FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 20 /POJK.04/2016

CONCERNING

LICENSING OF SECURITIES COMPANIES ENGAGING IN BUSINESS ACTIVITIES AS SECURITIES UNDERWRITERS AND SECURITIES BROKERS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the development of the Indonesian Capital Market, the quality of Securities Companies engaging in business activities as Securities Underwriters and Securities Brokers needs to be continuously improved; b. that the improvement of the quality of Securities Companies engaging in business activities as Securities Underwriters and Securities Brokers can be done among other things through improved good corporate governance, improved quality of ownership, control, and management;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Licensing of Securities Companies engaging in business activities as Securities Underwriters and Securities Brokers;

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

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

DECIDES:

To establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING LICENSING OF SECURITIES COMPANIES ENGAGING IN BUSINESS ACTIVITIES AS SECURITIES UNDERWRITERS AND SECURITIES BROKERS.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

Securities Broker is a Party that conducts business activities of buying and selling Securities for its own behalf or for other Parties.
Securities 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 remaining unsold Securities.
Controlling Shareholder is a Party that directly or indirectly owns:
a. at least 20% (twenty percent) of the issued shares of one Securities Company engaging in business activities as a Securities Underwriter and/or Securities Broker and has voting rights; or b. less than 20% (twenty percent) of the issued shares of one Securities Company engaging in business activities as a Securities Underwriter and/or Securities Broker and has voting rights but can be proven to have exercised control, directly or indirectly, over the Securities Company engaging in business activities as a Securities Underwriter and/or Securities Broker.
Company Limited is a Limited Liability Company as referred to in Law Number 40 of 2007 concerning Limited Liability Companies.

CHAPTER II

LICENSING AND REQUIREMENTS FOR SECURITIES COMPANIES ENGAGING IN BUSINESS ACTIVITIES AS SECURITIES UNDERWRITERS AND/OR SECURITIES BROKERS

Section One

Business License

Article 2

A Company Limited conducting business activities as a Securities Company as a Securities Underwriter and/or Securities Broker must possess a business license from the Financial Services Authority.

Article 3

(1) The business license of a Securities Company as a Securities Underwriter also serves as the business license of the Securities Company as a Securities Broker.
(2) The business license of a Securities Company as a Securities Underwriter, which also serves as the business license of the Securities Company as a Securities Broker, may be limited in the implementation of its business activities by the Securities Company at the time of applying for the Securities Underwriter license by stating that the Securities Underwriter does not conduct business activities as a Securities Broker. (3) The business license of a Securities Company as a Securities Broker does not serve as the business license of the Securities Company as a Securities Underwriter. (4) A Securities Company conducting business activities as a Securities Underwriter may conduct:
a. main activities, namely:
1. underwriting of Securities issuance; and
2. other activities related to corporate actions of companies that will or have conducted a Public Offering, such as providing advice in the context of issuing Securities, mergers, consolidations, takeovers, and/or restructuring; and
b. other activities established and/or approved by the Financial Services Authority.
(5) A Securities Company conducting business activities as a Securities Broker may conduct:
a. main activities, namely:
1. Securities transactions for its own behalf and other Parties; and/or
2. marketing of Securities for the benefit of other Securities Companies; and
b. other activities established and/or approved by the Financial Services Authority.

Article 4

(1) A Company Limited may be granted a business license as a Securities Company as a Securities Broker specifically established to market Mutual Fund Securities.
(2) Provisions regarding Securities Companies as Securities Brokers specifically established to market Mutual Fund Securities as referred to in paragraph (1) are subject to the Financial Services Authority Regulation concerning Mutual Fund Securities Sales Agents.

Article 5

(1) A Company Limited that has obtained a business license as a Securities Company as a Securities Underwriter is prohibited from conducting business activities other than business activities in accordance with the business license held as referred to in Article 3 paragraph (4) and paragraph (5). (2) A Company Limited that has obtained a business license as a Securities Company as a Securities Broker is prohibited from conducting business activities other than business activities in accordance with the business license held as referred to in Article 3 paragraph (5).

Section Two

Requirements

Paragraph 1

Articles of Association Requirements

Article 6

(1) The Articles of Association of a Securities Underwriter and/or Securities Broker must contain business activities in accordance with the business license applied for to the Financial Services Authority.
(2) A Company Limited applying for a business license as a Securities Company as a Securities Underwriter and/or Securities Broker must have established the company's business activities in accordance with the applied-for business license in the Articles of Association of the said Company Limited.

Paragraph 2

Identity Requirements

Article 7

(1) A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker must have Company Identity at least comprising the name and address of the company.
(2) A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker must clearly include the word "Securities" in the writing of its company name.
(3) In the event that a Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker uses a logo as additional identity, the Securities Company must include the company name that is part of the said logo.

Paragraph 3

Capital Requirements

Article 8

(1) A Securities Company conducting activities as a Securities Underwriter must have paid-up capital of at least IDR 50,000,000,000.00 (fifty billion rupiah).
(2) A Securities Company conducting activities as a Securities Broker that Administers Client Securities Accounts must have paid-up capital of at least IDR 30,000,000,000.00 (thirty billion rupiah).
(3) A Securities Company conducting activities as a Securities Broker that does not Administer Client Securities Accounts must have paid-up capital of at least IDR 500,000,000.00 (five hundred million rupiah).
(4) A Securities Company conducting activities as a Securities Underwriter and Investment Manager must have paid-up capital of at least IDR 75,000,000,000.00 (seventy-five billion rupiah).
(5) A Securities Company conducting activities as a Securities Broker that Administers Client Securities Accounts and Investment Manager must have paid-up capital of at least IDR 55,000,000,000.00 (fifty-five billion rupiah).

Article 9

A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker must have and maintain Adjusted Net Working Capital in accordance with legislation in the Capital Market sector regulating the Maintenance and Reporting of Adjusted Net Working Capital.

Paragraph 4

Operational Requirements

Article 10

(1) A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker must:
a. have an organizational structure equipped with job descriptions and employee names at each position, including the existence of work units, members of the Board of Directors, or officials at a level below the Board of Directors that perform functions required by legislation in the Capital Market sector in accordance with the business license held; b. have procedures and standard operations in accordance with the business license held by the Securities Company and in accordance with legislation in the Capital Market sector related to the implementation of the held business activities, with the provision that it at least contains:
1. title of procedures and standard operations (standard operation guidelines);
2. person responsible for procedures and standard operations;
3. parties implementing each procedure and standard operation;
4. flowcharts and explanations of each stage of procedures implemented;
5. time limits for implementation in each procedure;
6. documents used; and
7. results of implemented procedures; and
c. have a permit to employ foreign workers from the competent authority in the event of employing foreign workers.
(2) A Securities Company conducting activities as a Securities Underwriter must have at least 1 (one) employee who has obtained an individual license as a Deputy Securities Underwriter.
(3) A Securities Company conducting activities as a Securities Broker must have at least 1 (one) employee who has obtained an individual license as a Deputy Securities Underwriter or Deputy Securities Broker.

Article 11

(1) A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker must formulate and apply written policies and procedures related to research results so that research conducted by the Securities Company's analysts to support investment decision-making, providing any information, advice, and recommendations to clients, and/or disseminated to the public, is independent. (2) The written policies and procedures as referred to in paragraph (1) at least cover the reporting flow of the Securities Company's analysts and the basis for calculating compensation for such analysts that can eliminate or significantly restrict existing, common, or potential conflicts of interest.

Article 12

A Securities Company conducting business activities as a Securities Underwriter and/or Securities Broker is fully legally and financially responsible for all actions taken on behalf of and for the name of the Securities Company by members of the Board of Directors, members of the Board of Commissioners, Deputy Securities Companies, employees, and other parties working for the said Securities Company.

Paragraph 5

Integrity and Financial Suitability Requirements for Shareholders and Controlling Shareholders

Article 13

(1) Shareholders and Controlling Shareholders of a Securities Company conducting business activities as a Securities Underwriter or Securities Broker must meet integrity and financial suitability requirements.
(2) The integrity requirements as referred to in paragraph (1) include:
a. legal capacity to perform legal acts; b. never having committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time period from the date of issuance to submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
c. never having been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority;
d. never having been sentenced for committing special criminal offenses within the last 20 (twenty) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority; e. never having been sentenced for committing criminal offenses within the last 10 (ten) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority; f. having good character and morality; g. having a high commitment to comply with legislation; and h. having a high commitment to support the healthy operational development of Securities Companies conducting business activities as Securities Underwriters or Securities Brokers and the Indonesian Capital Market as well as Financial Services Authority policies. (3) The financial suitability requirements, as referred to in paragraph (1), include:
a. financial capability; b. for shareholders or Controlling Shareholders who are individuals, never having been declared bankrupt or having been a member of the Board of Directors or Board of Commissioners declared guilty of causing a company to be declared bankrupt based on a court decision; and
c. not having non-performing loans and/or financing.
(4) In the event that shareholders and Controlling Shareholders of a Securities Company conducting business activities as a Securities Underwriter or Securities Broker are legal entities, the provisions of the requirements as referred to in paragraph (1) apply mutatis mutandis to the legal entity, shareholders and/or controllers, both directly and indirectly, of said legal entity. (5) The Financial Services Authority may request information from competent Institutions regarding documents submitted as referred to in paragraph (2) letter b.

Paragraph 6

Integrity and Competency Requirements for Members of the Board of Directors or Members of the Board of Commissioners

Article 14

(1) Members of the Board of Directors or members of the Board of Commissioners of a Securities Company conducting business activities as a Securities Underwriter or Securities Broker must meet integrity, financial reputation, and competency and expertise requirements in the Capital Market sector. (2) The integrity requirements as referred to in paragraph (1) include:
a. legal capacity to perform legal acts; b. never having committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time period from the date of issuance to submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
c. never having been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority;
d. never having been sentenced for committing special criminal offenses within the last 20 (twenty) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority; e. never having been sentenced for committing criminal offenses within the last 10 (ten) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority; f. having good character and morality; g. having a high commitment to comply with legislation; and h. having a high commitment to support the healthy operational development of Securities Companies conducting business activities as Securities Underwriters or Securities Brokers and the Indonesian Capital Market. (3) The financial reputation requirements as referred to in paragraph (1) include:
a. never having been declared bankrupt; b. not having non-performing loans and/or financing; or
c. never having been a member of the Board of Directors or Board of Commissioners declared guilty of causing a company to be declared bankrupt.
(4) The competency and expertise requirements in the Capital Market sector as referred to in paragraph (1):
a. for members of the Board of Directors are:
1. having adequate knowledge in the Capital Market sector relevant to their position and at least having an academic education equivalent to a diploma; and
2. having experience and expertise in the Capital Market sector and/or financial sector for at least 2 (two) years in managerial positions in companies operating in the Capital Market sector and/or financial services sector;
b. for members of the Board of Commissioners are:
1. having adequate expertise in the Capital Market sector relevant to their position; and/or
2. having at least 2 (two) years of experience in companies operating in the Capital Market sector and/or financial services sector.
(5) The Financial Services Authority may request information from competent Institutions regarding documents submitted as referred to in paragraph (2) letter b.

CHAPTER III

PROCEDURES FOR APPLICATION FOR LICENSING OF SECURITIES COMPANIES AS SECURITIES UNDERWRITERS AND SECURITIES BROKERS

Section One

Application for Business License

Article 15

(1) Applications to obtain a business license as a Securities Company as a Securities Underwriter and/or Securities Broker are submitted by the applicant to the Financial Services Authority in duplicate (2) in accordance with the application letter or change of Business License for Securities Companies as Securities Underwriters and/or Securities Brokers as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, by attaching the following documents:
a. documents showing the identity of the Company Limited at least comprising the name and address of the head office and operational office of the company, and company logo (if any); b. photocopy of the Company Limited's deed of establishment that has been certified by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has been issued a notice of acceptance of the amendment to the articles of association from the competent authority;
c. photocopy of the Company Limited's Taxpayer Identification Number (NPWP);
d. power of attorney to the Party authorized to submit the licensing application on behalf of the company (if any); e. list of names and data of members of the Board of Directors, members of the Board of Commissioners, and employees who have Deputy Securities Company licenses, including:
1. curriculum vitae signed by the concerned party at least containing a brief work history including:
a) job title; b) reason for leaving or resigning (if any); and c) brief description of job duties and responsibilities;
2. photocopy of the latest formal education diploma;
3. photocopy of the individual license as a Deputy Securities Company;
4. documents showing that members of the Board of Directors have experience and expertise in the Capital Market sector and/or financial sector for at least 2 (two) years in managerial positions in companies operating in the Capital Market sector and/or financial services sector;
5. documents showing that members of the Board of Commissioners:
a) have adequate expertise in the Capital Market sector relevant to their position; and/or b) have at least 2 (two) years of experience in companies operating in the Capital Market sector and/or financial services sector;
6. photocopy of valid Identity Cards or passports; and
7. latest color passport photos size 4x6 cm with red background amounting to 2 (two) sheets;
f. documents related to the name, data, and information of shareholders, including:
1. individuals include:
a) curriculum vitae signed by the concerned party; b) photocopy of valid Identity Cards or passports; c) latest color passport photos size 4x6 cm with red background amounting to 2 (two) sheets; d) photocopy of Taxpayer Identification Number (NPWP); e) proof of financial capability; f) statement letter that capital deposits do not come from loans or financing facilities in any form from other parties and do not come from and for the purpose of money laundering and terrorism financing in accordance with the statement letter of source of funds or capital deposits as contained in the Appendix which is an integral part of this Financial Services Authority Regulation; and g) written commitment to comply with applicable legislation and support the operational development of Securities Companies conducting business activities as Securities Underwriters and/or Securities Brokers that are healthy and the Indonesian Capital Market in accordance with the integrity statement letter for prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders as contained in the Appendix which is an integral part of this Financial Services Authority Regulation;
2. legal entities include:
a) photocopy of the deed of establishment of the Indonesian legal entity that has been certified by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has been issued a notice of acceptance of the amendment to the articles of association from the competent authority (if the shareholder or Controlling Shareholder is an Indonesian legal entity); b) photocopy of the deed of establishment of the foreign legal entity that has been certified by the competent authority in the country of origin along with its amendments (if any) and documents required in accordance with the legislation of the country of origin if the legal entity in question is a foreign legal entity that is a state or government-owned legal entity (if the shareholder or Controlling Shareholder is a foreign legal entity); c) photocopy of Taxpayer Identification Number (NPWP) for Indonesian legal entities; d) information regarding Parties controlling the legal entity both directly and indirectly at least containing the name and form of control; e) financial report of the last year that has been audited; f) list of names and data of members of the Board of Directors, members of the Board of Commissioners, and/or managers including:
1) curriculum vitae that has been signed;
2) photocopy of valid Identity Cards or passports; and
3) latest color passport photos size 4x6 cm with red background amounting to 2 (two) sheets;
g) list of names and data of shareholders:
1) individuals include:
a. curriculum vitae that has been signed; b. photocopy of valid Identity Cards or passports; and
c. latest color passport photos size 4x6 cm with red background amounting to 2 (two) sheets;
2) legal entities include:
a. latest articles of association; and b. financial report of the last year that has been audited; h) statement letter that capital deposits do not come from loans or financing facilities in any form from other parties and do not come from and for the purpose of money laundering and...

funding for terrorism in accordance with the letter of statement of source of funds or capital deposits as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

i) a written commitment to comply with applicable laws and regulations and support the healthy operational development of Securities Companies engaging in business as Underwriters and/or Securities Brokers and the Indonesian Capital Market in accordance with the letter of integrity statement for prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; and

j) if the legal entity in question is a foreign legal entity operating in the financial services sector, it must be accompanied by a recommendation from the competent supervisory authority of the country of origin which at least states that:

the foreign legal entity has a good reputation; and
the foreign legal entity has never committed disgraceful acts in the financial sector;

g. information regarding:

shareholders up to the ultimate beneficial owners;
Controlling Shareholders of the Limited Liability Company, both directly and indirectly, which at least contains the name of the controlling party and the form of control;
related companies; and
subsidiaries;

h. a list of employees at positions below the Board of Directors who do not have a Securities Company Representative license and their positions in the company's organizational structure;

i. the latest audited financial statements examined by an Accountant registered with the Financial Services Authority, where the time period between the date of the latest financial statement and the date of issuance of the business license for the Securities Company is not more than 180 (one hundred eighty) days;

j. photocopy of the joint venture business agreement for joint venture Securities Companies;

k. bank statements;

l. proof of capital deposit;

m. Adjusted Net Working Capital in accordance with applicable laws and regulations in the Capital Market sector regulating the Maintenance and Reporting of Adjusted Net Working Capital;

n. a letter of statement from the Controlling Shareholder of the Securities Company engaging in business as an Underwriter or Securities Broker, whether directly or indirectly, stating that the person concerned:

is competent to perform legal acts;
has never committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time period between the date of issuance and the submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
has never been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years up to the determination of the results of the competency and propriety test for shareholders and Controlling Shareholders by the Financial Services Authority;
has never been sentenced for committing special criminal offenses within the last 20 (twenty) years up to the determination of the results of the competency and propriety test for shareholders and Controlling Shareholders by the Financial Services Authority;
has never been sentenced for committing criminal offenses within the last 10 (ten) years up to the determination of the results of the competency and propriety test for shareholders and Controlling Shareholders by the Financial Services Authority;
has good ethics and morals;
has a high commitment to comply with applicable laws and regulations; and
has a high commitment to support the healthy operational development of Securities Companies engaging in business as Underwriters or Securities Brokers and the Indonesian Capital Market as well as Financial Services Authority policies,

in accordance with the letter of integrity statement for prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

o. a letter of statement from the members of the Board of Directors and members of the Board of Commissioners of the Securities Company engaging in business as an Underwriter or Securities Broker stating that the following requirements are met:

is competent to perform legal acts;
has never committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time period between the date of issuance and the submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
has never been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years up to the determination of the results of the competency and propriety test for members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority;
has never been sentenced for committing special criminal offenses within the last 20 (twenty) years up to the determination of the results of the competency and propriety test for members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority;
has never been sentenced for committing criminal offenses within the last 10 (ten) years up to the determination of the results of the competency and propriety test for members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority;
has good ethics and morals;
has a high commitment to comply with applicable laws and regulations;
has a high commitment to support the healthy operational development of Securities Companies engaging in business as Underwriters or Securities Brokers and the Indonesian Capital Market;
has never been declared bankrupt or become a director or commissioner who was declared guilty causing a company to be declared bankrupt; and
does not have non-performing loans and/or financing,

in accordance with the letter of integrity statement for prospective members of the Board of Directors/prospective members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

p. a letter of statement from members of the Board of Directors stating that the Securities Company engaging in business as an Underwriter and/or Securities Broker is fully responsible legally and financially for all actions taken on behalf of the company, by members of the Board of Directors, Securities Company Representatives, employees, and other parties working for the company, in accordance with the letter of statement of full legal and financial responsibility as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

q. a letter of statement:

from members of the Board of Directors stating that the person concerned does not work in other companies or institutions in any capacity while serving as a member of the Board of Directors of the Securities Company, except as a member of the Board of Commissioners of the Stock Exchange, Clearing and Guarantee Institution, or Custody and Settlement Institution; and
from members of the Board of Commissioners stating that the person concerned does not work in any capacity in other Securities Companies, including as a member of the Board of Commissioners or members of the Board of Directors;

in accordance with the letter of statement of non-concurrent positions as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

r. a letter of statement from members of the Board of Directors and members of the Board of Commissioners stating that the person concerned has or does not have family relationships up to the second degree with members of the Board of Directors or members of the Board of Commissioners in the relevant Securities Company, in accordance with the letter of statement of no family relationship in the relevant Securities Company as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

s. a letter of statement from members of the Board of Directors and members of the Board of Commissioners stating that the person concerned has or does not have family relationships up to the second degree with members of the Board of Directors or members of the Board of Commissioners in other Securities Companies or Issuers listed on the Stock Exchange, in accordance with the letter of statement of no family relationship in other Securities Companies as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

t. a letter of statement from employees who have an individual license as a Securities Company Representative stating that the person concerned does not hold concurrent positions in other Securities Companies, in accordance with the letter of statement of no concurrent positions in other Securities Companies as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

u. a letter of statement of not conducting Securities Broker business in the event that the Underwriter only conducts business as an Underwriter and does not conduct Securities Broker business, in accordance with the letter of statement of not conducting Securities Broker business as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

v. a letter of statement from shareholders or Controlling Shareholders that the source of funds for the ownership of Securities Companies engaging in business as Underwriters and/or Securities Brokers does not come from loans or financing facilities in any form from other parties and does not come from and is not for the purpose of money laundering and terrorism financing, in accordance with the letter of statement of source of funds or capital deposits as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

w. a letter of statement from shareholders, Controlling Shareholders, members of the Board of Directors, and members of the Board of Commissioners of Securities Companies engaging in business as Underwriters and/or Securities Brokers supporting Financial Services Authority policies, in accordance with the letter of statement supporting Financial Services Authority policies as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

x. a domicile certificate from the building manager or relevant competent agency regarding the address of the head office and operations, lease agreement if the business place is not owned, office layout, and photos of the company's rooms accompanied by the purpose of the rooms;

y. an organizational structure listing the names of employees at each position and their job descriptions, including the existence of work units, members of the Board of Directors, or officials at positions below the Board of Directors performing functions required by applicable laws and regulations in accordance with the business license applied for;

z. a description of the company's operational plan and mission and financial projections for at least the next 5 (five) years;

aa. answers to questions in accordance with the format of the questionnaire list as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

bb. answers to questions in accordance with the format of lists A, B, and C as stated in the Appendix which is an integral part of this Financial Services Authority Regulation;

cc. a list of branch offices and their changes in accordance with applicable laws and regulations in the Capital Market sector regulating the activities of Securities Companies in various locations (if any);

dd. procedures and standard operating procedures in accordance with the business license in accordance with applicable laws and regulations in the Capital Market sector related to the implementation of the requested business activities, at least containing:

title of procedures and standard operating procedures (standard operating guidelines);
person in charge of procedures and standard operating procedures;
parties implementing each procedure and standard operating procedure;
flowchart and explanation of each stage of the procedure implemented;
time limits for implementation in each procedure;
documents used; and
results of the implemented procedures;

ee. proof of payment of licensing fees for Securities Companies engaging in business as Underwriters and/or Securities Brokers; and

ff. a letter of statement from prospective shareholders, prospective Controlling Shareholders, shareholders, Controlling Shareholders, prospective members of the Board of Directors, prospective members of the Board of Commissioners, members of the Board of Directors, and members of the Board of Commissioners stating that all documents submitted to the Financial Services Authority for the submission of:

application for or change of business license;
change of shareholders and/or controlling shareholders; and/or
change of members of the Board of Directors and/or members of the Board of Commissioners,

are true and not misleading, in accordance with the letter of statement of document truthfulness and the letter of statement of document truthfulness from the Securities Company as stated in the Appendix which is an integral part of this Financial Services Authority Regulation.

(2) In the event that there are members of the Board of Directors, members of the Board of Commissioners, or employees of the Securities Company who are foreign workers, the applicant must fulfill the provisions of the Regulation of the Minister of Manpower and Transmigration regulating the procedures for the use of foreign workers.

Article 16
(1) For Securities Companies that have a business license as an Underwriter and declare that they do not conduct Securities Broker business as referred to in Article 3 paragraph (2) and intend to conduct Securities Broker business, the Securities Company concerned must submit an application to the Financial Services Authority. (2) The application as referred to in paragraph (1) must be accompanied by documents as referred to in Article 15 showing compliance with the requirements for conducting business as a Securities Broker as required in this Financial Services Authority Regulation. (3) The latest financial statements submitted to the Financial Services Authority in the application as referred to in paragraph (2) are financial statements examined by an Accountant registered with the Financial Services Authority, and the time period between the date of the latest financial statement and the date of approval by the Financial Services Authority for the application to conduct Securities Broker business as referred to in paragraph (1) is not more than 180 (one hundred eighty) days.

Article 17
(1) Securities Companies that have a business license as a Securities Broker and intend to apply for a business license as an Underwriter must submit an application to the Financial Services Authority.
(2) The application as referred to in paragraph (1) must be accompanied by documents as referred to in Article 15 showing compliance with the requirements for conducting business as an Underwriter as required in this Financial Services Authority Regulation.

Article 18
(1) In processing applications as referred to in Article 15, Article 16, and Article 17, the Financial Services Authority conducts:
a. research on document completeness; b. further clarification through face-to-face meetings;
c. requests for presentations regarding the company's business activity plan;
d. assessment of competency and propriety for shareholders, Controlling Shareholders, members of the Board of Directors, and members of the Board of Commissioners; e. examination at the applicant's office; and/or f. requests for additional documents. (2) In the event that the application upon receipt does not meet the requirements, at the latest 45 (forty-five) days after the application is received, the Financial Services Authority provides a notification letter to the applicant stating that:
a. the application does not yet meet the requirements; or b. the application is rejected because it does not meet the requirements.
(3) The applicant must complete the deficiencies required as referred to in paragraph (2) letter a at the latest 45 (forty-five) days after the date of the notification letter.
(4) Applicants who do not complete the required document deficiencies as referred to in paragraph (3) are deemed to have cancelled the application.
(5) The Financial Services Authority issues a business license for Underwriters and/or Securities Brokers to applicants who submit applications for business licenses as referred to in Article 15, Article 16, or Article 17 at the latest 45 (forty-five) days from the date the application is received completely and meets the requirements.

Second Section
Applications for Other Activities

Article 19
Securities Companies that have a business license as an Underwriter or Securities Broker conducting other activities as referred to in Article 3 paragraph (4) letter b and paragraph (5) letter b must ensure that the other activities and their implementation:
a. do not contradict applicable laws and regulations; and b. are based on adequate risk management to mitigate risks arising.

Article 20
(1) To conduct other activities as referred to in Article 3 paragraph (4) letter b and paragraph (5) letter b, Securities Companies that have a business license as an Underwriter or Securities Broker must first obtain approval from the Financial Services Authority. (2) The application for approval of other activities is submitted by the Securities Company to the Financial Services Authority in duplicate (2) in accordance with the letter of application for approval of other activities for Underwriters or Securities Brokers as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. an explanation of the plan for implementing other activities including:

type, description, and activities of other activities;
time of implementation of other activities;
purpose of implementing other activities, including target market and target revenue in the first (1) year;
correlation of other activities with the company's business strategy;
benefits, costs, and risks for the company regarding other activities;
benefits and risks for customers; and
risk mitigation for the implementation of other activities;
b. procedures and standard operating procedures as referred to in Article 15 paragraph (1) letter dd for implementing other activities;
c. documents containing identification, measurement, monitoring, and control of risks inherent in other activities;
d. results of legal and compliance aspect analysis of other activities; e. documents or draft documents regarding transparency to and/or from customers related to the implementation of other activities, at least including agreements between Securities Companies engaging in business as Underwriters and/or Securities Brokers with customers and/or other parties, brochures, flyers, Prospectuses, and/or application forms; f. accounting information system documents including a brief explanation of the correlation of the accounting information system with the accounting information system of Underwriters or Securities Brokers as a whole and/or administrative recording systems; g. a letter of statement or document stating that other activities to be conducted by Securities Companies engaging in business as Underwriters and/or Securities Brokers do not contradict and will be implemented in accordance with applicable laws and regulations or have obtained approval or license from competent authorities, if the activities of Underwriters and/or Securities Brokers concerned require approval from such authorities; and h. the readiness and test results of Securities Companies engaging in business as Underwriters and/or Securities Brokers (if any) regarding other activities.

Article 21
(1) In processing applications for approval of other activities for Securities Companies engaging in business as Underwriters and/or Securities Brokers, the Financial Services Authority conducts:
a. research on document completeness; b. further clarification through face-to-face meetings;
c. requests for presentations regarding the company's other activity plans;
d. examination at the applicant's office; and/or e. requests for additional documents (if necessary).
(2) In the event that the application as referred to in Article 20 paragraph (2) upon receipt does not meet the document completeness requirements, at the latest 45 (forty-five) days after the application is received, the Financial Services Authority provides a notification letter to the applicant stating that the application does not yet meet the document completeness requirements. (3) Applicants who do not complete the required document deficiencies within 45 (forty-five) days from the date of the notification letter as referred to in paragraph (2) are deemed to have cancelled the application for approval of other activities for Underwriters or Securities Brokers as referred to in Article 20 paragraph (2). (4) In the event that the application for approval of other activities for Underwriters or Securities Brokers as referred to in Article 20 paragraph (2) does not meet the requirements, at the latest 45 (forty-five) days after the application is received completely, the Financial Services Authority provides a notification letter to the applicant stating that the application is rejected because it does not meet the requirements. (5) The Financial Services Authority provides approval for other activity applications to applicants who submit applications for other activities as referred to in Article 20 paragraph (2) at the latest 45 (forty-five) days from the date the application is received completely and meets the requirements. (6) Securities Companies engaging in business as Underwriters or Securities Brokers must implement other activities that have been approved by the Financial Services Authority at the latest 6 (six) months from the approval as referred to in paragraph (5) given by the Financial Services Authority. (7) In the event that Securities Companies engaging in business as Underwriters or Securities Brokers do not implement other activities that have been approved by the Financial Services Authority within a period of 6 (six) months from the approval given by the Financial Services Authority as referred to in paragraph (5), the approval of the Financial Services Authority concerned becomes invalid. (8) Securities Companies engaging in business as Underwriters or Securities Brokers must submit reports on the realization of the implementation of other activities that have been approved by the Financial Services Authority calculated from the date the other activities are utilized by customers and/or other parties,

no later than 7 (seven) working days after the other activities referred to are carried out, which include:
a. the type and name of the other activities; b. the date of commencement of the other activities; and
c. the correspondence between the other activities carried out and the approval of the other activities granted by the Financial Services Authority.

CHAPTER IV
OWNERSHIP AND CONTROL

First Section
Ownership

Article 22
(1) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are prohibited from issuing shares for self-ownership or for ownership by other corporations whose shares are directly or indirectly owned by the said Securities Company. (2) The prohibition on issuing shares for self-ownership or for ownership by other corporations whose shares are directly or indirectly owned by the Securities Company as referred to in paragraph (1) does not apply in the event that the issuance of shares of the said Securities Company is done in its capacity as an Issuer to:
a. other Securities Companies, whose shares are directly or indirectly owned by the said Securities Company, which carry out the obligation to purchase shares in the underwriting of the equity nature of the Securities Issue in a Public Offering; and b. other corporations, whose shares are directly or indirectly owned by the said Securities Company, which carry out:

conversion of convertible bonds owned by the Issuer into Issuer shares;
the obligation to purchase shares as a standby buyer in the issuance of equity nature Securities; or
exercising Pre-emptive Rights, warrants, or other rights arising from shares owned due to letters a and letter b numbers 1 and 2.
(3) Shares of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are not prohibited from being owned by other Securities Companies whose shares are directly or indirectly owned by the said Securities Company due to ownership arising from the purchase of shares in the secondary market.

Article 23
(1) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are National Securities Companies if all their shares are owned by Indonesian citizen individuals and/or Indonesian legal entities. (2) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are Joint Venture Securities Companies if their shares are owned by Indonesian citizen individuals or Indonesian legal entities and foreign legal entities operating in the financial sector.

Article 24
(1) Shares of Joint Venture Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers as referred to in Article 23 paragraph (2) may be owned by foreign legal entities operating in the financial services sector other than securities by a maximum of 85% (eighty-five percent) of paid-up capital. (2) Shares of Joint Venture Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers as referred to in Article 23 paragraph (2) may be owned by foreign legal entities operating in the securities sector that have obtained a license or are under the supervision of the Capital Market Regulator in their home country by a maximum of 99% (ninety-nine percent) of paid-up capital.

Article 25
(1) In the event that National or Joint Venture Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers conduct a Public Offering of their shares, the shares of the said National or Joint Venture Securities Companies may be wholly owned by Indonesian citizen individuals, Indonesian legal entities, foreign citizen individuals, or foreign legal entities. (2) Foreign legal entities as referred to in paragraph (1) may include foreign legal entities that do not operate in the financial sector.

Article 26
(1) Ownership of shares of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers by legal entities as referred to in Article 23, Article 24, and Article 25 is limited to a maximum of:
a. the equity of legal entities in the form of Limited Liability Companies; or b. equity equivalent for legal entities in the form of cooperatives or other legal entities.
(2) The provisions as referred to in paragraph (1) must be fulfilled at the time the relevant legal entity makes capital deposits:
a. in the establishment of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers; or b. in the increase of paid-up capital of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers. (3) The provisions as referred to in paragraph (1) and paragraph (2) letter b do not apply to shareholders who are not Controlling Shareholders of Securities Companies that are Issuers or Public Companies.

Article 27
(1) The source of funds used for the ownership of shares of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers is prohibited from originating:
a. from loans or debts in any form from any party; and/or b. from and for the purpose of money laundering and/or terrorism financing.
(2) The provisions as referred to in paragraph (1) letter a do not apply to shareholders who are not Controlling Shareholders of Securities Companies that are Issuers or Public Companies.

Second Section
Control

Article 28
Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers that are shareholders of the Stock Exchange and their affiliates, either individually or together, are prohibited from having relationships with other Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers that are also shareholders of the same Stock Exchange through:
a. ownership, either directly or indirectly, of 20% (twenty percent) or more of the shares of the said other Securities Company that have voting rights; or b. control in the management and/or policy of the said other Securities Company, either directly or indirectly.

Article 29
Control over Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers as referred to in Article 28 letter b exists if one of the following conditions is met:
a. having voting rights of more than 20% (twenty percent) either through own share ownership and affiliates or together with other parties; b. having the right to arrange and determine financial and operational policies of the Underwriter of Securities Issues or Broker-Dealers based on the articles of association or agreements;
c. being able to appoint or dismiss members of the Board of Directors of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers; or
d. being able to control the majority of votes in the Board of Directors meeting.

Article 30
(1) Any change in paid-up capital of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers, except for increases in paid-up capital arising from bonus share distributions, must first obtain approval from the Financial Services Authority. (2) Approval for changes in paid-up capital as referred to in paragraph (1) in the form of an increase in paid-up capital must be requested by Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers to the Financial Services Authority accompanied by documents at least:
a. supporting evidence showing the financial capability of shareholders making the additional capital deposit; b. proof of capital deposit;
c. information and proof of the source of funds; and
d. company bank statements showing the addition of capital deposits; (3) Approval for changes in paid-up capital as referred to in paragraph (1) in the form of a reduction in paid-up capital must be requested by Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers to the Financial Services Authority before submitting an application for approval to the competent Minister, accompanied by documents at least:
a. a statement letter from Board of Directors members that the reduction in paid-up capital does not disrupt company operational activities; b. audit results from Auditors registered with the Financial Services Authority stating that the reduction in paid-up capital does not disrupt company operational activities;
c. information regarding the reasons for the reduction in capital;
d. proof of creditor approval for the General Meeting of Shareholders decision regarding capital reduction; and e. proof of the announcement of the General Meeting of Shareholders results regarding capital reduction in 1 (one) daily newspaper in Indonesian language with national circulation. (4) The Financial Services Authority may request additional data and/or information to complete the application for approval of changes in paid-up capital as referred to in paragraph (2) or paragraph (3). (5) Changes in paid-up capital of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers arising from bonus share distributions must be reported to the Financial Services Authority.

Article 31
(1) In granting approval or rejection for applications for changes in paid-up capital as referred to in Article 30 paragraph (1), the Financial Services Authority conducts review and research to assess the fulfillment of integrity requirements, and financial feasibility of prospective shareholders, prospective Controlling Shareholders, shareholders, and/or Controlling Shareholders as referred to in Article 13 and documents submitted as referred to in Article 30 paragraph (2) or paragraph (3). (2) In the event that applications as referred to in Article 30 paragraph (2) or paragraph (3) upon receipt do not meet the completeness of document requirements, no later than 45 (forty-five) days since the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that the application does not yet meet the completeness of document requirements. (3) Applicants who do not complete the required document deficiencies within 45 (forty-five) days since the date of the notification letter as referred to in paragraph (2) are deemed to have cancelled the application for approval of changes in paid-up capital as referred to in Article 30 paragraph (2) or paragraph (3). (4) In the event that applications for approval of changes in paid-up capital as referred to in Article 30 paragraph (2) or paragraph (3) do not meet the requirements, no later than 45 (forty-five) days since the receipt of the complete application, the Financial Services Authority provides a notification letter to the applicant stating that the application is rejected because it does not meet the requirements. (5) The Financial Services Authority grants approval for applications for changes in paid-up capital to Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers as referred to in Article 30 paragraph (2) or paragraph (3) no later than 45 (forty-five) days since the application is received completely and meets the requirements. (6) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers whose applications for changes in paid-up capital are approved by the Financial Services Authority must report the changes in paid-up capital by attaching:
a. changes to the articles of association related to the increase in paid-up capital along with letters or proof of receipt of notification of changes to the articles of association from the competent Minister; or b. changes to the articles of association related to the reduction in paid-up capital along with letters or proof of approval of changes to the articles of association from the competent Minister. (7) The provisions as referred to in Article 30 do not apply if Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers have conducted a Public Offering of equity nature Securities or are Public Companies.

Third Section
Changes in Shareholders or Controlling Shareholders

Article 32
(1) Any change in shareholders and/or Controlling Shareholders of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers must first obtain approval from the Financial Services Authority. (2) In the event that Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are Issuers or Public Companies, the obligation to obtain prior approval from the Financial Services Authority as referred to in paragraph (1) only applies to changes in Controlling Shareholders. (3) Applications for approval from the Financial Services Authority as referred to in paragraph (1) or paragraph (2) are submitted by prospective shareholders, prospective Controlling Shareholders, shareholders, and/or Controlling Shareholders of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers to the Financial Services Authority through the said Securities Company. (4) Applications as referred to in paragraph (3) must be accompanied by documents related to prospective shareholders, prospective Controlling Shareholders, shareholders, and/or Controlling Shareholders as referred to in Article 15 paragraph (1) letters f, g, n, v, w, aa, and ff. (5) If prospective shareholders or shareholders of Securities Companies that are shareholders of the same Stock Exchange as Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers where the relevant party applies for approval from the Financial Services Authority as a shareholder based on these Financial Services Authority Regulations, in addition to documents as referred to in paragraph (4), the applications as referred to in paragraph (3) must also be accompanied by a statement letter stating:
a. the relevant party and their affiliates do not own 20% (twenty percent) or more of shares; and b. the relevant party does not have control, either directly or indirectly, in the management and/or policy of the company, in other Securities Companies that are shareholders of the same Stock Exchange as Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers where the relevant party applies for approval from the Financial Services Authority as a shareholder based on these Financial Services Authority Regulations. (6) The Financial Services Authority may request additional data and/or information to complete the application for approval of changes in shareholders and/or Controlling Shareholders as referred to in paragraph (3).

Article 33
(1) In granting approval or rejection for applications as referred to in Article 32 paragraph (3), the Financial Services Authority conducts review and research to assess whether prospective shareholders, prospective Controlling Shareholders, shareholders, and/or Controlling Shareholders meet or do not meet the requirements as shareholders and/or Controlling Shareholders of Securities Companies as regulated in Article 13 of these Financial Services Authority Regulations. (2) In the event that applications as referred to in Article 32 paragraph (3) upon receipt do not meet the completeness of document requirements, no later than 45 (forty-five) days since the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that the application does not yet meet the completeness of document requirements. (3) Applicants who do not complete the required document deficiencies within 45 (forty-five) days since the date of the notification letter as referred to in paragraph (2) are deemed to have cancelled the application for approval of changes in shareholders or Controlling Shareholders as referred to in Article 32 paragraph (3). (4) In the event that applications for approval of changes in shareholders or Controlling Shareholders as referred to in Article 32 paragraph (3) do not meet the requirements, no later than 45 (forty-five) days since the receipt of the complete application, the Financial Services Authority provides a notification letter to the applicant stating that the application is rejected because it does not meet the requirements. (5) The Financial Services Authority grants approval for applications for changes in shareholders or Controlling Shareholders as referred to in Article 32 paragraph (3) after prospective shareholders, prospective Controlling Shareholders, shareholders, and/or Controlling Shareholders meet the requirements as referred to in Article 13, no later than 45 (forty-five) days since the receipt of the complete application for approval of changes in shareholders or Controlling Shareholders.

Fourth Section
Cross-Ownership Due to Business Activities

Article 34
(1) If Securities Companies that conduct Underwriter of Securities Issue activities which are shareholders of the Stock Exchange conduct underwriting of equity nature Securities Issues from an Issuer which is also a Securities Company that is a shareholder of the same Stock Exchange, then the total share ownership of the said Issuer, both directly and indirectly, including ownership due to the underwriting execution by the Securities Company conducting the underwriting, must meet the provisions as regulated in Article 28 letter a. (2) Share ownership of the Issuer by Securities Companies that conduct Underwriter of Securities Issue activities as the execution of underwriting of equity nature Securities Issues from an Issuer that holds shares of the said Underwriter of Securities Issue, either directly or indirectly, must be transferred to other parties within a period of 1 (one) year after the date of acquisition.

Article 35
(1) If Securities Companies that conduct Underwriter of Securities Issue activities which are shareholders of the Stock Exchange act as standby buyers for equity nature Securities from an Issuer which is also a Securities Company that is a shareholder of the same Stock Exchange, then the share ownership of the said Issuer, both directly and indirectly, by the Securities Company acting as the said standby buyer must meet the provisions as regulated in Article 28 letter a. (2) Share ownership of the Issuer by Securities Companies as the execution of standby buying for equity nature Securities from an Issuer that holds shares of the said Securities Company, either directly or indirectly, must be transferred to other parties within a period of 1 (one) year after the date of acquisition.

Article 36
(1) Cross-ownership for Broker-Dealers that are Members of the Stock Exchange is not prohibited as a result of execution of activities as stabilization agents from an Issuer which is a Securities Company Member of the same Stock Exchange following the provisions as regulated in Article 28 letter a. (2) In the event of cross-ownership resulting from stabilization execution, Broker-Dealers acting as stabilization agents must transfer ownership of the shares to other parties within a period of 1 (one) year after the date of acquisition.

Article 37
(1) The prohibition on share ownership issued by Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers for themselves or share transfers resulting in cross-ownership for Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers as referred to in Article 22 paragraph (1) and paragraph (2) do not apply if the share ownership is obtained based on:
a. transfer due to law which includes transfer of rights arising as a result of merger, consolidation, or separation; b. donation; or
c. testamentary donation.
(2) Shares obtained based on the provisions as referred to in paragraph (1) must be transferred to other parties within a period of 1 (one) year after the date of acquisition.
(3) Shares of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers owned by themselves as a result of transfer due to law, donation, or testamentary donation as referred to in paragraph (1) do not have voting rights, are not counted in determining the quorum of the General Meeting of Shareholders, and are not entitled to receive dividend distributions.

Article 38
Shares owned by Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers resulting in cross-ownership do not have voting rights, are not counted in determining the quorum of the General Meeting of Shareholders, and are not entitled to receive dividend distributions.

CHAPTER V
BOARD OF DIRECTORS MEMBERS AND BOARD OF COMMISSIONERS MEMBERS

First Section
Requirements for Board of Directors Members and Board of Commissioners Members

Article 39
(1) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers that are Members of the Stock Exchange must have at least 2 (two) Board of Directors members.
(2) One of the Board of Directors members of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers must be designated as the President Director of the said Securities Company. (3) Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers must have at least 1 (one) Board of Commissioners member. (4) In the event that Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers are Issuers or Public Companies, the requirements for the number of Board of Directors members and Board of Commissioners members must meet the provisions of regulations governing Issuers or Public Companies.

Article 40
(1) Board of Directors members of Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers must hold individual licenses as Deputy Underwriters of Securities Issues or Deputy Broker-Dealers. (2) In the event that the Deputy Underwriter of Securities Issues and/or Deputy Broker-Dealer licenses held by Board of Directors members have expired and have not obtained approval for license extension from the Financial Services Authority, the said Board of Directors members cannot carry out their functions, duties, and authorities as Board of Directors members until the Board of Directors members obtain approval for license extension from the Financial Services Authority. (3) In the event that the individual license of Deputy Underwriter of Securities Issues or Deputy Broker-Dealer of Board of Directors members who are responsible for the business activities of Securities Companies as Broker-Dealers or Underwriters of Securities Issues is revoked, Securities Companies that conduct business activities as Underwriters of Securities Issues or Broker-Dealers must replace the Board of Directors members who are responsible for the said business activities within a maximum period of 3 (three) months. (4) Securities Companies that conduct business activities as Underwriters of Securities Issues must have at least 1 (one) Board of Directors member who holds a Deputy Underwriter of Securities Issue license as the person responsible for such activities. (5) Securities Companies that conduct business activities as Broker-Dealers must have at least 1 (one) Board of Directors member who holds a Deputy Underwriter of Securities Issue and/or Deputy Broker-Dealer license as the person responsible for such activities.

Article 41
(1) The term of office of Board of Directors and/or Board of Commissioners members of Securities Companies must end automatically if:
a. they are incapable of performing legal acts; b. they are declared bankrupt or become commissioners or directors who are declared guilty or partly guilty causing a company

declared bankrupt;
c. sentenced for committing a criminal offense that harms state finances and/or is related to the financial sector;
d. permanently incapacitated; e. deceased; f. declared not to meet integrity requirements by the Financial Services Authority; and/or g. license as a Deputy Underwriter or Deputy Securities Broker revoked by the Financial Services Authority. (2) In the event that the license of a Deputy Underwriter and/or Deputy Securities Broker held by a Board of Directors member is temporarily suspended, the concerned Board of Directors member cannot perform the functions, duties, and authorities as a Board of Directors member until the license of the Deputy Underwriter and/or Deputy Securities Broker of the Board of Directors member becomes valid again. (3) In the event of a vacancy in all Board of Directors members of a Securities Company due to reasons as referred to in paragraph (1), then:
a. a Securities Company engaging in business activities as an Underwriter or Securities Broker is limited in its business activities; and b. the management of the Securities Company is carried out by the Board of Commissioners until new Board of Directors members are appointed by the General Meeting of Shareholders.

Article 42
(1) Board of Directors members of a Securities Company engaging in business activities as an Underwriter or Securities Broker are prohibited from working in other companies or institutions in any position except as members of the Board of Commissioners of a Stock Exchange, Clearing and Guarantee Institution, or Custody and Settlement Institution.

(2) Board of Commissioners members of a Securities Company engaging in business activities as an Underwriter or Securities Broker are prohibited from working in any position in other Securities Companies engaging in business activities as an Underwriter, Securities Broker, or Investment Manager.

Article 43
Board of Directors members of a Securities Company engaging in business activities as an Underwriter or Securities Broker must reside in Indonesia.

Article 44
(1) Board of Directors and Board of Commissioners members of a Securities Company engaging in business activities as an Underwriter or Securities Broker must participate in continuing education programs at least 1 (one) time within a period of 2 (two) years. (2) Board of Directors and Board of Commissioners members must report their participation in continuing education as referred to in paragraph (1) to the Financial Services Authority, accompanied by supporting documents, no later than 30 (thirty) days from the date the certificate or diploma of participation in continuing education is received by the Board of Directors and Board of Commissioners members. (3) The obligation as referred to in paragraph (1) and the fulfillment of the requirement to attach documents proving participation in continuing education to enhance the continuous competence of Board of Directors and Board of Commissioners members shall become effective once an association or other party has been recognized by the Financial Services Authority to conduct specialized education in the Capital Market sector.

Second Section
Changes to Board of Directors and Board of Commissioners Members

Article 45
(1) Any change to Board of Directors or Board of Commissioners members of a Securities Company engaging in business activities as an Underwriter or Securities Broker must first obtain approval from the Financial Services Authority. (2) The request for approval from the Financial Services Authority as referred to in paragraph (1) is submitted by the shareholders and/or Controlling Shareholders of the Securities Company engaging in business activities as an Underwriter or Securities Broker to the Financial Services Authority through the said Securities Company. (3) The request as referred to in paragraph (2) must be accompanied by the name of the prospective Board of Directors members and relevant documents regarding the individual as referred to in Article 15 paragraph (1) letters e, o, p, q, r, s, t, aa, ff, and paragraph (2), as well as information regarding the duties and functions that will be their responsibility. (4) The submission of the request for changes to Board of Commissioners members as referred to in paragraph (2) must be accompanied by the name of the prospective Board of Commissioners members and relevant documents regarding the individual as referred to in Article 15 paragraph (1) letters e, o, q, r, s, aa, ff, and paragraph (2), as well as information regarding the duties and functions that will be their responsibility. (5) The Financial Services Authority may request additional data and/or information to complete the request for changes to Board of Directors or Board of Commissioners members as referred to in paragraph (2).

Article 46
(1) In issuing an approval or rejection letter regarding the request as referred to in Article 45 paragraph (2), the Financial Services Authority conducts review and investigation to assess whether prospective Board of Directors members, prospective Board of Commissioners members, current Board of Directors members, and/or current Board of Commissioners members of a Securities Company engaging in business activities as an Underwriter and/or Securities Broker meet or do not meet the requirements as Board of Directors or Board of Commissioners members of the said Securities Company as regulated in Article 14 of this Financial Services Authority Regulation. (2) In the event that the request as referred to in Article 45 paragraph (2) upon receipt does not meet the document completeness requirements as referred to in Article 45 paragraph (3) or paragraph (4), no later than 45 (forty-five) days from the date the request is received, the Financial Services Authority issues a notification letter to the applicant stating that the request does not yet meet the document completeness requirements. (3) An applicant who does not complete the required document deficiencies within 45 (forty-five) days from the date of the notification letter as referred to in paragraph (2) is deemed to have canceled the approval request for changes to Board of Directors or Board of Commissioners members as referred to in Article 45 paragraph (2). (4) In the event that the approval request for changes to Board of Directors or Board of Commissioners members as referred to in Article 45 paragraph (2) does not meet integrity, financial reputation, and/or competency and expertise requirements in the Capital Market sector as referred to in Article 14, no later than 45 (forty-five) days from the date the complete request is received, the Financial Services Authority issues a notification letter to the applicant stating that the request is rejected because it does not meet the requirements. (5) The Financial Services Authority grants approval for the request regarding changes to Board of Directors or Board of Commissioners members as referred to in Article 45 paragraph (2) after the prospective Board of Directors members, prospective Board of Commissioners members, current Board of Directors members, and/or current Board of Commissioners members meet the requirements as referred to in Article 14, no later than 45 (forty-five) days from the date the complete request for approval for changes to Board of Directors or Board of Commissioners members is received.

CHAPTER VI
ASSESSMENT OF COMPETENCE AND PROPERNESS
First Section
Assessment of Competence and Properness of Shareholders and Controlling Shareholders

Article 47
(1) The Financial Services Authority may conduct an assessment of competence and properness regarding prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders of a Securities Company engaging in business activities as an Underwriter or Securities Broker to assess the fulfillment of requirements as regulated in Article 13 paragraph (1). (2) The Financial Services Authority conducts an assessment of competence and properness regarding prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders of a Securities Company engaging in business activities as an Underwriter or Securities Broker as referred to in paragraph (1), at:
a. the time of the business license application for a Securities Company or changes to shareholders and/or Controlling Shareholders of a Securities Company; or b. any time as part of a re-assessment regarding the fulfillment of requirements for shareholders or Controlling Shareholders of a Securities Company. (3) The assessment of competence and properness as referred to in paragraph (2) is conducted to assess the fulfillment by prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders of integrity and financial feasibility requirements as referred to in Article 13. (4) The assessment of competence and properness regarding prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders as referred to in paragraph (1) includes:
a. administrative investigation; and/or b. further clarification through face-to-face meetings.

Article 48
In the event that prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders of a Securities Company engaging in business activities as an Underwriter or Securities Broker are legal entities, the assessment of competence and properness of the prospective shareholders, prospective Controlling Shareholders, shareholders, or Controlling Shareholders in the form of a legal entity is conducted regarding the legal entity itself and its management, as well as parties who, based on the Financial Services Authority's investigation, are shareholders and/or Controlling Shareholders, directly or indirectly, of the said legal entity.

Second Section
Assessment of Competence and Properness of Board of Directors and Board of Commissioners Members

Article 49
(1) The Financial Services Authority conducts an assessment of competence and properness regarding prospective Board of Directors members, prospective Board of Commissioners members, current Board of Directors members, or current Board of Commissioners members of a Securities Company engaging in business activities as an Underwriter or Securities Broker to assess the fulfillment of established requirements as regulated in Article 14 paragraph (1). (2) The assessment of competence and properness by the Financial Services Authority as referred to in paragraph (1) is conducted at:
a. the time of submitting the business license application for a Securities Company or changes to Board of Directors or Board of Commissioners members of a Securities Company; or b. any time as part of a re-assessment regarding the fulfillment of requirements for Board of Directors or Board of Commissioners members of a Securities Company. (3) The assessment of competence and properness regarding prospective Board of Directors members, prospective Board of Commissioners members, current Board of Directors members, or current Board of Commissioners members as referred to in paragraph (1) includes:
a. administrative investigation; and/or b. further clarification through face-to-face meetings.

Third Section
Results of Competence and Properness Assessment

Article 50
(1) The results of the competence and properness assessment conducted by the Financial Services Authority regarding prospective shareholders, prospective Controlling Shareholders, shareholders, and Controlling Shareholders, and prospective Board of Directors members, prospective Board of Commissioners members, current Board of Directors members, and current Board of Commissioners members, whether meeting or not meeting the requirements as determined in Article 13 paragraph (1) and Article 14 paragraph (1), are communicated by the Financial Services Authority to the Securities Company with the following provisions:
a. the results of the competence and properness assessment regarding shareholders, Controlling Shareholders, Board of Directors members, and Board of Commissioners members in the business license application for a Securities Company become part of the granting or rejection of the business license application for a Securities Company by the Financial Services Authority; b. the results of the competence and properness assessment regarding prospective shareholders or prospective Controlling Shareholders in the request for changes to shareholders or Controlling Shareholders, and prospective Board of Directors members or prospective Board of Commissioners members in the request for changes to Board of Directors and/or Board of Commissioners members, become part of the Financial Services Authority's response to the request for approval for changes to shareholders and Controlling Shareholders, and Board of Directors or Board of Commissioners members as referred to in Article 33 paragraph (5) and Article 46 paragraph (5); and
c. the results of the competence and properness assessment regarding:

shareholders and Controlling Shareholders conducted at any time by the Financial Services Authority as part of a re-assessment regarding the fulfillment of requirements for shareholders and Controlling Shareholders as referred to in Article 47 paragraph (2) letter b; or
Board of Directors members and Board of Commissioners members conducted at any time by the Financial Services Authority as part of a re-assessment regarding the fulfillment of requirements for Board of Directors or Board of Commissioners members as referred to in Article 49 paragraph (2) letter b,
are communicated by the Financial Services Authority to the Securities Company engaging in business activities as an Underwriter and/or Securities Broker if shareholders, Controlling Shareholders, Board of Directors members, or Board of Commissioners members no longer meet the requirements for shareholders, Controlling Shareholders, Board of Directors members, or Board of Commissioners members as referred to in Article 13 paragraph (1) or Article 14 paragraph (1). (2) The General Meeting of Shareholders of a Securities Company engaging in business activities as an Underwriter or Securities Broker may only appoint prospective Board of Directors members or prospective Board of Commissioners members who have obtained approval from the Financial Services Authority to become Board of Directors or Board of Commissioners members of the said Securities Company, no later than 3 (three) months from the date of the Financial Services Authority's approval as referred to in Article 46 paragraph (5). (3) In the event that the General Meeting of Shareholders has not executed the appointment of prospective Board of Directors members or prospective Board of Commissioners members to become Board of Directors or Board of Commissioners members of the said Securities Company as referred to in paragraph (2), the Financial Services Authority's approval as referred to in Article 46 paragraph (5) becomes invalid. (4) The Financial Services Authority's approval regarding the request for changes to shareholders or Controlling Shareholders as referred to in Article 33 paragraph (5) automatically becomes void within a period of 3 (three) months from the date of such approval if there are no changes to shareholders or Controlling Shareholders as requested by the Securities Company. (5) A Securities Company must submit a report on changes to shareholders or Controlling Shareholders to the Financial Services Authority with the following provisions:
a. no later than 7 (seven) working days after the occurrence of changes to shareholders or Controlling Shareholders, accompanied by the latest list of shareholders; or b. no later than 7 (seven) working days from the date the Financial Services Authority's approval request becomes void as referred to in paragraph (4), accompanied by the latest list of shareholders. (6) A Securities Company must submit to the Financial Services Authority the results of the General Meeting of Shareholders regarding the appointment or cancellation of the appointment of Board of Directors and/or Board of Commissioners members as referred to in paragraph (2), no later than 7 (seven) working days after the date of the General Meeting of Shareholders, accompanied by a summary of the minutes or the minutes of the General Meeting of Shareholders.

Article 51
(1) Prospective shareholders or prospective Controlling Shareholders of a Securities Company are prohibited from taking legal actions as shareholders or Controlling Shareholders of the Securities Company.
(2) Parties who have become shareholders or Controlling Shareholders but subsequently do not yet or no longer meet the requirements as shareholders or Controlling Shareholders as referred to in Article 13 paragraph (1), are subject to the following provisions:
a. prohibited from taking actions as shareholders or Controlling Shareholders; b. unable to exercise rights as shareholders, and such shares are not counted in the quorum of the General Meeting of Shareholders as referred to in relevant regulations regarding limited liability companies; and
c. the concerned party is not entitled to receive dividend payments.

Article 52
(1) Prospective Board of Directors members or prospective Board of Commissioners members of a Securities Company are prohibited from taking legal actions as Board of Directors or Board of Commissioners members of the Securities Company. (2) Individuals who have been appointed by the General Meeting of Shareholders as Board of Directors or Board of Commissioners members of a Securities Company but have not yet been declared to meet the requirements as referred to in Article 14 paragraph (1) in the form of Financial Services Authority approval, or are declared not to meet the requirements as referred to in Article 14 paragraph (1) by the Financial Services Authority, are prohibited from taking legal actions as Board of Directors or Board of Commissioners members of the Securities Company. (3) Individuals who have been appointed by the General Meeting of Shareholders as Board of Directors or Board of Commissioners members of a Securities Company and have been declared to meet the requirements for Board of Directors or Board of Commissioners members but are subsequently declared by the Financial Services Authority not to meet the requirements for Board of Directors or Board of Commissioners members as referred to in Article 14 paragraph (1), are prohibited from taking legal actions as Board of Directors or Board of Commissioners members of the Securities Company.

Article 53
The prohibition provisions as referred to in Article 52 also apply to any Parties designated by the Financial Services Authority as not meeting integrity requirements as shareholders or Controlling Shareholders, where the concerned party has become a shareholder, Controlling Shareholder, Board of Directors member, or Board of Commissioners member of the relevant Securities Company or other Securities Companies.

Article 54
Prospective shareholders or prospective Controlling Shareholders, and prospective Board of Directors members or prospective Board of Commissioners members who do not meet requirements other than integrity requirements as referred to in Article 13 paragraph (2) or Article 14 paragraph (2) may submit a new request no earlier than 6 (six) months from the date of the Financial Services Authority's notification letter stating that the prospective shareholders or prospective Controlling Shareholders, and prospective Board of Directors members or prospective Board of Commissioners members do not meet the requirements.

CHAPTER VII
CONTINUING OBLIGATIONS

Article 55
(1) Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must report to the Financial Services Authority any changes related to:
a. company identity, at least including the name, headquarters and operational office addresses, or logo; b. the company's articles of association;
c. the company's Tax Identification Number (NPWP);
d. Foreign Worker Employment Permit (IMTA); e. joint venture business agreements for Securities Companies engaging in business activities as Underwriters and/or Securities Brokers that are joint ventures; f. information regarding changes to headquarters and operational office addresses and the internal control system of Securities Companies engaging in business activities as Underwriters and/or Securities Brokers; g. organizational structure and employee job descriptions; h. acceptance and/or resignation of Deputy Securities Companies;
i. acceptance and/or resignation of unit leaders, or officials at a level below the Board of Directors who perform compliance functions; and
j. company procedures and standard operating procedures.
(2) The obligation as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 7 (seven) working days after such changes occur.

Article 56
(1) In the event of name changes as referred to in Article 55 paragraph (1) letter a, Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must ensure that approval for changes to the articles of association related to the company name change has been granted by the competent authority in accordance with relevant regulations. (2) The implementation of name changes as referred to in Article 55 paragraph (1) letter a must be announced in:
a. a newspaper with national circulation; and b. the Securities Company's website (if any); no later than 7 (seven) working days from the date of approval for changes to the articles of association related to the use of the new name by the competent authority.

(3) Reporting of name changes as referred to in Article 55 paragraph (1) letter a must be accompanied by:
a. reasons for the name change; b. the amended articles of association approved by the competent authority;
c. the Tax Identification Number (NPWP) of the Securities Company engaging in business activities as an Underwriter and/or Securities Broker with the new name; and
d. proof of announcement as referred to in paragraph (2).

Article 57
(1) In the event that the term of office of Board of Directors and/or Board of Commissioners members ends automatically as referred to in Article 41 paragraph (1), Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must report to the Financial Services Authority within a period of no later than 2 (two) working days after such event is known. (2) In the event that Board of Directors and/or Board of Commissioners members resign or are dismissed, Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must report to the Financial Services Authority within a period of no later than 2 (two) working days after such event is known. (3) The Financial Services Authority may postpone the resignation or dismissal of Board of Directors and/or Board of Commissioners members of Securities Companies engaging in business activities as Underwriters and/or Securities Brokers.

Article 58
(1) Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must become members of an association that accommodates Securities Companies engaging in business activities as Underwriters and/or Securities Brokers that have been recognized by the Financial Services Authority. (2) Associations as referred to in paragraph (1) have at least the following duties:
a. drafting member codes of ethics to maintain healthy market competition; b. conducting continuing education for Board of Directors and Board of Commissioners members; and
c. conducting other education and/or training.
(3) Associations as referred to in paragraph (1) must report the implementation of duties as referred to in paragraph (2) to the Financial Services Authority every 6 (six) months.
(4) Further provisions regarding associations that accommodate Securities Companies engaging in business activities as Underwriters and/or Securities Brokers are regulated in Financial Services Authority Circular Letters.

Article 59
(1) In the event that employees in work units, Board of Directors members, or officials at a level below the Board of Directors who perform compliance functions of a Securities Company are subject to internal sanctions, Securities Companies engaging in business activities as Underwriters and/or Securities Brokers must notify the Financial Services Authority within a period of no later than 2 (two) working days after the imposition of sanctions. (2) Employees in work units, Board of Directors members, or officials at a level below the Board of Directors who perform compliance functions of a Securities Company cannot be dismissed for reporting violations of regulations in the financial services sector...

financial activities conducted by Securities Companies engaging in business activities as Underwriters of Securities and/or Broker-Dealers to the Financial Services Authority.

Article 60
In the event that the submission of obligations and/or reports based on this Financial Services Authority Regulation falls on a holiday, such obligations must be submitted on the next working day.

CHAPTER VIII
REVOCATION OF BUSINESS LICENSES AND CANCELLATION OF OTHER ACTIVITY APPROVALS

First Section
Revocation of Business Licenses

Article 61
The business license of a Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer may be revoked by the Financial Services Authority based on the following grounds:
a. The business license of the Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer is returned to the Financial Services Authority; b. violation of legislation in the Capital Market sector;
c. decision of a court;
d. the Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer is dissolved; e. the office of the Securities Company cannot be found; and/or f. the Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer has not conducted its main activities as referred to in Article 3 paragraph (4) letter a and paragraph (5) letter a for a period of 2 (two) consecutive years.

Article 62
A Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer that intends to return its business license to the Financial Services Authority as referred to in Article 61 letter a must:
a. announce the plan to return the business license along with the mechanism for settling all rights and obligations of the Underwriter of Securities and/or Broker-Dealer to customers in at least 1 (one) daily newspaper with national circulation in the Indonesian language and on the Securities Company's website (if any); b. obtain approval from the General Meeting of Shareholders;
c. settle the rights and obligations of the Underwriter of Securities and/or Broker-Dealer to customers; and
d. settle all financial obligations of the Underwriter of Securities and/or Broker-Dealer to the Financial Services Authority.

Article 63
The return of the business license as referred to in Article 61 letter a must be submitted in writing by the Securities Company engaging in business activities as an Underwriter of Securities and/or a Broker-Dealer to the Financial Services Authority accompanied by documents, data, and information as follows:
a. information regarding the reasons for returning the business license; b. the decision of the General Meeting of Shareholders approving the return of the business license;
c. the Decision Letter regarding the Granting of the Business License for the Securities Company from the Financial Services Authority being returned;
d. proof of announcement regarding the plan to return the business license in at least 1 (one) daily newspaper with national circulation in the Indonesian language and the Securities Company's website (if any) which must at least contain the mechanism for settling all rights and obligations of the Underwriter of Securities and/or Broker-Dealer to customers; and e. a report on data regarding the settlement of rights and obligations of the Underwriter of Securities and/or Broker-Dealer to customers along with supporting documents.

Article 64
If a Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer is an Equity Security Issuer or a Public Company, the implementation of the return of its business license must take into account Financial Services Authority Regulations related to Issuers and Public Companies.

Second Section
Cancellation of Other Activity Approvals

Article 65
The approval of other activities of a Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer may be cancelled by the Financial Services Authority based on the following grounds:
a. The approval of other activities of the Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer is returned to the Financial Services Authority; b. violation of legislation in the Capital Market sector;
c. decision of a court;
d. the Securities Company engaging in business activities as an Underwriter of Securities and/or a Broker-Dealer as referred to in Article 3 paragraph (4) letter b and paragraph (5) letter b has no longer conducted the other activities referred to for a period of 2 (two) consecutive years; or e. the business license of the Securities Company is revoked by the Financial Services Authority based on grounds as referred to in Article 61.

Article 66
A Securities Company engaging in business activities as an Underwriter of Securities and/or a Broker-Dealer that intends to return the approval of other activities as referred to in Article 65 letter a must:
a. announce the plan to return the approval of other activities along with the mechanism for settling all rights and obligations of the Underwriter of Securities and/or Broker-Dealer to customers in at least 1 (one) daily newspaper with national circulation in the Indonesian language; or b. announce the plan to return the approval of other activities on the Securities Company's website (if any).

Article 67
The return of the approval of other activities as referred to in Article 65 letter a must be submitted in writing by the Securities Company engaging in business activities as an Underwriter of Securities or a Broker-Dealer to the Financial Services Authority accompanied by documents, data, and information as follows:
a. information regarding the reasons for returning the approval of other activities; b. the approval letter from the Financial Services Authority to conduct other activities; and
c. proof of announcement regarding the plan to return the approval of other activities in at least 1 (one) daily newspaper with national circulation in the Indonesian language or the Securities Company's website (if any).

Article 68
A Securities Company that has more than 1 (one) business license and intends to return one of its business licenses may submit an application for the return of one of those business licenses.

Article 69
(1) A Securities Company engaging in business as a Broker-Dealer that Administers Customer Securities Accounts which is in the process of applying for the return of its business license to the Financial Services Authority may request the Settlement and Custody Institution to freeze the sub-accounts of the Securities Company's customers, with a copy to the Stock Exchange. (2) A Securities Company as referred to in paragraph (1) that requests the Settlement and Custody Institution to freeze customer securities sub-accounts must notify all customers to transfer Securities from their securities accounts at said Securities Company to their securities accounts at another Custodian. (3) In the event that customers do not provide written orders to transfer Securities from their securities accounts at the Securities Company as referred to in paragraph (1) to their securities accounts at a Custodian, the Financial Services Authority is authorized to order the Settlement and Custody Institution to transfer Securities in the customer's securities sub-accounts to a holding account at the Settlement and Custody Institution for the purpose of settling the customer's Securities.

Article 70
(1) A Securities Company that has a license to conduct business as an Underwriter of Securities which also serves as a license for a Broker-Dealer may return the business license as an Underwriter of Securities without returning the business license as a Broker-Dealer attached to the Underwriter of Securities business license. (2) The business license as a Broker-Dealer attached to the Underwriter of Securities business license may still be held by the Securities Company as long as the Securities Company still meets the requirements as a Broker-Dealer as regulated in this Financial Services Authority Regulation. (3) The Financial Services Authority will grant a business license as a Broker-Dealer to the Securities Company as referred to in paragraph (2) to replace the business license as an Underwriter of Securities which also serves as a business license as a Broker-Dealer as referred to in paragraph (1).

Article 71
If a Securities Company has its business license revoked and as a result said Securities Company no longer holds a business license as an Underwriter of Securities and/or a Broker-Dealer, said Securities Company is prohibited from using its company name and logo for any purpose and activities, except for activities related to the dissolution of said corporation.

Article 72
(1) In the event that the Financial Services Authority has provided an electronic system for applications for Securities Company licenses as Underwriters of Securities and/or Broker-Dealers, applications for said Securities Company licenses may be submitted through said electronic system. (2) In the event that the Financial Services Authority has provided an electronic system for applications for approval of changes in paid-up capital, changes in shareholders and/or Controlling Shareholders, changes in Board of Directors members or members of the Board of Commissioners, applications for approval of said changes may be submitted through said electronic system.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 73
(1) Securities Companies engaging in business activities as Underwriters of Securities or Broker-Dealers that obtained business licenses from the Financial Services Authority before this Financial Services Authority Regulation takes effect must:
a. formulate and implement written policies and procedures related to research results so that research conducted by the Securities Company's analysts to support investment decision-making, provide information, advice, and recommendations to customers, and/or disseminate to the public, is independent as referred to in Article 11; and b. submit the written policies and procedures as referred to in letter a to the Financial Services Authority, no later than 6 (six) months since the effective date of this Financial Services Authority Regulation. (2) Securities Companies engaging in business activities as Underwriters of Securities or Broker-Dealers must adjust their identities as referred to in Article 7 no later than 1 (one) year since the effective date of this Financial Services Authority Regulation. (3) Securities Companies engaging in business activities as Underwriters of Securities or Broker-Dealers that have already conducted other activities before this Financial Services Authority Regulation takes effect must adjust to the provisions regarding other activities as referred to in Article 19, Article 20, and Article 21 within 6 (six) months since the effective date of this Financial Services Authority Regulation. (4) The prohibition on the source of funds used in the ownership of Underwriters of Securities or Broker-Dealers originating from loans or financing facilities in any form from other parties as regulated in Article 27 paragraph (1) letter a shall apply for 1 (one) year since the effective date of this Financial Services Authority Regulation. (5) The provisions on continuous education as referred to in Article 44 shall apply in accordance with Financial Services Authority Regulations or Circular Letters related to Continuous Education.

CHAPTER X
SANCTION PROVISIONS

Article 74
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority is authorized to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letter b, letter c, letter d, letter e, letter f, or letter g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letter c, letter d, letter e, letter f, or letter g.

Article 75
In addition to administrative sanctions as referred to in Article 74 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 76
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 74 paragraph (1) and certain actions as referred to in Article 75 to the public.

CHAPTER XI
CLOSING PROVISIONS

Article 77
At the time this Financial Services Authority Regulation takes effect, the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number KEP-334/BL/2007 dated 28 September 2007 regarding Licensing of Securities Companies together with Regulation Number V.A.1 which is its appendix is revoked and declared invalid.

Article 78
This Financial Services Authority Regulation takes effect on the date of promulgation.

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on 7 April 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on 18 April 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 66 Copy in accordance with the original Director of Law 1 Ministry of Law signed Yuliana

EXPLANATION
OF
NUMBER 20 /POJK.04/2016
REGARDING
LICENSING OF SECURITIES COMPANIES
ENGAGING IN BUSINESS ACTIVITIES AS UNDERWRITERS OF SECURITIES AND BROKER-DEALERS

I. GENERAL
Securities Companies, both those holding business licenses as Underwriters of Securities or Broker-Dealers, which deal directly with investors, are one of the pillars in the development of the Capital Market in their activities related to primary and secondary markets. Based on Law Number 8 of 1995 concerning the Capital Market, Underwriters of Securities may conduct underwriting of Securities activities and other activities related to corporate actions, namely providing advice in the issuance of Securities, mergers, consolidations, takeovers, restructuring, and other activities in accordance with provisions determined by the Financial Services Authority.

Meanwhile, Broker-Dealers may conduct Securities transactions either for the benefit of customers or for the benefit of the company itself, as well as other activities in accordance with provisions determined by the Financial Services Authority.

The Financial Services Authority as the regulator in the Capital Market has issued provisions related to the activities of Underwriters of Securities or Broker-Dealers, including that the party that can conduct business activities as an Underwriter of Securities or a Broker-Dealer is a Limited Liability Company that has obtained a business license from the Financial Services Authority.

In conducting its activities, Underwriters of Securities or Broker-Dealers are not free from risks that can cause losses to Underwriters of Securities or Broker-Dealers, investors, and also economic impacts on the Capital Market as a whole. This is one of the reasons why good licensing regulations for Securities Companies are needed, in line with requirements. Therefore, Underwriters of Securities or Broker-Dealers applying for licenses to conduct business in the Capital Market must meet several provisions or criteria established by the Financial Services Authority. Regulation Number V.A.1 regarding Licensing of Securities Companies contains information on requirements and registration procedures, as well as ongoing obligations and revocation of Securities Company business licenses, provisions on requirements for controllers and shareholders as well as members of the Board of Directors and members of the Board of Commissioners of Securities Companies applying for business licenses.

In its development, the provisions in said regulation are not entirely suitable for the needs of all types of Underwriter of Securities or Broker-Dealer businesses. With the emergence of special licensing regulations for Investment Managers, special licensing regulations for Underwriters of Securities and Broker-Dealers are needed. Securities Company licensing that aligns with activities conducted and regulates other activities is expected to form effective and efficient Securities Companies. Provisions regarding shareholders, such as criteria for Controlling Shareholders, requirements for foreign shareholders, and more representative document completeness regarding financial capability, are expected to serve as the legal basis for licensing Underwriters of Securities or Broker-Dealers. Addition of special matters such as the minimum number of Board of Directors members, continuous education, prohibition on acting before competency and propriety assessments, protection of the compliance function, identity including the name of Underwriters of Securities or Broker-Dealers, and the elimination of IKTA obligations are also points in licensing aimed at improving the quality of Underwriters of Securities or Broker-Dealers.

II. ARTICLE BY ARTICLE

Article 1
Clearly sufficient.

Article 2
Clearly sufficient.

Article 3
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Letter a
Clearly sufficient.
Letter b
Types of other activities to be determined by the Financial Services Authority include among others underwriting activities for Securities that are not through a Public Offering.
Types of other activities approved by the Financial Services Authority are activities submitted individually by Underwriters of Securities.
Paragraph (5)
Letter a
Clearly sufficient.
Letter b
Types of other activities to be determined by the Financial Services Authority include among others Securities Transaction activities for Securities that are not through a Public Offering.
Securities that are not through a Public Offering in such activities are new Securities traded in such activities for which no authority currently regulates and supervises (for example: Securities Transactions for Medium Term Notes or Promissory Notes issued by Indonesian legal entities). Criteria for other activities approved by the Financial Services Authority are activities submitted individually by Broker-Dealers.

Article 4
Clearly sufficient.

Article 5
Clearly sufficient.

Article 6
Clearly sufficient.

Article 7
Clearly sufficient.

Article 8
Clearly sufficient.

Article 9
At the time this Financial Services Authority Regulation takes effect, the legislation in the Capital Market sector regulating Adjusted Net Working Capital is Regulation Number V.D.5, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-566/BL/2011 dated 31 October 2011 regarding Maintenance and Reporting of Adjusted Net Working Capital.

Article 10
Paragraph (1)
Letter a
At the time this Financial Services Authority Regulation takes effect, the legislation in the Capital Market sector regulating the functions required to be held by Securities Companies engaging in business as Broker-Dealers is Regulation Number V.D.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-548/BL/2010 dated 28 December 2010 regarding Internal Control of Securities Companies engaging in business activities as Broker-Dealers. Letter b Examples of legislation in the Capital Market sector related to the implementation of business activities as a Broker-Dealer in the provisions of this letter where Broker-Dealers are required to have procedures and standards of operation:

Regulation Number V.D.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number Kep-548/BL/2010 dated 28 December 2010 regarding Internal Control of Securities Companies engaging in business activities as Broker-Dealers; and
Financial Services Authority Regulation Number 22/POJK.04/2014 regarding Customer Due Diligence Principles for Financial Service Institutions in the Capital Market Sector.
Number 1
Clearly sufficient.
Number 2
Clearly sufficient.
Number 3
Clearly sufficient.
Number 4
The flowchart referred to is commonly called a flowchart.
The procedural stages implemented are commonly called a manual.
Number 5
The time limit for implementation referred to is commonly called a service level agreement.
Number 6
Clearly sufficient.

Number 7
The result of the implemented procedures is commonly called an output.
Letter c
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.

Article 11
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Analyst work based on Financial Services Authority Regulation Number 24/POJK.04/2014 regarding Guidelines for the Implementation of Investment Manager Functions and Capital Market sector legislation regarding Internal Control of Securities Companies Engaging in Business Activities as Broker-Dealers is conducted under the research function. Example policies regarding the reporting flow of analysts from Securities Companies engaging in business activities as Underwriters of Securities, Broker-Dealers, and/or Investment Managers, whether the Securities Company's research function is conducted by one work unit under one of the business activities of the Securities Company or not under any of the business activities of the Securities Company but for the needs of all business activities of the Securities Company mentioned above, then the analysis results in the research function produced are not reported to or require approval from other work units existing in the Securities Company that requests, needs, or bases its work on the analysis results in said research function or uses the analysis results in said research function to conduct work on behalf of the Securities Company.

Furthermore, compensation received by said Securities Company's analysts must not be linked to the performance of other work units that request, need, or base their work on said analysis results or use said analysis results to conduct work on behalf of the Securities Company, or the amount of remuneration received by the Securities Company based on the analysis results. Compensation as referred to in this paragraph includes but is not limited to salaries received by analysts from the Securities Company.

Article 12
Clearly sufficient.

Article 13
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
If shareholders and Controlling Shareholders are Foreign Citizens, documents showing that they have never committed disgraceful acts are proven, among others, by a Police Clearance from their country and the country where they reside if they do not reside in their country. Letter c The term "criminal offenses in the financial sector" refers to criminal offenses in the banking sector, Capital Market sector, and non-bank financial industry. Letter d The term "special criminal offenses" refers to criminal offenses other than criminal offenses regulated in the Criminal Code with a prison sentence threat of 1 (one)

one year or more, including but not limited to corruption, narcotics/psychotropics, smuggling, customs, taxation, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of currency, in the field of taxation, in the field of forestry, in the field of environment, in the field of marine and fisheries. Letter e The term "criminal offense" refers to criminal offenses listed in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more. Letter f Clear enough. Letter g Clear enough. Letter h Clear enough. Paragraph (3) Letter a Clear enough. Letter b Clear enough. Letter c The term "non-performing loans and/or financing" is defined as:

non-performing loans and/or financing listed
in the Debtor Information System (SID); and/or
non-performing loans and/or financing not yet
reported by the bank in the Debtor Information System (SID) but based on research conducted by Bank Indonesia, the loans and/or financing meet the criteria classified as non-performing according to Bank Indonesia regulations. Paragraph (4) Clear enough.

Paragraph (5)
Clear enough.
Article 14
Paragraph (1)
This provision applies as long as a company holds a business license for a Securities Company as an Underwriter of Securities Issues and/or a Securities Trading Intermediary.
Paragraph (2)
Letter a
Clear enough.
Letter b
If a member of the Board of Directors or a member of the Board of Commissioners is a Foreign National, documents showing that the person concerned has never committed disgraceful acts are proven, among other things, by a Police Clearance from their country and the country where the person concerned resides if the person concerned does not reside in their country. Letter c The term "criminal offenses in the financial sector" refers to criminal offenses in the banking sector, the Capital Market sector, and the non-bank financial industry. Letter d The term "special criminal offenses" refers to criminal offenses other than criminal offenses regulated in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, narcotics/psychotropics, smuggling, customs, taxation, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of currency, in the field of taxation, in the field of forestry, in the field of environment, in the field of marine and fisheries. Letter e The term "criminal offense" refers to criminal offenses listed in the Criminal Code

Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more.
Letter f
Clear enough.
Letter g
Clear enough.
Letter h
Clear enough.
Paragraph (3)
Letter a
Clear enough.
Letter b
The term "non-performing loans and/or financing" is defined as:

non-performing loans and/or financing listed
in the Debtor Information System (SID); and/or
non-performing loans and/or financing not yet
reported by the bank in the Debtor Information System (SID) but based on research conducted by Bank Indonesia, the loans and/or financing meet the criteria classified as non-performing according to Bank Indonesia regulations. Letter c Clear enough. Paragraph (4) Letter a Number 1 Proof of having knowledge in the Capital Market field by holding a license as a representative of a Securities Company. Number 2 Clear enough. Letter b Clear enough. Paragraph (5) Clear enough.

Article 15
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Number 1
Clear enough.
Number 2
Clear enough.
Number 3
This provision does not apply to commissioners.
Number 4
Clear enough.
Number 5
Clear enough.
Number 6
Clear enough.
Number 7
Clear enough.
Letter f
Number 1
Letter a)
Clear enough.
Letter b)
Clear enough.
Letter c)
Clear enough.
Letter d)
Clear enough.

Letter e)
The financial capacity of shareholders can be proven by an Annual Tax Return (SPT) for the last 2 (two) years (for individual Indonesian Citizens), bank accounts, proof of asset ownership, or other assets.
Share ownership in other Limited Liability Companies is not included as proof of financial capacity.
Letter f)
The money laundering referred to is commonly known as money laundering.
Terrorism financing referred to is commonly known as terrorism financing.
Letter g)
Clear enough.
Number 2
Letter a)
Clear enough.
Letter b)
Clear enough.
Letter c)
Clear enough.
Letter d)
Clear enough.
Letter e)
Clear enough.
Letter f)
Clear enough.
Letter g)
Clear enough.
Letter h)
Money laundering referred to is commonly known as money laundering.
Terrorism financing referred to is commonly known as terrorism financing.

Letter i)
Clear enough.
Letter j)
Clear enough.
Letter g
Number 1
The term "shareholders up to the actual beneficial owner" is commonly known as ultimate beneficial owner.
Number 2
Clear enough.
Number 3
The term "related company" is commonly known as sister company.
Number 4
Clear enough.
Letter h
Clear enough.
Letter i
Clear enough.
Letter j
Clear enough.
Letter k
Clear enough.
Letter l
Clear enough.
Letter m
At the time of the enforcement of this Financial Services Authority Regulation, the legislation in the Capital Market sector regulating Adjusted Net Working Capital is Regulation Number V.D.5, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-566/BL/2011 dated October 31, 2011 concerning the Maintenance and Reporting of Adjusted Net Working Capital.

Letter n
Controlling Shareholders in this provision refer to individual persons or ultimate shareholders.
Number 1
Clear enough.
Number 2
If the shareholder and the Controlling Shareholder are Foreign Nationals, documents showing that the person concerned has never committed disgraceful acts are proven, among other things, by a Police Clearance from their country and the country where the person concerned resides if the person concerned does not reside in their country. Number 3 The term "criminal offenses in the financial sector" refers to criminal offenses in the banking sector, the Capital Market sector, and the non-bank financial industry. Number 4 The term "special criminal offenses" refers to criminal offenses other than criminal offenses regulated in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, narcotics/psychotropics, smuggling, customs, taxation, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of currency, in the field of taxation, in the field of forestry, in the field of environment, in the field of marine and fisheries. Number 5 The term "criminal offense" refers to criminal offenses listed in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more. Number 6 Clear enough. Number 7 Clear enough.

Number 8
Clear enough.
Letter o
Number 1
Clear enough.
Number 2
If a member of the Board of Directors or a member of the Board of Commissioners is a Foreign National, documents showing that the person concerned has never committed disgraceful acts are proven, among other things, by a Police Clearance from their country and the country where the person concerned resides if the person concerned does not reside in their country. Number 3 The term "criminal offenses in the financial sector" refers to criminal offenses in the banking sector, the Capital Market sector, and the non-bank financial industry. Number 4 The term "special criminal offenses" refers to criminal offenses other than criminal offenses regulated in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, narcotics/psychotropics, smuggling, customs, taxation, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of currency, in the field of taxation, in the field of forestry, in the field of environment, in the field of marine and fisheries. Number 5 The term "criminal offense" refers to criminal offenses listed in the Criminal Code (KUHP) with a prison sentence threat of 1 (one) year or more. Number 6 Clear enough. Number 7 Clear enough.

Number 8
Clear enough.
Number 9
Clear enough.
Number 10
The term "non-performing loans and/or financing" is defined as:

non-performing loans and/or financing listed
in the Debtor Information System (SID); and/or
non-performing loans and/or financing not yet
reported by the bank in the Debtor Information System (SID) but based on research conducted by Bank Indonesia, the loans and/or financing meet the criteria classified as non-performing according to Bank Indonesia regulations. Letter p Clear enough. Letter q The effectiveness of the Board of Directors members of the Company applying for a Securities Company business license is that they do not work in other companies or institutions in any position while serving as a member of the Board of Directors of the Securities Company, except as a commissioner of the Stock Exchange, Clearing and Guarantee Institution, or Custody and Settlement Institution in the statement of the Board of Directors members attached to the application for the aforementioned business license, which becomes effective from the time the Financial Services Authority grants the Securities Company business license. The effectiveness of the Board of Commissioners members of the Company applying for a Securities Company business license is that they do not work in any position in other Securities Companies, including as members of the Board of Commissioners or members of the Board of Directors, in the statement of the Board of Commissioners members attached to the application for the aforementioned business license, which becomes effective from the time the Financial Services Authority grants the Securities Company business license. Letter r Clear enough. Letter s Clear enough. Letter t Clear enough. Letter u Clear enough. Letter v Money laundering referred to is commonly known as money laundering. Terrorism financing referred to is commonly known as terrorism financing. Letter w Clear enough. Letter x Clear enough. Letter y The compliance function must exist in the organizational structure of every Securities Company. Letter z Clear enough. Letter aa Clear enough. Letter bb Clear enough. Letter cc At the time of the enforcement of this Financial Services Authority Regulation, the legislation in the Capital Market sector regulating the activities of Securities Companies at various locations is Regulation Number V.D.8, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number KEP- 27/PM/2000 dated June 30, 2000 concerning Activities of Securities Companies at Various Locations.

Letter dd
Number 1
Clear enough.
Number 2
Clear enough.
Number 3
Parties implementing each procedure and standard operating procedure can include parties implementing (maker), checking (checker), approving (approver) adjusted to the business size of the Securities Company engaging in business as an Underwriter of Securities Issues and/or Securities Trading Intermediary. Number 4 The flowchart referred to is commonly known as a flowchart. Number 5 The time limit for implementation referred to is commonly known as a service level agreement. Number 6 Clear enough. Number 7 Clear enough. Letter ee Clear enough. Letter ff Clear enough. Paragraph (2) Clear enough.
Article 16
Clear enough.
Article 17
Clear enough.

Article 18
Paragraph (1)
Letter a
Clear enough.
Letter b
Further clarification through face-to-face meetings is conducted, among other things, when:

prospective members of the Board of Directors/prospective members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners have negative data/information obtained by the Financial Services Authority that requires in-depth clarification;
prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders have negative data/information obtained by the Financial Services Authority that requires in-depth clarification;
prospective members of the Board of Directors/prospective members of the Board of Commissioners do not yet have experience as Directors/Commissioners at Indonesian Securities Companies considering the position, size, and complexity of the Securities Company where the person concerned will be nominated; or
prospective members of the Board of Directors/prospective members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners have previously failed in nomination during the clarification process related to competency aspects.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
Clear enough.
Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Article 19
Clear enough.
Article 20
Clear enough.
Article 21
Clear enough.
Article 22
Paragraph (1)
The term "share issuance" refers to an effort to raise capital, where the obligation to pay for shares should be borne by other parties.
For certainty, this article determines that Securities Companies are not allowed to issue shares for their own ownership.
This prohibition also includes the prohibition on cross ownership (cross ownership) which occurs when a Securities Company holds shares issued by another Securities Company and a company that is not a Securities Company holds shares of that Securities Company, both directly and indirectly, including ownership obtained through primary market purchases. Paragraph (2) Letter a Clear enough. Letter b Other companies in this provision also include Securities Companies.

Paragraph (3)
Share ownership of Securities Companies arising from share purchases in the secondary market as referred to in this Article is considered part of the business license ownership as a Securities Company.
Article 23
Clear enough.
Article 24
Clear enough.
Article 25
Clear enough.
Article 26
Clear enough.
Article 27
Paragraph (1)
Letter a
Clear enough.
Letter b
Money laundering referred to is commonly known as money laundering.
Terrorism financing referred to is commonly known as terrorism financing.
Paragraph (2)
Clear enough.
Article 28
Letter a
Direct ownership relationship as referred to in this letter occurs when one Securities Company holds shares of another Securities Company that is also a shareholder of the same Stock Exchange with at least 20% (twenty percent) of the shares with voting rights.

Indirect ownership relationship as referred to in this letter occurs when at least 20% (twenty percent) of the shares with voting rights issued by 2 (two) or more Securities Companies that are shareholders of the same Stock Exchange are owned by the same Party. The relationship between 2 (two) or more Securities Companies referred to constitutes an indirect ownership relationship. Letter b Clear enough.
Article 29
In accordance with Law Number 40 of 2007 concerning Limited Liability Companies, the Board of Directors is the Organ of the Company authorized and fully responsible for the management of the Company. A Securities Company can exercise control over another Securities Company through the placement of persons in the Board of Directors who can control the majority of votes in the Board of Directors meeting.
Article 30
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
The financial capacity of shareholders can be proven by, among other things, an Annual Tax Return (SPT) for the last 2 (two) years (for individual Indonesian Citizens), bank accounts, or proof of asset ownership.
Letter b
Clear enough.
Letter c
The term "proof of source of funds" includes, among other things, bank statements, audited financial reports for at least the last three years, or bank statements.
Letter d
Clear enough.

Paragraph (3)
The term "Minister" refers to the minister whose duties and responsibilities are in the field of law and human rights.
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Proof of the announcement of the General Meeting of Shareholders results regarding capital reduction is done in order to fulfill Article 44 paragraph (2) of Law Number 40 of 2007 concerning Limited Liability Companies.
Paragraph (4)
Clear enough.
Paragraph (5)
Bonus shares which are stock dividends originate from the capitalization of retained earnings balances.
Bonus shares which are not stock dividends originate from the capitalization of share premium and/or other equity elements.
Retained earnings balance is the accumulation of periodic business results after considering dividend distribution and corrections of previous period profit and loss results.
Share premium is the excess amount of shareholder payments above the nominal value when shares are issued above their nominal value.
Article 31
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
The term "Minister" refers to the minister whose duties and responsibilities are in the field of law and human rights.
Paragraph (7)
Clear enough.
Article 32
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The term "prospective shareholder" refers to a party that will purchase shares of a Securities Company engaging in business as an Underwriter of Securities Issues or a Securities Trading Intermediary.
The term "prospective Controlling Shareholder" refers to a party that will purchase shares or increase share ownership so as to become a Controlling Shareholder of a Securities Company engaging in business as an Underwriter of Securities Issues or a Securities Trading Intermediary. The term "shareholder" refers to a party that has already purchased shares of a Securities Company engaging in business as an Underwriter of Securities Issues or a Securities Trading Intermediary but has not yet received approval from the Financial Services Authority. The term "Controlling Shareholder" refers to a party that has already purchased shares or increased share ownership so as to meet the criteria for a Controlling Shareholder of a Securities Company engaging in business as an Underwriter of Securities Issues or a Securities Trading Intermediary but has not yet received approval from the Financial Services Authority to become a Controlling Shareholder.

Paragraph (4)
Documents related to shareholders and/or Controlling Shareholders such as sale-purchase agreements and proof of payment/settlement for the sale-purchase thereof.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.
Article 33
Clear enough.
Article 34
Paragraph (1)
The term "same Stock Exchange" refers to the Stock Exchange where both the Securities Company conducting the underwriting of a Public Offering of Equity Securities of an Issuer which is a Securities Company and the Issuer whose Securities Public Offering is underwritten are shareholders. Paragraph (2) Clear enough.
Article 35
Clear enough.
Article 36
Paragraph (1)
The term "stabilization agent" refers to a
Securities Company engaging in business as an Underwriter of Securities Issues that conducts stock price stabilization activities for an Issuer conducting a Public Offering in accordance with the Prospectus and/or regulations applicable in the Capital Market sector. Paragraph (2) Clear enough.

Article 37
Paragraph (1)
Clear enough.
Paragraph (2)
Share transfer in this paragraph can only be done to other parties who are not prohibited from holding shares in the Securities Company.
Paragraph (3)
Clear enough.
Article 38
Clear enough.
Article 39
Clear enough.
Article 40
Clear enough.
Article 41
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
The term "permanent impediment" includes, among other things, permanent illness resulting in the inability to perform work activities, proven by a doctor's certificate.
Letter e
Clear enough.
Letter f
Clear enough.

Letter g
This provision only applies to members of the Board of Directors.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Clear enough.
Letter b
The term "management of the Securities Company carried out by the Board of Commissioners" is limited to daily administrative activities and not for conducting underwriting of Securities Issues and/or securities trading intermediary activities.
Article 42
Paragraph (1)
Prohibition on working for other companies includes working as a member of the Board of Directors or employee in other companies.
The term "other companies" includes, among other things, business entities both in the form of legal entities and non-legal entities.
The term "other institutions" includes, among other things, employees or officials from the government, legislative, judicial, or other public positions.
Paragraph (2)
Clear enough.
Article 43
Clear enough.
Article 44
Clear enough.
Article 45
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.

Paragraph (3)
The term "change" refers to changes in composition, replacement, and/or filling of Board of Directors members.
The submission of an application for change of Board of Directors members is accompanied by the "name of the prospective Board of Directors member" if the change of Board of Directors members is done by replacing or filling a Board of Directors member with an individual who is not from the Board of Directors members of the Securities Company currently serving at the time the application for change of Board of Directors members of the Securities Company in question is submitted to the Financial Services Authority. The submission of an application for change of Board of Directors members is accompanied by the "name of the Board of Directors member" if the change of Board of Directors members is done by replacing or filling a specific Board of Directors member with another Board of Directors member who is currently serving at the time the application for change of Board of Directors members of the Securities Company in question is submitted to the Financial Services Authority, but the duties, functions, and responsibilities to be undertaken are different from the duties, functions, and responsibilities in the previous position. Information about the duties and functions that will become the responsibility of the prospective Board of Directors member or Board of Directors member can be included in the cover letter of documents in the plan to submit or change the composition and/or replacement of Board of Directors members. Paragraph (4) The term "change" refers to changes in composition, replacement, and/or filling of Board of Commissioners members. The submission of an application for change of Board of Commissioners members is accompanied by the "name of the prospective Board of Commissioners member" if the change of Board of Commissioners members is done by replacing or filling a Board of Commissioners member with an individual who is not from the Board of Commissioners members of the Securities Company currently serving at the time the application for change of Board of Commissioners members of the Securities Company in question is submitted to the Financial Services Authority.

The submission of an application for change of Board of Commissioners members is accompanied by the "name of the Board of Commissioners member" if the change of Board of Commissioners members is done by replacing or filling a specific Board of Commissioners member with another Board of Commissioners member who is currently serving at the time the application for change of Board of Commissioners members of the Securities Company in question is submitted to the Financial Services Authority, but the duties, functions, and responsibilities to be undertaken are different from the duties, functions, and responsibilities in the previous position. An example is an empty chief commissioner position being filled by a commissioner currently serving at that time. Information about the duties and functions that will become the responsibility of the prospective Board of Commissioners member or Board of Commissioners member can be included in the cover letter of documents in the plan to submit or change the composition and/or replacement of Board of Commissioners members. Paragraph (5) Clear enough.
Article 46
Paragraph (1)
Review and research to assess "prospective Board of Directors members" if the change of Board of Directors members is done by replacing or filling a Board of Directors member with an individual who is not from the Board of Directors members of the Securities Company currently serving at the time the application for change of Board of Directors members of the Securities Company in question is submitted to the Financial Services Authority. Review and research to assess "Board of Directors members" if the change of Board of Directors members is done by replacing or filling a specific Board of Directors member with another Board of Directors member who is currently serving at the time the application for change of Board of Directors members of the Securities Company in question is submitted to the Financial Services Authority, but the duties, functions, and responsibilities to be undertaken are different from the duties, functions, and responsibilities in the previous position.

Review and research to assess "candidate members of the Board of Commissioners" when the change of members of the Board of Commissioners is carried out by replacing or filling members of the Board of Commissioners with individuals who do not come from members of the Board of Commissioners of the Securities Company currently holding office at the time of the application for change of members of the Board of Commissioners of the said Securities Company to the Financial Services Authority.

Review and research to assess "members of the Board of Commissioners" when the change of members of the Board of Commissioners is carried out by replacing or filling specific members of the Board of Commissioners with other members of the Board of Commissioners who are currently holding office at the time the application for change of members of the Board of Commissioners of the said Securities Company is submitted to the Financial Services Authority, but the duties, functions, and responsibilities to be undertaken are different from the duties, functions, and responsibilities in the previous position. An example is an empty position of the main commissioner being filled by a commissioner who is currently holding office at that time.

Paragraph (2)
Clearly clear.

Paragraph (3)
Clearly clear.

Paragraph (4)
Clearly clear.

Paragraph (5)
Clearly clear.

Article 47
Paragraph (1)
The fit and proper test assessment covers the scope of administrative research on the truthfulness of the submitted document requirements and further clarification through face-to-face meetings.

The non-conduct of the fit and proper test assessment does not mean that administrative research on the truthfulness of the document requirements is not conducted; rather, what is not conducted is the confirmation of documents and further clarification through face-to-face meetings with the concerned party.

Paragraph (2)
Clearly clear.

Paragraph (3)
Clearly clear.

Paragraph (4)
Letter a
Clearly clear.

Letter b
Further clarification through face-to-face meetings is among others conducted when candidate shareholders/candidate Controlling Shareholders/shareholders/Controlling Shareholders have negative data/information obtained by the Financial Services Authority that requires in-depth analysis/clarification.

Article 48
Clearly clear.

Article 49
Paragraph (1)
The fit and proper test assessment covers the scope of administrative research on the truthfulness of the submitted document requirements and further clarification through face-to-face meetings.

Paragraph (2)
Clearly clear.

Paragraph (3)
Letter a
Clearly clear.

Letter b
Further clarification through face-to-face meetings is among others conducted when:

candidate members of the Board of Directors/candidate members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners have negative data/information obtained by the Financial Services Authority that requires in-depth analysis/clarification;
candidate members of the Board of Directors/candidate members of the Board of Commissioners do not yet have experience as Directors/Commissioners at Indonesian Securities Companies, considering the job position as well as the size and complexity of the Securities Company where the candidate will be nominated; or
candidate members of the Board of Directors/candidate members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners have previously failed in nomination during the clarification process related to competence aspects.

Article 50
Paragraph (1)
Clearly clear.

Paragraph (2)
Clearly clear.

Paragraph (3)
In the event that the General Meeting of Shareholders of the Securities Company has appointed members of the Board of Directors or members of the Board of Commissioners even though the concerned party has not yet been declared to meet the requirements as referred to in Article 14 paragraph (1) by the Financial Services Authority, then the members of the Board of Directors or members of the Board of Commissioners of the said Securities Company must be re-appointed in the General Meeting of Shareholders after the Financial Services Authority declares that the concerned party meets the requirements as referred to in Article 14 through a notification letter from the Financial Services Authority.

Paragraph (4)
Clearly clear.

Paragraph (5)
Clearly clear.

Paragraph (6)
Clearly clear.

Article 51
Paragraph (1)
Clearly clear.

Paragraph (2)
What is meant by "parties who have become shareholders or Controlling Shareholders but have not yet met the requirements as shareholders or Controlling Shareholders" in these regulations are shareholders or Controlling Shareholders, whether newly purchased shares but not yet declared by the Financial Services Authority to have met the requirements as shareholders or Controlling Shareholders of Securities Companies as referred to in Article 13 paragraph (1) of this Financial Services Authority Regulation.

What is meant by "parties who have become shareholders or Controlling Shareholders but do not meet the requirements as shareholders or Controlling Shareholders" in these regulations are shareholders or Controlling Shareholders who have been declared to meet the requirements as shareholders or Controlling Shareholders of Securities Companies as referred to in this Financial Services Authority Regulation by the Financial Services Authority but subsequently based on the fit and proper test assessment again by the Financial Services Authority no longer meet the requirements as shareholders or Controlling Shareholders of Securities Companies as referred to in this Financial Services Authority Regulation.

Article 52
Clearly clear.

Article 53
Clearly clear.

Article 54
Clearly clear.

Article 55
Clearly clear.

Article 56
Clearly clear.

Article 57
Paragraph (1)
Clearly clear.

Paragraph (2)
What is meant by since the above event is known by the Issuance Underwriter or Securities Trading Intermediary, for example, for resignation in the form of a resignation letter from the concerned party, for dismissal in the form of the results of the General Meeting of Shareholders decision or a letter from the Board of Commissioners (temporary dismissal).

Paragraph (3)
Clearly clear.

Article 58
Clearly clear.

Article 59
Paragraph (1)
What is meant by internal sanctions given by Securities Companies to members of the Board of Directors who oversee and/or implement compliance functions in these regulations are sanctions other than dismissal sanctions for members of the Board of Directors who oversee and/or implement compliance functions.

Paragraph (2)
Clearly clear.

Article 60
Clearly clear.

Article 61
Letter a
Clearly clear.

Letter b
Violations of legislation in the Capital Market sector include among others Securities Companies no longer meeting the requirements as Issuance Underwriters as regulated in this Financial Services Authority Regulation.

This violation includes administrative violations as well as criminal offenses in the Capital Market.

Examples of administrative violations include among others failing to meet the minimum Net Working Capital value set, the office of the Issuance Underwriter or Securities Trading Intermediary cannot be found, having no employees, failing to meet deficiencies required according to applicable regulations after the opportunity and time limit given have expired.

Letter c
Clearly clear.

Letter d
The reason for the dissolution of a Limited Liability Company is as regulated in the Limited Liability Company Law Number 40 of 2007.

Letter e
Clearly clear.

Letter f
Clearly clear.

Article 62
Clearly clear.

Article 63
Clearly clear.

Article 64
Clearly clear.

Article 65
Letter a
Clearly clear.

Letter b
This violation includes administrative violations as well as criminal offenses in the Capital Market.

Examples of administrative violations include among others failing to meet the minimum Net Working Capital (MKBD) value set, the office of the Securities Company (PEE) or Securities Trading Intermediary (PPE) cannot be found, having no employees, failing to meet deficiencies required according to applicable regulations after the opportunity and time limit given have expired.

Letter c
Clearly clear.

Letter d
Clearly clear.

Letter e
Clearly clear.

Article 66
Clearly clear.

Article 67
Clearly clear.

Article 68
Clearly clear.

Article 69
Clearly clear.

Article 70
Clearly clear.

Article 71
Clearly clear.

Article 72
Clearly clear.

Article 73
Clearly clear.

Article 74
Clearly clear.

Article 75
Clearly clear.

Article 76
Clearly clear.

Article 77
Clearly clear.

Article 78
Clearly clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5868

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 20/POJK.04/2016
ON
LICENSING OF SECURITIES COMPANIES ENGAGING IN BUSINESS AS ISSUANCE UNDERWRITERS AND/OR SECURITIES TRADING INTERMEDIARIES

APPLICATION OR CHANGE OF BUSINESS LICENSE FOR SECURITIES COMPANIES AS ISSUANCE UNDERWRITERS AND/OR SECURITIES TRADING INTERMEDIARIES

Number : ..................................... ............., ...................20.....
Attachment : ......................................
Subject : Application for Business License
Application
Change of Business License
To
Executive Head of Capital Market Supervision
Financial Services Authority in Jakarta

I, the undersigned below:

Name : ………………………………………………..
Address : ………………………………………………..
………………………………………………
(street name and number)
……………………………………- 
(city and postal code) hereby on behalf of*):
Company Name : ………………………………………………..
Company Address : …………………………………………..……
………………………………………………
(street name and number)
……………………………………- 
(city and postal code)
(National/Joint Venture*)
Taxpayer Identification Number (NPWP) : ………………………………………………
Capital
a. Authorized Capital : ……………………………………………… b. Paid-up Capital : ………………………………………………
Company Address : ………………………………………………
………………………………………………
Number
a. Telephone : ……………………………………………… b. Telex : ………………………………………………
c. Facsimile : ………………………………………………
applying for (or changing) the business license for Issuance Underwriters or Securities Trading Intermediaries). As consideration material, we hereby submit the following data:
Type of Business License (for those who already have) )
: Issuance Underwriters engaging in business as Issuance Underwriters and Securities Trading Intermediaries that Administer Client Securities Accounts Issuance Underwriters engaging in business as Issuance Underwriters and Securities Trading Intermediaries that do not Administer Client Securities Accounts Issuance Underwriters engaging in business as Issuance Underwriters only Securities Trading Intermediaries that Administer Client Securities Accounts Securities Trading Intermediaries that do not Administer Client Securities Accounts 8. Business License requested) : Issuance Underwriters engaging in business as Issuance Underwriters and Securities Trading Intermediaries that Administer Client Securities Accounts Issuance Underwriters engaging in business as Issuance Underwriters and Securities Trading Intermediaries that do not Administer Client Securities Accounts Issuance Underwriters engaging in business as Issuance Underwriters only Securities Trading Intermediaries that Administer Client Securities Accounts Securities Trading Intermediaries that do not Administer Client Securities Accounts

To complete this application, we attach the following documents:

documents showing the identity of the Company, at least including the name and address of the headquarters and operational offices of the company, as well as the company logo (if any);
photocopy of the Company's deed of establishment that has been approved by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has been issued a letter of acceptance of the notice of amendment to the articles of association from the competent authority;
photocopy of the Company's Taxpayer Identification Number (NPWP);
power of attorney to the Party authorized to submit the licensing application on behalf of the company (if any);
list of names and data of members of the Board of Directors, members of the Board of Commissioners, and employees holding Securities Company Representative licenses, including:
a. curriculum vitae signed by the concerned party, at least containing a brief work history including;

job title;
reason for leaving or resignation (if any); and
brief description of duties and responsibilities of the position;
b. photocopy of the highest formal education diploma;
c. photocopy of the individual's license as a Securities Company Representative;
d. documents showing that members of the Board of Directors have experience and expertise in the Capital Market and/or financial sector for at least 2 (two) years in managerial positions in companies operating in the Capital Market and/or financial services sector; e. documents showing that members of the Board of Commissioners:
have adequate and relevant expertise in the Capital Market related to their position; and/or
have at least 2 (two) years of experience in companies operating in the Capital Market and/or financial services sector;
f. photocopy of the valid Identity Card (KTP) or passport; and g. recent color photos size 4x6 cm with a red background, 2 (two) sheets;

documents related to the name, data, and information of shareholders, including:
a. individuals including:

curriculum vitae signed by the concerned party;
photocopy of the valid Identity Card (KTP) or passport;
recent color photos with a red background size 4x6 cm, 2 (two) sheets;
photocopy of the Taxpayer Identification Number (NPWP);
proof of financial capability;
statement letter that the capital deposit does not come from loans or financing facilities in any form from other parties and does not come from and for the purpose of money laundering and terrorism financing according to the format of the statement letter regarding the source of funds or capital deposit as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries; and
written commitment to comply with applicable legislation and support the development of healthy operations of Issuance Underwriters and/or Securities Trading Intermediaries and the Indonesian Capital Market according to the format of the integrity statement letter for candidate shareholders/candidate Controlling Shareholders/shareholders/Controlling Shareholders as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
b. legal entities including:
photocopy of the deed of establishment of the Indonesian legal entity that has been approved by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has been issued a letter of acceptance of the notice of amendment to the articles of association from the competent authority (if the shareholder or Controlling Shareholder is an Indonesian legal entity);
photocopy of the deed of establishment of the foreign legal entity that has been approved by the competent authority in the country of origin along with its amendments (if any) and documents required according to the regulations of the country of origin if the legal entity is a foreign legal entity in the form of a state or government-owned legal entity (if the shareholder or Controlling Shareholder is a foreign legal entity);
photocopy of the Taxpayer Identification Number (NPWP) for Indonesian legal entities;
information regarding Parties controlling the legal entity, both directly and indirectly, at least containing the name and form of control;
audited financial statements for the last year;
list of names and data of members of the Board of Directors, members of the Board of Commissioners, and/or management including:
a) curriculum vitae signed by the concerned party; b) photocopy of the valid Identity Card (KTP) or passport; and
c. recent color photos size 4x6 cm with a red background, 2 (two) sheets;
list of names and data of shareholders:
a. individuals including:
(1) signed curriculum vitae;
(2) photocopy of the valid Identity Card/passport; (3) recent color photos size 4x6 cm with a red background, 2 (two) sheets; b. legal entities including:
(1) latest articles of association; and
(2) audited financial statements for the last year;
statement letter that the capital deposit does not come from loans or financing facilities in any form from other parties and does not come from and for the purpose of money laundering and terrorism financing according to the format of the statement letter regarding the source of funds or capital deposit as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
written commitment to comply with applicable legislation and support the development of healthy operations of Issuance Underwriters and/or Securities Trading Intermediaries and the Indonesian Capital Market according to the format of the integrity statement letter for candidate shareholders/candidate Controlling Shareholders/shareholders/Controlling Shareholders as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
if the legal entity is a foreign legal entity operating in the financial services sector, it must also be accompanied by a recommendation from the competent supervisory authority of the country of origin, at least stating that:
a) the foreign legal entity has a good reputation; and b) the foreign legal entity has never committed disgraceful acts in the financial sector;

information regarding Controlling Shareholders of the Limited Liability Company, both directly and indirectly, at least containing the name and form of control;
information regarding shareholders up to the actual beneficiaries as well as information on related companies and subsidiaries;
list of names of employees one level below the Board of Directors who do not hold Securities Company Representative licenses and their position in the company's organizational structure;
documents from the competent authority according to applicable legislation regarding the use of foreign labor if using foreign labor;
latest financial statements audited by Accountants registered with the Financial Services Authority, with a time limit between the date of the latest financial statements and the date of issuance of the business license for Securities Companies not exceeding 180 (one hundred eighty) days;
photocopy of joint venture agreements for Joint Venture Securities Companies;
bank statements;
proof of capital deposit;
Adjusted Net Working Capital according to applicable legislation in the Capital Market sector related to the Maintenance and Reporting of Adjusted Net Working Capital;
statement letter from Controlling Shareholders of Securities Companies engaging in business as Issuance Underwriters or Securities Trading Intermediaries, whether directly or indirectly, stating that the concerned party:
a. is capable of performing legal acts; b. has never committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time limit from the date of issuance until submission to the Financial Services Authority is not more than 6 (six) months or according to the validity period given by the Police if less than 6 (six) months;
c. has never been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the result of the fit and proper test for shareholders and Controlling Shareholders is determined by the Financial Services Authority;
d. has never been sentenced for committing special criminal offenses within the last 20 (twenty) years until the result of the fit and proper test for shareholders and Controlling Shareholders is determined by the Financial Services Authority; e. has never been sentenced for committing criminal offenses within the last 10 (ten) years until the result of the fit and proper test for shareholders and Controlling Shareholders is determined by the Financial Services Authority; f. has good ethics and morality; g. has a high commitment to comply with applicable legislation; and h. has a high commitment to support the development of healthy operations of Securities Companies engaging in business as Issuance Underwriters or Securities Trading Intermediaries and the Indonesian Capital Market as well as Financial Services Authority policies, according to the format of the integrity statement letter for candidate shareholders/candidate Controlling Shareholders/shareholders/Controlling Shareholders as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from members of the Board of Directors and members of the Board of Commissioners of Securities Companies stating that the following requirements are met:
a. is capable of performing legal acts; b. has never committed disgraceful acts, proven by submitting at least a Police Record Certificate (SKCK) where the time limit from the date of issuance until submission to the Financial Services Authority is not more than 6 (six) months or according to the validity period given by the Police if less than 6 (six) months;
c. has never been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the result of the fit and proper test for members of the Board of Directors and members of the Board of Commissioners is determined by the Financial Services Authority;
d. has never been sentenced for committing special criminal offenses within the last 20 (twenty) years until the result of the fit and proper test for members of the Board of Directors and members of the Board of Commissioners is determined by the Financial Services Authority; e. has never been sentenced for committing criminal offenses within the last 10 (ten) years until the result of the fit and proper test for members of the Board of Directors and members of the Board of Commissioners is determined by the Financial Services Authority; f. has good ethics and morality; g. has a high commitment to comply with applicable legislation; h. has a high commitment to support the development of healthy operations of Securities Companies engaging in business as Issuance Underwriters or Securities Trading Intermediaries and the Indonesian Capital Market;
i. has never been declared bankrupt or become a director or commissioner who was declared guilty causing a company to be declared bankrupt; and
j. is not currently holding non-performing loans and/or financing; according to the format of the integrity statement letter for candidate members of the Board of Directors/candidate members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners as stated in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from members of the Board of Directors stating that Securities Companies engaging in business as Issuance Underwriters and/or Securities Trading Intermediaries are fully financially responsible for all actions taken on behalf of the company, by members of the Board of Directors, Securities Company Representatives, employees, and other Parties working for the company

in accordance with the format of the full legal and financial responsibility statement as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;

statement letter:
a. members of the Board of Directors who declare that they do not work in other companies or institutions in any position during their tenure as members of the Board of Directors of the Securities Company, except as members of the Board of Commissioners of the Stock Exchange, Clearing and Guarantee Institution, or Custody and Settlement Institution; and b. members of the Board of Commissioners who declare that they do not work in any position in other Securities Companies, including as members of the Board of Commissioners or members of the Board of Directors, in accordance with the format of the statement letter on non-concurrent positions as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from members of the Board of Directors and members of the Board of Commissioners declaring that they have or do not have family relationships up to the second degree with members of the Board of Directors or members of the Board of Commissioners in the relevant Securities Company, in accordance with the format of the statement letter on not having family relationships in the relevant Securities Company as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from members of the Board of Directors and members of the Board of Commissioners declaring that they have or do not have family relationships up to the second degree with members of the Board of Directors and members of the Board of Commissioners in other Securities Companies or Issuers listed on the Stock Exchange, in accordance with the format of the statement letter on not having family relationships in other Securities Companies as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from employees who have individual licenses as Company Representatives declaring that they do not hold concurrent positions in other Securities Companies, in accordance with the format of the statement letter on not holding concurrent positions in other Securities Companies as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter not conducting Securities Trading Intermediary business activities in cases where Issuance Underwriters only conduct business as Issuance Underwriters and do not conduct Securities Trading Intermediary business activities, in accordance with the format of the statement letter on not conducting Securities Trading Intermediary business activities as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from shareholders or Controlling Shareholders that the source of funds for the ownership of the Securities Company does not come from loans or financing facilities in any form from other parties and does not come from and is not for the purpose of money laundering and terrorism financing, in accordance with the format of the statement letter on source of funds or capital deposits as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
statement letter from shareholders, Controlling Shareholders, members of the Board of Directors, and members of the Board of Commissioners of Securities Companies conducting business as Issuance Underwriters and/or Securities Trading Intermediaries supporting the policies of the Financial Services Authority, in accordance with the format of the statement letter supporting the policies of the Financial Services Authority as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
domicile certificate from the building manager or relevant authorized agency regarding the address of the headquarters and operations, lease agreement if the business premises are not owned, office room layout, and photos of the Securities Company's rooms accompanied by the purpose of the rooms;
organizational structure listing employee names for each position and job descriptions, including the existence of work units, members of the Board of Directors, or officials at a level below the Board of Directors performing functions required by applicable laws and regulations according to the business license requested;
description of the business plan and company mission and financial projections for at least 5 (five) years ahead;
answers to questions in accordance with the format of the question list as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
answers to questions in accordance with the format of lists A, B, and C as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries;
list of branch offices and changes thereof in accordance with Financial Services Authority regulations on Securities Company activities at various locations (if any);
procedures and standard operating procedures according to the business license requested based on applicable laws and regulations, which must at least contain:
a. title of procedures and standard operating procedures (standard operating guidelines); b. person responsible for procedures and standard operating procedures;
c. parties executing each procedure and standard operating procedure;
d. flowcharts and explanations of each stage of the procedure executed; e. time limits for executing each procedure; f. documents used; and g. results of the executed procedures;
proof of payment of licensing fees for Securities Companies conducting business as Issuance Underwriters and/or Securities Trading Intermediaries; and
statement letter from prospective shareholders, prospective Controlling Shareholders, shareholders, Controlling Shareholders, prospective members of the Board of Directors, prospective members of the Board of Commissioners, members of the Board of Directors, and members of the Board of Commissioners declaring that all documents submitted to the Financial Services Authority for the application:
a. application or change of business license; b. change of shareholders and/or controlling shareholders; and/or
c. change of members of the Board of Directors and/or members of the Board of Commissioners,
are true and not misleading, in accordance with the format of the statement letter on document truthfulness and the format of the statement letter on document truthfulness from the Securities Company as contained in the Appendix of the Financial Services Authority Regulation on Licensing of Securities Companies as Issuance Underwriters and/or Securities Trading Intermediaries.

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

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

Note:
*) authorized party representing the Securities Company or its proxy ) cross out what is not needed *) choose one stamp

APPLICATION FOR APPROVAL OF OTHER ACTIVITIES OF ISSUANCE UNDERWRITERS OR SECURITIES TRADING INTERMEDIARIES Number : ..................................... .............,...................20...
Attachment : .....................................
Subject : Application for Approval
Other Activities
To
The Executive Head of Capital Market Supervision Financial Services Authority in Jakarta

I, the undersigned below:

Name : ………………………………………………..
Address : ………………………………………………..
………………………………………………
(street name and number)
……………………………………- 
(city and postal code) hereby on behalf of*):
Name of Securities Company : ………………………………………………..
(National/Joint Venture)
Tax Identification Number : ………………………………………………..
Address of Issuance Underwriter
or Securities Trading Intermediary*)
: ………………………………………………
………………………………………………
(street name and number)
……………………………………- 
(city and postal code)
Number
a. Telephone : ……………………………………………… b. Telex : ………………………………………………
c. Facsimile : ………………………………………………

apply for approval of other activities of Issuance Underwriters or Securities Trading Intermediaries*). As consideration material, the following data is submitted:

Type, description, and
other activity activities
: ………………………………………………
………………………………………………
Time of implementation
other activities
: ………………………………………………
………………………………………………
Purpose of implementation
other activities including market target and target revenue in 1 (one) year first : ……………………………………………… ……………………………………………… ……………………………………………… ………………………………………………
Correlation of other
activities with business strategy
: ………………………………………………
………………………………………………
Benefits, costs, and
risks of other activities
: ………………………………………………
………………………………………………
Benefits and risks for
clients
: ………………………………………………
………………………………………………
Risk mitigation for
implementation of other activities
: ………………………………………………
………………………………………………

Completing this application, the following documents are attached:

explanation of the implementation plan for other activities including :
a. type, description, and other activity activities; b. time of implementation of other activities;
c. purpose of implementation of other activities, including market target and target revenue in 1 (one) year first;
d. correlation of other activities with the business strategy of Issuance Underwriters or Securities Trading Intermediaries); e. benefits, costs, and risks for Issuance Underwriters or Securities Trading Intermediaries) regarding other activities; f. benefits and risks for clients; and g. risk mitigation for implementation of other activities;
procedures, standard operating procedures, organization, and authority to execute other activities;
identification, measurement, monitoring, and control of risks inherent in other activities;
results of legal and compliance aspect analysis of other activities;
documents or draft documents regarding transparency to and/or from clients related to the implementation of other activities, at least including agreements between Issuance Underwriters or Securities Trading Intermediaries) with clients or other parties, brochures, flyers, Prospectus, and/or application forms;
accounting information system documents including a brief explanation regarding the correlation of such accounting information system with the accounting information system of Issuance Underwriters or Securities Trading Intermediaries) as a whole, and/or administrative recording systems;
statement letter or document stating that other activities to be conducted by Securities Companies conducting business as Issuance Underwriters and/or Securities Trading Intermediaries do not conflict and will be executed in accordance with applicable laws and regulations or have obtained approval or license from the relevant authority, if the activities of Issuance Underwriters or Securities Trading Intermediaries) require approval from such authority; and
readiness and test results of Issuance Underwriters or Securities Trading Intermediaries) (if any) regarding other activities.

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

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

Note:
*) authorized party representing the Securities Company or its proxy ) cross out what is not needed stamp

INTEGRITY STATEMENT LETTER FOR PROSPECTIVE SHAREHOLDERS/PROSPECTIVE CONTROLLING SHAREHOLDERS/SHAREHOLDERS/CONTROLLING SHAREHOLDERS The undersigned below:
Name : ………………………………………………………………….
Full Address : ………………………………………………………………….
………………………………………………………………….
(street name and number)
……………………………………………………….- 
(city and postal code)
Telephone Number : …………………………………………………………………. as prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders*)
of…........................................................................................................
hereby declare that I :
a. are competent/incompetent) to perform legal acts; b. have/have not) committed disgraceful acts proven by submitting at least a Police Record Certificate (SKCK) where the time period from the date of issuance until submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
c. have/have not) been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority;
d. have/have not) been sentenced for committing special criminal offenses within the last 20 (twenty) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority; e. have/have not) been sentenced for committing criminal offenses within the last 10 (ten) years until the determination of the results of the capability and propriety test of shareholders and Controlling Shareholders by the Financial Services Authority; f. have good ethics and morality; g. have a high commitment to comply with laws and regulations; and h. have a high commitment to support the development of healthy operations of Issuance Underwriters or Securities Trading Intermediaries*) and the Indonesian Capital Market as well as the policies of the Financial Services Authority.

This statement is made truthfully so that it can be used as appropriate.
.........., ......................20........
(place and date)
.............................................
(clear name and signature)

Note:
*) choose one of the words “shareholders/Controlling Shareholders” that corresponds to the concerned party for the application for Securities Company business license.
*) choose one of the words “prospective shareholders/prospective Controlling Shareholders” that corresponds to the concerned party for the application for change of shareholders/Controlling Shareholders of Securities Companies ) cross out what is not needed stamp

INTEGRITY STATEMENT LETTER FOR PROSPECTIVE BOARD OF DIRECTORS MEMBERS/PROSPECTIVE BOARD OF COMMISSIONERS MEMBERS/BOARD OF DIRECTORS MEMBERS/BOARD OF COMMISSIONERS MEMBERS*) The undersigned below:
Name : ………………………………………………………………….
Full Address : ………………………………………………………………….
………………………………………………………………….
(street name and number)
……………………………………………………….- 
(city and postal code)
Telephone Number : ………………………………………………………………….
As prospective members of the Board of Directors/prospective members of the Board of Commissioners/members of the Board of Directors/members of the Board of Commissioners*)
of………………...................
……………………………………………… hereby declare that I:
a. are competent/incompetent) to perform legal acts; b. have/have not) committed disgraceful acts proven by submitting at least a Police Record Certificate (SKCK) where the time period from the date of issuance until submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the Police if less than 6 (six) months;
c. have/have not) been sentenced for committing criminal offenses in the financial sector within the last 20 (twenty) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority;
d. have/have not) been sentenced for committing special criminal offenses within the last 20 (twenty) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority e. have/have not) been sentenced for committing criminal offenses within the last 10 (ten) years until the determination of the results of the capability and propriety test of members of the Board of Directors and members of the Board of Commissioners by the Financial Services Authority; f. have good ethics and morality;

g. have a high commitment to comply with laws and regulations; h. have a high commitment to support the development of healthy operations of Issuance Underwriters or Securities Trading Intermediaries*) and the Indonesian Capital Market;
i. have never been declared bankrupt or become a director or commissioner who was declared guilty causing a company to be declared bankrupt; and
j. are not currently holding non-performing loans and/or financing.

Note:
*) choose one of the words “members of the Board of Directors/members of the Board of Commissioners” that corresponds to the concerned party for the application for Securities Company business license *) choose one of the words “prospective members of the Board of Directors/prospective members of the Board of Commissioners” that corresponds to the concerned party for the application for change of members of the Board of Directors/members of the Board of Commissioners of Securities Companies ) cross out what is not needed stamp

FULL LEGAL AND FINANCIAL RESPONSIBILITY STATEMENT LETTER We, the undersigned below:

Name : ……………………………………………………………
Position : ……………………………………………………………
Full Address : ……………………………………………………………
……………………………………………………………
(street name and number)
………………………………………………….- 
(city and postal code)
Name : ……………………………………………………………
Position : ……………………………………………………………
Full Address : ……………………………………………………………
……………………………………………………………
(street name and number)
………………….…………………………….- 
(city and postal code)
based on the articles of association of PT ....................... acting on behalf of and in the name of .......................................... located in ....................... with headquarters address at .................................................................
hereby declare truthfully that the company will be fully legally and financially responsible for all actions taken on behalf of the Securities Company, by members of the Board of Directors, Company Representatives, employees, and other parties working for PT .............................. in the course of implementing activities as Issuance Underwriters or Securities Trading Intermediaries*).

This statement is made truthfully so that it can be used as appropriate.
.........., ......................20.....
(place and date)
Board of Directors,

............................................
(clear name and signature)
......................................etc.

Note:
*) cross out what is not needed

STATEMENT LETTER ON NON-CONCURRENT POSITIONS
The undersigned below:
Name : ………………………………………………………………….
Full Address : ………………………………………………………………….
………………………………………………………………….
(street name and number)
……………………………………………………….- 
(city and postal code)
Telephone Number : …………………………………………………………………. for prospective members of the Board of Directors/members of the Board of Directors*) stating:
as prospective members of the Board of Directors/members of the Board of Directors*)
PT. ....................................................................................... located at .............................................................................................
hereby declare truthfully that I do not work in other companies or institutions in any position during my tenure as members of the Board of Directors of the Securities Company, except as members of the Board of Commissioners of the Stock Exchange, Clearing and Guarantee Institution, or Custody and Settlement Institution. for prospective members of the Board of Commissioners/members of the Board of Commissioners*) stating:
prospective members of the Board of Commissioners/as members of the Board of Commissioners*)
PT. ...................................................................................... located at ............................................................................................
hereby declare truthfully that I do not work in any position in other Securities Companies, including as members of the Board of Commissioners or members of the Board of Directors.

Note:
*) cross out what is not needed stamp

STATEMENT LETTER ON NOT HAVING FAMILY RELATIONSHIPS IN THE RELEVANT SECURITIES COMPANY The undersigned below:
Name : ……………………………………………………………
Position : members of the Board of Commissioners/members of the Board of Directors ) Full Address : …………………………………………………………… …………………………………………………………… (street name and number) ………………………………………………….-  (city and postal code) hereby declare truthfully that I have/do not have) family relationships up to the second degree with other members of the Board of Directors /members of the Board of Commissioners*)
in the company namely Mr./Ms. .......................................................................

Note:
*) cross out what is not needed stamp

STATEMENT LETTER ON NOT HAVING FAMILY RELATIONSHIPS IN OTHER SECURITIES COMPANIES The undersigned below:
Name : ……………………………………………………………
Position : members of the Board of Commissioners/members of the Board of Directors ) Full Address : …………………………………………………………… …………………………………………………………… (street name and number) ………………………………………………….-  (city and postal code) hereby declare truthfully that I have/do not have) family relationships up to the second degree with members of the Board of Commissioners/members of the Board of Directors*) Issuance Underwriters or Securities Trading Intermediaries/Issuers*) PT………….
.................................................... namely Mr./Ms. .............................................

Note:
*) cross out what is not needed stamp

STATEMENT LETTER ON NOT HOLDING CONCURRENT POSITIONS IN OTHER SECURITIES COMPANIES The undersigned below :
Name : ……………………………………………………………
Position : ……………………………………………………………
Full Address : ……………………………………………………………
……………………………………………………………
(street name and number)
………………………………………………….- 
(city and postal code)
License Holder of Company Representative Number:..........................................
............................... dated ............................. hereby declare truthfully that I do not work in other Issuance Underwriters or Securities Trading Intermediaries and only work in
PT........................................................................................

DECLARATION OF NON-CONDUCT OF SECURITIES BROKER BUSINESS

We, the undersigned below:

Name : ……………………………………………………………
Position : ……………………………………………………………
Full Address : ……………………………………………………………
……………………………………………………………
(street name and number)
………………………………………………….- 
(city and postal code)
Name : ……………………………………………………………
Position : ……………………………………………………………
Full Address : ……………………………………………………………
……………………………………………………………
(street name and number)
………………….…………………………….- 
(city and postal code)

based on the Articles of Association acting on behalf of
.................................................................................................................
located at ......................................with the head office address at
.................................................................................................................
.................................................................................................................

hereby declare that the Securities Underwriter will not conduct business as a Securities Trading Intermediary.

This declaration is made truthfully for use as appropriate.
.........., ......................20.....
(place and date)

Board of Directors,

............................................
(full name and signature)
......................................etc.

DECLARATION OF SOURCE OF FUNDS OR SHARE CAPITAL SUBSCRIPTION

The undersigned below:
Name : ………………………………………………………………….
Full Address : ………………………………………………………………….
………………………………………………………………….
(street name and number)
……………………………………………………….- 
(city and postal code)
Telephone Number : ………………………………………………………………….

as a prospective shareholder/prospective Controlling Shareholder/shareholder/Controlling Shareholder*) from……………………………...…................... hereby declares that the source of funds/share capital*) in the name of ........................................ to............................... does not originate from:
a. loans or financing facilities in any form from other parties; and/or b. funds for the purpose of money laundering and terrorism financing.

This declaration is made truthfully for use as appropriate.
.........., ......................20........
(place and date)
.............................................
(full name and signature)

Note:
*) strike out what is not necessary stamp duty

DECLARATION SUPPORTING FINANCIAL SERVICES AUTHORITY POLICY

as a shareholder/Controlling Shareholder/Board of Directors member/Board of Commissioners member*) from……………………………...
...................................................... hereby declares that [we] will support the policies of the Financial Services Authority.

This declaration is made truthfully for use as appropriate.
.........., ......................20........
(place and date)
.............................................
(full name and signature)

Note:
*) strike out what is not necessary stamp duty

DECLARATION OF DOCUMENT TRUTHFULNESS

as a prospective shareholder/prospective Controlling Shareholder/shareholder/Controlling Shareholder/prospective Board of Directors member/prospective Board of Commissioners member/Board of Directors member/Board of Commissioners member*)
from……........................................……………………….................................
hereby declares that the documents submitted to the Financial Services Authority for the application for or modification of business license/modification of shareholders and/or controlling shareholders/modification of Board of Directors members and/or Board of Commissioners members*) are true and not misleading.

This declaration is made truthfully for use as appropriate.
.........., ......................20........
(place and date)
.............................................
(full name and signature)

Note:
*) strike out what is not necessary stamp duty

DECLARATION OF DOCUMENT TRUTHFULNESS FROM THE SECURITIES COMPANY

The undersigned below:
Name : ………………………………………………………………….
Position : Director……………………………………………………….
PT…………………………...... (Securities Company Name)
Full Address : ………………………………………………………………….
………………………………………………………………….
(street name and number)
……………………………………………………….- 
(city and postal code)
Telephone Number : ………………………………………………………………….

Based on the Articles of Association of PT......................................................
(Securities Company Name) is authorized to act on behalf of the company, hereby declares that the documents submitted to the Financial Services Authority for the application for or modification of business license/modification of shareholders and/or Controlling Shareholders/modification of Board of Directors members and/or Board of Commissioners members*) are as follows:
a. corporate documents are true and not misleading; and b. the truthfulness of documents regarding prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders/prospective Board of Directors members/prospective Board of Commissioners members/Board of Directors members/Board of Commissioners members*) is as stated in the Declaration of Document Truthfulness signed by the concerned parties.

This declaration is made truthfully for use as appropriate.
.........., ......................20........
(place and date)
.............................................
(full name and signature)

Note:
*) strike out what is not necessary stamp duty

QUESTIONNAIRE LIST

I. INSTRUCTIONS FOR ANSWERING QUESTIONS

All questions must be answered by prospective Board of Directors members/Board of Directors members/prospective Board of Commissioners members/Board of Commissioners members/prospective shareholders/shareholders/prospective Controlling Shareholders/Controlling Shareholders*).
Signed by prospective Board of Directors members/prospective Board of Commissioners members/Board of Directors members/Board of Commissioners members/prospective shareholders/prospective Controlling Shareholders/shareholders/Controlling Shareholders*) on stamped paper (on sealed paper).
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”.
For every “Yes” answer, the applicant is required to provide a detailed and clear answer containing at least:
a. The relevant institutions; b. Cases and dates of actions taken;
c. The court or institution taking action; and
d. Actions and sanctions imposed

II. INTEGRITY OF APPLICANT, CONTROLLING SHAREHOLDER, OR DIRECTORS AND COMMISSIONERS

Definition
Investment is activities regarding Securities, banking, insurance, pension funds, cooperatives, other financial institutions including activities, whether direct or indirect, related to Securities Companies, Investment Advisors, Banks or other companies operating in the financial sector, and/or other investment activities in the real sector such as housing or real estate businesses.

Answer the following questions:

Within the last 20 (twenty) years, have you ever been convicted for:
a. criminal offenses related to Investment?
 Yes  No b. or other crimes?
 Yes  No
Has a court:
a. declared you bankrupt?
 Yes  No b. within the last 20 (twenty) years prohibited you from engaging in activities related to investment?
 Yes  No
c. declared you guilty of being involved in legal violations (criminal offenses) related to investment and/or involved in legal violations of laws and regulations in the field of financial services?
 Yes  No d. frozen/stopped temporarily, restricted, or revoked licenses (or other permits similar to licenses) that you possess?
 Yes  No e. declared that you caused a business related to investment, its business license, or license to operate to be rejected, frozen, revoked, or restricted?
 Yes  No
Has the Financial Services Authority ever:
a. declared and/or found that you made false, misleading, or dishonest, unfair or unethical statements, or were negligent in providing information that should have been provided?

 Yes  No b. declared and/or found that you were involved in violations of laws and regulations in the field of the Capital Market?
 Yes  No
c. declared that you were found guilty of being involved in investment activities so that the business license or other licenses similar to business licenses owned by a company were frozen, restricted, or revoked/canceled?
 Yes  No d. rejected applications for Licenses, Approvals, or Registrations/Registered Letters that you submitted?
 Yes  No e. imposed sanctions by freezing, restricting activities, or revoking/canceling Licenses, Approvals, or Registrations/Registered Letters that you possess, such as Registered Letters as Capital Market Supporting Professions such as Accountants, Legal Consultants, Appraisers, or Notaries?  Yes  No f. declared that your business license or license to operate your business related to investment was rejected, frozen, revoked, or restricted?  Yes  No g. ordered to reject, temporarily stop, or revoke your business license, imposing sanctions by restricting your activities?  Yes  No

Have other competent authorities ever:
a. declared and/or found that you made false, misleading, or dishonest, unfair or unethical statements?
 Yes  No

b. declared and/or found that you were involved in violations of laws and regulations concerning investment activities?
 Yes  No
c. declared and/or found that you caused a company related to Investment whose business license application was rejected or whose business license (or other licenses similar to business licenses) to be frozen/stopped temporarily, restricted, or revoked?
 Yes  No d. ordered to prohibit you from engaging in activities related to investment within the last 20 (twenty) years?
 Yes  No e. rejected license applications (other permits similar to licenses), or frozen/stopped temporarily, restricted, or revoked licenses (other permits similar to licenses) that you possess to operate in investment activities?  Yes  No f. rejected license applications (other permits similar to licenses), or frozen/stopped temporarily, restricted, or revoked licenses (other permits similar to licenses) that you possess to operate in activities other than investment, such as Registered Letters as Capital Market Supporting Professions such as Accountants, Legal Consultants, Appraisers, or Notaries?  Yes  No

Has the Stock Exchange ever:
a. declared and/or found that you made false, misleading, or dishonest, unfair or unethical statements, or were negligent in providing information that should have been provided?
 Yes  No

b. declared and/or found that you were involved in violations of Stock Exchange Regulations  Yes  No
c. disciplined you by issuing or temporarily suspending the Securities Company where you work from membership in a Stock Exchange resulting from your error, by restricting or temporarily suspending the relationship of the said Securities Company with other Stock Exchange members.
 Yes  No d. found that you caused the business license or license to operate a company related to investment to be frozen, revoked, or restricted?
 Yes  No

Has a foreign court ever declared that you were guilty due to criminal charges or civil lawsuits related to investment?
 Yes  No
Has a foreign court, applicable regulations, or Stock Exchange ordered actions to be taken against you concerning fraud offenses?
 Yes  No
Are you currently a party to a lawsuit in court?
 Yes  No
Do you have commitments, specific ties, or contingent obligations to third parties whose cases are being processed or have received court decisions?
 Yes  No
Taking disciplinary action against you by issuing or freezing membership by preventing or freezing relationships with other members, or by restricting activities?
 Yes  No
Has an insurance company ever refused to pay you or revoked your insurance?
 Yes  No
Have you ever been a Board of Directors member of a Securities Company, Investment Advisor, or Controlling Shareholder of a Securities Company that was declared bankrupt?
 Yes  No
Do you individually or collectively hold shares exceeding 5% (five percent) in an Issuer?
 Yes  No
Do you individually or collectively hold 20% (twenty percent) or more of shares in another Securities Company?
 Yes  No
Have you ever been declared unqualified by the Financial Services Authority as a shareholder, controlling shareholder, Board of Directors member, Board of Commissioners member, and Executive Officers of financial services institutions?
 Yes  No

.........., ......................20........
(place and date)
.............................................
(full name and signature)

Note:
*) select one stamp duty

LISTS A, B, AND C

Provide information regarding owners/shareholders, commissioners, and officials using the table below. If additional explanation is needed, use List C.
Definition:
a. Officials are the Board of Directors or officials one level below the Board of Directors and parties having the same position or function. b. Owners are shareholders or beneficial owners of 5% (five percent) or more of the applicant's shares.
Also report changes in Board of Commissioners members, officials, shareholders, and beneficial owners, including the date the new party starts and the date the party leaves their previous position in the relevant company using the table below:

List A:
List of Board of Commissioners Members, Officials, and Shareholders

List B:
List of Securities Company Representative License Holders

List C:
Filled with detailed explanations for “Yes” answers to questions 1 through 15 according to the answer format for the question list and further explanations from Lists A and B.

List of explanations for Questions Number 1 to 15

| No | Nomor Pertanyaan (Question Number) | Daftar Penjelasan (Explanation List) |

........., ......................20........
(place and date)
.............................................
(full name and signature)

Established in Jakarta on 7 April 2016

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD stamp duty

Copy in accordance with the original
Legal Director 1
Legal Department signed
Yuliana

POJK on Licensing of Securities Companies Engaging in Underwriting Securities and Securities Broker Activities

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 20 /POJK.04/2016

CONCERNING

LICENSING OF SECURITIES COMPANIES ENGAGING IN BUSINESS ACTIVITIES AS SECURITIES UNDERWRITERS AND SECURITIES BROKERS

CHAPTER I

GENERAL PROVISIONS

Article 1

CHAPTER II

LICENSING AND REQUIREMENTS FOR SECURITIES COMPANIES ENGAGING IN BUSINESS ACTIVITIES AS SECURITIES UNDERWRITERS AND/OR SECURITIES BROKERS

Section One

Business License

Article 2

Article 3

Article 4

Article 5

Section Two

Requirements

Paragraph 1

Articles of Association Requirements

Article 6

Paragraph 2

Identity Requirements

Article 7

Paragraph 3

Capital Requirements

Article 8

Article 9

Paragraph 4

Operational Requirements

Article 10

Article 11

Article 12

Paragraph 5

Integrity and Financial Suitability Requirements for Shareholders and Controlling Shareholders

Article 13

Paragraph 6

Integrity and Competency Requirements for Members of the Board of Directors or Members of the Board of Commissioners

Article 14

CHAPTER III

PROCEDURES FOR APPLICATION FOR LICENSING OF SECURITIES COMPANIES AS SECURITIES UNDERWRITERS AND SECURITIES BROKERS

Section One

Application for Business License

Article 15

Lineage: In force