Rabu, Juli 7, 2021

OJK Regulates Supervision of Non-Bank Financial Services Institutions

In a bid to implement the risk-based supervision of non-bank financial services institutions, the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Regulation of the OJK No. 9/POJK.05/2021 on Determinations of Status and Follow-Ups to the Supervision of Non-Bank Financial Services Institutions ("Regulation 9/2021").
The types of non-bank financial services institutions (lembaga jasa keuangan nonbank – "LJKNB") which are specifically addressed under the framework of Regulation 9/2021 comprise the following: 1) Insurance companies (insurance, reinsurance, sharia insurance and sharia reinsurance companies); 2) Pension funds; 3) Financing institutions (financing and sharia financing companies).
The OJK will stipulate the supervision statuses of LJKNB, which include the following status designations: 1) Normal supervision; 2) Intensive supervision; or 3) Special supervision. Said statuses will be designated based on the following factors: 1) Composite ranking; 2) Good corporate governance factor rating; and/or 3) Quantitative parameters.
LJKNBs are required to submit the following documents to the OJK: 1) Realization of action plans; and/or 2) Realization of capital/funding improvement plans. Said documents should be submitted at the end of each month and by no later than the seventh business day of the following month. The aforementioned realization plans should comprise the following elements at the least: 1) LJKNB problems; 2) Corrective measures that have been taken by LJKNBs; 3) Time details relating to the implementation of the relevant corrective measures.
The OJK may take supervisory actions against LJKNBs in the form of restrictions on certain business activities under special supervisory status in the event that the OJK makes any of the following assessments: 1) The condition of LJKNBs are becoming progressively worse; 2) Certain business activities are leading to the deterioration of LJKNBs; and/or 3) Provisions set out the relevant laws and regulations have been violated by any of the following parties: a) Boards of directors, b) Boards of commissioners, c) Sharia supervisory boards, and/or d) Controlling shareholders, controllers of insurance companies and/or employers.
Regulation 9/2021 has been in force since 30 June 2021.

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In a bid to implement the risk-based supervision of non-bank financial services institutions, the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Regulation of the OJK No. 9/POJK.05/2021 on Determinations of Status and Follow-Ups to the Supervision of Non-Bank Financial Services Institutions ("Regulation 9/2021").
The types of non-bank financial services institutions (lembaga jasa keuangan nonbank – "LJKNB") which are specifically addressed under the framework of Regulation 9/2021 comprise the following: 1) Insurance companies (insurance, reinsurance, sharia insurance and sharia reinsurance companies); 2) Pension funds; 3) Financing institutions (financing and sharia financing companies).
The OJK will stipulate the supervision statuses of LJKNB, which include the following status designations: 1) Normal supervision; 2) Intensive supervision; or 3) Special supervision. Said statuses will be designated based on the following factors: 1) Composite ranking; 2) Good corporate governance factor rating; and/or 3) Quantitative parameters.
LJKNBs are required to submit the following documents to the OJK: 1) Realization of action plans; and/or 2) Realization of capital/funding improvement plans. Said documents should be submitted at the end of each month and by no later than the seventh business day of the following month. The aforementioned realization plans should comprise the following elements at the least: 1) LJKNB problems; 2) Corrective measures that have been taken by LJKNBs; 3) Time details relating to the implementation of the relevant corrective measures.
The OJK may take supervisory actions against LJKNBs in the form of restrictions on certain business activities under special supervisory status in the event that the OJK makes any of the following assessments: 1) The condition of LJKNBs are becoming progressively worse; 2) Certain business activities are leading to the deterioration of LJKNBs; and/or 3) Provisions set out the relevant laws and regulations have been violated by any of the following parties: a) Boards of directors, b) Boards of commissioners, c) Sharia supervisory boards, and/or d) Controlling shareholders, controllers of insurance companies and/or employers.
Regulation 9/2021 has been in force since 30 June 2021.

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