Mandatory Risk-Level Assessment for Non-Bank Financial Institutions

The Financial Service Authority (OJK) has issued Regulation No. 10/POJK.05/2014 of 2014 on Assessment of Risk Level of Non-Bank Financial Institutions (“Regulation”), as part of efforts to realize a healthy and accountable financial sector.[1]

The Regulation sets out guidelines for commercial and sharia based non-bank financial institutions i.e, insurance and reinsurance companies, financing companies, and pension funds (““financial institutions”), to carry out mandatory risk assessments as required by the OJK.