TEMPO.CO, Jakarta - To protect customers, the Financial Services Authority (OJK) is tightening the rules in the investment management business. The regulator recently released the bill on investment managers' behavior, which regulates the principles of investment management, transparency, securities management, rebates, commission, and customer confidentiality.

Nurhaida, OJK director for capital market supervision, said one element in the business that the regulator will the make clear is rebate. In the new rule, investment managers are prohibited from receiving rebates from transaction proceeds, and must attach the rebates received to customers' account.

Edward P. Lubis, president director of PT Bahana TCW Investment Management, agrees with the rebate provision, citing it would prevent investment managers from making profits from customers' securities transactions.

Other provisions in the bill are the prohibition to cite unreasonable commissions and additional costs as well as the prohibition to make to sales or purchases orders from a third party without the customer's consent. There are also the obligation to reveal the company's financial recap to customers; the obligation to maintain the data confidentiality; and the types of sanctions given to managers that for violate said rules. (*)