Regulation of the Financial Services Authority of the Republic of Indonesia Number 20/POJK.04/2018 Concerning Licensing of Emission Underwriter Representatives and Securities Brokerage Intermediary Representatives

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REGULATION OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 20 /POJK.04/2018 CONCERNING LICENSING OF EMISSION UNDERWRITER REPRESENTATIVES AND SECURITIES BROKERAGE INTERMEDIARY REPRESENTATIVES BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to increase efficiency in license applications, license renewals, and reporting by emission underwriter representatives and securities brokerage intermediary representatives, as well as to optimize supervision of emission underwriter representatives and securities brokerage intermediary representatives, the Financial Services Authority needs to encourage the use of information and communication technology systems; b. that in order to provide ease and freedom in the renewal of licenses for emission underwriter representatives and securities brokerage intermediary representatives, the Financial Services Authority needs to regulate again the provisions regarding the validity period of licenses and the license renewal mechanism contained in Financial Services Authority Regulation 27/POJK.04/2014 concerning Licensing of Emission Underwriter Representatives and Securities Brokerage Intermediary Representatives with a new Financial Services Authority Regulation; FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA

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 Licensing of Emission Underwriter Representatives and Securities Brokerage Intermediary Representatives;

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:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING LICENSING OF EMISSION UNDERWRITER REPRESENTATIVES AND SECURITIES BROKERAGE INTERMEDIARY REPRESENTATIVES.

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

1. Emission Underwriter, hereinafter abbreviated as PEE, is a Party that enters into a contract with an Issuer to conduct a Public Offering for the benefit of the Issuer with or without the obligation to purchase unsold Securities.
2. Securities Brokerage Intermediary, hereinafter abbreviated as PPE, is a Party that conducts business activities of buying and selling Securities for its own benefit or for the benefit of other Parties.
3. Securities Company is a Party that conducts business activities as a PEE, PPE, and/or Investment Manager.
4. Emission Underwriter Representative, hereinafter abbreviated as WPEE, is an individual who acts on behalf of the interests of a Securities Company that conducts business activities as a PEE.
5. Securities Brokerage Intermediary Representative, hereinafter abbreviated as WPPE, is an individual who acts on behalf of the interests of a Securities Company that conducts business activities as a PPE.
6. Individual License as a WPEE, hereinafter referred to as WPEE License, is a license granted by the Financial Services Authority to an individual to act on behalf of the interests of a Securities Company that conducts business activities as a PEE.
7. Individual License as a WPPE, hereinafter referred to as WPPE License, is a license granted by the Financial Services Authority to an individual to act on behalf of the interests of a Securities Company that conducts business activities as a PPE.
8. Professional Certification Institution is an institution that implements work competency certification and obtains a license from the National Professional Certification Agency.

CHAPTER II
LICENSING AND REQUIREMENTS FOR WPEE AND WPPE
Article 2
(1) WPEEs are required to have a WPEE License from the Financial Services Authority.
(2) WPPEs are required to have a WPPE License from the Financial Services Authority.
(3) Individuals who hold a WPEE License may act as WPPEs.

Article 3
(1) The obligation to have a WPEE License as referred to in Article 2 paragraph (1) applies to:
a. directors responsible for emission underwriting activities; b. employees responsible for emission underwriting activities; and
c. employees with positions below directors, who supervise units responsible for emission underwriting activities,
of Securities Companies that have business licenses to conduct business activities as PEEs.
(2) The obligation to have a WPPE License as referred to in Article 2 paragraph (2) applies to:
a. directors responsible for securities brokerage intermediary activities; b. employees conducting marketing activities;
c. employees conducting risk management activities;
d. employees acting as officials supervising compliance and/or internal audit functions; and e. employees acting as officials supervising securities trading analysis/research functions, of Securities Companies that have business licenses to conduct business activities as PPEs. (3) Under certain conditions, the Financial Services Authority may determine or exempt parties working at Securities Companies conducting activities as PEEs and PPEs from the obligation to have WPEE Licenses or WPPE Licenses. (4) Further provisions regarding certain conditions and the exemption of parties working at Securities Companies conducting activities as PEEs and PPEs from the obligation to have WPEE Licenses and WPPE Licenses as referred to in paragraph (3) are regulated in Financial Services Authority Circular Letters.

Article 4
WPEEs and WPPEs are required to meet the following requirements:
a. integrity requirements including:

1. having good character and morality;
2. being competent to perform legal acts;
3. never having committed disgraceful acts and/or being punished for proven criminal offenses in the financial services sector;
4. never having been subjected to license revocation, approval cancellation, and/or registration cancellation sanctions by the Financial Services Authority in the last 3 (three) years;
5. never having been declared bankrupt or having been a manager declared at fault causing a company to be declared bankrupt within 5 (five) years prior to the WPEE or WPPE License application; and
6. having a high commitment to comply with laws and regulations;
   b. competency requirements including:
7. having at least secondary education;
8. having adequate knowledge and expertise in the capital market, proven by:
   a) holding an expertise certificate:

1. as a WPEE, for WPEEs; and
2. as a WPEE or WPPE, for WPPEs,
   which is issued by a Professional Certification Institution registered with the Financial Services Authority; or b) having work experience at a capital market supervisory institution and/or an organization authorized by Law regarding the capital market to regulate and/or supervise the capital market industry with the following conditions:
3. at least 2 (two) years in a managerial position; or
4. at least 5 (five) years in an operational position,
   in tasks and functions related to the regulation and/or supervision of the capital market industry; c) working at a financial services institution in Indonesia, for foreign citizens; and d) not working at:

1. more than 1 (one) Securities Company; or
2. other financial services institutions if already working at a Securities Company.

Article 5
(1) The expertise certificate as referred to in Article 4 letter b number 2 letter a) may be used for WPEE or WPPE License applications as long as it is not older than 2 (two) years calculated from the date of issuance until the time of WPEE or WPPE License application. (2) In the event that there are provisions in the financial services sector regulating the Indonesian National Qualifications Framework in the financial services sector, the expertise certificate as referred to in Article 4 letter b number 2 letter a) refers to the qualification framework as regulated in the financial services sector provisions regulating the Indonesian National Qualifications Framework in the financial services sector.

CHAPTER III
PROCEDURE FOR WPEE AND WPPE LICENSE APPLICATIONS
Article 6
(1) Applications for WPEE or WPPE Licenses to the Financial Services Authority must be submitted electronically by the applicant through the Financial Services Authority's licensing system.
(2) WPEE or WPPE License applications as referred to in paragraph (1) must be accompanied by complete documents and/or data as follows:
a. photocopy of the latest formal education diploma; b. photocopy of the Identity Card (KTP) or valid passport;
c. proof of having knowledge and expertise in the capital market in the form of:

1. photocopy of expertise certificate:
   a) as a WPEE, for WPEEs; and b) as a WPEE or WPPE, for WPPEs, which is issued by a Professional Certification Institution registered with the Financial Services Authority; or
2. photocopy of work experience certificate from a capital market supervisory institution and/or an organization authorized by Law regarding the capital market to regulate and/or supervise the capital market industry as referred to in Article 4 letter b number 2 letter b);
   d. work certificate from a financial services institution in Indonesia for foreign citizens; e. recent color passport-size photo; f. statement letter stating that the applicant:
3. has good character and morality;
4. is competent to perform legal acts;
5. has never committed disgraceful acts and/or been punished for proven criminal offenses in the financial services sector;
6. has never been subjected to license revocation, approval cancellation, and/or registration cancellation sanctions by the Financial Services Authority in the last 3 (three) years;
7. has never been declared bankrupt or been a manager declared at fault causing a company to be declared bankrupt within 5 (five) years prior to the WPEE or WPPE License application;
8. has a high commitment to comply with laws and regulations; and
9. will not work at:
   a) more than 1 (one) Securities Company; or b) other financial services institutions if already working at a Securities Company, according to the integrity statement letter format contained in the Appendix which is an integral part of this Financial Services Authority Regulation; g. reference and/or recommendation letter from the company where the applicant works according to the work reference letter format contained in the Appendix which is an integral part of this Financial Services Authority Regulation, if available; h. photocopy of the permit to employ foreign labor issued by the competent authority, for foreign citizens working at financial services institutions;
   i. proof of payment of WPEE or WPPE licensing fees; and
   j. letter of name difference from officials or competent authorities, if there is a difference between the applicant's name and the attached documents.
   (3) WPEE or WPPE Licenses as referred to in paragraph (1) are granted by the Financial Services Authority if the applicant has met the requirements as referred to in paragraph (2).

Article 7
In processing WPEE or WPPE License applications, the Financial Services Authority is authorized to:
a. examine the completeness of documents submitted by the applicant as referred to in Article 6 paragraph (2); and/or b. request information from the applicant, to ensure compliance with the requirements as referred to in Article 6.

Article 8
(1) WPEE or WPPE Licenses are granted by the Financial Services Authority no later than 21 (twenty-one) working days from the receipt of the WPEE or WPPE License application that meets the requirements.
(2) In the event that the WPEE or WPPE License application upon receipt does not meet the requirements, no later than 21 (twenty-one) working 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 the requirements; or b. the application is rejected because it does not meet the requirements.
(3) The applicant must complete the deficiencies required in the notification letter as referred to in paragraph (2) letter a no later than 21 (twenty-one) working days after the date of the notification letter.
(4) The submission of document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (3) is deemed received by the Financial Services Authority on the date stated in the proof of receipt of submission of document changes, additional information, and/or completion of requirement deficiencies. (5) Since the receipt of document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (4), the WPEE or WPPE License application is considered newly received by the Financial Services Authority and processed as referred to in paragraph (1). (6) Applicants who do not complete the deficiencies required within the time limit as referred to in paragraph (3) are deemed to have cancelled the WPEE or WPPE License application already submitted to the Financial Services Authority.

Article 9
WPEE or WPPE Licenses are not valid if their validity period has expired and no renewal has been conducted.

CHAPTER IV
VALIDITY PERIOD AND RENEWAL OF WPEE AND WPPE LICENSES
Article 10
(1) WPEE and WPPE Licenses have a validity period of 3 (three) years according to the date and month of birth of the WPEE and WPPE License holders and can be renewed.
(2) For applicants for WPEE and WPPE Licenses as referred to in paragraph (1) whose birth date is before the date and month of issuance of the WPEE and WPPE Licenses, the validity period of the WPEE and WPPE Licenses granted will end in the 4th (fourth) year of the date and month of birth of the WPEE and WPPE License holders since the issuance of the WPEE and WPPE Licenses.

Article 11
(1) Applications for renewal of WPEE or WPPE Licenses as referred to in Article 10 must be submitted electronically by the applicant to the Financial Services Authority through the Financial Services Authority's licensing system before the validity period of the WPEE or WPPE Licenses expires, with the earliest submission being 90 (ninety) days before the validity period of the WPEE or WPPE Licenses expires. (2) Applications for renewal of WPEE or WPPE Licenses cannot be conducted after the validity period of the WPEE or WPPE Licenses has expired. (3) Applications for renewal of WPEE or WPPE Licenses as referred to in paragraph (1) are prepared according to the WPEE or WPPE License renewal application letter format contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by complete documents as follows:
a. photocopy of the Identity Card (KTP) or valid passport; b. photocopy of the permit to employ foreign labor issued by the competent authority, for foreign citizens working at financial services institutions;
c. work certificate from the company conducting emission underwriting activities and/or securities brokerage intermediary activities where the WPEE or WPPE works for license holders working at Securities Companies;
d. photocopy of valid membership cards from associations that accommodate WPEEs or WPPEs that have received recognition from the Financial Services Authority; and e. photocopy of continuing education documents conducted between the start and end dates of the WPEE or WPPE Licenses.

Article 12
(1) Renewal of WPEE or WPPE Licenses is granted by the Financial Services Authority no later than 21 (twenty-one) working days from the receipt of the WPEE or WPPE License renewal application that meets the requirements.
(2) In the event that the WPEE or WPPE License renewal application upon receipt does not meet the requirements, no later than 21 (twenty-one) working 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 the requirements; or b. the application is rejected because it does not meet the requirements.
(3) The submission of document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (2) letter a is deemed received by the Financial Services Authority on the date stated in the proof of receipt of submission of document changes, additional information, and/or completion of requirement deficiencies. (4) Applicants for renewal of WPEE or WPPE Licenses who do not complete the deficiencies required before the validity period of the WPEE or WPPE Licenses expires are deemed to have cancelled the WPEE or WPPE License renewal application already submitted to the Financial Services Authority.

Article 13
(1) In the event that the validity period of the WPEE or WPPE Licenses has expired but the renewal application has been submitted to the Financial Services Authority before the validity period of the WPEE or WPPE Licenses expires, the WPEE or WPPE Licenses remain valid until there is:
a. approval of renewal of WPEE or WPPE Licenses from the Financial Services Authority; or b. notification letter to the applicant stating that the application is rejected because it does not meet the requirements.
(2) In the event that the validity period of the WPEE or WPPE Licenses has expired but the renewal application has been submitted to the Financial Services Authority before the validity period of the WPEE or WPPE Licenses expires, the WPEE or WPPE Licenses remain valid during the renewal process even if there is a notification letter to the applicant stating that the application does not yet meet the requirements. (3) Approvals as referred to in paragraph (1) letter a, rejections as referred to in paragraph (1) letter b, and notification letters as referred to in paragraph (2) are provided by the Financial Services Authority no later than 5 (five) working days since the validity period of the WPEE or WPPE Licenses expires. (4) The applicant must complete the deficiencies required in the notification letter as referred to in paragraph (2) no later than 5 (five) working days from the date of the notification letter. (5) The submission of document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (4) is deemed received by the Financial Services Authority on the date stated in the proof of receipt of submission of document changes, additional information, and/or completion of requirement deficiencies. (6) Since the receipt of document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (5), the WPEE or WPPE License application is considered newly received by the Financial Services Authority. (7) In the event that document changes, additional information, and/or completion of requirement deficiencies as referred to in paragraph (6) have been received by the Financial Services Authority, within 5 (five) working days the Financial Services Authority provides approval or rejection of the renewal of WPEE or WPPE Licenses. (8) Applicants who do not complete the deficiencies required within the time limit as referred to in paragraph (4) are deemed to have cancelled the WPEE or WPPE License renewal application already submitted to the Financial Services Authority.

Article 14
The validity period of WPEE or WPPE Licenses that receive approval for renewal is 3 (three) years calculated from the date of approval granted by the Financial Services Authority.

Article 15
If at the time of the WPEE or WPPE License renewal application, the WPEE or WPPE License holder still has obligations based on provisions of laws and regulations in the financial services sector and/or decisions of the Financial Services Authority that have not been fulfilled, the Financial Services Authority has the right to reject the application for renewal of the WPEE or WPPE Licenses.

CHAPTER V
OBLIGATIONS AND PROHIBITIONS FOR WPEE AND WPPE
Section One
Obligations
Article 16
WPEEs and WPPEs are required to:
a. understand and comply with provisions of laws and regulations in the field of the Indonesian capital market; b. act and behave professionally and have broad knowledge in the capital market; and
c. become members of associations that accommodate WPEEs or WPPEs that have received recognition from the Financial Services Authority.

Article 17
(1) WPEEs and WPPEs are required to attend continuing education organized by associations that accommodate WPEEs and/or WPPEs or other parties, recognized by the Financial Services Authority, at least 1 (one) time in 3 (three) years. (2) The obligation as referred to in paragraph (1) and the fulfillment of the requirement to attach documents of having attended continuing education for WPEE or WPPE License renewal applications as referred to in Article 11 paragraph (3) letter e shall take effect if there are:
a. associations that accommodate WPEEs and/or WPPEs; or b. other parties, that have received recognition from the Financial Services Authority to organize special education in the field of the capital market.

Section Two
Prohibitions
Article 18
(1) WPEEs and WPPEs are prohibited from holding concurrent positions at:
a. more than 1 (one) Securities Company; or b. other financial services institutions if already working at a Securities Company.
(2) The prohibition on holding concurrent positions as referred to in paragraph (1) does not apply to WPEEs and WPPEs who are members of the board of directors of PEEs and/or PPEs to concurrently hold positions as commissioners of stock exchanges, clearing and guarantee institutions, or depository and settlement institutions.

CHAPTER VI
ASSOCIATIONS
Article 19
(1) Associations as referred to in Article 16 letter c have duties including:
a. drafting member codes of ethics; b. conducting continuing education for WPEE and/or WPPE License holders; and
c. conducting other education and/or training.
(2) The implementation of association activities as referred to in paragraph (1) is reported every 6 (six) months to the Financial Services Authority.
(3) Further provisions regarding associations that accommodate WPEEs and/or WPPEs are regulated by Financial Services Authority Circular Letters.

CHAPTER VII
REPORTING
Article 20
(1) Individuals who hold WPEE or WPPE Licenses are required to submit reports on starting work, stopping work, or transferring work to a Securities Company or other financial services institutions, no later than 14 (fourteen) days calculated from when the individual starts working, stops working, or transfers work. (2) In the event that the reporting deadline as referred to in paragraph (1) falls on a holiday, the report on starting work, stopping work, or transferring work must be submitted no later than 1 (one) working day following the holiday.

Article 21
Reports as referred to in Article 20 paragraph (1) are submitted electronically to the Financial Services Authority.

CHAPTER VIII
RETURN OF WPEE AND WPPE LICENSES
Article 22
(1) Holders of WPEE Licenses or WPPE Licenses may return their WPEE License or WPPE License to the Financial Services Authority by using the WPEE License return letter and/or WPPE License return letter according to the format contained in the Appendix, which is an integral part of this Financial Services Authority Regulation. (2) The return of WPEE Licenses or WPPE Licenses as referred to in paragraph (1) does not immediately eliminate the obligations and responsibilities regarding financial services sector legislation and/or decisions of the Financial Services Authority that have not been fulfilled arising while the individual held the WPEE License or WPPE License.

CHAPTER IX
OTHER PROVISIONS
Article 23
Regulations regarding the procedure for applying for WPEE Licenses and WPPE Licenses, validity periods, and extensions of WPEE Licenses and WPPE Licenses, obligations and prohibitions, associations, reporting, and the return of WPEE Licenses and WPPE Licenses, as regulated in this Financial Services Authority Regulation, apply mutatis mutandis to marketing securities trading intermediary representatives and limited marketing securities trading intermediary representatives.

Article 24
Individuals applying for WPEE Licenses or WPPE Licenses, applying for extensions of WPEE Licenses or WPPE Licenses, and fulfilling reporting obligations as holders of WPEE Licenses or WPPE Licenses must keep proof of receipt of the submission of WPEE License applications or WPPE License applications, applications for extension of WPEE Licenses or WPPE Licenses, and the fulfillment of reporting obligations as holders of WPEE Licenses or WPPE Licenses.

Article 25
In the event of specific circumstances causing the Financial Services Authority's licensing system to function improperly, applications for WPEE Licenses or WPPE Licenses or applications for extension of WPEE Licenses or WPPE Licenses must be submitted in printed document form to the Financial Services Authority.

Article 26
Operational guidelines regarding the submission of applications for WPEE Licenses and WPPE Licenses, extension of WPEE Licenses and WPPE Licenses, and reporting by WPEE and WPPE can be downloaded via the Financial Services Authority website.

CHAPTER X
SANCTION PROVISIONS
Article 27
(1) Any party violating the provisions as referred to in Article 4, Article 16, Article 17, Article 18, Article 19, and Article 20 paragraph (1) shall be subject to administrative sanctions.
(2) Sanctions as referred to in paragraph (1) shall also be imposed on parties causing the violations as referred to in paragraph (1).
(3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority.
(4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warnings; b. fines, namely the obligation to pay a certain amount of money;
c. business activity restrictions;
d. business activity suspensions; e. business license revocations; f. approval cancellations; and/or g. registration cancellations.
(5) The procedure for imposing administrative sanctions as referred to in paragraph (3) is carried out in accordance with applicable legislation.
(6) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warnings as referred to in paragraph (4) letter a. (7) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed independently or together with the imposition of sanctions as referred to in paragraph (4) letters c, d, e, f, or g.

Article 28
In addition to administrative sanctions as referred to in Article 27 paragraph (4), the Financial Services Authority may take specific actions against any party violating the provisions of this Financial Services Authority Regulation.

Article 29
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 27 paragraph (4), as well as specific actions as referred to in Article 28, to the public.

CHAPTER XI
TRANSITIONAL PROVISIONS
Article 30
Applications and extensions of WPEE Licenses and WPPE Licenses, as well as the submission of reports by WPEE and WPPE, must be submitted electronically through the Financial Services Authority's licensing system no later than 2 (two) years from the effective date of this Financial Services Authority Regulation.

Article 31
(1) Regulations regarding the procedure for applying for WPEE Licenses and WPPE Licenses as referred to in Article 6, Article 7, and Article 8, regulations regarding the extension of WPEE Licenses and WPPE Licenses as referred to in Article 11, Article 12, and Article 13, and regulations regarding WPEE and WPPE reporting as referred to in Article 20 in electronic form apply mutatis mutandis in printed document form to the provisions as referred to in Article 30. (2) The submission of applications for WPEE Licenses and WPPE Licenses, extensions of WPEE Licenses and WPPE Licenses, and reporting by WPEE and WPPE in printed document form as referred to in paragraph (1) is done by being handed over or sent directly to the correspondence address of the Financial Services Authority headquarters.

Article 32
(1) Regulations regarding professional certificates as referred to in Article 6 paragraph (2) letter c number 1 shall take effect in accordance with provisions in Financial Services Authority Regulations regarding Professional Certification Institutions registered with the Financial Services Authority. (2) Professional certificates as WPEE and WPPE issued by the Professional Standards Committee and Special Education Institutions in the Capital Market sector remain valid in accordance with provisions in Financial Services Authority Regulations regarding the registration of Professional Certification Institutions in the capital market sector.

Article 33
(1) Upon the effective date of this Financial Services Authority Regulation, the validity periods of WPEE Licenses and WPPE Licenses issued or extended for a maximum of 2 (two) years prior to the effectiveness of this Financial Services Authority Regulation are automatically adjusted to 3 (three) years in accordance with the holder's birth date and month. (2) The validity periods of WPEE Licenses and WPPE Licenses as referred to in paragraph (1) are as follows:
a. for holders of WPEE Licenses and WPPE Licenses whose birth date and month are before the date and month the WPEE License and WPPE License validity period expires, the validity period of the WPEE License and WPPE License expires exactly on the birth date and month of the holder of the WPEE License and WPPE License in the following year; and b. for holders of WPEE Licenses and WPPE Licenses whose birth date and month are after the date and month the WPEE License and WPPE License validity period expires, the validity period of the WPEE License and WPPE License expires exactly on the birth date and month of the holder of the WPEE License and WPPE License in that year.

Article 34
(1) Applications for WPEE Licenses and WPPE Licenses submitted to the Financial Services Authority before the effectiveness of this Financial Services Authority Regulation shall be resolved based on Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Emission Underwriter Representatives and Securities Trading Intermediary Representatives. (2) Applications for extensions of WPEE Licenses and WPPE Licenses submitted to the Financial Services Authority:
a. before the validity period of WPEE Licenses and WPPE Licenses expires; b. before the effectiveness of this Financial Services Authority Regulation; and
c. where the approval for the extension of WPEE Licenses and WPPE Licenses has not yet been issued,
the validity period of WPEE Licenses and WPPE Licenses automatically adjusts to 3 (three) years as referred to in Article 33, and no decision on the extension of WPEE Licenses and WPPE Licenses is issued.

CHAPTER XII
CLOSING PROVISIONS
Article 35
Upon the effective date of this Financial Services Authority Regulation, the provisions of Article 11 of Financial Services Authority Regulation Number 22/POJK.04/2016 concerning Segmentation of Securities Trading Intermediary Representative Licenses (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 36
Upon the effective date of this Financial Services Authority Regulation, all implementing regulations of Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Emission 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) remain valid insofar as they do not conflict with this Financial Services Authority Regulation.

Article 37
Upon the effective date of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Emission 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) is revoked and declared invalid.

Article 38
This Financial Services Authority Regulation takes effect on the date of enactment.

This copy is consistent with the original
Director of Legal Affairs 1
Legal Department signed
Yuliana

In order that everyone may know it, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on 12 November 2018
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Enacted in Jakarta on 13 November 2018
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6260

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 20 /POJK.04/2018
CONCERNING
LICENSING OF EMISSION UNDERWRITER REPRESENTATIVES AND SECURITIES TRADING INTERMEDIARY REPRESENTATIVES

I. GENERAL
In order to increase efficiency, both in terms of applications for WPEE Licenses and WPPE Licenses, extensions of WPEE Licenses and WPPE Licenses, and reporting by WPEE and WPPE, and to optimize supervision over WPEE and WPPE, the Financial Services Authority strives to encourage the use of increasingly mature information and communication technology systems. Furthermore, the Financial Services Authority also has the initiative to provide ease and flexibility in extending WPEE Licenses and WPPE Licenses, inter alia, by re-regulating provisions regarding license validity periods, which were previously valid for only 2 (two) years, to be valid for 3 (three) years. Furthermore, to provide a legal basis and increase licensing efficiency efforts and optimize supervision over the aforementioned WPEE and WPPE, changes to Financial Services Authority Regulation Number 27/POJK.04/2014 concerning Licensing of Emission Underwriter Representatives and Securities Trading Intermediary Representatives are necessary through the enactment of this Financial Services Authority Regulation.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Sufficiently clear.

Article 3
Paragraph (1)
Securities Companies conducting emission underwriting activities are Securities Companies that have business licenses for Securities Companies to conduct business activities as Emission Underwriting Securities Companies (PEE).
Paragraph (2)
Securities Companies conducting securities trading intermediary activities are Securities Companies that have business licenses for Securities Companies to conduct business activities as Securities Trading Intermediary Securities Companies (PPE). Letter a Sufficiently clear. Letter b Regarding the marketing function of Securities Companies conducting securities trading intermediary activities, the obligation to hold WPPE Licenses is intended for executives overseeing the marketing function. Employees conducting marketing activities may hold licenses for marketing securities trading intermediary representatives or limited marketing securities trading intermediary representatives. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear.

Paragraph (3)
Exceptions to the obligation to hold WPEE Licenses or WPPE Licenses include parties working at Securities Companies to perform duties as statutory managers where, in certain and urgent conditions, there is a possibility that the party appointed by the Financial Services Authority as a statutory manager does not hold a license. Paragraph (4) Sufficiently clear.

Article 4
Letter a
Sufficiently clear.
Letter b
Number 1
As regulated in Law Number 20 of 2003 concerning the National Education System, secondary education takes the form of Senior High Schools (SMA), Islamic Senior High Schools (MA), Vocational High Schools (SMK), and Islamic Vocational High Schools (MAK), or other equivalent forms. Number 2 Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear.

Article 5
Sufficiently clear.

Article 6
Paragraph (1)
Applications to obtain WPEE Licenses or WPPE Licenses from the Financial Services Authority refer to the technical instructions for WPEE License and WPPE License applications in the electronic system and/or according to the format of the WPEE License or WPPE License application letter contained in the Appendix. Paragraph (2) Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f If the electronic application system for WPEE Licenses and WPPE Licenses is available, the format for writing and/or filling in data related to the applicant's statement letter for WPEE Licenses and WPPE Licenses refers to the technical instructions for filling in the statement letter in the electronic system. Number 1 Sufficiently clear. Number 2 Sufficiently clear. Number 3 Criminal offenses in the financial services sector include criminal offenses in the banking sector, capital market, non-bank financial industry, or taxation. Number 4 Sufficiently clear. Number 5 Sufficiently clear. Number 6 Sufficiently clear. Number 7 Sufficiently clear. Letter g Sufficiently clear.

Letter h
Sufficiently clear.
Letter i
The term