The Indonesia Financial Services Authority (OJK) issued a new regulation requiring investment managers to implement risk management and be assessed for “health” or soundness, as part of a shift to risk-based supervision designed to identify significant risks earlier and enable timely supervisory action. The regulation sets requirements covering the scope of risk management, mandates that investment managers establish a risk management function, specifies the mechanism for assessing soundness, requires reporting of assessment results, and sets out follow-up actions based on those results. OJK positioned the approach as consistent with International Organization of Securities Commissions guidance encouraging capital market regulators to move toward risk-based supervision of intermediaries, including mutual funds and investment managers. The regulation entered into force upon promulgation on 9 May 2025, while the obligations to implement risk management and conduct soundness assessments apply from 9 May 2027. Article 47 of OJK Regulation No. 17/POJK.04/2022 on investment manager conduct guidelines will be revoked from 9 May 2027.
OJK 2025-07-15
Indonesia Financial Services Authority issues risk management and soundness assessment rules for investment managers
The Indonesia Financial Services Authority (OJK) mandates investment managers to implement risk management and undergo soundness assessments, aligning with risk-based supervision. Effective 9 May 2025, it outlines requirements for risk management, soundness assessments, and follow-up actions, consistent with International Organization of Securities Commissions guidance. Obligations commence on 9 May 2027, revoking Article 47 of OJK Regulation No. 17/POJK.04/2022.