Member Article

On 10 November 2008, BAPEPAM-LK issued Regulation X.E.1 concerning the obligation of securities companies to submit periodic reports. This Regulation X.E.1 replaces a regulation issued in 2006 and is basically intended to improve the provisions of the previous regulation, especially on the procedures for submission. It also imposes a new requirement on management of securities companies to provide a statement regarding their responsibility for the financial report. The statement is to be signed by all the directors and one commissioner (representing the Board of Commissioners) in a form prescribed in Regulation X.E.1. All directors and commissioners of the Securities Company will be held jointly liable for the content of the statement.

Like under the previous regulation, all securities companies must submit the following periodic reports to BAPEPAM-LK:

▫        Periodic Financial Reports, consisting of the Annual Financial Report and the Semi Annual Financial Report.

▫        Activities Reports, consisting of a semi annual activities report, for Securities Companies engaged in Underwriting activities; a monthly activities report for Securities Companies engaged in Brokerage activities; and or a monthly activities report for Securities Companies engaged in Investment Management activities

▫        Accounting Report on Adjusted Net Working Capital, to be prepared by the same accountant who prepares the financial report of the Securities Company.

The provisions of Regulation No. X.K.2 (re The Obligation to Submit Periodic Financial Reports of public companies) are also applicable if the Securities Companies are public companies.

Regulations on the Reporting Obligations of Securities Company

Bapepam-LK has also issued Decree No. KEP-460/BL/2008 which specifies the periodic reports that securities companies must submit under Regulation X.E.1. All securities companies must submit the following reports:

 ▫        Financial Reports: Annual and Mid-Year;

 ▫        Activities Reports:

    -  Mid-Year Guarantee Report for Securities Guarantor Issuers;

    -  Monthly Report for Securities Brokers;

    -  Monthly Report for Investment Managers; and

 ▫        Accountant’s Report on Annual Net Working Capital.

These financial reports must be submitted to the Bapepam-LK with a declaration that every member of the Board of Directors has read and accepts responsibility for the content of the financial report and at least one member of the Board of Commissioners must read and sign the financial report on behalf of the Board of Commissioners.

 

Footnotes: