The strengthening of Indonesia’s regulatory framework through the introduction of a corporate governance code and consumer protection reforms has made legal compliance a challenging task for financial companies. An impending deadline to achieve these goals is adding to the anxiety of several in-house counsel.
Jun 1, 2014
Otoritas Jasa Keuangan (OJK), Indonesia’s financial services authority, has drawn praise as well as scepticism from non-banking financial companies that are trying hard to comply with the stringent regulations of recently introduced corporate governance code.
“OJK requires that insurance customers should be made to understand the terms in the policy contract three times, before, at and after signing of the agreement,” says Rista Manurung, legal and compliance director at Sun Life Financial in Jakarta, “Do you really read your policies, do you really read all the small print?”
Manurung is also critical of the requirement to disclose cost details of acquiring a customer such as agent and bank commissions.
The good corporate governance code needs to be complied with by August this year, when the insurance companies have to make sure that half of their commissioners are independent, and they must chair the audit and risk committees. - read more -
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