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Chapter V
SECURITIES
COMPANIES, SECURITIES COMPANY
REPRESENTATIVES AND INVESTMENT ADVISORS |
Section One
Licensing of Securities
Companies |
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| Article 30 |
| (1) |
Only a Company
licensed by BAPEPAM may carry on business
as a Securities Company. |
| (2) |
A Securities
Company licensed under item (1)
may carry on business as an Underwriter,
Broker-Dealer and/or Investment Manager
and any other business permitted by
BAPEPAM rules. |
| (3) |
A Securities
Company license is not required when a
Person acts as an Underwriter,
Broker-Dealer and/or Investment Manager
only with respect to credit Securities
that have a maturity of less than one
year, or certificates of deposit,
insurance policies, Securities issued or
guaranteed by the Indonesian
Government or other Securities
determined by BAPEPAM, |
| (4) |
Further licensing
requirements and procedures with respect
to Securities Companies shall be
stipulated in Government Regulations. |
Article 31 |
| A
Securities Company is accountable for all
Securities-related activities of its
directors, employees and other Persons
that work for the Company. |
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Section Two
Licensing of Securities
Company Representatives |
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| Article 32 |
| (1) |
Only individuals
licensed by BAPEPAM may act as
Underwriter Representatives,
Broker-Dealer Representatives or
Investment Manager Representatives. |
| (2) |
Further licensing
requirements and procedures for
Securities Company Representatives shall
be stipulated in Government Regulations. |
| (1) |
An individual
licensed as an Underwriter Representative
may also act as a Broker-Dealer
Representative. |
| (2) |
An individual
licensed as an Underwriter
Representative, Broker-Dealer
Representative or Investment Manager
Representative may only be employed by
one Securities Company. |
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Section Three
Licensing
of Investment Advisors
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| Article 34 |
| (1) |
Only Persons
licensed by BAPEPAM may engage in the
business of Investment Advisor. |
| (2) |
Further
requirements and licensing procedures for
Investment Advisors shall be stipulated
in Government Regulations. |
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Section Four
Code
of Conduct |
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| Article 35 |
| Securities
Companies and Investment Advisors are
prohibited from: |
| a. |
influencing or
pressuring clients to act in ways
contrary to their interests; |
| b. |
disclosing a
client’s name or business, unless
authorized in writing by the client or
otherwise required by current law and
regulations; |
| c. |
concealing material
information from clients or making
misrepresentations regarding their
business capabilities or financial
condition; |
| d. |
recommending that
clients buy or sell Securities, without
revealing that the Securities Company or
Investment Advisor has an interest in
such Securities; or |
| e. |
buying or holding
in its name or in the name of an
Affiliated Person, Securities of an
over-subscribed Public Offering, with
respect to which the Securities Company
is the Underwriter or selling agent,
until orders of Unaffiliated Persons are
filled. |
Article 36 |
Securities
Companies and Investment Advisors must:
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| a. |
know the
background, financial situation, and
investment objectives of their clients;
and |
| b. |
prepare and
maintain proper records of their
financial condition, orders, and
Transactions |
Article 37 |
| Securities
Companies must follow procedures
stipulated by BAPEPAM when receiving
clients’ Securities and must: |
| a. |
register
clients’ Securities in accounts that
are separate from accounts of the
Securities Company; and |
| b. |
maintain secure
facilities for safekeeping clients’
assets, with separate records for each
client.
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Article 38 |
| A
Broker-Dealer may not execute
transactions on a Securities Exchange for
his own account or for the account of
Affiliated Persons, until all buy and
sell orders with respect to the same
Securities for Unaffiliated clients have
been executed. |
Article 39 |
| An
Underwriter must fulfill all terms of the
underwriting agreement disclosed in the
Registration Statement. |
Article 40 |
| An
Underwriter must disclose in the
Prospectusany Affiliation or other
material relationship with the Issuer . |
Article 41 |
| A
Broker-Dealer that is the Investment
Manager of an Investment Fund, or a
Broker-Dealer that is Affiliated with a
Fund’s Investment Manager, may not
charge commissions to the Fund that are
higher than would be charged by an
Unaffiliated Broker-Dealer. |
Article 42 |
| An
Investment Manager or an Affiliated
Person may not receive any form of direct
or indirect compensation that might
influence that Investment Manager to buy
or sell Securities for the Investment
Fund |
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