Procedure for the Creation of Regulations by Clearing and Guarantee Institutions

FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 47 /POJK.04/2016
CONCERNING
PROCEDURE FOR THE CREATION OF REGULATIONS BY CLEARING AND GUARANTEE INSTITUTIONS

BY THE GRACE OF THE ALMIGHTY GOD,

THE BOARD OF COMMISSIONERS 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 authority for the regulation and supervision of financial services activities in the Capital Market sector, including regulations regarding the procedure for the creation of regulations by Clearing and Guarantee Institutions, 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 regulations on the procedure for the creation of regulations by Clearing and Guarantee Institutions, regulations on the procedure for the creation of regulations by Clearing and Guarantee Institutions 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 referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Procedure for the Creation of Regulations by Clearing and Guarantee Institutions;

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: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE PROCEDURE FOR THE CREATION OF REGULATIONS BY CLEARING AND GUARANTEE INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS

Article 1
In this Financial Services Authority Regulation, the following definitions apply:

1. Clearing and Guarantee Institution is a Party that provides clearing and guarantee services for the settlement of Stock Exchange Transactions.
2. Depository and Clearing Institution is a Party that conducts Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.
3. Board of Commissioners is the organ of the Clearing and Guarantee Institution responsible for 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 CLEARING AND GUARANTEE INSTITUTIONS

First Section
Requirements for Drafting Regulations of Clearing and Guarantee Institutions

Article 2
(1) Regulations or amendments to regulations of Clearing and Guarantee Institutions are made by considering opinions from users of Clearing and Guarantee Institution services, Depository and Clearing Institutions, and other interested Parties. (2) Regulations or amendments to regulations of Clearing and Guarantee Institutions 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) Requests for approval of regulations or amendments to regulations of Clearing and Guarantee Institutions are submitted to the Financial Services Authority in quadruplicate (4 copies) using the format of the Request for Approval of Regulations or Amendments to Regulations of Clearing and Guarantee Institution as stated in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by the following documents:
a. the regulations for which approval is requested; b. the Board of Commissioners' approval;
c. opinions from users of Clearing and Guarantee Institution services; and
d. opinions from interested Parties regarding the aforementioned regulations.

(2) The request must explain the reasons for the request, at least covering the background of the regulation's drafting, the problems faced, and the solutions.

Second Section
Review of Requests for Approval of Regulations or Amendments to Regulations of Clearing and Guarantee Institutions

Article 4
(1) In processing the approval request as referred to in Article 3, the Financial Services Authority grants approval or rejection of the regulations or requests for amendments to regulations of Clearing and Guarantee Institutions no later than 60 (sixty) days from the date the complete request is received by the Financial Services Authority. (2) Within the period referred to in paragraph (1), the Financial Services Authority may request changes to the content of the amendments to regulations of Clearing and Guarantee Institutions and/or request additional information related to the aforementioned regulations. (3) In the event that amendments and/or additional information as referred to in paragraph (2) are submitted to the Financial Services Authority, the request for amendments to regulations of Clearing and Guarantee Institutions is calculated from the date the amendments or additional information are received by the Financial Services Authority.

CHAPTER III
INTERPRETATION OF REGULATIONS OF CLEARING AND GUARANTEE INSTITUTIONS AND INTERNAL REGULATIONS OF CLEARING AND GUARANTEE INSTITUTIONS

Article 5
Interpretations of regulations of Clearing and Guarantee Institutions to clarify their meanings but not to change or add to those meanings, and regulations regarding the implementation of internal activities of Clearing and Guarantee Institutions concerning personnel matters, the use of identification marks, and standard operating procedures for Clearing and Guarantee Institution activities, are applied when submitted to the Financial Services Authority.

Article 6
Notifications by Clearing and Guarantee Institutions to the Financial Services Authority regarding interpretations of regulations of Clearing and Guarantee Institutions and regulations regarding the implementation of internal activities of Clearing and Guarantee Institutions as referred to in Article 5, are submitted using the format of the Notification of Interpretation of Regulations of Clearing and Guarantee Institutions or Internal Activity Regulations of Clearing and Guarantee Institution as stated 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 of regulations of Clearing and Guarantee Institutions and regulations regarding internal activities of Clearing and Guarantee Institutions as referred to in Article 6, within a period of 30 (thirty) days from the date the aforementioned regulations take effect.

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 violating the provisions of this Financial Services Authority Regulation, including Parties causing the violation, in the form of:
a. written warnings; b. fines, namely the obligation to pay a certain amount of money;
c. business activity restrictions;
d. business activity suspension; e. business license revocation; f. approval cancellation; and g. registration cancellation.

(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 written warnings as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of fines as referred to in paragraph (1) letter b may be imposed independently or jointly 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 violating 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
Upon the entry into force of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-08/PM/1996 dated January 17, 1996 concerning the Procedure for the Creation of Regulations by Clearing and Guarantee Institutions, along with Regulation Number III.B.2 which is its appendix, is revoked and declared invalid.

Article 12
This Financial Services Authority Regulation takes effect upon its promulgation.

To ensure that everyone knows it, the promulgation of this Financial Services Authority Regulation is ordered by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 2, 2016

CHAIRMAN OF THE BOARD OF COMMISSIONERS
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 276

Copy matches the original
Legal Director 1
Legal Department

signed
Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 47 /POJK.04/2016
CONCERNING
PROCEDURE FOR THE CREATION OF REGULATIONS BY CLEARING AND GUARANTEE INSTITUTIONS

I. GENERAL

I.
II.

That since December 31, 2012, the functions, duties, and authority 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 light of the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the Capital Market sector, by converting Capital Market Supervisory Agency regulations related to the Capital Market sector into Financial Services Authority Regulations. This reorganization is conducted to ensure 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 and aspects mentioned above, it is necessary to replace the legislation in the Capital Market sector regulating the Procedure for the Creation of Regulations by Clearing and Guarantee Institutions, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-08/PM/1996 dated January 17, 1996 concerning Stock Exchange Reports along with Regulation Number III.B.2 which is its appendix, with a Financial Services Authority Regulation concerning the Procedure for the Creation of Regulations by Clearing and Guarantee Institutions.

II. ARTICLE BY ARTICLE

Article 1
Sufficiently clear.

Article 2
Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
Sufficiently clear.

Article 5
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Sufficiently clear.

Article 10
Sufficiently clear.

Article 11
Sufficiently clear.

Article 5 ...

Article 12
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5972