SEOJK on the Implementation of Mutual Fund Securities Sales at Mutual Fund Sales Outlets

To:
Mutual Fund Sales Agents at their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 51 /SEOJK.04/2016

CONCERNING

THE IMPLEMENTATION OF MUTUAL FUND SECURITIES SALES AT MUTUAL FUND SALES OUTLETS

In connection with Financial Services Authority Regulation Number 39/POJK.04/2014 dated December 29, 2014 concerning Mutual Fund Sales Agents (State Gazette of the Republic of Indonesia Year 2014 Number 396, Supplement to the State Gazette of the Republic of Indonesia Number 5653), it is necessary to regulate further regarding the implementation of Mutual Fund Securities sales at Mutual Fund Sales Outlets in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. In this Financial Services Authority Circular, the following terms are defined as:

a. Investment Manager is a Party whose business activities involve managing Securities Portfolios for customers or managing collective investment portfolios for a group of customers, excluding insurance companies, pension funds, and banks that conduct their own business activities based on applicable legislation.

b. Mutual Fund Sales Agent is a Party that sells Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund.

c. Mutual Fund Sales Outlet, hereinafter referred to as the Outlet, is a place for selling Mutual Fund Securities, which is opened based on cooperation between the Mutual Fund Sales Agent and other parties that have a broad business network in their business activities, after first obtaining approval from the Investment Manager.

2. The sale of Mutual Fund Securities at the Outlet includes activities related to the sale, repurchase, transfer from Participation Units and/or shares of a Mutual Fund to Participation Units and/or shares of another Mutual Fund managed by the same Investment Manager.

3. The sale of Mutual Fund Securities at the Outlet must comply with:

a. 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); and

b. Financial Services Authority Regulation Number 39/POJK.04/2014 concerning Mutual Fund Sales Agents (State Gazette of the Republic of Indonesia Year 2014 Number 396, Supplement to the State Gazette of the Republic of Indonesia Number 5653).

II. SALE OF MUTUAL FUND SECURITIES AT THE OUTLET

1. The acceptance of new Mutual Fund customers directly at the Outlet must be conducted by marketing personnel of the Mutual Fund Sales Agent who hold a license as a Securities Company Representative or a Mutual Fund Sales Agent Representative.

2. The acceptance of new Mutual Fund customers includes the opening of a Mutual Fund Securities account and the first-time sale for each Mutual Fund.

3. The sale of Mutual Fund Securities at the Outlet may be conducted:

a. manually through marketing personnel of the Mutual Fund Sales Agent who hold a license as a Securities Company Representative or a Mutual Fund Sales Agent Representative;

b. through the payment system available at the Outlet only for additions (top-ups); or

c. through the electronic system for the sale of Mutual Fund Securities available at the Outlet.

4. The sale of Mutual Fund Securities through the payment system available at the Outlet as referred to in paragraph 3 letter b may be conducted without a Mutual Fund Sales Agent Representative but is limited to additions (top-ups).

5. The sale of Mutual Fund Securities through the electronic system at the Outlet as referred to in paragraph 3 letter c must take into account the provisions in Financial Services Authority Circular Letter Number 07/SEOJK.04/2014 concerning the Implementation of Face-to-Face Meetings in the Acceptance of Mutual Fund Security Holders through Electronic Account Opening, as well as the Procedures for Selling (Subscription) and Repurchasing (Redemption) Mutual Fund Securities Electronically.

6. Mutual Fund Sales Agents that cooperate with other parties having a broad business network for the purpose of selling Mutual Fund Securities must:

a. be responsible for the sale of Mutual Fund Securities conducted by other parties cooperating with the Mutual Fund Sales Agent;

b. implement the customer identification principle in accordance with applicable legislation; and

c. ensure the reliability and security of existing systems in accordance with applicable legislation and have standard operating procedures related to the sale of Mutual Fund Securities conducted.

III. CLOSING PROVISIONS

This Financial Services Authority Circular shall take effect on the date of determination.

Determined in Jakarta on December 19, 2016

EXECUTIVE HEAD
MARKET REGULATOR,

signed

NURHAIDA

A copy consistent with the original

Director of Law 1
Legal Department

signed

Yuliana