POJK on the Procedure for Making Regulations by the Depository and Settlement Institution

FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 48 /POJK.04/2016
CONCERNING
PROCEDURE FOR MAKING REGULATIONS BY THE DEPOSITORY AND SETTLEMENT INSTITUTION BY THE GRACE OF THE MOST HIGH GOD, THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authorities for the regulation and supervision of financial services activities in the Capital Market sector, including regarding the procedure for making regulations by the Depository and Settlement Institution, have shifted from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that in order to provide clarity and certainty regarding the regulation of the procedure for making regulations by the Depository and Settlement Institution, regulations regarding the procedure for making regulations by the Depository and Settlement Institution issued prior to the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
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 the Procedure for Making Regulations by the Depository and Settlement Institution;
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);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE PROCEDURE FOR MAKING REGULATIONS BY THE DEPOSITORY AND SETTLEMENT INSTITUTION.

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

1. Stock Exchange is a Party that organizes and provides systems and/or facilities to bring together buy and sell offers of Securities of other Parties with the aim of trading Securities among them.
2. Clearing and Guarantee Institution is a Party that organizes clearing and guarantee services for the settlement of Stock Exchange Transactions.
3. Depository and Settlement Institution is a Party that organizes Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.
4. Board of Commissioners is the organ of the Depository and Settlement Institution tasked with conducting general and/or specific supervision in accordance with the Articles of Association and providing advice to the Board of Directors.

CHAPTER II
CREATION OF REGULATIONS BY THE DEPOSITORY AND SETTLEMENT INSTITUTION First Section Requirements for Drafting Regulations of the Depository and Settlement Institution
Article 2
(1) Regulations or amendments to regulations of the Depository and Settlement Institution are made by taking into account opinions from users of services of the Depository and Settlement Institution, Stock Exchanges, Clearing and Guarantee Institutions, and other interested Parties. (2) Regulations or amendments to regulations of the Depository and Settlement Institution as referred to in paragraph (1) must first obtain approval from the Board of Commissioners before being submitted to the Financial Services Authority for approval.

Article 3
(1) Applications for approval of regulations or amendments to regulations of the Depository and Settlement Institution are submitted to the Financial Services Authority in quadruplicate (4 copies) using the format of the Application for Approval of Regulations or Amendments to Regulations of the Depository and Settlement Institution as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents as follows:
a. the regulations for which approval is requested; b. approval from the Board of Commissioners;
c. opinions from users of services of the Depository and Settlement Institution; and
d. opinions from interested parties regarding the regulations in question.
(2) In the application, the reasons for the request must be explained, at least covering the background of the regulation drafting, the problems faced, and the solutions.

Second Section
Review of Applications for Approval of Regulations or Amendments to Regulations of the Depository and Settlement Institution
Article 4
(1) In order to process the approval application as referred to in Article 3, the Financial Services Authority grants approval or rejection of the application for approval of regulations or amendments to regulations of the Depository and Settlement Institution no later than 60 (sixty) days from the date the application is received in complete by the Financial Services Authority. (2) Within the period as referred to in paragraph (1), the Financial Services Authority may request changes to the material of the amendments to regulations of the Depository and Settlement Institution and/or request additional information related to the regulations in question. (3) In the event that changes and/or additional information as referred to in paragraph (2) have been submitted to the Financial Services Authority, the application for amendments to regulations of the Depository and Settlement Institution is calculated from the date the changes or additional information are received by the Financial Services Authority.

CHAPTER III
INTERPRETATION OF REGULATIONS OF THE DEPOSITORY AND SETTLEMENT INSTITUTION AND INTERNAL REGULATIONS OF THE DEPOSITORY AND SETTLEMENT INSTITUTION
Article 5
Interpretations of regulations of the Depository and Settlement Institution to clarify their meaning but not change or add to the meaning thereof, and provisions regarding the implementation of internal activities of the Depository and Settlement Institution concerning the personnel affairs of the Depository and Settlement Institution, the use of identification marks, and standard operating procedures for activities of the Depository and Settlement Institution, apply at the time they are submitted to the Financial Services Authority.

Article 6
Notification by the Depository and Settlement Institution to the Financial Services Authority regarding interpretations of regulations of the Depository and Settlement Institution and provisions regarding the implementation of internal activities of the Depository and Settlement Institution as referred to in Article 5, is submitted using the format of Notification of Interpretation of Regulations of the Depository and Settlement Institution or Regulations on Internal Activities of the Depository and Settlement Institution as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by explanations and the background of their drafting.

Article 7
The Financial Services Authority may cancel interpretations and provisions regarding internal activities of the Depository and Settlement Institution as referred to in Article 6, within a period of 30 (thirty) days from the date the regulations in question come into force.

CHAPTER IV
SANCTION PROVISIONS
Article 8
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties who 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 9
In addition to administrative sanctions as referred to in Article 8 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 10
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 8 paragraph (1) and specific actions as referred to in Article 9 to the public.

CHAPTER V
CLOSING PROVISIONS
Article 11
At the time this Financial Services Authority Regulation comes into force, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-13/PM/1996 dated January 17, 1996 concerning the Procedure for Making Regulations by the Depository and Settlement Institution, along with Regulation Number III.C.2 which is its appendix, is revoked and declared invalid.

Article 12
This Financial Services Authority Regulation comes into force on the date of its 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.
Established in Jakarta on December 2, 2016
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Promulgated in Jakarta on December 7, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 277 Copy in accordance with the original Director of Legal Affairs 1 Department of Law signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 48 /POJK.04/2016
CONCERNING
PROCEDURE FOR MAKING REGULATIONS BY THE DEPOSITORY AND SETTLEMENT INSTITUTION
I. GENERAL
That since December 31, 2012, the functions, duties, and authorities for the regulation and supervision of financial services activities in the Capital Market, Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions sectors have shifted from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority. In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the Capital Market sector, by converting Capital Market-related regulations of the Capital Market Supervisory Agency and Financial Institutions into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations related to the Capital Market sector that are consistent with Financial Services Authority Regulations in other sectors. Based on the background thinking and aspects mentioned, it is necessary to replace the legislation in the Capital Market sector regulating the Procedure for Making Regulations by the Depository and Settlement Institution, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-13/PM/1996 dated January 17, 1996 concerning the Procedure for Making Regulations by the Depository and Settlement Institution along with Regulation Number III.C.2 which is its appendix, into a Financial Services Authority Regulation concerning the Procedure for Making Regulations by the Depository and Settlement Institution.

II. ARTICLE BY ARTICLE
Article 1
Clearly stated.
Article 2
Clearly stated.
Article 3
Clearly stated.
Article 4
Clearly stated.
Article 5
Clearly stated.
Article 6
Clearly stated.
Article 7
Clearly stated.
Article 8
Clearly stated.
Article 9
Clearly stated.
Article 10
Clearly stated.
Article 11
Clearly stated.
Article 12
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5973

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 48 /POJK.04/2016
CONCERNING
PROCEDURE FOR MAKING REGULATIONS BY THE DEPOSITORY AND SETTLEMENT INSTITUTION

APPLICATION FOR APPROVAL OF REGULATIONS OR AMENDMENTS TO REGULATIONS OF THE DEPOSITORY AND SETTLEMENT INSTITUTION
Number: ...............,..............20....
Attachments:
Subject: Application for
Approval of
Submission or
Amendment of Regulations of the
Depository and
Settlement Institution
To:
THE
Executive Head of Capital Market Supervision in - Hereby we submit an application for approval of regulations or amendments to regulations of the Depository and Settlement Institution as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................
   As consideration materials, attached herewith are explanations and documents as follows:
4. ......................................................................
5. ......................................................................
6. ......................................................................
   Thus this application is submitted, and we thank you for your attention.
   PT. ................................,

---

(Full Name and Position)

NOTIFICATION OF INTERPRETATION OF REGULATIONS OF THE DEPOSITORY AND SETTLEMENT INSTITUTION OR REGULATIONS ON INTERNAL ACTIVITIES OF THE DEPOSITORY AND SETTLEMENT INSTITUTION
Number: ...............,............20....
Attachments:
Subject: Notification of
Interpretation of Regulations of the Depository and Settlement Institution or Regulations on Internal Activities of the Depository and Settlement Institution To:
THE
Executive Head of Capital Market Supervision in - Hereby it is notified that the Board of Directors of the Depository and Settlement Institution has established interpretations of regulations/internal activity regulations as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................
   As additional information, attached herewith are explanations regarding the background of the interpretation of regulations or internal activity regulations in question, as follows:
4. ......................................................................
5. ......................................................................
6. ......................................................................
   Thus, we thank you for your attention.
   PT. ................................,

---

(Full Name and Position)
Established in Jakarta on December 2, 2016
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Copy in accordance with the original
Director of Legal Affairs 1
Department of Law signed
Yuliana