CHAPTER

CAPITAL MARKET SUPPORTING PROFESSIONALS

Section One Registration

Article 64

  1. Capital Market Supporting Professionals include:
    a) Accountants[155];
    b) Legal Consultants[156];
    c) Appraisers[157];
    d) Notaries[158]; and
    e) Other professionals[159] specified in Government Regulations.
  2. The Capital Market Supporting Professionals mentioned in item (1) must register with BAPEPAM before engaging in Capital Market activities[160].
  3. Further requirements and procedures for the registration of Capital Market Supporting Professionals shall be stipulated in Government Regulations[161].

Article 65

  1. A Capital Market Supporting Professional's registration with BAPEPAM is automatically canceled when the professional's license is revoked by the issuing authority[162].
  2. Prior services rendered by a Capital Market Supporting Professional shall remain valid despite cancellation of the professional's registration, except for services that caused the cancellation of his registration or the revocation of his license.
  3. When the registration of a Capital Market Supporting Professional is canceled, BAPEPAM may investigate and evaluate other services rendered by this Professional with respect to the Capital Market to determine whether such services remain valid[163].
  4. If BAPEPAM decides that services of a Capital Market Supporting Professional, referred to item (3) are invalid, BAPEPAM may order a Company that used these services to appoint another Capital Market Supporting Professional to audit and evaluate the Company.

Section Two Obligations

Article 66

All Capital Market Supporting Professionals must comply with codes of ethics and professional standards set by their respective professional associations as long as such standards are not in conflict with this Law and its implementing regulations[164].

Article 67

When engaged in Capital Market business, Capital Market Supporting Professionals must provide independent opinions and evaluations[165].

Article 68

Accountants that are registered with BAPEPAM and that audit financial reports of Issuers, Securities Exchanges, Clearing Guarantee Institutions, Central Securities Depository and other Persons engaged in Capital Market activities, must report in confidence[166] to BAPEPAM within three working days of discovering the following:

  1. any violation of this Law and or its implementing regulations; or
  2. any matter that may jeopardize the financial condition of the institution, or the interests of its clients.

Section Three Accounting Standards

Article 69

  1. Financial reports that are submitted to BAPEPAM must be prepared in accordance with generally accepted accounting principles[167].
  2. Notwithstanding the requirement in item (1), BAPEPAM may establish accounting rules with respect to the Capital Market[168].