Aakar said that the negligence stemmed from Jouska entering into a partnership with Mahesa Strategis, despite knowing full well that the firm was not properly licensed to broker stock or manage investments by the Financial Services Authority (OJK).

“We also admit our negligence in using a mutual agreement with clients to give Mahesa Strategis access to their trading accounts, instead of using a discretionary trading account,” Aakar said at a press conference in Jakarta on Tuesday.

He also acknowledged Jouska's negligence in its standard operating procedure for communicating with clients, under which its advisors often acted as middlemen between Jouska's clients and partnering financial institutions, including Mahesa Strategis.

“This led many [clients] to believe that Jouska and Mahesa Strategis were related, when in fact they were not,” he said.

The OJK shut down Jouska and partners Mahesa Strategis and Amarta Investa in late July, following allegations that the three unlicensed companies —all with affiliations to Aakar— were illicitly providing investment management services.

None of the three companies were registered as investment management companies or securities companies with the OJK.

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