Best Investment Advisory Service

investment advisory service binka consulting

Indonesia is currently one of the potential countries for investment. So it is not surprising that many foreign investors are eyeing Indonesia, and many have even collaborated and built PT PMA companies in Indonesia.

Lots of PMA companies have collaborated with investment advisory services. The goal, of course, is to ask for advice and assistance in making the right investment decisions and managing an investment portfolio.

In this article, we will discuss the purpose of using investment advisory services, and to what extent do they affect company performance and the positive impact on investors?

Are our investment advisory services important?

In general, investment advisers provide direction and guidance in choosing the right investment combination for you, in the form of financial assets such as bonds, mutual funds, and stocks. They will then help you monitor, buy, and sell these financial assets to achieve your investment goals for a fee.

An investment adviser may also advise business owners on how to raise more money for sustainable business options.

Is it safe to use investment advisory services?

Investment advisory services, which are currently starting to develop, are not necessarily trusted by clients who are mostly entrepreneurs or investors. Because there are also many cases that occur in which investment advisory service business actors in carrying out their business activities as Investment Advisors do not have a business license.

This condition is of course risky and threatened with criminal sanctions. This is due to the fact that investment advisory services carry out their business activities that are not in accordance with the permits they have. Especially if it is known that the business license currently held is another business service license that has no correlation with the type of business that is required to be an investment advisor.

Now, with cases that could happen around you, you should first identify the investor advisory service providers, both their business licensing, their reputation from the business portfolio, as well as information from clients who have been handled by the investor advisor.

For that you can get valid information from BINKA Consulting, we will provide recommendations for trusted and professional investment advisory services.

What is an Investment Advisory Service?

Based on the capital market law, it is described as a party that provides advice or recommendations to other parties regarding the sale or purchase of securities, in exchange for services. Business licenses as investment advisors are divided into two, namely individual and corporate investment advisers, both of which must obtain a license from the Financial Services Authority (OJK).

Meanwhile abroad, for the definition of an investment advisor according to the United States securities commission or known as the United States Securities and Exchange Commission (SEC), investment advisors must meet the requirements, namely compensation, be involved in the business, and provide securities recommendations.

In short, investment advisers in the United States provide not only stock advice or recommendations but also reports that will be useful to clients. In addition, investment advisor recommendations are not only concerned with stocks that must be bought or sold, but also asset allocation to market trends.

Requirements to open an Investment Advisory Services business

To carry out activities as an Investment Advisor, a business license from the OJK is required (Article 34 paragraph (1) of the Capital Market Law). Investment Advisor business activities can be carried out by individuals and companies. One of the requirements that must be fulfilled in order to run a business as an Investment Advisor is to have employees who have individual licenses as Investment Manager representatives from OJK.

Based on these provisions, both the Investment Manager and the Investment Advisor are required to have a license to carry out their business activities. Investment Manager and Investment Advisor licenses are issued by OJK. So it is important for business actors to pay attention to their business activities and adjust them to applicable permits.

Still, confused about what business license you should have? Just consult BINKA Consulting through the button below.

By using an investment advisor, you are giving them certain permissions to help with automated trading without having to consult with you each time a transaction. They will also look at all angles of your financial situation and prepare comprehensive asset management or investment plan for you.

With this amount of risk, it is very important to work with a trusted investment advisory service company that does not endanger your investment. BINKA Consulting is ready to help you.

Types of Investment Advisory Services in Indonesia

Several types of investment advisory services in Indonesia with different designs, degrees, and certifications:

Certified Financial Planner

Certified Financial Planners are professionals who have met the requirements of the Certified Financial Planner Standard and passed the exam. They have extensive knowledge and expertise in financial planning, including tax, insurance, investing, retirement, and estate.

As a Stock Broker

This type of investment advisor is usually a licensed representative of a brokerage firm who can buy and sell securities, including stocks and bonds. They are paid on a commission basis for the securities they sell and are responsible for financial analysis, consulting, and trading for clients.

Registered with the Indonesian Stock Exchange Commission

A Registered Investment Advisor is a company registered with the Indonesian Securities Exchange Commission.

Insurance Agent and Banker

They are not really investment advisors service but are licensed to sell and advise on insurance, stocks, bonds, and mutual funds. They also provide financial planning services.

Requirements to Become an Investment Advisory service in Indonesia

Investment advisors can be individuals or work for companies. In general, the conditions are:

  1. Fill out the application form to apply for a business license
  2. Photocopy of Investment Manager Representative license
  3. Indonesian citizens
  4. Detailed descriptions of all business activities

Investment Advisory Services Business Licensing Procedure

  1. Application form to apply for a business license
  2. Articles of association that describe the details of the company’s business activities
  3. The company is domiciled in Indonesia
  4. Photocopy of Investment Manager Representative license
  5. Description of the proposed business activity
  6. Detailed organizational diagram
  7. Operational facilities available to carry out all business activities as an investment advisor
  8. Photocopy of passport and work permit issued by the Indonesian Ministry of Manpower for foreigners

 Duties and responsibilities of Investment Advisory Services

If based on the definition of an investment advisory service as a person or company that offers investment recommendations, reports, or analyzes investment securities for compensation, then many financial professionals can be called investment advisers, such as financial managers, financial managers, and investment consultants. All of them can be considered as investment advisors.

However, the SEC makes an exception to limit any professionals who do not fall within the scope of investment advisers, such as lawyers, accountants, engineers, and teachers, who indirectly provide investment recommendation services as part of business practice.

The difference between an investment advisor and a financial advisor

Another important element that differentiates investment advisors and financial advisors is their principles. Investment advisors service work under fiduciary standards, while financial advisors work as stockbrokers on the basis of suitability standards.

The point of fiduciary here is, investment advisors service must act and provide recommendations in the best interests of their clients, even if what is done is not in line with their principles. Clients always come first.

Financial advisors below the standard of suitability are asked to provide “appropriate” advice or recommendations for clients. Recommendations don’t need to be the “best-fit” option, as there are probably better recommendations out there, but as long as those investment recommendations don’t hurt the client, they can recommend selling them.

What are the duties of the Investment Advisor services?

Most investment advisors provide financial recommendations and guidance for individual investors, much like financial advisors. These recommendations range from the area of investment selection to portfolio management or simply recommending other investment advisers to work with.

Although connected directly to individual investors, some investment advisors service prefer to work behind the scenes. They can manage investments in a client’s portfolio while providing guidance and strategy to other advisors, or they can focus on their financial analysis activities by researching and writing industry reports on investments or market trends.

Investment Advisory Service Business Procedure?

There is a difference between being an individual or a corporate investment advisor service. A person who works as an individual investment advisor is technically called an investment advisor representative (AIR). So if you want to provide recommendations to clients, you are the IAR and the company you work for is an investment advisor.

To be eligible for an investment adviser representative license, you will need sponsorship from the Financial Industry Regulatory Authority. You will need to take and pass the series 65 exams to earn the Chartered Financial Analyst certification and title. You also have to wait two years after passing the exam and starting work as an IAR. If it is over two years, then you will have to wait again to take the 65 series exam.

Things that are prohibited from doing by investment advisors service and considered violating the code of ethics include the following:

  1. Asking for a much higher fee than other advisors offering a similar service
  2. Disclose the client’s identity to third parties
  3. Providing misinformation to clients, such as types of services, qualifications of advisors, etc.
  4. Prepares reports for the client, but is actually done by another advisor, without notifying the client
  5. Guarantee the investment returns or impractical recommendations the client will get through advisory services
  6. Changing contracts without the client’s written consent

Sanctions for violating the code of ethics

Under Indonesian law, investment advisers service commit acts that are prohibited will face severe penalties, including fines, suspension or restrictions on business activities, revocation of business licenses, and cancellation of registration and approval for advisory licenses.

BINKA Consulting is here to help, whether you need investment guides or assistance with visa, work permit, and business permit applications. Contact us online or visit our offices in Jakarta, Bali, and Semarang. We will be happy to answer your questions.


If you have any queries about your project, feel free to contact us on the below information !!
We will get back soon within 24 hours to you !!

Find us
Jl. Danau Sunter Utara, Karya Utara 4, Blok G2 / 24, Sunter Agung, North Jakarta – 14350, INDONESIA
Call us today
(+6221) 6505522, 65300481
Whatsapp: +62812 8855 8856
Email us now: