Cleaning Up The Financial Sector, OJK Moratorium On Issuance Of Investment Manager Permits

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) has taken firm steps to enforce a moratorium on the issuance of licenses for securities companies that carry out business activities as investment managers.

OJK Deputy Commissioner for Public Relations Anto Prabowo said this decision was based on the authorities' intention to evaluate and organize the investment manager industry in Indonesia.

"The decision was stipulated in the Decree of the Members of the Board of Commissioners of the Financial Services Authority Number KEP-72/D.04/2021 dated December 14, 2021," he said in an official statement quoted on Thursday, December 16.

According to Anto, for securities companies that have been given permission as investment managers previously, there will be no changes and will also not have an impact on their customers.

"This decision is effective from the date of stipulation until a time limit will be determined later," he said.

In detail, Anto explained that there are two other aspects of this strategic policy. First, improvement of regulation number va3 regarding licensing of securities companies conducting business activities as investment managers.

Second, evaluate the governance of investment management, increase capacity (capacity building) and increase the application of prudential principles for all investment managers who have obtained business licenses.

"Through this decision, OJK keeps the investment management industry running healthy and has adequate professional quality to encourage the investment manager industry to contribute to the growth of the investment management industry as a whole," he explained.

Meanwhile, applications for licenses for securities companies conducting business activities as investment managers that have been submitted prior to the enactment of this decision will still be processed in accordance with the prevailing laws and regulations.

To note, securities companies that carry out business activities as investment managers, until December 14, 2021, there are 98 parties who have business licenses from the Financial Services Authority.