Bapepam-LK proposed sale mechanism of mutual funds

BI /bursa

15/1/10

By Irvin Avriano A.

Bisnis Indonesia

Bapepam-LK proposed a new licensing mechanism to Bank Indonesia (BI) to the sale of mutual funds in the bank

JAKARTA: Capital Market Supervisory Agency and Financial Institution (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) proposed a new licensing mechanism to Bank Indonesia (BI) to the sale of mutual funds in the bank can be expedited.

Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto explained capital market authority has proposed to the BI to MI and the seller's agent may enter the mutual fund documents to obtain permission to sell the bank. Thus, the document processing time can be faster than before.

Mutual funds selling must be obtain an effective statement of the capital market authority, and then enter the mutual fund sales documents to the BI. That kind of mechanism, he said, limit the time for the mutual fund to gain funds from investors.

"We've proposed it, but have not been decided," he told the press today.

Chairman of Mutual Fund Managers Association of Indonesia (Asosiasi Pengelola Reksa Dana Indonesia/APRDI) Abiprayadi Riyanto welcomed the proposal. He said if the proposal is released, then the sale of mutual funds will get more leverage.

APRDI, he added, also is designing a mechanism of further education programs (program pendidikan lanjutan/PPL) representatives of the mutual fund dealer (wakil agen penjual reksa dana/waperd) after the relaxation of mutual funds revoked in the end of last year.

Waperd's PPL should get after 2 years, but until now the program only held for a few times and there are banks that still objected to the training whether APRDI and Bapepam-LK already appoints two educational institutions.

Relaxation of Bapepam-LK issued in May and then loosen the PPL's obligation, the obligation to loosen Waperd certified agent must follow the WMO. With the revocation of relaxation at the end of last year, the implementation of the WMO should be done as stipulated in the regulations.