Registration of Professional Certification Bodies in the Capital Market Sector

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 79 /POJK.04/2017
CONCERNING
REGISTRATION OF PROFESSIONAL CERTIFICATION BODIES IN THE CAPITAL MARKET SECTOR BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that one of the requirements that must be fulfilled by individuals to obtain licenses as representatives of securities underwriters, representatives of securities trading intermediaries, representatives of marketing securities trading intermediaries, representatives of limited marketing securities trading intermediaries, representatives of investment managers, representatives of mutual fund sales agents, and individual capital market Sharia experts is to possess expertise certificates recognized by the Financial Services Authority; b. that expertise certification in the capital market sector is carried out systematically and objectively through competency tests referring to the Indonesian National Work Competency Standards;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Registration of Professional Certification Bodies in the Capital Market Sector;
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

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: REGISTRATION OF PROFESSIONAL CERTIFICATION BODIES IN THE CAPITAL MARKET SECTOR.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined:

1. National Professional Certification Body, hereinafter abbreviated as BNSP, is an independent institution as referred to in applicable legislation.
2. Professional Certification Body, hereinafter abbreviated as LSP, is an implementing body for work competency certification that obtains a license from BNSP.
3. Indonesian National Work Competency Standards, hereinafter abbreviated as SKKNI, is a formulation of work capabilities covering knowledge aspects, skills and/or expertise, and work attitudes relevant to the execution of tasks and job requirements established according to applicable legislation.
4. Expertise Certificate is a competency certificate issued by an LSP that can be used to fulfill competency and/or proficiency requirements related to knowledge and expertise in the capital market sector in applications for licenses as representatives of securities underwriters, representatives of securities trading intermediaries, representatives of marketing securities trading intermediaries, representatives of limited marketing securities trading intermediaries, representatives of investment managers, representatives of mutual fund sales agents, individual capital market Sharia experts, or other individual licenses in the capital market sector determined by the Financial Services Authority.
5. Work Competency Certification is the process of issuing Expertise Certificates carried out systematically and objectively through competency tests referring to the applicable SKKNI, which applies to representatives of securities underwriters, representatives of securities trading intermediaries, representatives of marketing securities trading intermediaries, representatives of limited marketing securities trading intermediaries, representatives of investment managers, representatives of mutual fund sales agents, individual capital market Sharia experts, or other individual licenses in the capital market sector determined by the Financial Services Authority.
6. Representative of Securities Underwriter is an individual who acts on behalf of the interests of a securities company conducting business activities as a securities underwriter.
7. Representative of Securities Trading Intermediary is an individual who acts on behalf of the interests of a securities company conducting business activities as a securities trading intermediary.
8. Representative of Marketing Securities Trading Intermediary is an individual who acts on behalf of the interests of a securities company conducting business activities as a securities trading intermediary, specifically performing marketing functions.
9. Representative of Limited Marketing Securities Trading Intermediary is an individual who acts on behalf of the interests of a securities company conducting business activities as a securities trading intermediary, specifically performing limited marketing functions.
10. Representative of Investment Manager is an individual who acts on behalf of the interests of a securities company conducting business activities as an investment manager.
11. Representative of Mutual Fund Sales Agent is an individual who has obtained a license from the Financial Services Authority to act as a seller of mutual fund securities.
12. Capital Market Sharia Expert is:
    a. an individual who has knowledge and experience in the Sharia field; or b. a business entity whose board members and employees have knowledge and experience in the Sharia field, who provide advice and/or supervise the implementation of Sharia principles application in the capital market in business activities of companies and/or provide statements of Sharia compliance for Sharia products or services in the capital market.
    CHAPTER II
    SCOPE AND REQUIREMENTS FOR LSP IN THE CAPITAL MARKET SECTOR
    Article 2
    The implementation of Work Competency Certification for Representatives of Securities Underwriters, Representatives of Securities Trading Intermediaries, Representatives of Marketing Securities Trading Intermediaries, Representatives of Limited Marketing Securities Trading Intermediaries, Representatives of Investment Managers, Representatives of Mutual Fund Sales Agents, Individual Capital Market Sharia Experts, or other individual licenses in the capital market sector determined by the Financial Services Authority is conducted by LSP.
    Article 3
    LSP as referred to in Article 2 must be registered with the Financial Services Authority.
    Article 4
    (1) To fulfill the registration obligation as referred to in Article 3, LSP must meet at least the following requirements:
    a. holding a license as an LSP from BNSP; b. having a vision, mission, and strategy that support the improvement of work competencies for Representatives of Securities Underwriters, Representatives of Securities Trading Intermediaries, Representatives of Marketing Securities Trading Intermediaries, Representatives of Limited Marketing Securities Trading Intermediaries, Representatives of Investment Managers, Representatives of Mutual Fund Sales Agents, Individual Capital Market Sharia Experts, or other individual licenses in the capital market sector determined by the Financial Services Authority; (2) LSP meeting the requirements as referred to in paragraph (1) submits registration to the Financial Services Authority, attaching the following documents:
    a. photocopy of the LSP's Articles of Association; b. photocopy of the still-valid license from BNSP covering the scope of certification activities by the LSP;
    c. organizational structure and operational area of the LSP;
    d. LSP certification scheme; and e. policies and procedures in the implementation of the certification process.
    (3) Further provisions regarding membership, duties, authorities, and responsibilities of the guiding elements and implementing elements are determined by the LSP while paying attention to BNSP regulations.
    Article 5
    (1) In the event that based on the review by the Financial Services Authority, the LSP has met the requirements and document completeness as referred to in Article 4, the Financial Services Authority lists the name of the LSP in the list of LSPs conducting Expertise Certification. (2) The Financial Services Authority announces LSPs registered with the Financial Services Authority as referred to in paragraph (1) on the Financial Services Authority website.
    Article 6
    LSP must meet the requirements as referred to in Article 4 throughout the implementation of the Work Competency Certification program.
    Article 7
    The work competency standards used in the implementation of competency tests for Work Competency Certification are the SKKNI applied to Representatives of Securities Underwriters, Representatives of Securities Trading Intermediaries, Representatives of Marketing Securities Trading Intermediaries, Representatives of Limited Marketing Securities Trading Intermediaries, Representatives of Investment Managers, Representatives of Mutual Fund Sales Agents, Individual Capital Market Sharia Experts, or other individual licenses in the capital market sector determined by the Financial Services Authority.
    Article 8
    (1) LSP must apply the methods and procedures for competency tests as established in the certification scheme.
    (2) The implementation of competency tests as referred to in paragraph (1) uses methods that ensure objective and systematic assessment.
    Article 9
    LSP has the duties and responsibilities:
    a. developing and documenting written policies and procedures necessary to ensure the smooth running of the entire certification process and taking corrective actions if weaknesses or violations are found; b. issuing Work Competency Certificates on behalf of BNSP stating at least the certificate holder's name, qualification level, field of work or profession, competency unit, and certificate validity period;
    c. adjusting the content of Work Competency Certification tests with developments in knowledge and needs in the capital market industry; and
    d. submitting activity reports related to the implementation of Work Competency Certification when required by the Financial Services Authority.
    CHAPTER III
    OTHER PROVISIONS
    Article 10
    (1) The Financial Services Authority has the authority to:
    a. coordinate with BNSP to evaluate the quality of Work Competency Certification standards and materials tested in Work Competency Certification; and b. include or remove the name of LSP in the list of LSPs at the Financial Services Authority and on the Financial Services Authority website. (2) LSP must submit reports regarding the implementation of the Work Competency Certification program requested by the Financial Services Authority as referred to in Article 9 letter d.
    CHAPTER IV
    SANCTION PROVISIONS
    Article 11
    (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 violating the provisions of this Financial Services Authority Regulation, including parties causing the violation, consisting 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 fines as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of sanctions as referred to in paragraph (1) letters c, d, e, f, or g.
    Article 12
    In addition to administrative sanctions as referred to in Article 11 paragraph (1), the Financial Services Authority may take specific actions against any party violating the provisions of this Financial Services Authority Regulation.
    Article 13
    The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 11 paragraph (1) and specific actions as referred to in Article 12 to the public.
    CHAPTER V
    TRANSITIONAL PROVISIONS
    Article 14
    Certificates issued by:
    a. special education institutions in the capital market sector that have received recognition from the Financial Services Authority based on Regulation Number V.B.5, attachment of the Chairman of the Capital Market Supervisory Board and Financial Institutions Decision Number Kep-598/BL/2012 concerning Procedures for Application for Recognition of Expertise Certificates of Company Representatives by Special Education Institutions in the Capital Market Sector; and b. other parties and have been accepted by the Financial Services Authority as requirements for applying for individual licenses in the capital market sector, before the implementation of this Financial Services Authority Regulation, remain recognized by the Financial Services Authority and can be used for applying for individual licenses in the capital market sector provided they are not older than 2 (two) years from the date of issuance until the time of applying for individual licenses in the capital market sector.
    Article 15
    (1) Certificates of competency and/or proficiency issued by parties based on:
    a. Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634); b. Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 362, Supplement to the State Gazette of the Republic of Indonesia Number 5636);
    c. Financial Services Authority Regulation Number 16/POJK.04/2015 concerning Capital Market Sharia Experts (State Gazette of the Republic of Indonesia Year 2015 Number 267, Supplement to the State Gazette of the Republic of Indonesia Number 5756);
    d. Financial Services Authority Regulation Number 50/POJK.04/2015 concerning Licensing of Mutual Fund Sales Agent Representatives (State Gazette of the Republic of Indonesia Year 2015 Number 401, Supplement to the State Gazette of the Republic of Indonesia Number 5819); and/or e. Financial Services Authority Regulation Number 22/POJK.04/2016 concerning Segmentation of Licensing for Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2016 Number 75, Supplement to the State Gazette of the Republic of Indonesia Number 5875); before the implementation of this Financial Services Authority Regulation, remain recognized by the Financial Services Authority and can be used for applying for individual licenses in the capital market sector provided they are not older than 2 (two) years from the date of issuance until the time of applying for individual licenses in the capital market sector. (2) Parties issuing certificates of competency and/or proficiency as referred to in paragraph (1) must comply with the provisions regulated in this Financial Services Authority Regulation no later than 2 (two) years from the date of enactment of this Financial Services Authority Regulation. (3) In the event that parties as referred to in paragraph (1) do not comply with the provisions as referred to in paragraph (2), the certificates of competency and/or proficiency issued will not be recognized by the Financial Services Authority and cannot be used for applying for individual licenses in the capital market sector.
    CHAPTER VI
    FINAL PROVISIONS
    Article 16
    Upon the implementation of this Financial Services Authority Regulation:
    a. Chairman of the Capital Market Supervisory Board and Financial Institutions Decision Number Kep-598/BL/2012 dated October 31, 2012 concerning Procedures for Application for Recognition of Expertise Certificates of Company Representatives by Special Education Institutions in the Capital Market Sector along with Regulation Number V.B.5 which is its attachment; b. provision number 2 letter a of Regulation Number V.B.1, Attachment of the Chairman of the Capital Market Supervisory Board and Financial Institutions Decision Number: KEP547/BL/2010 dated December 28, 2010 concerning Licensing of Company Representatives;
    c. provisions of Article 18, Article 26 paragraph (2), and Article 31 letter a of Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634);
    d. provisions of Article 18, Article 27 paragraph (2), and Article 32 letter a of Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 362, Supplement to the State Gazette of the Republic of Indonesia Number 5636); e. provisions of Article 20 of Financial Services Authority Regulation Number 16/POJK.04/2015 concerning Capital Market Sharia Experts (State Gazette of the Republic of Indonesia Year 2015 Number 267, Supplement to the State Gazette of the Republic of Indonesia Number 5756); f. provisions regarding recommendations of the Expertise Standards Committee as referred to in:
13. Article 4 letter b number 2 letter a), Article 6 paragraph (3) letter d number 1 of Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634);
14. Article 4 letter b number 2 letter a), Article 6 paragraph (3) letter d number 1 of Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 362, Supplement to the State Gazette of the Republic of Indonesia Number 5636); and
15. Article 3 paragraph (1) letter b number 2 letter a), Article 4 paragraph (3) letter a number 11 letter a) of Financial Services Authority Regulation Number 16/POJK.04/2015 concerning Capital Market Sharia Experts (State Gazette of the Republic of Indonesia Year 2015 Number 267, Supplement to the State Gazette of the Republic of Indonesia Number 5756); and
    g. provisions regarding recognition by the Financial Services Authority concerning expertise certification in the capital market sector as referred to in:
16. Article 4 letter b number 2 letter a), Article 6 paragraph (3) letter d number 1, Article 10 paragraph (3) letter g of Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 360, Supplement to the State Gazette of the Republic of Indonesia Number 5634);
17. Article 10 paragraph (3) letter g of Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2014 Number 362, Supplement to the State Gazette of the Republic of Indonesia Number 5636); and
18. Article 3 paragraph (1) letter b number 2 letter a) and number 3, Article 4 paragraph (3) letter a number 11 letter a) of Financial Services Authority Regulation Number 16/POJK.04/2015 concerning Capital Market Sharia Experts (State Gazette of the Republic of Indonesia Year 2015 Number 267, Supplement to the State Gazette of the Republic of Indonesia Number 5756);
19. Article 9 letter b number 2 of Financial Services Authority Regulation Number 22/POJK.04/2016 concerning Segmentation of Licensing for Securities Trading Intermediary Representatives (State Gazette of the Republic of Indonesia Year 2016 Number 75, Supplement to the State Gazette of the Republic of Indonesia Number 5875),
    are revoked and declared invalid.
    Article 17
    This Financial Services Authority Regulation comes into force after 2 (two) years counting from the date of enactment.

This copy corresponds to the original
Director of Legal Affairs 1
Legal Department signed
Yuliana
For everyone to know, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on December 21, 2017
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO
Promulgated in Jakarta on December 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 300

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 79 /POJK.04/2017
CONCERNING
REGISTRATION OF PROFESSIONAL CERTIFICATION BODIES IN THE CAPITAL MARKET SECTOR
I. GENERAL
In order to realize a financial system that grows sustainably and stably, the Financial Services Authority has the function of organizing integrated regulation and supervision over all activities in the financial services sector. In relation to its regulatory and supervisory functions, the Financial Services Authority always follows developments in the global capital market in the era of rapid globalization. One of the regulations of concern to the Financial Services Authority is related to the need for professional manpower in the capital market sector which continues to increase. Recognizing the important role and contribution of company representatives in the capital market sector, on October 19, 2014, the Financial Services Authority issued Financial Services Authority Regulation Number 25/POJK.04/2014 concerning Licensing of Investment Manager Representatives and POJO Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives where the main provisions among others are competency requirements for Investment Manager Representatives, Securities Underwriter Representatives, and Securities Trading Intermediary Representatives, namely having adequate knowledge and expertise in the capital market sector proven by possessing a certificate recognized by the Financial Services Authority and issued by a special education institution in the capital market sector based on a recommendation from the expertise standards committee. In the following year, in order to encourage the development of the Indonesian Islamic capital market industry, on November 3, 2015, the Financial Services Authority issued Financial Services Authority Regulation Number 16/POJK.04/2015 concerning Capital Market Sharia Experts. One of the main aspects of regulation in this Financial Services Authority Regulation is requiring Capital Market Sharia Experts to have adequate knowledge and expertise in the capital market sector proven by possessing a certificate recognized by the Financial Services Authority and issued by a special education institution in the capital market sector based on a recommendation from the expertise standards committee and having adequate knowledge in muamalah Sharia proven by a certificate issued by an institution recognized by the Financial Services Authority. Furthermore, in order to increase the quantity of human resources licensed as Securities Trading Intermediary Representatives, specifically to perform marketing functions and expand the capital market investor base, the development of Securities Trading Intermediary Representatives should not stop at quality improvement alone, but also quantity improvement to meet the needs of the capital market industry. This quantity increase is carried out through a licensing segmentation scheme for Securities Trading Intermediary Representatives specifically performing marketing functions. Therefore, the Financial Services Authority
issued Financial Services Authority Regulation Number 22/POJK.04/2016 concerning Segmentation of Licensing for Securities Trading Intermediary Representatives. In the aforementioned Financial Services Authority Regulation, there is a segmentation of individual licenses as Securities Trading Intermediary Representatives, namely licenses for Marketing Securities Trading Intermediary Representatives and Limited Marketing Securities Trading Intermediary Representatives, where the provisions related to license application requirements still refer to Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Securities Underwriter Representatives and Securities Trading Intermediary Representatives. Thus, one of the license application requirements for Marketing Securities Trading Intermediary Representatives and Limited Marketing Securities Trading Intermediary Representatives is having adequate knowledge and expertise in the capital market sector proven by possessing a certificate recognized by the Financial Services Authority and issued by a special education institution in the capital market sector based on a recommendation from the expertise standards committee. Furthermore, to provide a legal basis for the Financial Services Authority and for parties issuing expertise certificates in the capital market sector, it is deemed necessary to formulate a Financial Services Authority Regulation concerning the Registration of Professional Certification Bodies in the Capital Market Sector, where matters related to the formation of the expertise standards committee, recommendations of the expertise standards committee, and recognition by the Financial Services Authority concerning expertise certification in the capital market sector have been fulfilled through the certification scheme based on this 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
Paragraph (1)
The certification scheme is a package of competencies and specific requirements established by BNSP related to

Job categories or specific skills of Deputy Underwriters, Deputy Securities Brokers, Deputy Marketing Securities Brokers, Limited Marketing Securities Brokers, Deputy Investment Managers, Deputy Mutual Fund Sales Agents, Individual Capital Market Sharia Experts, or other individual licenses in the capital market sector determined by the Financial Services Authority.

Paragraph (2)
In implementing competency testing for Deputy Underwriters, Deputy Securities Brokers, Deputy Marketing Securities Brokers, Limited Marketing Securities Brokers, Deputy Investment Managers, Deputy Mutual Fund Sales Agents, Individual Capital Market Sharia Experts, or other individual licenses in the capital market sector determined by the Financial Services Authority, the LSP may use devices to conduct such competency testing, including but not limited to work history records in task execution, lists of written questions, lists of interview questions, simulations, case studies, and/or other competency testing tools determined by the National Qualification Agency (BNSP).

Article 9
Sufficiently clear.

Article 10
Paragraph (1)
Sufficiently clear.

Paragraph (2)
The LSP report contains information and data regarding the implementation of the Competency Work Certification Program, including the frequency of competency testing organization, the number of participants who took the competency test and the pass rate, as well as the plan for the Competency Work Certification Program.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6168