Underlying Assets Expanded: Structured Products to Allow Commodities and Equities with Minimum Customer Financial Thresholds of Rp. 7 billion

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently preparing a new Draft Regulation on the Implementation of Structured Products by Commercial Banks (“Draft Regulation”). If this Draft Regulation ultimately comes into force, then it will replace the existing framework of Regulation of the OJK No. 7/POJK.03/2016 on Prudential Principles for the Carrying out of Structured Product Activities by Commercial Banks, as amended by Regulation of the OJK No. 6/POJK.03/2018 (collectively referred to as “Regulation 7/2016”).[1]