Disgorgement Fund for Investment Security
The Financial Services Authority (OJK) is completing a regulation on the disgorgement funds that will compensate investors’ losses in the capital market. The OJK Regulation Bill (RPOJK) stated the disgorgement fund is a law enforcement instrument that can create a deterrent effect on wrongdoers who violate laws and regulations in the capital market. Therefore, investor losses in the capital market could be minimized.
Investor losses that are eligible for disgorgement funds are those caused by violations in the capital market, not because of investment decision mistakes or risks arising from investments. The Indonesia Stock Exchange (IDX) wanted the enforcement of the regulation as soon as this year. However, OJK admitted that it is still under the 'rulemaking rule internal' stage.