JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) revoked business license of investment manager, PT Republic Fund, last week due to its failure to meet the capital market authority regulation.
In Bapepam-LK official website, the business license with Tax Payer Registration Number (NPWP) 02.341.162.2-054.000 was revoked with the decree of the chief of Bapepam No. Kep-01/BL/MI/ S.5/2009 dated on 10 September 2009.
But the decree does not mention the detail of factors causing the revocation of Republic Fund business license.
Bisnis tried to confirm President Director of Republic Fund Normal Manurung, but he was not available for comment since last week.
Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto also declined to reply the short message service questioning the permit revocation here.
Last month, Republic Fund with three other investment managers, PT Momentum Synergy Asset Management, PT Brahma Capital, and PT Optima Kharya Capital Management, were banned to sell mutual funds product.
The ban was given to the four companies for January-August period as they were deemed violating the regulation No.V.A.1 and Law on Limited Company.
"Most were deemed falling short of compliance with the V.A.1. regulation given that there are some companies lacking of directors or having inactive director," said Djoko at the time.
Law No.40/2007 on Limited Company Chapter VI Article 79 Item (2) stipulates the investment manger (IM) as the public fund manager company should have at least two boards of directors.
The article is endorsed by the regulation of Bapepam-LK regulation No.V.A.1 stipulating the certification of investment manager deputy as one of the requirements.
IM failing to meet both criteria has restriction imposed by Bapepam-LK to perform the function such as selling product.
The lacking of directors is deemed violating the regulation of Bapepam-LK No.V.A.1 on securities company permit with the regulation on limited company so that the authority has restriction on business activities.