Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) will soon issue a Financial Services Authority Regulation (POJK) Disgorgement Fund, or return of investor losses by market players who violate the provisions in the capital market.
This regulation is currently in the stage of harmonizing legislation at the Ministry of Law and Human Rights, which is targeted to be enacted in December 2020, and will be implemented next year.
Head of the IA OJK Capital Market Supervision Department, Luthfy Zain Fuady, explained that this regulation is expected to restore the rights of investors who have suffered losses due to violations of laws and regulations in the capital market sector, through written orders to the perpetrators of violations to return a number of profits. or losses avoided illegally or against the law.
“[POJK] published this year, implementation next year, “said Lutfi, in a virtual presentation at the Capital Market Media Gathering event, Tuesday (1/11/2020).
Unfortunately, this rule will only apply to cases in the capital market which were decided after this regulation was issued. However, for cases prior to the Disgorgement Fund, the OJK has also imposed sanctions with orders to pay losses.
“We will use it for cases that will indeed be decided after the regulation is in place. May or June can be implemented, people who suffer losses from violations in the capital market can get more optimal compensation,” he said.
In its implementation, the OJK will later determine the individual / company / business group guilty of violating provisions in the capital market by taking illegal profits. Then, OJK will impose sanctions asking the guilty party to return the losses.
In the process of collecting and recovering losses, OJK will also cooperate with the Ministry of Finance and the Attorney General’s Office for law enforcement.
CNBC Indonesia notes, this disgorgement fund rule has long been echoed. These rules are made to minimize investment cases and ensure that the injured party can be returned.
Previously, the Acting Deputy Commissioner for Capital Market Supervision II of OJK, Yunita Linda Sari, said the formation of the disgorgement fund was carried out because there were still many non-compliances found in the capital market industry.
Violations that are compensated with these funds include pseudo trading and insider trading (trading done by insiders).
This regulation already exists in the form of a Draft Financial Services Authority Regulation (RPOJK). In the RPOJK, it is stated that the party authorized to impose disgorgement is OJK in the form of a written order.
The maximum amount of funds is the same as the amount of profit from the violation of the capital market law. The plan to form a disgorgement fund comes from the Securities and Exchange Commission (SCE) in the United States (US).
In the RPOJK it is stated that the party authorized to impose disgorgement is OJK in the form of a written order. The maximum amount of funds is the same as the amount of profit from the violation of the capital market law.
In addition to the imposition of disgorgement, later the perpetrator will also be subject to interest, namely the value of money incurred and must be paid by the offender. The value is calculated since the violation of the capital market laws and regulations, until the stipulation of the disgorgement. Then, in the same draft regulation, it is stated that these funds will be managed by an administrator appointed by the OJK.
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