Best Investment Consultant License

investment consultant license

If you need help making the right investment decisions and managing your investment portfolio, you will seek out investment advisors or consultants and seek their advice. But you need to pay attention before asking for help from an investment consultant, namely an investment consultant license. So that you are not used by people who claim to be illegal investment advisors or consultants.

You need to know that the job of an investment advisor is to 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.

In this article, we will discuss in more detail the requirements, criteria, and how to administer an investment consultant license.

What is an Investment Consultant / Adviser?

Called investment advisors or consultants, namely, individuals or service companies who have an investment consultant license, where their job is to provide direction and input regarding investment products or instruments.

The job of an investment consultant is to advise business owners on how to raise more money for sustainable business options.

The point is, by using the services of an investment advisor who already has an investment consultant license, you will no longer worry about the investment process and how it is managed, especially if you are a beginner in the investment sector.

Investment Consultant VS Investment Manager

Investment Consultant

will help with automated trading without having to consult with you every time a transaction. They will also look at all angles of your financial situation and prepare comprehensive asset management or investment plan for you. Therefore, it is very important to work with trusted investment advisors who do not jeopardize your investment.

So, what if you are interested in becoming an advisor or want to have an investment consultant license? Read on as this article provides everything you need to know about investment advisory in Indonesia, whether you are looking for an investment advisor or want to become an investment advisor.

Financial Planner or Investment Manager

Talking about Investment Managers and Investment Advisers, Sounds Similar But it’s not the same. “The main responsibility of advisors is to advise clients. Meanwhile, the Investment Manager is entrusted with the responsibility to use client money for the benefit of the client.

Financial advisors or investment consultants, before dealing with clients, they are required to have an investment consultant license. In addition, before conducting financial analysis, they will conduct a risk profile analysis. The risk profiles are conservative, moderate, developing, and aggressive. From this risk profile, we, as financial planners, will connect it with what investment instruments are in accordance with the character of the client.

Meanwhile, as investment managers, their duties and responsibilities are to assist investors in managing mutual fund assets. Mutual funds themselves are a collection of funds that come from various investors, where the funds are managed jointly in an investment portfolio. Generally, they work with mutual fund investment companies to manage investors’ assets.

Requirements to Become an Investment Consultant in Indonesia

In the investment world, there is also an important figure known as an Investment Advisor who already has an investment consultant license. Investment advisors can be individuals or work for companies. In general, the conditions are described below:

 Individual investment consultant license

  • Application form to apply for a business license
  • Photocopy of Investment Manager Representative license
  • Indonesian citizens
  • Detailed descriptions of all business activities

Investment consultant license in the Company

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

Investment Consultant License requirements are as follows:

Individual Investment Advisor.

  • Applications for an investment consultant license are submitted to Bapepam by filling in Form Number V.C.1-1, attachment 1 of this rule.
  • Attach a copy of an individual license as Investment Manager Representative.
  • Attach a description of the activity plan including the facilities owned.
  • Indonesian citizens.

Investment Consultant License in the form of a company.

  • Applications for an investment consultant license are submitted to Bapepam by filling in Form Number V.C.1-1, attachment 1 of this rule.
  • Attach the Articles of Association / Bylaws containing the company’s activities as an Investment Advisor. The company is domiciled in Indonesia.
  • Attach a copy of an individual investment consultant license as Investment Manager Representative.
  • Attach a description of the activity plan. Has the means to support activities as an Investment Advisor. Attach Organizational Structure.
  • Attach a copy of the passport and work permit from the Ministry of Manpower for foreign workers.

Things that need to be considered by an Investment Consultant

Before opening an investment consultant or advisory service, so that the investment consultant permit process runs smoothly, you need to know the following, including:

  • The financial planner must be independent, and the financial planning firm is not tied to or affiliated with any financial institution or product.
  • Financial planners are prohibited and are not in the capacity and position to manage customer money or carry out transactions in buying and selling customer portfolios, let alone do so with full power, even though the customer has been authorized
  • To be able to manage customer money and buying and selling transactions, a special license is required, namely an Investment Manager Representative and a Broker-Dealer Representative working in a securities company.
  • Independent financial planners are required to notify customers if they have affiliations with financial institutions and products.

Sanctions for violating the Professional Code of Ethics

Under Indonesian law, investment advisers who 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 visas, work permits, and business permit applications. Contact us online or visit our offices in Jakarta, Bali, and Semarang. We will be happy to answer your questions.


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