Jumat, Agustus 20, 2021

OJK Further Regulates Fit-and-Proper Testing of Prospective Main Parties of Securities Rating Agencies

As initially mandated under Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") No. 27/POJK.03/2016 on the Fit-and-Proper Testing of Key Personnel in Financial Service Institutions, the OJK has now issued Circular No. 21/SEOJK.04/2021 on the Fit-and-Proper Testing of Prospective Main Parties of Securities Rating Agencies ("Circular 21/2021").
The fit-and-proper testing of the following parties nominated as main parties should be carried out by the OJK: 1) Prospective controlling shareholders (pemegang saham pengendali – "PSP"); 2) Prospective members of boards of directors (“BoD”); and 3) Prospective members of boards of commissioners ("BoC").
The following factors will be assessed during the fit-and-proper testing of the above-listed parties: 1) The integrity and financial feasibility of PSP candidates; and 2) The integrity, financial reputations and competence of prospective BoC and BoD members.
Applications for approvals to become main parties should be submitted by: 1) Prospective PSP or prospective BoD members in the event that said applications are submitted at the same time as applications for business licenses for securities rating agencies; or 2) BoD members in the event that securities rating agencies have already secured business licenses. Said applications should be submitted to the OJK in accordance with the document format set out under the Appendix to Circular 21/2021.
Before a securities rating agency submits an application and the required accompanying administrative documents to become a main party, the relevant securities rating agency should first compile a compliance checklist in accordance with the document format set out under the Appendix to Circular 21/2021.
Circular 21/2021 has been in force since 10 August 2021.

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As initially mandated under Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – "OJK") No. 27/POJK.03/2016 on the Fit-and-Proper Testing of Key Personnel in Financial Service Institutions, the OJK has now issued Circular No. 21/SEOJK.04/2021 on the Fit-and-Proper Testing of Prospective Main Parties of Securities Rating Agencies ("Circular 21/2021").
The fit-and-proper testing of the following parties nominated as main parties should be carried out by the OJK: 1) Prospective controlling shareholders (pemegang saham pengendali – "PSP"); 2) Prospective members of boards of directors (“BoD”); and 3) Prospective members of boards of commissioners ("BoC").
The following factors will be assessed during the fit-and-proper testing of the above-listed parties: 1) The integrity and financial feasibility of PSP candidates; and 2) The integrity, financial reputations and competence of prospective BoC and BoD members.
Applications for approvals to become main parties should be submitted by: 1) Prospective PSP or prospective BoD members in the event that said applications are submitted at the same time as applications for business licenses for securities rating agencies; or 2) BoD members in the event that securities rating agencies have already secured business licenses. Said applications should be submitted to the OJK in accordance with the document format set out under the Appendix to Circular 21/2021.
Before a securities rating agency submits an application and the required accompanying administrative documents to become a main party, the relevant securities rating agency should first compile a compliance checklist in accordance with the document format set out under the Appendix to Circular 21/2021.
Circular 21/2021 has been in force since 10 August 2021.

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