S'pore banks unfazed by ban

S'pore banks unfazed by ban

Singapore (DPA): Two Singapore banks said Saturday that a six-
month ban on their Indonesian units would have little effect
because they were not involved in mutual-fund activities in the
country.

The Capital Markets Supervisory Agency (Bapepam), the
Indonesian regulator, announced Thursday that it was slapping
suspensions on the OCBC Bank and United Overseas Bank (UOB) units
in addition to seven other brokerages for failing to follow
regulations stipulating the directors hold certain
qualifications.

OCBC Sikap Securities and PT UOB Kay Hian Securities hold
licenses to sell mutual funds in Indonesia, but these permits are
not in use, the banks said.

The regulations stipulate at least one director and one
employee possess investment management licenses to conduct such
business.

The ban does not affect brokerage and stock underwriting.