Registration of Legal Consultants for Activities in the Capital Market

The registration of legal consultants for activities in the Capital Market is based on a Decision issued in 1996 which is no longer relevant for current conditions nor is it in compliance with current legislation. The Advocates Law (Law No. 18 of 2003) sets out specific requirements for advocates and legal consultants.

This Decision, No. KEP-261/BL/2008, issued by the Head of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is intended to perfect Rule No. VIII.B.1. The basic premise of the Rule is to protect the interests of capital investors by ensuring that those legal consultants that work in the capital market sector are independent, objective, and professional. As was noted earlier the other primary feature of the Decision is to ensure that there is accord between the Rule and the prevailing law in this area, the Advocates Law.

The Decision states that for legal consultants that have already registered with Bapepam-LK but who have yet to be:

1. sworn in as an advocated based on the provisions of the Advocates Law;
2. accepted as a member of the Capital Market Legal Consultants Association (Himpunan Konsultan Hukum Pasar Modal / HKHPM);
3. appointed as a partner in a firm with the requisite authority to act in the firm’s name; or
4. a partner in a firm that has implemented the necessary quality assurance measures with respect to thorough testing of the law;
5. are required to be in compliance with the provisions of Rule No. VIII.B.1 by 31 December 2010.

Failure to comply with the relevant provisions will result in the imposition of administrative sanctions in the form of the cancellation of any registration.

Those parties already recognized and acknowledged by Bapepam-LK with regard to providing professional education to practitioners or potential practitioners remain so accredited for that purpose.

The Decision repeals the provisions contained in Head of Bapepam Decision No. Kep-37/PM/1996.

This Decision has been in force since 3 July 2008.