Draft Regulation on Risk Management and Soundness Assessment of Investment Managers: Stricter Requirements on Liquidity, Cybersecurity, and Portfolio Concentration

The Board of Commissioners of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently completing work on Draft Regulation  (“Draft Regulation”) on Guidelines for the Implementation of Risk Management and the Health Level Assessment of Investment Managers (“Managers”).

In essence, Managers with existing risk management guidelines will be required to adjust their internal policies and procedures to comply with the requirements set out in the Appendix to the Draft Regulation.[1] OJK provides a two-year transition period from the enactment of the Draft Regulation for Managers to make the necessary adjustments.[2]