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Wednesday, April 21, 2010

License of mutual fund sales representative to be revoked

Wednesday, 21/04/2010 00:00 WIB

Irvin Avriano A.
Bisnis Indonesia

License of mutual fund sales representative to be revoked

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) predicted there would be thousands of licenses of mutual fund sales representatives (Waperd) to be revoked this year due to the permit review enactment.

Investment management bureau chief of Bapepam-LK Djoko Hendratto said Waperd which will be revoked is commonly due to the license holder is no longer active as the Waperd as from the total of 14,000 recorded Waperd.

"There are thousands which will be revoked and we are reviewing their permit," he said to press yesterday.

Bapepam-LK measure here is stipulated by the regulation No. V.B.2 on the Waperd license issued in 2006. The regulation requires Waperd with license to compulsorily enhance their knowledge through intermediate education program (PPL) once every two years after the enactment of the regulation.

Following the 2008 global crisis, Bapepam-LK and Finance Ministry early 2009 relaxed some capital market regulations including Waperd after relaxation revocation last year. The revocation here was effectively enacted end of March.

Formerly, Djoko said the capital market authority had made PPL since early the year with trainers of trainer (TOT) system to shorten training session to thousands of participants.

With the measure the capital market authority indicated that it would not revoke Waperd permit who is on the training process or has already registered for the training.

Chairman of the Indonesian Mutual Fund Managers Association (APRDI) Abiprayadi Riyato also shared the similar recommendation for not revoking the expired Waperd revocation.

"We hope license holders who are on PPL training must not be directly revoked."

Bapepam-LK now opens chances for the mandate of mutual fund industry data issuance to APRDI.

"We could even mandate the data to them and thus it should not go through us. But there will be process if it is carried out. The point is that now we have assisted by issuing data with a lot of improvements," Djoko said .

He said the opening of mutual fund data recently done by Bapepam yesterday showed that the capital market authority cared about the protection of investors and capital market players. One of the concerns here is by giving data which makes investors and capital market players to monitor the floating products at market.

"In the website later investors could report the indication of violation or misuse done both by investment manager and mutual fund seller."

Abiprayadi said the association will prepare itself if Bapepam will give mandate for data presentation to public. As to him, one of the examples on the given mandate is data presentation made in India.

"This has been done in India in which the mutual fund association, AMFI [Association of Mutual Fund of India], has got mandate from the capital market. We are ready if Bapepam-LK needs to give mandate to us."

From the published mutual fund data yesterday, the equity fund management declined by IDR825.96 billion or 0.7 percent as form DIR116.88 trillion last month into IDR116.05 trillion. But the equity fund unti of the same period shows the rise by 954.04 million units. (Bisnis/iaa)


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