Market Conduct Supervisionojk.go.id/Files/seminarkusumaningtutiss.pdf3 Definitions and International...
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Seoul, 26 February 2014 Jakarta, 8 April 2014 Market Conduct Supervision: Indonesian Perspective Kusumaningtuti S. Soetiono Member of Board Commissioners in Financial Education and Consumer Protection, IFSA International Seminar on Market Conduct: A New Era of Conduct Supervision: Consequences, Challenges & Opportunities, Denpasar, 8 September 2014
Transcript of Market Conduct Supervisionojk.go.id/Files/seminarkusumaningtutiss.pdf3 Definitions and International...
Seoul, 26 February 2014 Jakarta, 8 April 2014
Market Conduct Supervision: Indonesian Perspective
Kusumaningtuti S. Soetiono Member of Board Commissioners in Financial Education and Consumer Protection, IFSA
International Seminar on Market Conduct: A New Era of Conduct Supervision: Consequences, Challenges & Opportunities,
Denpasar, 8 September 2014
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Presentation Index
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Market Conduct Framework 2
Regulation and Supervision 3
Definitions and International Practices 1
Challenges and Recommendations 4
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Definitions and International Practices
Market Conduct Definitions
Market Conduct is the Financial Institutions behavior in designing, organizing and delivering information, offers, make an agreement, on the financial products and services as well as dispute resolution and complaints handling. (OJK Regulation No.1/2013)
Why It Is Needed
Moral Reason
Economic Reason
Low Level of Financial Literacy
Cases (Consumers Loss)
Mitigate Financial Crisis
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Definitions and International Practices
Market Conduct Regulatory Structure
One supervisory agency in charge of prudential and
market conduct supervision
Established a specialized financial consumer protection and market conduct agency
General consumer protection agency dealing with financial
products and services
Internal Twin Peaks General Protection Twin Peak Structure
Inggris, Perancis, Swiss,
Australia, Kanada
Thailand, Malaysia,
Singapore Cayman Islands
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Definitions and International Practices
Negara Kelembagaan Market
Conduct Micro-Prudential
Inggris Twin Peaks FCA PRA
USA Twin Peaks CFPB FDIC, OCC, CFTC, SEC, NCUA, FHFA,
FINRA
Australia Twin Peaks ASIC APRA
Malaysia Internal Twin Peaks BNM
Thailand Internal Twin Peaks Bank of Thailand
International Practice What about Indonesia?
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Presentation Index
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Market Conduct Framework 2
Regulation and Supervision 3
Definitions and International Practices 1
Challenges and Recommendations 4
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Market Conduct Framework
Law No. 21 Year 2011 Regulatory Framework
Article 4
1 implemented in an organized, fair, transparent and accountable manner;
2 able to realize the financial system that grows in a sustainable and stable manner
3 capable of protecting the interests of consumers and the society
OJK is formed with the aim that the overall activities within the financial services sector are:
Principle:
the balance between the growth of the financial
sector and the protection of consumers and society
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Market Conduct Framework
Prudential
OJK
Market Conduct
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1 Market Confidence
Level Playing Field
Market Conduct and Prudential Supervision in one agency
Internal Twin Peaks
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Financial Inclusion
Financial Literacy
Consumer Protection
The Trilogy of Policy Instruments
Consumer Empowerment
Sustainable Financial Sector
Market Conduct
Economic Growth
Proverty Reduction
Income Distribution
Market Conduct Framework
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Market Conduct Framework
Financial Inclusion Financial Literacy Consumer Protection
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Market Conduct Framework
Financial Inclusion Financial Literacy Consumer Protection
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Market Conduct Framework
Financial Inclusion Financial Literacy Consumer Protection
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Presentation Index
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Market Conduct Framework 2
Regulation and Supervision 3
Definitions and International Practices 1
Challenges and Recommendations 4
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Regulation and Supervision
OJK Regulation No. 1/2013 regarding Consumer Protection in Financial Services Sector
Regulation
Transparency Fair Treatment Reliability Data Privacy Protection Effective Complaint Handling/
Dispute Resolution
As an “umbrella” for Consumer Protection regulation in Indonesia Financial Services Sector
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Consumer Protection Principle 2
OJK Cirlcular Letter
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2
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Implementation of Education
Program
Consumer Complaint and
Dispute Resolution
Information distribution in
marketing
Standard clause 4
5 Data Privacy Protection
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Regulation and Supervision
Capital Market
Market Conduct Supervision
Financial Sector Supervision
Capital Market
Banking
NBFI
Syariah
Market Conduct
Prudential Supervision Prudential
Market Conduct
Current Condition
Ideal Condition
Current Condition
Ideal Condition
Supervision Current Condition and Ideal Condition
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Regulation and Supervision
Supervision Complaint Handling
OJK Integrated Customer Care
Launch by OJK Chairman on Feb, 6 2014 with feature : Integrated FCC 34 OJK Office Trackable Traceable Knowledge Management System
Total Services Sept, 3 2014
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Presentation Index
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Market Conduct Framework 2
Regulation and Supervision 3
Definitions and International Practices 1
Challenges and Recommendations 4
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Challenges and Recommendations
Market conduct supervision is a value-added of FSA. This functions need to be implemented
Prepare the framework and market conduct supervision infrastructure
Strengthening coordination, especially between marker conduct supervisor and prudential supervisor
Strengthening the regulation and enforcement in consumer protection, financial literacy and financial inclusion
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SUMMARY
Market Conduct Supervision which includes
the financial services sector is necessary and
urgent.
Market Conduct Supervision and Prudential Supervision are two different functions but complementary and
needed to be present in OJK
THANK YOU
Mrs. Kusumaningtuti S. Soetiono Member of Board Commissioners in Financial Education and Consumer Protection, IFSA Telp : +62-21 2981-7002 Fax : +62-21 350 1886 Email : [email protected]
