OJK published amendments to the regulation on good corporate governance for "financing companies." The key amendments to the regulation relate to the changes in definition, number of Directors, the duties and membership of the audit committee, the duties and membership of the remuneration and nomination committee, and the mechanism of imposing sanctions. The amended regulation comes into force on the date of promulgation.
The key amendments include the following:
- Changes to the definitions of finance companies, Sharia business units, good corporate governance, debtors, affiliates, sharia supervisory boards, independent commissioners, affiliates, and conflicts of interest
- Additional provisions regarding authority of OJK to evaluate the application of good corporate governance
- Changes to the limit on disclosure of share ownership of directors and commissioners from 50% or more to 5% or more
- Addition of provisions related to enforcement of compliance
- Adjustments to provisions related to administrative sanctions
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Effective Date: April 29, 2020
Keywords: Asia Pacific, Indonesia, Banking, Operational Risk, Disclosure, Governance, OJK
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