OJK ISSUEs New Rules To Strengthen Mutual Fund Management

Illustration of mutual fund movement (Photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) has issued a new regulation which is expected to strengthen the development and management of mutual fund investment instruments in the country. The regulation is contained in the Financial Services Authority Regulation (POJK) Number 4 of 2023.

The regulation is concerning the Second Amendment to the Financial Services Authority Regulation Number 23/POJK.04/2016 concerning Mutual Funds for the Form of Collective Investment Contracts or POJK 4 of 2023.

Head of the Literacy Department, Financial and Communication Inclusion OJK Aman Santosa conveyed that the provisions were issued as an effort to address liquidity issues in mutual fund management and mutual fund development that were no longer in accordance with needs and developments.

In addition, the new regulation is a refinement of POJK Number 23/POJK.04/2016 concerning Mutual Funds for Collective Investment Contracts.

"POJK 4 of 2023 is motivated that strategic policies are needed in an effort to address liquidity issues in mutual fund management, conditions that result in mutual fund restructuring, and a number of mutual fund development efforts in Indonesia," said Aman quoting Antara.

According to him, the new regulation is also to strengthen the legal basis related to a number of strategic issues in the mutual fund industry.

Meanwhile, the substance of the previous arrangement was regulated in SEOJK Number 19/SEOJK.04/2021 concerning Stability Policy for Stimuli and Relaxation of Provisions related to Investment Management in Maintaining Capital Market Performance and Stability due to the Spread of Corona Virus Disease 2019.

He explained that the provisions that were perfected in the new rules included, among them, first, the policy of solving the problem of a number of mutual funds through asset settlement with its customers through an in kind reduction mechanism, as well as dissolution of mutual funds.

Then, secondly, provisions related to the application of the'share class' feature with mutual funds, and thirdly, provisions relating to the calculation of the Net Activation Value for Overseas Effect-Based Mutual Funds.

Then, fourth, the application of mutual fund reformation through the Investor Fund Unit Account (IFUA) account and other accounts in accordance with statutory regulations, and fifth, the use of virtual accounts in mutual fund electronic transactions.