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All Important Points You Need to Know about Investment Adviser in Indonesia

Are you interested in investing in Indonesia? If you need assistance to make the right investment decisions and manage your investment portfolio, you will want to look for an investment adviser for his or her advice.

In general, an investment adviser provides direction and guidance in selecting the investment combination that works for you, in the form of financial assets such as bonds, mutual funds and stocks. Then, they will help you monitor, buy and sell these financial assets to meet your investment goals in return for a fee. An investment adviser may also advise business owners on how to raise money for sustainable business choices.

By engaging an investment adviser, you grant them certain permission to help with automatic trade without consulting you before each transaction. They will also look at all angles of your financial circumstances and put together a comprehensive wealth management or investment plan for you. Therefore, it is vital to get a reliable investment adviser so that you do not jeopardise your investments.

What if you are interested in becoming an investment adviser? Read on as the rest of the article provides essentials about investment adviser in Indonesia for those looking for investment advisers as well as those looking to become investment advisers.

Investing in Indonesia: Types of Investment Adviser

Typically, there are several types of investment adviser in Indonesia with different designations, titles and certifications:

1.Certified Financial Planners (CFP)

A CFP is a professional who has fulfilled all of the Certified Financial Planner Board of Standards’ requirements and passed the board exam. They have broad knowledge and expertise in financial planning, including taxes, insurance, investing, retirement, and estate planning.

2.Stock Broker
This type of investment adviser is usually a licensed representative of a brokerage firm who can buy and sell securities, including stocks and bonds. They are paid by commissions for securities they have sold and are responsible for financial analysis, consultation and trading for clients.

3.Registered Investment Advisers (RIAs)
An RIA is a company that is registered with Indonesian Securities Exchange Commission (SEC).

4.Insurance Agents and Bankers
Strictly speaking, they are not investment advisers but they are licensed to sell and give advice about insurance, stocks, bonds and mutual funds. They also provide financial planning services.

Requirements to Become An Investment Adviser in Indonesia

An investment adviser can be either an individual investment adviser or an investment adviser in corporate. In general, the requirements are elaborated as follows:

Requirements for Individual Investment Adviser

  • An application form to apply for a business license
  • A copy of Investment Manager Representative’s license
  • An Indonesian national
  • A detailed explanation of all business activities

 

Requirements for Investment Adviser in Corporate

  • An application form to apply for a business license
  • Articles of association that detail the company’s business activities
  • A company domiciled in Indonesia
  • A copy of Investment Manager Representative’s license
  • Description of proposed business activities
  • A detailed organization chart
  • Readily available operational facilities for all business activities as an investment adviser
  • A copy of passport and work permit issued by Indonesian Ministry of Labour for foreigners

Prohibited Behaviours

Investment advisers in Indonesia are prohibited of certain behaviours including the following, but not limited to:

  • Asking for a much higher fee compared to other advisers with similar services
  • Revealing client’s identity to a third party
  • Providing misleading information to clients such as the service nature, qualification of the adviser, etc.
  • Preparing a report for a client that is actually done by another adviser without telling the client
  • Guaranteeing an investment result or impractical recommendations that will be achieved by client through the adviser’s services
  • Changing contract without client’s written consent

Sanctions

Under the Indonesian Law, an investment adviser who commits any of the prohibited acts will have to face severe sanctions including fines, suspensions or restrictions of business activities, revocations of business license, and annulments of registrations and approvals for adviser license.

Investing in Indonesia with Cekindo’s Assistance

Cekindo is here to assist you, whether you need investment guidance or help with visa, work permit and business license applications in Indonesia. Talk to us online or visit us in our offices in Jakarta, Bali and Semarang. We will be happy to answer your questions. Start investing in Indonesia and enjoy the profits!