Procedure for Electronic Submission of Mutual Fund Confirmation Letters or Evidence and Periodic Reports via the Integrated Investment Management System

To:

1. Board of Directors of Investment Managers;
2. Board of Directors of Securities Companies;
3. Custodian Banks;
4. Mutual Fund Sales Agents; and
5. Board of Directors of PT Kustodian Sentral Efek Indonesia,
   At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 1 /SEOJK.04/2020 CONCERNING PROCEDURE FOR SUBMISSION OF CONFIRMATION LETTERS OR EVIDENCE AND PERIODIC REPORTS OF MUTUAL FUNDS ELECTRONICALLY THROUGH THE INTEGRATED INVESTMENT MANAGEMENT SYSTEM

In order to implement the mandate of Article 20 paragraph (4) of Financial Services Authority Regulation Number 28/POJK.04/2016 concerning the Integrated Investment Management System (State Gazette of the Republic of Indonesia Year 2016 Number 149, Supplement to the State Gazette of the Republic of Indonesia Number 5910), it is necessary to regulate provisions regarding the procedure for submitting confirmation letters or evidence and periodic reports of Mutual Funds through the Integrated Investment Management System in a Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS

1. In this Circular Letter of the Financial Services Authority, the following terms are defined:
   a. Integrated Investment Management System, hereinafter referred to as S-INVEST, is an integrated electronic system or facility that integrates all processes of Investment Product Transactions, Underlying Asset Transactions, and reporting in the investment management industry. b. Investment Manager is a party whose business activities manage Securities Portfolios for customers or manage collective investment portfolios for a group of customers, except insurance companies, pension funds, and banks that conduct their own business activities based on applicable laws and regulations.
   c. Custodian Bank is a general bank that has received approval from the Financial Services Authority to conduct business as a custodian.
   d. Mutual Fund is a vehicle used to gather funds from public investors to be subsequently invested in Securities Portfolios by Investment Managers. e. S-INVEST Provider is a party that provides and manages S-INVEST. f. S-INVEST User is an Investment Manager, Securities Trading Intermediary that conducts Underlying Asset Transactions, Mutual Fund Sales Agent, Custodian Bank, bank as a dealer, and other parties designated by the Financial Services Authority that are registered with the S-INVEST Provider. g. Securities Ownership Reference, hereinafter referred to as AKSes, is a facility of the S-INVEST Provider containing, among other things, information regarding records of ownership of Securities and/or funds recorded in Securities accounts, investment accounts and/or customer fund accounts, and/or other information related to the Capital Market.

2. S-INVEST Users acting as Mutual Fund Custodian Banks submit:
   a. letters or confirmation evidence regarding the execution of orders for sales, repurchase/redemption, and/or transfer of shares or mutual fund participation units; and b. periodic reports regarding mutations of ownership of shares or mutual fund participation units as well as the position of ownership of shares or mutual fund participation units, as regulated in applicable laws and regulations in the capital market sector governing Mutual Fund Reports, to each shareholder or mutual fund participation unit holder through S-INVEST.

II. USE OF S-INVEST IN SUBMITTING CONFIRMATION LETTERS OR EVIDENCE AND PERIODIC REPORTS OF MUTUAL FUNDS

1. The S-INVEST Provider provides data entry formats and information related to letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds, as regulated in applicable laws and regulations in the capital market sector governing Mutual Fund Reports.

2. S-INVEST Users acting as Mutual Fund Custodian Banks submit data and information related to the content of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds through S-INVEST.

3. In the submission of data and information as referred to in item 2, S-INVEST Users acting as Custodian Banks must observe applicable laws and regulations in the capital market sector governing Mutual Fund Reports.

4. S-INVEST Users acting as Investment Managers and/or S-INVEST Users acting as Mutual Fund Sales Agents must ensure:
   a. the consent of shareholders or mutual fund participation unit holders regarding the electronic submission of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds; and b. the ownership and validity of the email addresses of shareholders or mutual fund participation unit holders to be used for the electronic submission of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds.

5. In the event that the submission of data and information related to the content of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds has been carried out through S-INVEST, the submission of data and information related to the content of letters or confirmation evidence and periodic reports of Mutual Funds in printed form is not required, except for shareholders or mutual fund participation unit holders who do not provide consent for the electronic submission of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds.

6. In the event that shareholders or mutual fund participation unit holders specifically request data and information regarding letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds in printed form from S-INVEST Users acting as Investment Managers and/or S-INVEST Users acting as Mutual Fund Sales Agents, such services may be provided by S-INVEST Users acting as Investment Managers and/or S-INVEST Users acting as Mutual Fund Sales Agents, provided that no additional costs are charged to the Mutual Fund.

7. The procedure for submitting data and information related to the content of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds, as referred to in item 2, is determined by the S-INVEST Provider while still observing provisions in applicable laws and regulations in the capital market sector governing Mutual Fund Reports.

8. Data and information related to the content of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds, as referred to in item 2, are available to shareholders or unit holders through the AKSes facility provided by the S-INVEST Provider.

9. S-INVEST Users acting as Custodian Banks are responsible for the accuracy, completeness, and correctness of the data and information submitted, as referred to in item 2.

10. In the event of discrepancies in data and information related to the content of letters or confirmation evidence of transactions involving shares or mutual fund participation units and periodic reports of Mutual Funds in the AKSes facility and Custodian Bank records, the following provisions apply:
    a. Data and information held by S-INVEST Users acting as Custodian Banks serve as the primary reference. b. Corrections to discrepancies in customer data in the AKSes facility and customer data in Custodian Bank records are made by S-INVEST Users acting as Custodian Banks no later than 2 (two) working days from the time the discrepancy in data and information is known.
    c. The mechanism for correcting discrepancies in customer data in the AKSes facility and customer data and information in Custodian Bank records is carried out according to the procedures determined by the S-INVEST Provider.

11. The S-INVEST Provider, S-INVEST Users acting as Investment Managers, and S-INVEST Users acting as Mutual Fund Sales Agents provide assistance and information services to help shareholders or unit holders obtain information regarding:
    a. letters or confirmation evidence regarding the execution of orders for sales, repurchase/redemption, and/or transfer of shares or mutual fund participation units to shareholders or mutual fund participation unit holders; and b. periodic reports to each shareholder or mutual fund participation unit holder regarding mutations of ownership of shares or mutual fund participation units as well as the position of ownership of shares or mutual fund participation units, as regulated in applicable laws and regulations in the capital market sector governing Mutual Fund Reports; which are carried out through the AKSes facility provided by the S-INVEST Provider.

III. TRANSITIONAL PROVISIONS

1. S-INVEST Users acting as Custodian Banks conduct trial submissions of confirmation letters and periodic reports of Mutual Funds through S-INVEST within a period of 12 (twelve) months from the date this Circular Letter of the Financial Services Authority is established.

2. During the trial period as referred to in item 1, S-INVEST Users acting as Custodian Banks continue to submit confirmation letters and periodic reports of Mutual Funds as regulated in applicable laws and regulations in the capital market sector governing Mutual Fund Reports.

This copy is consistent with the original
Deputy Director of Legal Consultation and
Banking Regulation Harmonization 1
Legal Directorate 1
Legal Department signed
Wiwit Puspasari

3. During the trial period as referred to in item 1, the S-INVEST Provider, S-INVEST Users acting as Investment Managers, and S-INVEST Users acting as Mutual Fund Sales Agents conduct socialization to shareholders or unit holders regarding the use of the AKSes facility provided by the S-INVEST Provider as a means of submitting confirmation letters and periodic reports of Mutual Funds.

IV. CLOSING

This Circular Letter of the Financial Services Authority takes effect on the date of establishment.

Established in Jakarta on 17 February 2020
CHIEF EXECUTIVE OFFICER
CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
HOESEN