Author(s): Andika Persada Putera, Mohammad Zamroni
The development of investment products in stock market and insurance as well as the shift of people paradigm and critical thinking, from conventional by putting their fund in the form of saving or deposit account to a fixed income, make them shift to investment products such as mutual fund and bancassurance in order to get more profit, and thus, it shifts the amount of customers’ fund to investment products as well. To accommodate this issue, banking activities may not only be core business, but also non-core business in terms of having agencies cooperated with security and insurance companies as mutual fund and insurance (i.e., known as non-bank products) sales agents. However, some possible risks may go to the customers investin their fund into non-bank products. Therefore, they should be protected from any losses they do not expect and out of their fault. This legal protection is both preventive and repressive.