OJK Plans to Clarify the Responsibilities and Authorities of Investment Manager Sharia Supervisory Boards

Pursuant to Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) No. 10/POJK.04/ 2018 on the Implementation of Governance over Investment Managers (“Regulation 10/2018”), the investment managers of sharia management units and sharia investment managers (collectively referred to as “Investment Managers”) are required to employ a minimum of one capital-market sharia expert who will serve as a Sharia Supervisory Board (Dewan Pengawas Syariah – “DPS”).[1] However, due to a lack of details concerning the roles and responsibilities of the DPS under Regulation 10/2018, the OJK is currently preparing a new Draft Regulation which will amend Regulation 10/2018 and set out various provisions that detail the roles of DPS during their supervision of Investment Managers in relation to their compliance with sharia principles.[2]