Regulation of the Financial Services Authority of the Republic of Indonesia Number 5/POJK.04/2020 on the Creation of a Single Investor Identity Number at the Settlement and Custody Institution by Securities Administration Offices or Issuers and Public Companies That Conduct Their Own Securities Administration

COPY
REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 5 /POJK.04/2020 CONCERNING THE CREATION OF A SINGLE INVESTOR IDENTITY NUMBER AT THE SETTLEMENT AND CUSTODY INSTITUTION BY SECURITIES ADMINISTRATION OFFICES OR ISSUERS AND PUBLIC COMPANIES THAT CONDUCT THEIR OWN SECURITIES ADMINISTRATION BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the transfer of functions, duties, and authority for the regulation and supervision of financial services activities in the capital market sector, including the creation of a single investor identity number at the settlement and custody institution by securities administration offices or issuers and public companies that conduct their own securities administration, from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that to provide clarity and certainty regarding the obligation to create a single investor identity number at the settlement and custody institution by securities administration offices or issuers and public companies that conduct their own securities administration, the provisions of legislation in the capital market sector regarding the creation of a single investor identity number at the settlement and custody institution by securities administration offices or issuers and public companies that conduct their own securities administration 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 on the Creation of a Single Investor Identity Number at the Settlement and Custody Institution by Securities Administration Offices or Issuers and Public Companies That Conduct Their Own Securities Administration;
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: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE CREATION OF A SINGLE INVESTOR IDENTITY NUMBER AT THE SETTLEMENT AND CUSTODY INSTITUTION BY SECURITIES ADMINISTRATION OFFICES OR ISSUERS AND PUBLIC COMPANIES THAT CONDUCT THEIR OWN SECURITIES ADMINISTRATION.

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

1. Investor means the holder of securities issued by an issuer and public company that are administered by a securities administration office or an issuer and public company that conducts its own securities administration.
2. Issuer means the party that conducts a public offering.
3. Securities Administration Office means the party that, based on a contract with the Issuer, executes the recording of securities ownership and the distribution of rights related to securities.
4. Public Company means a corporation whose shares are owned by at least 300 (three hundred) shareholders and has paid-up capital of at least Rp3,000,000,000.00 (three billion rupiah) or a number of shareholders and paid-up capital determined by Government Regulation.
5. Settlement and Custody Institution means the party that conducts central custodian activities for custodian banks, securities companies, and other parties.
6. Securities means securities, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, Unit Participation in Collective Investment Contracts, futures contracts over Securities, and any derivative of Securities.

CHAPTER II
CREATION OF SINGLE INVESTOR IDENTITY NUMBER
Article 2
The creation of a single investor identity number for Investors in Indonesia is carried out by the Settlement and Custody Institution.

Article 3
Securities Administration Offices or Issuers and Public Companies that conduct their own securities administration are obligated to create a single investor identity number at the Settlement and Custody Institution for Investors who do not yet have a single investor identity number.

Article 4
For the creation of a single investor identity number, Securities Administration Offices or Issuers and Public Companies that conduct their own securities administration as referred to in Article 3 are obligated to submit Investor data to the Settlement and Custody Institution consisting of at least:
a. name; b. place of birth for individual Investors or establishment for institutional Investors;
c. date of birth for individual Investors or establishment date for institutional Investors;
d. identity number; e. domicile; f. citizenship for individual Investors; g. type of Investor as individual or institutional; and h. type of business for institutional Investors.

Article 5
Securities Administration Offices or Issuers and Public Companies that conduct their own securities administration are obligated to submit the single investor identity number to each respective Investor concerned.

CHAPTER III
ADMINISTRATIVE SANCTIONS
Article 6
(1) Any party that violates the provisions as referred to in Article 3, Article 4, and Article 5, shall be subject to administrative sanctions.
(2) Sanctions as referred to in paragraph (1) shall also be imposed on parties that cause the occurrence of violations as referred to in paragraph (1).
(3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority.
(4) Administrative sanctions as referred to in paragraph (1) consist 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/or g. cancellation of registration.
(5) 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 a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of a fine as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of sanctions as referred to in paragraph (4) letters c, d, e, f, or g. (7) The procedure for imposing administrative sanctions as referred to in paragraph (3) shall be carried out in accordance with the provisions of legislation.

Article 7
In addition to administrative sanctions as referred to in Article 6 paragraph (4), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 8
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 6 paragraph (4) and specific actions as referred to in Article 7 to the public.

CHAPTER IV
CLOSING PROVISIONS
Article 9
At the time this Financial Services Authority Regulation comes into force, the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-327/BL/2012 concerning the Creation of a Single Investor Identity Number at the Settlement and Custody Institution by Securities Administration Offices or Issuers and Public Companies That Conduct Their Own Securities Administration, along with Regulation Number VI.B.2 which is its appendix, is repealed and declared invalid.

Article 10
This Financial Services Authority Regulation shall come into force on the date of its promulgation.

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

To ensure that everyone knows it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on 17 February 2020 CHAIRMAN OF THE COMMISSIONERS COUNCIL FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Promulgated in Jakarta on 19 February 2020 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 49

EXPLANATION
OF
THE FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 5 /POJK.04/2020
CONCERNING
THE CREATION OF A SINGLE INVESTOR IDENTITY NUMBER AT THE SETTLEMENT AND CUSTODY INSTITUTION BY SECURITIES ADMINISTRATION OFFICES OR ISSUERS AND PUBLIC COMPANIES THAT CONDUCT THEIR OWN SECURITIES ADMINISTRATION

I. GENERAL
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 funds, financing institutions, and other financial service institutions have transferred 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 Supervisory Agency and Financial Institutions Regulations related to the capital market sector into Financial Services Authority Regulations. The 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 provisions of legislation in the capital market sector regulating the obligation to create a single investor identity number at the settlement and custody institution by securities administration offices or issuers and public companies that conduct their own securities administration, namely the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-327/BL/2012 concerning the Creation of a Single Investor Identity Number at the Settlement and Custody Institution by Securities Administration Offices or Issuers and Public Companies That Conduct Their Own Securities Administration, along with Regulation Number VI.B.2 which is its appendix, into a Financial Services Authority Regulation on the Creation of a Single Investor Identity Number at the Settlement and Custody Institution by Securities Administration Offices or Issuers and Public Companies That Conduct Their Own Securities Administration.

II. ARTICLE BY ARTICLE
Article 1
Is clear enough.

Article 2
In practice, the single investor identity number is also commonly referred to as single investor identification.

Article 3
Is clear enough.

Article 4
Is clear enough.

Article 5
Is clear enough.

Article 6
Is clear enough.

Article 7
The term "specific actions" includes, among others, prohibitions on Securities Administration Offices from accepting new service users (clients).

Article 8
Is clear enough.

Article 9
Is clear enough.

Article 10
Is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6466