Regulation on Electronic Licensing in the Financial Services Sector
To improve the effectiveness of integrated licensing in the financial services sector, the Financial Services Authority (Otoritas Jasa Keuangan–“OJK”) introduced an electronic licensing system to integrate all licensing in the financial services sector. OJK Regulation No. 26 / POJK.01 /2019 on Electronic Licensing within the Financial Services Sector (“POJK No. 26/2019”) came into effect on 28 October 2019.
The electronic licensing system is expected to help the OJK with data accuracy, for it to make decisions faster and to ensure the effectiveness of the monitoring of the licensing process, especially that involving coordination between two or more OJK supervision sectors, such as banking, capital markets, insurance, pension funds, finance agencies and other financial services sectors.
A financial services institution, individual or entity (“Applicant”) wishing to obtain a license for activities within the financial services sector must submit an application through the OJK’s electronically integrated licensing services platform (“E-Licensing System”). Before submitting the application, the Applicant must obtain a right of access to the E-Licensing System (“Right of Access”) from the OJK by registering in the E-Licensing System and completing the administrative requirements. POJK No. 26/2019 does not specify the requirements for the registration. It only states that the administrative requirements and the registration procedure for a Right of Access will be provided in the module in the E-Licensing System. A Right of Access can be terminated at the request of the Applicant, or if it is deemed necessary upon an assessment by the OJK or if the business license of the owner of the Right of Access is revoked.
Written by Kurniawan Tanzil, Stephanie Kandou, and Shenandoah Annisaputri.
Read about the details of the regulation by clicking this link.
Link to article
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