SCF Organizers as Representatives of Investors to Issuers
Securities Crowdfunding (SCF) has become an increasingly important alternative funding option, especially for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This scheme allows issuers to raise funds from the public through digital platforms operated by SCF organizers. These organizers play a crucial role in protecting investors’ interests and ensuring that the investment process is conducted safely, fairly, and transparently. This role includes, but is not limited to, providing transparent information, verifying issuers, monitoring the use of funds, and representing investors in forming agreements with issuers.
Provision of Transparent Information
SCF organizers are responsible for providing complete, accurate, and easy-to-understand information to investors. This information includes details about the issuer’s profile, financial reports, ownership structure, as well as business prospects and risks. Transparency is essential as it allows investors to make informed decisions based on valid data. SCF organizers must ensure that all information provided to investors has been verified and is free from misleading content.
Verification and Risk Assessment
Before offering securities to the public, SCF organizers must conduct a thorough due diligence process on the issuer. This includes assessing the business feasibility, evaluating risks, and conducting an in-depth analysis of the issuer’s financial condition. SCF organizers need to assess whether the issuer has the potential for success and whether the risks associated with the investment can be effectively managed. This verification process is crucial to ensuring that only credible and eligible issuers can present offers through the SCF platform.
Ongoing Monitoring and Supervision
Once funds are raised, SCF organizers’ responsibilities do not end at the fundraising stage. They also have a duty to continuously monitor the use of the funds. Organizers must ensure that the collected funds are used according to the business plan that was agreed upon and communicated to investors. Ongoing monitoring includes providing regular reports to investors about the issuer’s performance and business progress. This enables investors to track their investments and assess whether the investment continues to meet their expectations.
Regulatory Compliance
SCF organizers must comply with various regulations set forth by the Financial Services Authority (OJK) and other relevant authorities. Under OJK Regulation No. 57/2020, SCF organizers are required to register and obtain a license from OJK as a Crowdfunding Service Provider. Additionally, they must also be registered as an Electronic System Provider (PSE) with the Ministry of Communication and Informatics (Kemenkominfo). This compliance ensures that the SCF platform’s operations are under the supervision of the relevant authorities, providing additional protection for investors.
Representing Investors in Agreements with Issuers
As stipulated in OJK Regulation No. 57/2020, SCF organizers play an important role in representing investors in forming agreements with issuers. These agreements are legally binding, governing the rights and obligations of both parties, as well as the use of the invested funds. With clear and structured agreements, both investors and issuers have strong legal protection. This is essential to minimize the risk of disputes in the future and ensure that all parties understand their roles and responsibilities in this investment scheme.
Dispute Resolution
In the event of disputes between investors and issuers, SCF organizers also act as mediators to help resolve these issues. Organizers must have effective and fair dispute resolution mechanisms to address any problems that may arise during the investment process. Timely and fair dispute resolution is crucial for maintaining investor trust and ensuring that investments through SCF platforms remain attractive and secure.
Conclusion
The role of SCF organizers in representing investors is vital in ensuring the integrity and sustainability of the crowdfunding system. By performing their duties professionally and responsibly, SCF organizers not only protect investors’ interests but also support the growth of credible and potentially successful issuers. Compliance with regulations, ongoing supervision, and the ability to represent investors in agreements with issuers are all essential elements that underpin investor confidence in the SCF scheme. As a result, SCF can continue to develop as a reliable and sustainable funding alternative for MSMEs in Indonesia.
Reference:
Otoritas Jasa Keuangan (OJK). (2020). Peraturan Otoritas Jasa Keuangan Nomor 57/POJK.04/2020 tentang Penawaran Efek Melalui Layanan Urun Dana Berbasis Teknologi Informasi (Securities Crowdfunding). Retrieved from https://www.ojk.go.id.
