POJK on Securities Brokerage Agents

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 24/POJK.04/2016
CONCERNING
SECURITIES BROKERAGE AGENTS
BY THE GRACE OF THE ALMIGHTY GOD,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to increase the number of Indonesian Capital Market investors, utilize the potential of the Indonesian Capital Market, and optimize the marketing functions of Securities Brokers, it is necessary to establish a Financial Services Authority Regulation concerning Securities Brokerage Agents; Recalling: 1. Law Number 8 of 1995 concerning Capital Markets (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);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING SECURITIES BROKERAGE AGENTS.
COPY

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Securities Broker is a Party that conducts business activities of buying and selling Securities for its own behalf or for the behalf of other Parties.
2. Securities Brokerage Agent is a Party that refers prospective clients to a Securities Broker to become clients of the Securities Broker, receiving commissions based on a cooperation contract.
3. Limited Marketing Sub-Broker License is the Limited Marketing Sub-Broker License as referred to in the Financial Services Authority Regulation concerning Licensing Segmentation of Sub-Brokers.
4. Financial Business Actor is a Financial Business Actor as referred to in the Financial Services Authority Regulation concerning Consumer Protection in the Financial Services Sector.
5. Booth is a facility for the activities of a Securities Brokerage Agent that is not permanent, with a maximum duration of 3 (three) months at 1 (one) same location.

CHAPTER II
SCOPE AND REQUIREMENTS OF SECURITIES BROKERAGE AGENTS First Section Scope of Securities Brokerage Agents
Article 2
Securities Brokerage Agents consist of Institutional Securities Brokerage Agents and Individual Securities Brokerage Agents.

Article 3
(1) Parties conducting activities as Institutional Securities Brokerage Agents must first be registered with the Financial Services Authority and meet the requirements as regulated in this Financial Services Authority Regulation. (2) Institutional Securities Brokerage Agents as referred to in paragraph (1) may only be conducted by Financial Business Actors that are legal entities.

Article 4
(1) Activities as an Individual Securities Brokerage Agent are conducted by individuals who hold licenses as Securities Issuance Underwriting Representatives, Securities Brokerage Representatives, Securities Brokerage Marketing Representatives, and/or Limited Marketing Securities Brokerage Marketing Representatives. (2) Individuals holding licenses as Securities Issuance Underwriting Representatives, Securities Brokerage Representatives, Securities Brokerage Marketing Representatives, and/or Limited Marketing Securities Brokerage Marketing Representatives as referred to in paragraph (1) may conduct activities as Individual Securities Brokerage Agents without needing to first submit a registration application to the Financial Services Authority. (3) Individuals holding licenses as Securities Issuance Underwriting Representatives, Securities Brokerage Representatives, Securities Brokerage Marketing Representatives, and/or Limited Marketing Securities Brokerage Marketing Representatives as referred to in paragraph (1) may conduct activities as Individual Securities Brokerage Agents, provided they do not work for Securities Companies and Financial Business Actors.

Article 5
(1) Institutional Securities Brokerage Agents as referred to in Article 3 may only conduct offering activities to prospective clients to become clients of Securities Brokers and other activities regulated by the Financial Services Authority. (2) Institutional Securities Brokerage Agents as referred to in Article 3 may conduct offering activities to prospective clients to become clients of Securities Brokers at the head office, other offices besides the head office, other locations, and/or Booths. (3) Individual Securities Brokerage Agents as referred to in Article 4 may only conduct offering activities to prospective clients to become clients of Securities Brokers.

Article 6
Employees of Institutional Securities Brokerage Agents conducting Securities Brokerage Agent activities must hold individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives.

Second Section
Requirements for Institutional Securities Brokerage Agents
Article 7
In order to obtain a Certificate of Registration as an Institutional Securities Brokerage Agent, Financial Business Actors must:
a. have employees conducting Securities Brokerage Agent activities at each head office, other offices besides the head office, other locations, and/or Booths of the Securities Brokerage Agent conducting Securities Brokerage Agent activities; b. have responsible officials for Securities Brokerage Agent activities for each head office, other offices besides the head office, other locations, and/or Booths of the Securities Brokerage Agent conducting Securities Brokerage Agent activities; and
c. have adequate internal control systems.

Article 8
Employees conducting Securities Brokerage Agent activities and/or responsible officials as referred to in Article 7 letters a and b must:
a. hold individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives; and b. receive specific written assignments from the Institutional Securities Brokerage Agent to act as employees conducting Securities Brokerage Agent activities and/or responsible officials for Securities Brokerage Agent activities.

Article 9
Adequate internal control systems as referred to in Article 7 letter c must be documented in writing, containing at least:
a. the granting of authority and responsibilities that can avoid conflicts of interest; b. standard operating procedures for the implementation of Securities Brokerage Agent activities; and
c. efforts and actions taken to correct deviations that occur.

CHAPTER III
REGISTRATION PROCEDURES, ELECTRONIC DOCUMENTS, AND TIME LIMITS First Section Registration of Institutional Securities Brokerage Agents
Article 10
(1) Registration applications as Institutional Securities Brokerage Agents are submitted by applicants in printed document form to the Financial Services Authority according to the format of the registration application letter for Institutional Securities Brokerage Agents as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation. (2) Registration applications as Institutional Securities Brokerage Agents as referred to in paragraph (1) must be accompanied by complete documents as follows:
a. photocopies of the approved deed of establishment and the latest amended articles of association; b. photocopies of the Business Tax Identification Number (NPWP);
c. photocopies of business licenses;
d. data of the head office containing the office address and person in charge, as well as a list of employees conducting Securities Brokerage Agent activities; e. documents related to the name, data, and information of responsible officials for Securities Brokerage Agents, including:

1. the latest signed curriculum vitae;
2. photocopies of valid Identity Cards or passports;
3. photocopies of Foreign Worker Employment Permits for foreign citizens;
4. photocopies of Board of Directors decisions regarding the appointment or placement as responsible officials for Securities Brokerage Agent activities at the head office; and
5. photocopies of individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives, in the name of the concerned individual;
   f. employee documents conducting Securities Brokerage Agent activities, including:
6. the latest signed curriculum vitae;
7. photocopies of valid Identity Cards or passports;
8. photocopies of Foreign Worker Employment Permits for foreign citizens;
9. photocopies of Board of Directors decisions regarding the appointment or placement of employees conducting Securities Brokerage Agent activities at the head office; and
10. photocopies of individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives, in the name of the concerned individual;
    g. organizational structure diagrams showing lines of responsibility from each function to the person in charge or Board of Directors members responsible for the implementation of Securities Brokerage Agent activities, along with job descriptions; h. standard operating procedures for the implementation of Securities Brokerage Agent activities; and
    i. projections of planned Securities Brokerage Agent activities for at least 1 (one) year ahead, covering at least the following information:
11. target types of prospective clients (market segments); and
12. target numbers of prospective clients.

Article 11
The Financial Services Authority may request additional data and/or information to complete registration applications as referred to in Article 10.

Second Section
Electronic Documents, Registration Process, and Time Limits
Article 12
(1) Registration application documents as referred to in Article 10 must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact discs or others, or via email at the address pendaftaranappe@ojk.go.id. (2) In the event that the Financial Services Authority has provided an electronic system, registration applications as referred to in Article 10 may be submitted through the said electronic system. (3) In the event that Financial Business Actors submit registration applications through the electronic system as referred to in paragraph (2), Financial Business Actors must retain printed copies of the registration applications as submitted through the electronic system. (4) The Financial Services Authority may at any time request printed copies of registration applications from Financial Business Actors as referred to in paragraph (3) if necessary.

Article 13
(1) In processing registration applications for Securities Brokerage Agents as referred to in Article 10, the Financial Services Authority conducts research on the completeness of application documents. (2) In the event that registration applications for Securities Brokerage Agents as referred to in Article 10 do not meet the requirements, within 45 (forty-five) days from the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that:
a. the application does not yet meet document completeness requirements; or b. the application is rejected due to not meeting requirements. (3) Applicants must complete missing required documents as referred to in paragraph (2) letter a within 45 (forty-five) days from the date of the notification letter. (4) Applicants who do not complete missing documents as referred to in paragraph (3) are deemed to have cancelled their registration applications for Securities Brokerage Agents. (5) The Financial Services Authority provides a Certificate of Registration as a Securities Brokerage Agent to applicants submitting registration applications as referred to in Article 10 within 45 (forty-five) days from the receipt of complete and compliant applications.

Article 14
(1) Institutional Securities Brokerage Agents must conduct Securities Brokerage Agent activities within 6 (six) months from:
a. obtaining a Certificate of Registration from the Financial Services Authority; or b. the end of cooperation contracts for Securities Brokerage Agent activities. (2) In the event that Institutional Securities Brokerage Agents do not conduct Securities Brokerage Agent activities within 6 (six) months as referred to in paragraph (1), the Certificate of Registration for Institutional Securities Brokerage Agents becomes invalid.

CHAPTER IV
COOPERATION CONTRACTS
Article 15
Securities Brokerage Agent activities must be based on cooperation contracts between Securities Brokers and Securities Brokerage Agents.

Article 16
Cooperation contracts as referred to in Article 15 must contain at least the following:
a. identities of parties involved in the contract; b. rights and obligations of the parties;
c. commissions received by Securities Brokerage Agents and costs borne by Securities Brokerage Agents;
d. contract duration; e. designation of judicial bodies or other institutions as dispute resolution bodies for civil disputes between Parties; and f. contract termination provisions.

Article 17
In cooperating with Securities Brokerage Agents, Securities Brokers must:
a. have written cooperation contracts with Securities Brokerage Agents; b. be responsible for cooperation agreements between Securities Brokers and Securities Brokerage Agents;
c. be responsible for the behavior of Individual Securities Brokerage Agents;
d. examine the fulfillment of determined requirements and due diligence testing processes for prospective Securities Brokerage Agents; e. ensure that Institutional Securities Brokerage Agents have officials responsible for Securities Brokerage Agent activities; f. be responsible for acts and actions of Securities Brokerage Agents within the scope of services as stated in cooperation agreements; and g. monitor and supervise Securities Brokerage Agent activities directly, both periodically and incidentally.

Article 18
(1) Securities Brokerage Agents must submit reports upon the commencement and/or termination of cooperation contracts with Securities Brokers to the Financial Services Authority. (2) Reports on the commencement of cooperation contracts as referred to in paragraph (1) must be accompanied by cooperation contract documents and due diligence feasibility documents with Securities Brokers. (3) Submission of reports as referred to in paragraph (1) must be done within 7 (seven) working days from the effective start and/or end of cooperation.

CHAPTER V
RESPONSIBLE OFFICIALS AND EMPLOYEES OF SECURITIES BROKERAGE AGENTS
Article 19
(1) Institutional Securities Brokerage Agents must have at least 1 (one) responsible official for Institutional Securities Brokerage Agent activities. (2) Responsible officials for Institutional Securities Brokerage Agent activities as referred to in paragraph (1) must have marketing activity experience of at least 3 (three) years. (3) Responsible officials as referred to in paragraph (1) have duties and functions including at least:
a. ensuring that Institutional Securities Brokerage Agent activities have proceeded in accordance with:

1. cooperation contracts made by Institutional Securities Brokerage Agents with Securities Brokers;
2. standard operating procedures for Institutional Securities Brokerage Agents; and
3. cooperation contracts made by Institutional Securities Brokerage Agents with other parties to implement Securities Brokerage Agent activities at Booths;
   b. ensuring that documents regarding the process of Securities Brokerage Agent activities as referred to in letter a are complete; and
   c. ensuring that the process of Institutional Securities Brokerage Agent activities has proceeded in accordance with applicable laws and regulations.

(4) Responsible officials for Institutional Securities Brokerage Agents are prohibited from holding concurrent positions at other companies.

Article 20
(1) Employees of Institutional Securities Brokerage Agents conducting Securities Brokerage Agent activities are prohibited from holding concurrent positions at other companies. (2) Employees of Institutional Securities Brokerage Agents as referred to in paragraph (1) are prohibited from being registered at more than 1 (one) location of Institutional Securities Brokerage Agents. (3) Concurrent positions as referred to in paragraph (2) do not apply to Booths.

Article 21
In the event of vacancies in all employees conducting Securities Brokerage Agent activities and/or responsible officials for Institutional Securities Brokerage Agent activities as referred to in Article 7 letters a and b, the concerned Institutional Securities Brokerage Agents cannot execute functions, duties, and authorities as Institutional Securities Brokerage Agents until there are employees conducting Securities Brokerage Agent activities and/or responsible officials for Securities Brokerage Agent activities holding licenses at minimum as Limited Marketing Securities Brokerage Marketing Representatives.

CHAPTER VI
OTHER OFFICES BESIDES HEAD OFFICES, OTHER LOCATIONS, AND BOOTHS OF SECURITIES BROKERAGE AGENTS First Section Other Offices Besides Head Offices and Other Locations of Institutional Securities Brokerage Agents
Article 22
(1) Institutional Securities Brokerage Agents conducting Securities Brokerage Agent activities at other offices besides head offices and/or other locations must report to the Financial Services Authority within 7 (seven) working days after the commencement of the said Securities Brokerage Agent activities. (2) Reports as referred to in paragraph (1) are submitted according to the format of reports on activities of Institutional Securities Brokerage Agents at other offices besides head offices and/or other locations as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation. (3) Submission of reports as referred to in paragraph (2) is accompanied by documents as follows:
a. documents of responsible officials for Institutional Securities Brokerage Agents at other offices besides head offices and/or other locations, including:

1. the latest signed curriculum vitae;
2. photocopies of valid Identity Cards or passports;
3. photocopies of Foreign Worker Employment Permits for foreign citizens;
4. photocopies of Board of Directors decisions regarding the appointment or designation as responsible officials for Securities Brokerage Agent activities at other offices besides head offices and/or other locations; and
5. photocopies of individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives, in the name of the concerned individual;
   b. documents of employees of Securities Brokerage Agents conducting Securities Brokerage Agent activities at other offices besides head offices and/or other locations, including:
6. the latest signed curriculum vitae;
7. photocopies of valid Identity Cards or passports;
8. photocopies of Foreign Worker Employment Permits for foreign citizens;
9. photocopies of Board of Directors decisions regarding the appointment or designation of employees of Securities Brokerage Agents conducting Securities Brokerage Agent activities at other offices besides head offices and/or other locations; and
10. photocopies of individual licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives, in the name of the concerned individual;
    c. domicile letters for other offices besides head offices and/or other locations from building managers or competent agencies; and
    d. lists of other offices besides head offices and/or other locations, including office addresses and persons in charge, as well as lists of employees of Securities Brokerage Agents conducting Securities Brokerage Agent activities, according to the format of lists of other offices besides head offices and/or other locations of Institutional Securities Brokerage Agents as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation.

Article 23
Report documents on activities of Securities Brokerage Agents at other offices besides head offices and/or other locations as referred to in Article 22 paragraphs (2) and (3) must also be prepared in digital format and submitted to the Financial Services Authority using digital media such as compact discs or others, or via email at the address pendaftaranappe@ojk.go.id.

Second Section
Booths of Securities Brokerage Agents
Article 24
(1) Securities Brokerage Agents may open Booths through cooperation with other parties.
(2) Securities Brokerage Agent activities at Booths must be conducted by individuals holding licenses from the Financial Services Authority, at minimum licenses as Limited Marketing Securities Brokerage Marketing Representatives.

CHAPTER VII
OBLIGATIONS AND PROHIBITIONS OF SECURITIES BROKERAGE AGENTS First Section Obligations of Securities Brokerage Agents
Article 25
For Securities Brokerage Agents:
a. institutional agents must:

1. be responsible for all actions related to Securities Brokerage Agent activities conducted by employees and/or parties cooperating with the Securities Brokerage Agent;
2. have supervision systems over the activities of their employees conducting Securities Brokerage Agent activities to ensure compliance with all Capital Market laws and regulations; and
3. perform duties as well as possible with good faith and full responsibility according to cooperation contracts; and
   b. individual agents must:
4. be responsible for all actions related to Securities Brokerage Agent activities; and
5. perform duties as well as possible with good faith and full responsibility according to cooperation contracts with Securities Brokers.

Second Section
Prohibitions for Securities Brokerage Agents
Article 26
For Securities Brokerage Agents:
a. institutional agents are prohibited from:

1. accepting orders from clients or forwarding client transactions;

2. collecting payments from clients and sharing commissions with clients;

3. providing incorrect explanations and exaggerated statements regarding Capital Market investments;

4. ensuring and guaranteeing investment returns;

5. suggesting transactions;

6. making negative statements about specific Securities Brokers;

7. provide recommendations on specific Securities to prospective customers to obtain benefits;

8. promise commission discounts to prospective customers;
   and

9. act as a Securities Broker Agent for more than 1 (one) Securities Broker;
   and b. individuals are prohibited from:

10. receiving orders from customers or forwarding customer transactions;

11. collecting payments from customers and sharing commissions with customers;

12. providing incorrect explanations and exaggerated statements regarding investments in the Capital Market;

13. guaranteeing and promising investment returns;

14. advising to conduct transactions;

15. making negative statements against specific Securities Brokers;

16. providing recommendations on specific Securities to prospective customers to obtain benefits;

17. promising commission discounts to prospective customers;

18. acting as a Securities Broker Agent for more than 1 (one) Securities Broker;
    and

19. working for a Financial Business Actor.

CHAPTER VIII
REPORT SUBMISSION

First Section
Reports by Institutional Securities Broker Agents

Article 27
Institutional Securities Broker Agents are required to report to the Financial Services Authority if there are:

1. changes in the address of the headquarters, other offices besides the headquarters, and/or other locations;
2. changes in the responsible officials and employees who conduct Securities Broker Agent activities;
   and/or
3. closure of other offices besides the headquarters and/or other locations,
   no later than 7 (seven) working days since the occurrence of the aforementioned event.

Second Section
Reports by Securities Brokers

Article 28
(1) Securities Brokers are required to report to the Financial Services Authority every addition and termination of cooperation with Securities Broker Agents. (2) Reports on every addition and termination of cooperation as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 7 (seven) working days since the addition and termination of such cooperation. (3) Securities Brokers are required to report the development of the implementation of Securities Broker Agent activities to the Financial Services Authority, in accordance with the format of the report on the development of the implementation of Securities Broker Agent activities as contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (4) Reports on the development of the implementation of Securities Broker Agent activities as referred to in paragraph (3) must be submitted to the Financial Services Authority quarterly for the positions of March, June, September, and December no later than every 15th (fifteenth) working day after the end of the reporting month.

Article 29
In the event that the Financial Services Authority has provided an electronic reporting system for Securities Broker Agents, reports as referred to in Article 28 may be submitted through the aforementioned electronic system.

CHAPTER IX
TERMINATION OF ACTIVITIES OF SECURITIES BROKER AGENTS

First Section
Revocation or Cancellation of the Registration Certificate as an Institutional Securities Broker Agent

Article 30
The Registration Certificate as an Institutional Securities Broker Agent may be revoked or cancelled by the Financial Services Authority based on the following grounds:
a. The Registration Certificate as an Institutional Securities Broker Agent is returned to the Financial Services Authority; b. violation of laws and regulations in the Capital Market sector;
c. the business license of the party conducting Institutional Securities Broker Agent activities is revoked by the Financial Services Authority; and
d. the legal entity of the party conducting activities as a Securities Broker Agent is bankrupt or dissolved.

Second Section
Termination of Activities of Individual Securities Broker Agents

Article 31
The activities of an Individual Securities Broker Agent end automatically if the Individual License from the Financial Services Authority in the form of a license as an Underwriting Agent, Broker Agent, Marketing Broker Agent, and/or Limited Marketing Broker Agent owned is no longer valid.

CHAPTER X
SANCTION PROVISIONS

Article 32
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this regulation, including parties that cause the violation to occur, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration. (2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or 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) letters c, d, e, f, or g.

Article 33
In addition to administrative sanctions as referred to in Article 32 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 34
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 32 paragraph (1) and specific actions as referred to in Article 33 to the public.

CHAPTER XI
TRANSITIONAL PROVISIONS

Article 35
At the time this Financial Services Authority Regulation comes into force, individuals who already have licenses as Underwriting Agents, Broker Agents, Marketing Broker Agents, and/or Limited Marketing Broker Agents may conduct activities as Individual Securities Broker Agents.

Article 36
Work cooperation contracts between Parties and Securities Brokers for the purpose of offering to prospective customers to become customers of Securities Brokers that are still valid and existed prior to the coming into force of this Financial Services Authority Regulation, must:
a. be adjusted to this Financial Services Authority Regulation; and b. be reported to the Financial Services Authority, no later than 1 (one) year since this Financial Services Authority Regulation is promulgated.

CHAPTER XII
CLOSING PROVISIONS

Article 37
This Financial Services Authority Regulation comes into force on the date of its promulgation.
To ensure that everyone knows it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on 27 June 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on 29 June 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H.LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 127 Copy in accordance with the original Director of Law 1 Ministry of Law signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 24/POJK.04/2016
CONCERNING
SECURITIES BROKER AGENTS

I. GENERAL
One of the causes of the low number of Capital Market investors in Indonesia is the limited access for the Indonesian public to become investors in the Capital Market. The limited marketing network of Securities Brokers, which is only focused on large cities, causes potential investors located in regions to be difficult to reach. In order to expand the marketing function of Securities Brokers, regulations are needed that allow Securities Brokers to cooperate with other Parties who have access to reach prospective customers, especially prospective customers located in regions. This regulation opens up opportunities for other Parties to become Securities Broker Agents by cooperating with Securities Brokers to offer to the public to become customers of Securities Brokers. Such Parties can be individuals or legal entities that are Financial Business Actors, such as Commercial Banks, Rural Banks, Securities Companies, Investment Advisors, Custodian Banks, Pension Funds, Insurance Companies, Reinsurance Companies, Financing Companies, Pawnshops, and Guarantee Companies. The cooperation between Securities Broker Agents and Securities Brokers is based on a written contract/agreement, which states at least the clauses that must be included in the agreement between both parties. Securities Broker Agents can offer and process the acceptance of customers for Securities Brokers, as well as convey information about a Security as a customer reference for Security transactions. However, Security transactions are still conducted by Securities Brokers. Besides opening up opportunities for other Parties to become Securities Broker Agents, this regulation also regulates the activities and behavior of Securities Broker Agents. These regulations are expected to provide greater legal certainty and compliance of Securities Broker Agents with laws and regulations, so that ultimately they can protect investor communities from detrimental practices. In relation to this and in order to implement the activities of Securities Broker Agents and to mitigate risks that may arise, it is necessary to regulate Securities Broker Agents in a Financial Services Authority Regulation.

II. ARTICLE BY ARTICLE

Article 1
Clearly sufficient.

Article 2
Clearly sufficient.

Article 3
Clearly sufficient.

Article 4
Clearly sufficient.

Article 5
Clearly sufficient.

Article 6
Clearly sufficient.

Article 7
Clearly sufficient.

Article 8
Clearly sufficient.

Article 9
Clearly sufficient.

Article 10
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
The term "competent agency" includes among others agencies whose duties and responsibilities are in the field of law and human rights.
Letter b
Clearly sufficient.
Letter c
The term business license includes the approval of the legal entity of Pension Funds.
Letter d
Clearly sufficient.
Letter e
Number 1
To see work experience in marketing activities, the curriculum vitae is supplemented with work experience information containing the year of work, company name, business field, job title and job description, and responsibilities. Number 2 Clearly sufficient. Number 3 Clearly sufficient. Number 4 Clearly sufficient. Number 5 Clearly sufficient. Letter f Clearly sufficient. Letter g Clearly sufficient. Letter h Clearly sufficient. Letter i Clearly sufficient.

Article 11
Clearly sufficient.

Article 12
Paragraph (1)
The aforementioned electronic letter is commonly called e-mail.
Paragraph (2)
The Financial Services Authority no longer requires the submission of Securities Broker Agent registration applications in the form of printed documents if the application has been submitted through the electronic system. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient.

Article 13
Clearly sufficient.

Article 14
Clearly sufficient.

Article 15
Clearly sufficient.

Article 16
Clearly sufficient.

Article 17
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
The provision in this letter c only applies to Securities Brokers who cooperate with Individual Securities Broker Agents.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.

Article 18
Clearly sufficient.

Article 19
Paragraph (1)
The responsible official may be appointed as the party responsible at 1 (one) or more locations of Securities Broker Agent activities.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.

Article 20
Clearly sufficient.

Article 21
Clearly sufficient.

Article 22
Clearly sufficient.

Article 23
The aforementioned electronic letter is commonly called e-mail.

Article 24
Clearly sufficient.

Article 25
Clearly sufficient.

Article 26
Clearly sufficient.

Article 27
Clearly sufficient.

Article 28
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
The report on the development of the implementation of Securities Broker Agent activities by Securities Brokers applies to Institutional Securities Broker Agents and Individual Securities Broker Agents who have cooperation contracts with the aforementioned Securities Brokers, which at least explains the development of:
a. the number of cooperations with existing Securities Broker Agents; b. the number of prospective customers submitted by Securities Broker Agents to Securities Brokers;
c. the number of prospective customers approved to become customers; and
d. transaction value.
Paragraph (4)
Clearly sufficient.

Article 29
Clearly sufficient.

Article 30
Clearly sufficient.

Article 31
Clearly sufficient.

Article 32
Clearly sufficient.

Article 33
Clearly sufficient.

Article 34
Clearly sufficient.

Article 35
Clearly sufficient.

Article 36
Clearly sufficient.

Article 37
Clearly sufficient.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5896

DRAFT
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 24/POJK.04/2016
CONCERNING
SECURITIES BROKER AGENTS

APPLICATION FOR REGISTRATION
AS AN INSTITUTIONAL SECURITIES BROKER AGENT
Number : ..................................... ............., ...................20........
Attachment : ......................................
Subject : Application for Registration
As an Institutional
Securities Broker Agent
To
The Executive Head
Capital Market Supervisor
Financial Services Authority in Jakarta

I, who sign below:

1. Name : ……………………………………………….........

2. Address : ………………………………………………........
   ………………………………………………........
   (street name and number)
   ……………………………….........……-
   (city and postal code)

3. Telephone Number : ……………………………………………….........
   hereby on behalf of*):

4. Company Name : ……………………………………………….........

5. Company Address : ………………………………………………........
   ………………………………………………........
   (street name and number)
   ……………………………….........……-
   (city and postal code)

6. Company Telephone Number
   : ……………………………………………….........

7. Taxpayer Identification Number (NPWP) : ……………………………………………….........

8. Business License Owned : ……………………………………………….........
   submit an application for registration as an Institutional Securities Broker Agent. As consideration material and to complete the application, we hereby attach the following documents:

9. photocopy of the deed of establishment approved by the competent authority, and the latest amendment to the articles of association;

10. photocopy of the Corporate Taxpayer Identification Number (NPWP);

11. photocopy of the business license;

12. data of the headquarters containing the office address and responsible person, as well as a list of employees conducting Securities Broker Agent activities;

13. documents related to the name, data, and information of the responsible official of the Securities Broker Agent, including:
    a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
    c. photocopy of the Foreign Worker Employment Permit, for foreign citizens;
    d. photocopy of the Board of Directors' decision letter regarding the appointment or placement as the responsible official for Securities Broker Agent activities at the headquarters; and e. photocopy of the individual license from the Financial Services Authority at least in the form of a license as a Limited Marketing Broker Agent in the name of the concerned person;

14. documents of employees conducting Securities Broker Agent activities, including:
    a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
    c. photocopy of the Foreign Worker Employment Permit, for foreign citizens;
    d. photocopy of the Board of Directors' decision letter regarding the appointment or placement of employees conducting Securities Broker Agent activities at the headquarters; and e. photocopy of the individual license from the Financial Services Authority at least in the form of a license as a Limited Marketing Broker Agent in the name of the concerned person;

15. organizational structure diagram showing the line of responsibility from each function to the responsible person or board member responsible for the implementation of Securities Broker Agent activities, along with job descriptions;

16. standard operating procedures for the implementation of Securities Marketing Agent activities; and

17. projection of the planned operation of Securities Broker Agent activities for at least 1 (one) year ahead, which must at least include the following information:
    a. target type of prospective customers (market share); and b. target number of prospective customers.

Thus this application is submitted, thank you for your attention, Sir/Madam.
.........., ......................20........
(place and date)
.............................................
(full name and signature)
Note:
*) the party authorized to represent the Institutional Securities Broker Agent or their proxy stamp

REPORT ON ACTIVITIES OF INSTITUTIONAL SECURITIES BROKER AGENTS AT OTHER OFFICES BESIDES THE HEADQUARTERS AND/OR OTHER LOCATIONS
Number : ..................................... ............., ...................20.....
Attachment : ......................................
Subject : Report on Activities of
Securities Marketing Agent at Other Offices
Besides the Headquarters And/Or
Other Locations
To
The Executive Head
Capital Market Supervisor
Financial Services Authority in Jakarta

I, who sign below:

1. Name : ……………………………………………….........

2. Address : ……………………………………………….........
   ………………………………………………........
   (street name and number)
   ………………….........…………………-
   (city and postal code)

3. Telephone Number : ……………………………………………….....
   hereby on behalf of*):

4. Name of Office Besides
   Headquarters And/Or
   Other Locations
   : ……………………………………………….........

5. Address of Office Besides
   Headquarters And/Or
   Other Locations
   : ……………………………………………….........
   (street name and number)
   …………………….........………………-
   (city and postal code)

6. Telephone Number of Office
   Besides the Headquarters
   And/Or Other Locations
   ………………………………………………........

7. Name of Headquarters ……………………………………………….........

8. Address of Headquarters ……………………………………………….........
   (street name and number)
   ……………………………………-
   (city and postal code)

9. Telephone Number of Headquarters
   : ……………………………………………….........

10. Taxpayer Identification Number (NPWP) : ……………………………………………….........

11. Business License Owned : ……………………………………………….........
    submit a report on the activities of the Securities Broker Agent at other offices besides the headquarters and/or other locations. As consideration material, we hereby attach the following data and documents:

12. documents of the responsible official of the Institutional Securities Broker Agent at other offices besides the headquarters and/or other locations, including:
    a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
    c. photocopy of the Foreign Worker Employment Permit, for foreign citizens;
    d. photocopy of the Board of Directors' decision letter regarding the appointment or designation as the responsible official for Securities Broker Agent activities at other offices besides the headquarters and/or other locations; and e. photocopy of the individual license from the Financial Services Authority at least in the form of a license as a Limited Marketing Broker Agent in the name of the concerned person;

13. documents of Securities Broker Agent employees who conduct Securities Broker Agent activities at other offices besides the headquarters and/or other locations, including:
    a. the latest signed curriculum vitae; b. photocopy of the valid Identity Card or passport;
    c. photocopy of the Foreign Worker Employment Permit, for foreign citizens;
    d. photocopy of the Board of Directors' decision letter regarding the appointment or designation as a Securities Broker Agent employee who conducts Securities Broker Agent activities at other offices besides the headquarters and/or other locations; and e. photocopy of the individual license from the Financial Services Authority at least in the form of a license as a Limited Marketing Broker Agent in the name of the concerned person;

14. domicile letter for other offices besides the headquarters and/or other locations from the building manager or competent agency; and

15. list of other offices besides the headquarters and/or other locations, along with office addresses and responsible persons, as well as a list of Securities Broker Agent employees conducting Securities Broker Agent activities.

Thus this report is submitted, thank you for your attention, Sir/Madam.
.........., ......................20........
(place and date)
.............................................
(full name and signature)
Note:
*) the party authorized to represent the Institutional Securities Broker Agent or their proxy ) cross out what is not needed stamp

LIST OF OTHER OFFICES BESIDES THE HEADQUARTERS AND/OR OTHER LOCATIONS OF INSTITUTIONAL SECURITIES BROKER AGENTS No.
Office Name (Other Offices
Besides the Headquarters
And/Or Other Locations)
Full Address
(Telephone Number and Fax)
Responsible Official
List of Securities Broker Agent Deputies
Number and Date of
Decision Letter of
Securities Company Deputy
.........., ......................20........
(place and date)
.............................................
(full name and signature) stamp

REPORT ON THE DEVELOPMENT OF THE IMPLEMENTATION OF SECURITIES BROKER AGENT ACTIVITIES
PT ....................
PERIOD ......................
No.
Name of Securities
Broker Agent
Contract
Number
Contract
Date
Effective
Date
Number of prospective customers submitted
Number of prospective customers approved to become customers Transaction Value
.........., ......................20........
(place and date)
.............................................
(full name and signature)
Determined in Jakarta on 27 June 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD stamp
Copy in accordance with the original
Director of Law 1
Ministry of Law signed
Yuliana