Tuesday, 14 October 2008

Bank Indonesia to regulate foreign investment products

Bank Indonesia (BI) will soon issue a regulation on foreign investment products to anticipate the future prospects of financial markets. “As a seller and foreign products investor, a bank must be careful,” said BI deputy governor, Muliaman Hadad, last Friday. He said the regulation will involve Stock Exchange Monitoring Agency (BPPM) and financial institutions to avoid overlapping. After the Lebaran holidays, the central bank will hold discussions to accelerate the implementation of the new regulation. According to Muliaman, the bank must be the institution responsible for publishing securities and assuring that concerned banks and securities are registered in the country of origin. The products must also be clearly described so that consumers are aware of the risks involved and the expected revenues.

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