Exchange Members acting as agents for Stock Exchange Members; and
2. Mutual Fund Selling Agents (APERD);

2. In the event that a Securities Company acts as an agent for a Stock Exchange Member as referred to in item 1 letter b item 1), the Securities Company must follow the provisions of capital market legislation regulating guidelines for agreements between Securities Company agents and Stock Exchange Members.

3. In the event that a Securities Company acts as an APERD as referred to in item 1 letter b item 2), the Securities Company must follow the provisions of the Financial Services Authority Regulation concerning Mutual Fund Selling Agents.

4. Securities Companies conducting business as Securities Trading Brokers may conduct other activities besides core activities as follows:
   a. Securities transactions for their own behalf and/or other Parties regarding Securities offered not through a Public Offering issued by Indonesian legal entities. Securities offered not through a Public Offering issued by Indonesian legal entities include deposit certificates, debt-type Securities with a maturity of less than 1 (one) year, and debt-type Securities with a maturity of more than 1 (one) year regulated by other authorities or not yet regulated and supervised by any authority. Examples of Securities transaction activities for other Parties include acting as a selling agent or transaction intermediary in the secondary market for Securities offered not through a Public Offering; b. acting as a custodian for Securities offered not through a Public Offering; and
   c. agency activities for products of other Financial Services Institutions.

5. Securities Companies conducting business as Securities Trading Brokers may apply for other activities besides those already established as referred to in item 4, provided that the other activities:
   a. do not conflict with legislation; and b. are based on adequate risk management to mitigate arising risks.

IV. REVENUE RECORDING FROM THE IMPLEMENTATION OF OTHER ACTIVITIES OF SECURITIES COMPANIES CONDUCTING BUSINESS AS UNDERWRITERS AND SECURITIES TRADING BROKERS

Revenue obtained from the implementation of other activities that have received approval from the Financial Services Authority, which are part of the business activities of Securities Companies as Underwriters and/or Securities Trading Brokers, shall be recognized and recorded as business revenue.

V. PROCEDURES FOR APPLICATION FOR APPROVAL AND REPORTING OF OTHER ACTIVITIES OF SECURITIES COMPANIES CONDUCTING BUSINESS AS UNDERWRITERS AND SECURITIES TRADING BROKERS

1. To conduct other activities as referred to in Item II item 3 and item 4, and Item III item 4 and item 5, Securities Companies holding a business license as Underwriters or Securities Trading Brokers must first obtain approval from the Financial Services Authority.

2. Applications for approval of other activities are submitted by Securities Companies for each type of activity and/or Securities having different characteristics and risks.

3. In the event that a Securities Company will conduct the same other activity and/or over the same Securities that previously received approval from the Financial Services Authority but with different clients, the Securities Company does not need to submit a new approval application.

4. Applications for approval of other activities are submitted by Securities Companies to the Financial Services Authority in accordance with Article 20 of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers, with the following provisions:
   a. submitting the application for approval of other activities to the Head of the Capital Market Supervision Executive of the Financial Services Authority, with a copy to the Head of Capital Market Supervision Department 2A; b. using the application for approval of other activities form as referred to in the Appendix of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers;
   c. including documents as referred to in Article 20 paragraph (2) of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers; and
   d. including a list of administrative requirement fulfillment (compliance checklist) as stated in the Appendix which is an integral part of this Financial Services Authority Circular.

5. Documents as referred to in item 4 letter c must contain the following:
   a. explanation of the plan for implementing other activities, including:

1. type, description, and activities of other activities, as follows:
   a) type of other activity, namely explaining the type of other activity to be conducted; b) description of other activity, namely describing the definition and scope of the type of other activity to be conducted; and c) activities of other activity, namely explaining the flow of stages of the implementation of other activities from start to finish;
2. time of implementation of other activities, namely explaining the time of the first implementation of other activities and the deadline (if already determined) for the implementation of other activities;
3. purpose of implementation of other activities, including market targets and revenue targets in the first 1 (one) year, as follows:
   a) purpose of implementation of other activities, namely explaining the purpose of implementing other activities for Securities Companies conducting business as Underwriters and/or Securities Trading Brokers and clients, including also clients, issuers, investors, and other related parties; b) market targets, namely explaining target clients, including also clients, issuers, investors, and other related parties in relation to other activities; and c) revenue targets in the first 1 (one) year, namely explaining revenue targets derived from other activities in the first 1 (one) year, either in nominal terms or as a percentage;
4. correlation of other activities with company strategy, namely explaining the correlation of the company's business strategy individually or as a business group and its correlation with other activities;
5. benefits, costs, and risks for the company regarding other activities, as follows:
   a) benefits for the company, namely explaining the benefits of other activities for the Securities Company conducting business as Underwriters and/or Securities Trading Brokers concerned, assessed in quantitative and qualitative value; b) costs for the company, namely explaining the type and/or details of costs borne by the Securities Company conducting business as Underwriters and/or Securities Trading Brokers for the implementation of other activities; and c) risks for the company, namely stating and explaining the risks faced by the Securities Company in the implementation of other activities, such as credit risk, market risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk, and compliance risk;
6. benefits and risks for clients, as follows:
   a) benefits for clients, namely explaining the benefits of other activities for clients, including also clients, issuers, investors, and other related parties, assessed in quantitative and/or qualitative value; and b) risks for clients, namely stating and explaining the risks faced by clients, including also clients, issuers, investors, and other related parties, regarding the implementation of other activities, such as credit risk, market risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk, and compliance risk (if any); and
7. risk mitigation for the implementation of other activities, namely stating and explaining the mitigation to be conducted by the Securities Company conducting business as Underwriters and/or Securities Trading Brokers regarding risks inherent in other activities;
   b. procedures and operational standards related to the implementation of other activities applied for must at least contain:
8. title of procedures and operational standards (standard operating guidelines);
9. person responsible for procedures and operational standards;
10. parties implementing each procedure and operational standard;
11. flowchart and explanation of each stage of procedures implemented;
12. time limits for implementation in each procedure;
13. documents used; and
14. results of implemented procedures;
    c. risk management policy for the implementation of other activities, at least containing:
15. risk identification with risk inventory across all parts of the company regarding the implementation of other activities;
16. risk measurement by explaining steps for measurement/assessment of risks;
17. risk monitoring by explaining monitoring steps and parties responsible for implementing monitoring of risks related to other activities; and
18. control over risks inherent in other activities by explaining control steps and parties responsible for implementing control over risks related to other activities;
    d. results of legal and compliance aspect analysis of other activities, as follows:
19. legal aspects, namely explaining the legal basis regarding the implementation of other activities, including regulations, agreements/contracts, and legislation; and/or
20. compliance aspects, namely explaining complaints, audit findings, and sanctions previously imposed regarding the implementation of other activities in previous periods (if any);
    e. documents or draft documents regarding transparency to and/or from clients, including also clients, issuers, investors, and other related parties, related to the implementation of other activities, at least including:
21. agreements between the Securities Company conducting business as Underwriters and/or Securities Trading Brokers with clients and/or other parties;
22. offering materials such as brochures or flyers;
23. prospectuses; and/or
24. application forms;
    f. accounting information system documents, including a brief explanation regarding the correlation of the accounting information system for other activities with the accounting information system of Underwriters or Securities Trading Brokers as a whole and/or the administrative recording system; g. a statement letter or document stating that other activities to be conducted by the Securities Company conducting business as Underwriters and/or Securities Trading Brokers:
25. do not conflict with legislation; and
26. will be implemented in accordance with legislation or have obtained approval or license from the competent authority, if the activities of the Underwriters and/or Securities Trading Brokers concerned require approval from the competent authority; and
    h. readiness and test results of the Securities Company conducting business as Underwriters and/or Securities Trading Brokers (if any) regarding other activities, and explaining the results of the review of implementation in previous periods for Securities Companies that have conducted other activities before Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers became effective.

6. Submission of reports on the realization of the implementation of other activities approved by the Financial Services Authority as referred to in Article 21 paragraph (8) of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers, must be submitted no later than 7 (seven) working days after the other activity commences, calculated from the date of the implementation contract with clients, including also clients, issuers, investors, and other related parties, using the report form for the realization of the implementation of other activities for Underwriters and/or Securities Trading Brokers as stated in the Appendix which is an integral part of this Financial Services Authority Circular.

7. Securities Companies conducting business as Underwriters and/or Securities Trading Brokers must submit periodic reports on the implementation of other activities containing details of business revenue obtained from the implementation of other activities to the Financial Services Authority using the periodic report form for the implementation of other activities for Underwriters and/or Securities Trading Brokers as stated in the Appendix which is an integral part of this Financial Services Authority Circular.

8. The time limit for submitting periodic reports on the implementation of other activities as referred to in item 7 is implemented in accordance with the provisions regarding the time limit for submitting Annual Financial Reports as referred to in Regulation Number X.E.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number KEP-460/BL/2008 dated November 10, 2008 concerning Obligations to Submit Periodic Reports by Securities Companies to the Financial Services Authority.

9. Reports on the realization of the implementation of other activities and periodic reports on the implementation of other activities are submitted by Securities Companies conducting business as Underwriters and/or Securities Trading Brokers to the Financial Services Authority electronically through the electronic system provided by the Financial Services Authority.

10. In the event that the electronic system for reports on the realization of the implementation of other activities as referred to in item 9 is not yet available, reports on the realization of the implementation of other activities and periodic reports on the implementation of other activities may be submitted to the Financial Services Authority in the form of printed documents.

11. Applications for approval of other activities for Underwriters or Securities Trading Brokers are submitted by Securities Companies conducting business as Underwriters and/or Securities Trading Brokers to the Financial Services Authority electronically through the electronic system provided by the Financial Services Authority.

12. In the event that the electronic system for applications for approval of other activities as referred to in item 11 is not yet available, applications for approval of other activities may be submitted to the Financial Services Authority in the form of printed documents.

13. In the event of certain conditions causing the electronic system to function improperly, reports on the realization of the implementation of other activities and periodic reports on the implementation of other activities as referred to in item 9, and applications for approval of other activities as referred to in item 11, may be submitted in the form of printed documents to the Financial Services Authority.

14. Regulations regarding the procedure for processing applications for approval of other activities, the termination of approval of other activities, and the cancellation of approval of other activities are subject to Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers.

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

VI. TRANSITIONAL PROVISIONS

1. Approvals for other activities issued by the Financial Services Authority before the implementation of this Financial Services Authority Circular are declared to remain valid.

2. Applications for approval of other activities by Securities Companies Conducting Business as Underwriters and Securities Trading Brokers that have been received by the Financial Services Authority before the implementation of this Financial Services Authority Circular are subject to the provisions in the Financial Services Authority Regulation concerning Licensing of Securities Companies Conducting Business as Underwriters and Securities Trading Brokers.

VIII. CLOSING PROVISIONS

This Financial Services Authority Circular shall take effect on the date of determination.

Determined in Jakarta on November 5, 2018

HEAD OF EXECUTIVE
CAPITAL MARKET SUPERVISOR, signed
HOSEN

APPENDIX
CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY
NUMBER 14/SEOJK.04/2018

REGARDING
OTHER ACTIVITIES FOR SECURITIES COMPANIES CONDUCTING BUSINESS AS UNDERWRITERS AND SECURITIES TRADING BROKERS

LIST OF ADMINISTRATIVE REQUIREMENT FULFILLMENT (COMPLIANCE CHECKLIST)

APPLICANT COMPANY INFORMATION
Company Name :
Application Letter Number :
Date of Application Letter :
Brief description of the background of the application :

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOT APPLICABLE
REMARKS

1. Application for Approval of Other Activities
   Underwriter and/or
   Securities
   Trading Broker

The application for approval of other activities is submitted by the Securities Company to the Financial Services Authority in duplicate (2) copies in accordance with the application for approval of other activities for Underwriters or Securities Trading Brokers as stated in the Appendix of Financial Services Authority Regulation Number 20/POJK.04/2016 concerning Licensing

• Article 20 paragraph
  (2) of Financial Services Authority
  Regulation
  Number
  20/POJK.04/
  2016 concerning

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
Securities Broker*)
Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries.
Application for approval of other activities is submitted to the Head of the Executive Supervisor of the Capital Market of the Financial Services Authority, with a copy to the Head of the Capital Market Supervision Department 2A. Licensing Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  4 letter a

2. Explanation
   of the plan for implementation of other activities Explanation of the plan for implementation of other activities includes: • Article 20 paragraph (2) letter a Financial Services Authority Regulation No. 20/POJK.04/ 2016 concerning Licensing Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  5 letter a number 1)

2. Description
   Describes the definition and scope of the type of other activities to be carried out.
3. Activities
   Explains the flow of stages of the implementation process of other activities from start to finish. b. Time of implementation of other activities Explains the time of implementation of the first other activity and the time limit (if already determined) for the implementation of such other activity.

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
c. Purpose of implementation of other activities, including market targets and income targets in the first 1 (one) year, as follows:
up to
7)

1. Purpose
   of implementation of other activities
   Explains the purpose of implementation of other activities for clients, including also clients, issuers, investors, and other related parties. Explains the purpose of implementation of such other activities for Securities Companies engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries.
2. Market Target
   Explains the market target for the implementation of other activities.
   Market targets include clients, including also clients, issuers, investors, and other related parties in relation to other activities.
3. Income Target
   in the first 1 (one) year
   Explains the income target derived from other activities in the first year, either in nominal value or percentage. d. Relevance of other activities to company business strategy Explains the relevance of the company's business strategy individually or group business strategy and its relevance to such other activities.

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES e. Benefits, costs, and risks for the company regarding other activities as follows:

1. Benefits for
   the company
   Explains the benefits of such other activities for the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries concerned, assessed in quantitative and qualitative values.
2. Costs for
   the company
   Explains the types and/or details of costs borne by the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries for the implementation of other activities.
3. Risks for
   the company
   Mentions and explains the risks faced by the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries for the implementation of such other activities. Examples of types of risks identified include credit risk, market risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk, and compliance risk.

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES f. Benefits and risks for clients as follows:

1. Benefits for
   clients
   Explains the benefits of other activities for clients, including also clients, issuers, investors, and other related parties, assessed in quantitative and/or qualitative values.
2. Risks
   Mentions and explains the risks faced by clients, including also clients, issuers, investors, and other related parties, for the implementation of other activities. Examples of types of risks identified include credit risk, market risk,

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES liquidity risk, operational risk, legal risk, reputation risk, strategic risk, and compliance risk (if any). g. Risk mitigation for the implementation of other activities, namely mentioning and explaining the mitigation to be carried out by the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries for the risks inherent in such other activities.
3. Procedures and
operating standards for
Other Activities
Underwriters of Securities
Procedures and operating standards for implementing other activities of Underwriters of Securities or Securities Trading Intermediaries must at least contain:
a. title of procedures and operating standards (standard operating guidelines); b. person responsible for procedures and operating standards;

• Article 15 paragraph
  (1) letter dd and Article 20 paragraph (2) letter b Financial Services Authority

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES and/or
Securities Trading
Intermediaries*)
c. parties implementing each procedure and operating standard;
d. flowchart and explanation of each stage of the procedure implemented; e. time limits for implementation in each procedure; f. documents used; and g. results of the implemented procedures. Regulation No. 20/POJK.04/ 2016 concerning Licensing Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  5 letter b

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
4. Risk Management
Policy for
Other Activities
Underwriters of Securities and/or
Securities Trading
Intermediaries
*)
The document in question contains an explanation by the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries regarding the process of identification, measurement, monitoring, and control of risks inherent in other activities. The process of identification, measurement, monitoring, and control of risks inherent in other activities must at least contain:

• Article 20 paragraph
  (2) letter c
  Financial Services
  Authority
  Regulation
  No.
  20/POJK.04/
  2016 concerning
  Licensing
  Securities Companies
  Engaging in
  Business Activities as Underwriters a. Risk Identification Inventory of risks across all parts of the Company regarding the implementation of other activities. b. Risk Measurement Explains the steps for measurement/assessment of such risks.
  c. Risk Monitoring
  Explains the steps for monitoring and the parties responsible for implementing monitoring of risks related to other activities. d. Control against risks inherent in other activities Explains the steps for control and the parties responsible for implementing control of risks related to such other activities. of Securities and Securities Trading Intermediaries

• Number V number
  5 letter c

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
5. Analysis of Legal
and Compliance
Aspects for the
Implementation of Other Activities
Underwriters of Securities and/or
Securities Trading
Intermediaries
*)
The document in question explains the results of the analysis of legal aspects and compliance aspects regarding other activities. The results of the analysis of legal aspects and compliance aspects regarding other activities must at least contain:

• Article 20 paragraph
  (2) letter d
  Financial Services
  Authority
  Regulation
  No.
  20/POJK.04/ a. Legal Aspects
  Explanation of the legal basis in relation to the implementation of other activities, both regulations and agreements. b. Compliance Aspects Explains complaints, audit findings, sanctions previously imposed in previous periods (if any). 2016 concerning Licensing Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  5 letter d

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
6. Documents or
draft documents in the framework of transparency to and/or from clients related to the Implementation of Other Activities Underwriters of Securities and/or Securities Trading Intermediaries *) The documents or draft documents in question are all documents that provide adequate information for related parties in the implementation of such other activities. The documents or draft documents in the framework of transparency to and/or from clients related to the implementation of other activities must at least include:
a. agreements between the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries with clients and/or other parties; b. offering materials such as brochures, flyers;
c. prospectus; and/or
d. application forms;
Financial Services
Authority
Regulation
No.
20/POJK.04/
2016 concerning
Licensing
Securities Companies
Engaging in
Business Activities as Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  5 letter e

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
7. Documents
of the Accounting
Information System for Other Activities
Underwriters of Securities and/or
Securities Trading
Intermediaries
*)
The document in question explains the accounting information system, including a brief explanation regarding the relevance of the accounting information system for other activities with the accounting information system of the Underwriter of Securities or Securities Trading Intermediary as a whole and/or the administrative recording system. The explanation of the accounting information system must at least contain:
a. the flow of the accounting system starting from data collection, storage, management, processing, and reporting of financial data; b. accounting procedures related to other activities of Underwriters of Securities and/or Securities Trading Intermediaries; and
c. example illustrations of accounting journals related to other activities of Underwriters of Securities and/or Securities Trading Intermediaries.

• Article 20 paragraph
  (2) letter f
  Financial Services
  Authority
  Regulation
  No.
  20/POJK.04/
  2016 concerning
  Licensing
  Securities Companies
  Engaging in
  Business Activities as Underwriters

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
Trading Intermediaries

• Number V number
  5 letter f

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
8. Statement Letter
or document
The statement letter or document in question states that the other activities to be carried out by the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries:
a. do not conflict with regulations; and b. in their implementation will be carried out in accordance with regulations or have obtained approval or license from the competent authority, if the activities of the Underwriters of Securities and/or Securities Trading Intermediaries concerned require approval from the competent authority.

• Article 20 paragraph
  (2) letter g
  Financial Services
  Authority
  Regulation
  No.
  20/POJK.04/
  2016 concerning
  Licensing
  Securities Companies
  Engaging in
  Business Activities as Underwriters

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
The statement letter in question is signed by the Director of the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries. Underwriters of Securities and Securities Trading Intermediaries

• Number V number
  5 letter g

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
9. Readiness and
results of trials for the implementation of other activities Underwriters of Securities and/or Securities Trading Intermediaries *) The document in question explains the readiness and trial results of the Securities Company engaging in business activities as Underwriters of Securities and/or Securities Trading Intermediaries for other activities, if such other activities are to be carried out for the first time.

• Article 20 paragraph
  (2) letter h
  Financial Services
  Authority
  Regulation
  No.
  20/POJK.04/
  2016 concerning
  Licensing
  Securities Companies
  Engaging in
  Business Activities as Underwriters of Securities and Securities Trading Intermediaries

NO.
DESCRIPTION
REFERENCE
REGULATION
YES
NO
NOTES
Review of the
Implementation of Other Activities by PEE or PPE The document in question explains the results of the review of the implementation of other activities that have been carried out by the Securities Company engaging in business activities as Underwriters of Securities and Securities Trading Intermediaries in previous periods, if such other activities have been carried out by the Securities Company engaging in business activities as Underwriters of Securities and Securities Trading Intermediaries before the implementation of the Financial Services Authority Regulation No. 20/POJK.04/2016 concerning Licensing of Securities Companies Engaging in Business Activities as Underwriters of Securities and Securities Trading Intermediaries.

Notes:
*) strike out what is not needed.

REPORT ON THE IMPLEMENTATION OF OTHER ACTIVITIES FOR UNDERWRITERS OF SECURITIES AND/OR SECURITIES TRADING INTERMEDIARIES*) PT …………………………………………………………………….. PERIOD YEAR ….. NO DESCRIPTION DETAILS

1. Director responsible
2. Type and name of other
   activities
3. Number of Letter of Approval
   for Other Activities of the
   Securities Company issued by the Financial Services Authority
4. Date of commencement of
   implementation of other activities
5. Conformity between
   other activities carried out and the approval of other activities issued by the Financial Services Authority
6. Name or business field
   of service users (clients, including also clients, issuers, investors, and other related parties) Name Service User Business Field of Service User (if the party is a Business Entity) Client (if any) Issuer (if any) Client (if any) Investor (if any)

Other Parties (if any)
7. Value of implementation of other
activities
8. Other information, if
the other activity carried out is as an arranger/issuer a. Name of Securities b. Value of Securities Issuance
c. Term (Tenor)
d. Interest Rate e. Distribution Date f. Securities Custodian g. Monitoring Agent (if any)
.........., ......................20........
(place and date)
.............................................
(full name and signature)
Notes:
*) strike out what is not needed. stamp

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Yuliana
PERIODIC REPORT ON THE IMPLEMENTATION OF OTHER ACTIVITIES FOR UNDERWRITERS OF SECURITIES AND/OR SECURITIES TRADING INTERMEDIARIES*) PT …………………………………………………………………….. PERIOD YEAR ….. NO ACTIVITY PARTY RECEIVING THE SERVICE TRANSACTION VALUE (IF ANY) INCOME
.........., ......................20........
(place and date)
.............................................
(full name and signature)
Notes:
*) strike out what is not needed.
Determined in Jakarta on 5 November 2018
HEAD OF THE EXECUTIVE
SUPERVISOR OF THE CAPITAL MARKET, signed
HOESEN stamp