Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


The Consultant in Legal Diligence Independent Capital Market Supporting Proportion of Legal Preparation

Author(s): Budi Endarto, Taufiqurrahman, Slamet Suhartono, Sri Setyadji, Suwarno Abadi, Rihantoro Bayu Aji, Wahyu Kurniawan, Nuriyanto A Daim, Joko Ismono, Arief Syahrul Alam, Ani Purwati, Andy Usmina Wijaya, Chamdani, Rahmadi Mulyo Widianto, Sekaring Ayumeida Kusnadi, Farhan Saleh, Dwi Elok Indriastuti, Wawan Setiabudi, Indra Prasetyo, Nabilah Aliyyah, Rusdiyanto

 A legal consultant is required to provide an independent opinion or assessment as a capital market advocating profession as defined in Article 67 of Law No. 8 of 1995 concerning the capital market. When in line with the Law on Advocates, the wording of the article contradicts that "the lawyer is acting in law for the legal benefit of a customer" as set out in Article 1(2) of Law No. 18 of 2003 on Advocates. This contradiction, therefore, provides the background to the following proposed problems: (1) primarily the obligations of the legal adviser to provide legal protection for the investor for the capital market supporting the profession to be established to establish due diligence, an independent legal; (2) Legal due diligence as a legal adviser's independent opinion. The two problem formulations have been analyzed using a standardized method of legal research to identify legal concepts and principles for the regulation of the capital markets.

            The findings were: (1) An independent attitude expressed after the legal, theoretical and philosophical analysis, that is, not affiliated, not monitored, no conflicts of interest and no partial element, mainly obligations of consultation as a profession of capital market support, to establish an independent legal system, due diligence. (2) The parties have established their internal legal safeguards because the legal relation between the lawyer and the service user is bound by an agreement. Although this legal relationship could be classified as a contractually secure legal endeavour, it must be attentive to legislation and customs and property (heteronomous elements). 

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