Mutual Funds Can Be an Asset Base KPD

NEW YORK Reporting - In No V regulation G6 of Customer Funds Management Guidelines Based on the Nature Fund Management Agreement and the Individual by Bilateral Investment Manager to be signed by the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) stated, mutual funds, certificates of deposit, and KIK EBA is an effect that can be an asset base in fund management contracts (KPD).

"Deposits that include the effect, but we limit may only be 25 percent," said Chairman of Bapepam-LK Fuad Ahmad Rahmany in Jakarta.

He explained that these restrictions because the deposit is a banking product, while investment managers (MI) is the manager of capital market securities. If the placement of deposits as the underlying asset exceeds the limit of rupture determined in the regulation, the regulator will give a deadline for fund to reduce the rates.

However, if MI is ignored, Bapepam-LK will confront while on the repo, it still will look into the matter whether the entry into securities? However, according to him, in terms of accounting, including securities, while it substantially repo borrowing money.

"It is still debated. (Repo) are still in the gray area," he said.

The plan, these rules will be ratified at the end of March. Then, back to Thursday (15/4/2010) ini. until that happens, according to Fuad, because there are some changes in the draft rule is still communicated with the players in the industry.

"So in this new KPD rules do not let the little things so much trouble," said Fuad.