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The supervisory agency for capital markets and financial institutions wants to protect Indonesian investors by reviewing the licenses of investment management professionals every two years, a move that has been welcomed by capital market players.

The supervisory agency, known as Bapepam-LK, plans to issue a new regulation about the license review process.

“From what is said in the draft of the new regulation, I believe it will have a positive impact on the professionalism of investment manager representatives,” said Syurbainy Nasution, executive director of Appmi, an association for investment and brokerage professionals, on Saturday.

With the regulation, Bapepam-LK will require investment management representatives to give updates about their business activities every two years, said Fakhri Hilmi, head of investment management at the agency.

Those who have not actually engaged in investment management-related work during that time will lose their licenses, he said. Previously, there was no such requirement.

Fakhri said the regulation and license reviews could cause about 1,000 investment manager representatives to lose their licenses due to inactivity.

He said the agency had concluded its discussions about the content of the regulation’s draft and was waiting for responses from capital market players before releasing the regulation.

According to Bapepam-LK data, Indonesia has up to 2,000 active investment management representatives working in brokerages, investment management companies, banks and insurance companies.

Representatives who wish to receive a license must pass a test by the Committee for Indonesian Capital Market Professional Standards (P2P), or they must obtain a certificate from a capital market institution acknowledged by Bapepam-LK.