Selasa, November 21, 2023

OJK Issues Draft Circular on Fit-and-Proper Testing of PVL Primary Parties

The Financial Services Authority (Otoritas Jasa Keuangan - "OJK") is currently preparing a Draft Circular of 2023 ("Draft Circular") on the Fit-and-Proper Testing of the Primary Parties of Financing Institutions, Venture-Capital Companies and Other Financial Service Institutions (collectively referred to as "PVL").
The Draft Circular states that the following entities have been included on the list of PVL institutions and companies: 1) Financing companies; 2) Infrastructure financing companies; 3) Venture-capital companies; 4) Pawnshops; 5) Information technology-based joint-funding services; 6) Indonesia export financing institutions; 7) PT Permodalan Nasional Madani (Persero).
In essence, the Draft Circular features seven provisions that address the following specific areas: 1) Scope of participating parties in fit-and-proper testing; 2) Requirements for fit-and-proper testing (i.e integrity-related requirements, testing of financial reputation requirements, financial eligibility requirements, competency requirements); 3) Application procedures and administrative requirements; 4) Procedure for the implementation of fit-and-proper testing; 5) Termination of fit-and-proper testing; 6) Procedures for the determination of the results of fit-and-proper testing, as well as related consequences; 7) Mechanism for the imposition of sanctions.
It should be noted in terms of point (1) above, fit-and-proper tests will be implemented in relation to all parties that are designated as primary parties. The types of primary parties that will be required to participate in fit-and-proper testing include: 1) PVL, with the exception of Indonesian export financing institutions (i.e. controlling shareholders [Pemegang Saham Pengendali - "PSP"], members of boards of directors , members of boards of commissioners, members of sharia supervisory boards); 2) Indonesian export financing institutions (i.e. members of boards of directors, [with the exception of the appointment of members of boards of directors who come from agencies/institutions], managing directors).

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The Financial Services Authority (Otoritas Jasa Keuangan - "OJK") is currently preparing a Draft Circular of 2023 ("Draft Circular") on the Fit-and-Proper Testing of the Primary Parties of Financing Institutions, Venture-Capital Companies and Other Financial Service Institutions (collectively referred to as "PVL").
The Draft Circular states that the following entities have been included on the list of PVL institutions and companies: 1) Financing companies; 2) Infrastructure financing companies; 3) Venture-capital companies; 4) Pawnshops; 5) Information technology-based joint-funding services; 6) Indonesia export financing institutions; 7) PT Permodalan Nasional Madani (Persero).
In essence, the Draft Circular features seven provisions that address the following specific areas: 1) Scope of participating parties in fit-and-proper testing; 2) Requirements for fit-and-proper testing (i.e integrity-related requirements, testing of financial reputation requirements, financial eligibility requirements, competency requirements); 3) Application procedures and administrative requirements; 4) Procedure for the implementation of fit-and-proper testing; 5) Termination of fit-and-proper testing; 6) Procedures for the determination of the results of fit-and-proper testing, as well as related consequences; 7) Mechanism for the imposition of sanctions.
It should be noted in terms of point (1) above, fit-and-proper tests will be implemented in relation to all parties that are designated as primary parties. The types of primary parties that will be required to participate in fit-and-proper testing include: 1) PVL, with the exception of Indonesian export financing institutions (i.e. controlling shareholders [Pemegang Saham Pengendali - "PSP"], members of boards of directors , members of boards of commissioners, members of sharia supervisory boards); 2) Indonesian export financing institutions (i.e. members of boards of directors, [with the exception of the appointment of members of boards of directors who come from agencies/institutions], managing directors).

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