Administration of Client s Fund Account

Transcription

1 From Editor KSEI will immediately provide separation system for fund recording owned by investor and KSEI s Account Holder. This service is prepared to enable investor to monitor his fund ownership through AKSes Facility (Securities Ownership Reference). Not only to improve the investor trust to invest in Indonesia capital market, separation of client s fund recording is also aimed at supporting and strengthening the monitoring function as well as mechanism by capital market authority toward market players. Additionally, it helps investor to assure of his fund ownership managed by Account Holder of KSEI. In addition to the main article about fund recording separation of client and KSEI s Account Holder, there are also articles about the dynamics of Asian Clearing, Settlement & Custody, as well as various AKSes Facility new features. Please also take a look at the result of Issuer Seminar carrying a theme of The Power of Optimistic and Financing Alternatives in Capital Market. Enjoy the reading! Editor Administration of Client s Fund Account Starting from second semester 2010, investor can have not only protection on his Securities ownership, but also have his fund recorded separately from Securities Company and Custodian Bank fund recording. KSEI Website Toll Free KSEI Call Center KSEI shall keep making Innovation for investor security and comfort. Since last June 2009, KSEI has provided AKSes Facility (Securities Ownership Reference) that functions as information media through internet for investor as client of Account Holder (Securities Company and Custodian Bank). The facility is provided to monitor position and mutation of Securities owned by client of Account Holder which is kept in KSEI. Through AKSes Facility, investor can have real-time access to Securities ownership data and its mutation in Sub Securities Account kept in KSEI system up to the last 30 days. To carry on the development of AKSes CONTENTS Administration of Client s Fund Account Various New Features of AKSes Facility KSEI Facilities & The Best of Financing Access 6 The Dynamics of Asian Clearing Settlement & Custody 8 activities & StatistiCS Edition 02 Year 2010

2 Fokuss Edition 02, 2010 Facility, KSEI plans to provide separation system for fund recording of client and KSEI s Account Holder so that investor can monitor his fund ownership through AKSes Facility which has online link to The Central Depository and Book Entry Settlement System (C-BEST). Separation upon fund recording of client and KSEI s Account Holder will be performed in separate Sub Securities Account. Eventhough C- BEST has already had upload program, separation process of such fund is still conducted manually for fund are deposited in the account of KSEI s Account Holder in Payment Bank. Except to improve the investor trust to invest in Indonesia capital market, separation of client fund recording is aimed at supporting and strengthening the monitoring function and mechanism by capital market authority toward market players, as well as enabling investor to directly monitor his fund ownership. In its operational activities, KSEI will appoint certain bank to act as the party performing fund administration of capital market client. In the bank, investor s fund will be recorded in Account. Account is a saving account or giro account owned by investor but managed by Securities Company or Custodian Bank, and it shall be applied for client s Securities transaction settlement through such Securities Company or Custodian Bank. In the event that investor becomes client of several Securities Companies or KSEI plans to provide separation system for fund recording of client and KSEI s Account Holder so that investor can monitor his fund ownership through AKSes Facility. Rek. Nasabah Rek. Nasabah Rek. Nasabah Rek. Nasabah Illustration of Account Structure Payment Bank Non Payment Bank Pemegang I Settlement Operasional Pemegang II Settlement Operasional Pemegang III Operasional Custodian Bank, such investor has to open 1 (one) Account for each Securities Company or Custodian Bank. For this purpose, the bank can be Payment Bank or Non Payment Bank. Bank will deliver client s fund ownership data in Account and its mutation to KSEI periodically at the preliminary implementation, and real-time after the Bank and KSEI are ready to provide Straight Through Processing facility. Such data will later renew the investor s fund ownership and its mutation in AKSes Facility. The Opening of Client Settlement Account Every client of Securities Company or Custodian Bank, who has his fund kept in the domain of Securities Company or Custodian Bank for Securities transaction settlement, is obligated to open Account in bank through Securities Company or Custodian Bank. To open the account, client has to meet the main condition of having minimum fund determined by the bank and having Sub Securities Account as well as Single ID in KSEI. Account opened and owned by client has a specific nature, management authority of which is conducted by KSEI s Account Holder. Additionally, KSEI and Nostro KSEI KSEI Nostro KSEI Pemegang I Own Account Sub Sub Pemegang II Note: KSEI Account Holder is Securities Companies and Custodian Bank, Own Account Sub Sub Bapepam-LK through KSEI have the access to get data of position and mutation in such Account. To anticipate fund misapplication in Account, investor s access is limited only to get inquiry facility and to make credit instruction. Debit instruction in such account can only be made by KSEI s Account Holder, either for transaction settlement or fund withdrawal upon client instruction. As additional protection facility for investor as client, the bank will provide notification facility (Short Message Service or ) if there are debit and credit instructions in Account to respective client. Besides, fund in such Account can only be transferred or book-transferred to certain accounts, which are settlement account of KSEI s Account Holder in Payment Bank, Account in similar or different bank, and operational account in Non Payment Bank. Transaction Settlement For settlement of Stock Exchange Transaction and Over-The-Counter Transaction, KSEI s Account Holder must deposit fund in C-BEST via Payment Bank only. Such fund in Account can be book-transferred by debiting Penerbit: PT Kustodian Sentral Indonesia (KSEI) Penasihat: Direksi KSEI Dewan Redaksi: Zylvia Thirda, Dharma Setyadi, Susiyanti, Novian Harry Wibowo, Regina Natalia, Annisa Indri Hapsari, M. Ridwan Penanggung Jawab: Bagian Komunikasi Perusahaan KSEI Alamat Redaksi: Gedung Bursa Indonesia, Tower I Lt. 5, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190, Telp , Fax Sirkulasi: Bagian Komunikasi Perusahaan KSEI

3 the Account and crediting the settlement account of KSEI s Account Holder. Afterward, fund in such account will be transferred automatically to KSEI nostro account in Payment Bank and a credit confirmation message will be delivered automatically to C-BEST in KSEI accordingly. For client who opens Account in Non Payment Bank, fund for settlement of Stock Exchange Transaction and Over-The-Counter Transaction has to be delivered via Payment Bank as well. Therefore, KSEI s Account Holder must have operational account that can be used to receive temporary account of client for settlement of Stock Exchange Transaction or Over-The-Counter Transaction. Fund of settlement result of Stock Exchange Transaction or Over-The-Counter Transaction as well as corporate action distribution result, such as bond interest, redemption, and fund distribution can be withdrawn from C-BEST through wire transfer function made by KSEI s Account Holder to be credited to client s account. KSEI s Account Holder that places client fund in investor account in Payment Bank can mention the Account numbers in beneficiary account field, so that debit confirmation message will be generated automatically to Payment Bank performing debit instruction of certain amount from KSEI nostro account in Payment Bank and credit of Account. Unlike client fund in Non Payment Bank, credit instruction is performed in operational account in Payment Bank. Henceforth, KSEI s Account Holder can deliver instruction to Payment Bank to transfer such fund to Account in Non Payment Bank. It was expected, the separation system for fund recording of Securities Companies or Custody Bank and investor will improve the trustworthy among investor to invest in capital market and provide a transparancy to investor that eventually will create a secured and conducive investment world. Various New Features of AKSes Facility KSEI keeps developing new features in AKSes Facility to support the information needs for investor. In line with the implementation of AKSes Facility which was started on June 2009, KSEI keeps conducting developments on this protection and information transparency application. On its initial launching, AKSes Facility only provided information related to Securities ownership record in KSEI, namely Securities balance, mutation and book-entry instruction. To make the website becoming a reference to investor when searching for various information about Indonesia capital market, KSEI has been conducting developments on AKSes Facility website, by adding the following new features: [1] News and information about capital market comprising of, among others Securities data, namely: trading data, statistical and corporate action data. Aside from domestic market data, AKSes Facility website also provides information about several regional and international indexes, price fluctuation of commodities and exchange rates. [2] Data consolidation and information that relate to KSEI s service users, which are: Issuers, as Securities issuers and KSEI s Account Holders (Securities Fokuss Edition 02, 2010

4 Company and Custodian Bank). Through website display, investor can easily find information about certain Issuers, either their profiles, Securities issued, and corporate action activities, as well as relevant news or published reports. can also find information about KSEI s Account Holders, address of head office or branch, contact person, and other information such as service products, new product launching, or other investor services. Fokuss Edition 02, 2010 The concept of these features is a cooperation form of KSEI with Issuers and Account Holders as KSEI s service users to become administrator of information management in AKSes Facility website. These features have been socialized by KSEI Issuer Seminar on April 6, Later, similar socialization will also be performed to KSEI s Account Holders immediately. This dynamic and up-todate information are expected to get support from the Issuers and Account Holders so that investors who search for information about KSEI s service users may get facilitation. Though it is not compulsory, KSEI expects participation from all Issuers and Account Holders for the benefit of Indonesia capital market development. Generally, the new features gave little modifications to the way of entering the AKSes Facility. Information of Securities Through website display, can easily find information about certain Issuers, either their profiles, Securities issued, and corporate action activities, as well as relevant news. ownership record previously available at front page turned into sub section of AKSes Facility website in overall. The first page of the website has changed with access right division as follows: 1. General Access: providing information to website visitor without requiring specific identification. Website visitor, including investor, can find general information and certain information options which are adjustable based on need. 2. Registered Access: providing information to website visitor with registration requirements. Basically, information given are similar to those obtained through General Access, but the setting made based on visitor s need will be saved. Therefore, visitor does not need to perform repeat adjustment when returning back to AKSes Facility. Registration of registered access is performed easily through Visitor Login menu. 3. Securities Ownership Data Access: providing Securities Ownership Data recorded in KSEI Sub Securities Account. The facility enables investor to check the accuracy of Securities record owned, inclusive of Securities balance and mutation. It is aimed at ensuring that owned Securities are securely kept in KSEI and wellmanaged by Securities Company or Custodian Bank where investor becomes client. Application of such ownership data access can be conducted by clicking the AKSes Facility logo or Area menu at the top right of this page which leads investor to Securities ownership data. KSEI keeps making new features development on AKSes Facility website up to now. Certain current features are required to be modified, and several others are being set by KSEI for immediate implementation. In the future, KSEI expects that AKSes Facility can become a reference for investor to make investment in Indonesia, and at the same time, it can support the Indonesia capital market development. [Syafruddin]

5 KSEI Facilities & The Best Financing Access (SWIFT) system, the application of Single ID in AKSes Facility (Securities Ownership Reference), and ebae Facility as well as AKSES Facility development related to Issuer information. From such explanation, it is expected that Issuers can take a maximum use of KSEI service products. One of them is by providing information about Issuer in AKSES Facility which is expected to create a good relationship and transparency between Issuer and investor. The second session presented 2 (two) speakers who were David Agus, Managing Director Investment Banking Division of PT Danareksa Sekuritas and Iman Rachman, Director Head of Investment Banking II of PT Mandiri Sekuritas. Acted as moderator in the discussion on the second session was Trisnadi Yulrisman, KSEI s Director. Both speakers talked about financing alternatives that could be taken by Issuer in capital market. The financing purpose, economic consideration, market condition and consideration become determant factors which can be optimized to get an optimum financing alternatives. Fokuss A s a form of appreciation toward the Issuers that have had their Securities registered in KSEI, KSEI arranged an Issuer Seminar at the beginning of April. This routine activity was conducted to fasten up the close relationship with the Issuers. This time, the mid-day seminar was held at Hotel Mulia, Jakarta, with a title of The Power of Optimistic and Financing Alternatives in Capital Market.. After the opening speech by KSEI s President Director, Ananta Wiyogo, the program was followed by a presentation by KSEI s Division Head of Research and Business Development, Syafruddin. The discussion was chaired by Gusrinaldi Akhyar, KSEI s Division Head of Central Depository Services as moderator. Syafruddin explained about KSEI Service Products Development comprising of Announcement of Corporate Action Activities through The Society for Worldwide Interbank Financial Telecommunication David Agus gave 3 (three) comparisons of how to get financing alternatives, namely financing from bank loan, Medium Term Notes (MTN) instrument, and bond. Comparison of the three financing ways was taken from the side of interest rate, duration, principal redemption, cashflow, marketable instrument, credit story, creditor group, and withdrawal. Meanwhile, Iman Rachman talked about factors which become the reasons of determining optimum financing structure. The financing purpose, economic consideration, market condition, and considerance become determinant factors which can be optimized to get an optimum financing alternative. At the end of the presentation, both speakers agreed to put MTN as the ideal instrument for financing alternative for Issuer as MTN has specific characters, among others are flexible duration and issuance number (fit in with cashflow need). Besides, cost of MTN Edition 02, 2010 By carrying a theme of The Power of Optimistic and Financing Alternatives in Capital Market, Issuer Seminar KSEI organized did not only present capital market practitioners but also number one motivator in Indonesia.

6 Fokuss Edition 02, 2010 issuance is relatively lower for it requires no public expose and announcement in newspaper. The seminar was closed by interesting presentation from Andrie Wongso, entrepreuner and number one motivator in Indonesia. Under a theme of The Power of Optimistic, for about 90 minutes, seminar participants were encouraged to understand and dig out the power of optimism by retrospecting Andri Wongso s life journey which was full of interesting experiences and valuable lessons. With a motto of success is my right, he mentioned that success does not belong to people but to anybody who deeply realizes, desires, and fights for it with all his heart. By this Issuer Seminar, KSEI expected that all participants can take the benefits for the sake of capital market development in general. In addition, it is expexted that the good relationship between KSEI and the Issuers can be maintained and improved in a better way. [Annisaa Indri Hapsari] Success doesn not belong to people but to anybody who depply realizes, desires, and fights for it with all his heart. The Dynamics of Asian Clearing, Settlement & Custody Dynamic capital market world has urged central Depository to keep conducting information and communication technology development, as well as risk awareness improvement. On February 25 26, 2010, KSEI sent a delegation to participate in the 4th Clearing, Settlement, & Custody Asia, Minimising Risk & Driving Sustainable Post Trade Practices In A Volatile Market seminar, at Sheraton Towers, Singapura. The seminar presented speakers from many countries, especailly from Asian and Europe continents. Indonesia was represented by Nurhaida, Chief of Securities Transaction and Institution of Bapepam-LK. The significant theme of such seminar was about dynamic change of clearing, settlement and custody activities in Asia, inclusive of risk management related to such activities. Transformation Process Dynamic change of clearing, settlement and custody process happens not only to new product development increase, but also to the intention of forming global custody which integrates central Custody in many countries. The dynamics creates transformation of central Custody from Transactional Processing Centre into Information Centric Consultancy. As Information Centric Consultancy, central Custody is urged to be more focus on 3 (three) aspects, namely responsiveness, transparancy and risk management. Responsiveness means that central Custody must be more sensitive toward capital market needs through service provision improvement in terms of operating platform extension, updated information distribution, forecasting tools. Transparancy means that central Custody must be more open in presenting and exposing every business risk and financial assets reporting. The central Custody also needs to focus on Risk Management through monitoring improvement and risk management in capital market. The demand for uniformity to central Custody in every country to refer to transformation of similar clearing, settlement and custody process is surely not a simple thing to do. It is due to different barriers every central Custody has to deal with to adapt to the new dynamics, especially capital and financial market dynamics. Generally, barriers which are commonly experienced by Asian central Custody are as follow: 1. Foreign investor registration. 2. Currency exchange controls. 3. Cash controls credit balance. 4. Cash controls overdraft. 5. Tax. 6. Omnibus accounts. 7. Regulatory framework. 8. Legal framework. 9. Messaging standards. 10. Securities numbering. 11. Settlement cycle. 12. Trade and settlement matching. Transformation of central Custody role into Information Centric Consultancy provides several benefits,

7 protected under an agreement? - Whether there is any significant risk from the application of central Custody service? - Whether their assets can be exposed separately? - How reliable the infrastructure has been developed? among others are: 1. Transaction and safekeeping cost will lessen. 2. Capital inflow can enter the market more easily. 3. Cash flow in the market will contribute to economy growth improvement. Risk Management In the article of Perspective from Indonesia entitled Balancing The Need to Regulate Risk with Facilitating Trade by Nurhaida, it mentioned about regulator strategy in handling barriers in accordance with dynamic change in Asian capital market. The strategy was illustrated in the picture below. In Nurhaida s point of view, strat- The changing financial market Development of Information Technology Greater Risk Awareness- Internal and Regulatory Usage and Focus on Capital Market Use of Risk Transfer Techniques New Competitive Environment Emergence of Hedge Fund as Liquidity Catalyst Underlying Enablers Development of Communication Technology Development of Risk Pricing Data Complex Competition and Alliances within the Financial Sector Removal of Legal and Regulatory Pricing Data Consolidation of Global Market Infrastructure egy applied in Indonesia capital market included information technology development, communication technology developemnt, and risk awareness improvement. Risk awareness improvement was very important to anticipate risk possiblly revealed from clearing, settlement and custody activities, among others: market volatility,asset/liability mismatch, operational risk, legal risk, counterparty risk, compliance risk and liquidity risk. s view as client toward clearing, settlement and custody activities could not be detached from capital market risk management. In general, investor attention shall focus on the following things: - Whether their assets have been REGULATORS l Need to think creatively about where the weakness might be and how disturbances might be transmitted and amplified. l Must keep abreast with the least developments in the markets from all angles be it from development, trading strategies, new intermediaries mechanism, and potential concentration risk in the market. To meet the investor need, central Custody is demanded to provide a better responsiveness, transparancy dan risk management focus based upon dynamic change in clearing, settlement and custody process. Central Custody has to function as natural gatekeeper of risk by performing the strategy of improving monitoring and concultancy roles to capital market players, as well as developing the infrastructure continually in order to minimize the business risks. By such strategy, transformation of central Custody role into Information Centric Consultancy can happen soon. Central Custodian is demanded to provide a better responsiveness, transparancy and risk management focus. [ Indra Gunawan ] Fokuss Edition 02, 2010

8 activities Surveillance Audit For ISO Certification 9001:2008 version In order to assure the quality of excellent service products that suits to quality standard of its service users, KSEI upgraded ISO Certification from 9001:2000 version to 9001:2008 version on April 1, KSEI successfully passed the ISO Certification after going through surveillance audit process performed by PT SGS Indonesia. Hopefully, this ISO Certification presentation can become a reference for KSEI to keep, correct, and improve the quality of its services and products Capital Market School As one of socialization and educational program in Indonesia capital market, KSEI, together with PT Bursa Indonesia, PT Kliring Penjaminan Indonesia as well as Securities Companies, namely PT Danareksa (Persero), PT Kresna Graha Sekurindo, PT E-trading Securities and PT Indopremier Securities, have conducted the opening of 2010 Capital Market School on March 3, Organization of the fifth Capital Market School was to improve the awareness and provide accurate and precise information about investment in capital market. As it opened for general public, the Capital Market School provided the education step by step, from Basic, Intermediate up to Advance level. Roadshow Mall To Mall Socialization and educational program in capital market society are regularly conducted by KSEI. Cooperated with Indonesia Trade and Industry Chamber (KADIN), Bapepam-LK and other Self Regulatory Organizations (SROs), KSEI has participated to convene the second Roadshow Mall To Mall during March September The activity was started by organizing exhibition of AKSes Facility (Securities Ownership Reference), followed by talkshow at Tunjungan Plaza 3, Surabaya on March 26 28, On April 2-4, 2010, KSEI visited Mall Ciputra, Surabaya and Mall Kelapa Gading, Jakarta on April 16 18, Visitors of the exhibition could apply for AKSes Facility, and get information about the benefits and application of AKSes Facility as a tool of protection and information transparency in investing in capital market. Wait for the next Roadshow Mall To Mall at Mall Taman Anggrek, Jakarta on May 14 16, 2010 and at Paris Van Java, Bandung on September 24 26, Fokuss Edition 02, 2010 Corporate Action Distribution Total (Periode January - March 2010) Dana Januari - Maret 2010 Rp (miliar) USD (juta) Equity (Dividen dan Exercise) 5.157,26 0 statistics Debt (Bunga dan Pokok) 6.753,47 2,35 Total Dana ,73 2,35 (Jumlah/Unit ) Saham Waran HMETD