Obligations of Financial Services Businesses in Providing Protection to Consumers and the Public in the Financial Services Sector

In this article, we will discuss the obligations of Financial Services Providers (“PUJK”) in providing protection to consumers based on Financial Services Authority Regulation No. 6/POJK.07/2022 concerning Consumer and Community Protection in the Financial Services Sector (“POJK No. 6/2022”). PUJK is a Financial Services Institution and/or a party that carries out business activities of raising funds, distributing funds, and/or managing funds in the financial services sector. Examples of PUJK are commercial banks, credit banks, securities brokers, investment managers, insurance companies, and so on.

In relation to the obligations of the PUJK, it has been specifically regulated in Article 4 to Article 9 of POJK No. 6/2022. The following are the obligations of the PUJK in carrying out its business activities, namely:

1. PUJK carries out its business activities in good faith, in which the PUJK is prohibited from discriminating against its consumers.
2. PUJK must ensure that there is good faith in potential consumers and/or consumers by verifying the accuracy of the information and/or documents of potential consumers and/or consumers with actual facts.
3. PUJK is required to develop and implement written policies and procedures regarding consumer protection.
4. PUJK must prevent the Board of Directors, Board of Commissioners, Employees and/or third parties who work for or represent the interests of the PUJK from:

1. enrich or benefit oneself or others; and/or
2. misuse the authority, opportunity, or facilities available to him because of his position or position, which results in harm to consumers.

5. PUJK must have and implement a code of ethics for consumer and community protection that is determined by each PUJK.
6. PUJK is obliged to be responsible for consumer losses arising from errors, omissions, and/or actions that are contrary to the provisions of the laws and regulations in the financial services sector, which are carried out by the Board of Directors, Board of Commissioners, Employees, and/or third parties working for or represent the interests of the PUJK.
7. PUJK is required to carry out activities to improve financial literacy for consumers and/or the public.

Thus, the explanation above is a brief description of the obligations of financial services businesses in providing protection to consumers and the public in the financial services sector. If you are interested in knowing more about this, you can contact our law office, Suria Nataadmadja & Associates Law Firm.

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