Challenges of Legal Consultants in Handling Law in The Capital Markets Sector

The financial sector in the capital market has become a favorite for investors to be able to invest in Indonesia. Capital market activities are the main spearhead in improving the welfare of the people in Indonesia, of course it cannot be separated from the main actors, especially legal consultants regarding regulations that can protect the interests of foreign and local investors. The role of this profession is very important in carrying out capital market mechanisms because this profession will determine and/or help the smooth running of capital market activities in Indonesia. The smooth running of capital market activities does not only depend on regulators, but investors who invest actually need a legal profession, namely legal consultants, to ask for legal considerations before making decisions. However, looking at increasingly complex legal events, there are certainly challenges for capital markets legal consultants to handle them. This research is legal research with a statutory approach, analytical approach and conceptual approach. The results of this research explain firstly, the role of legal consultants in the capital market directs investors to avoid or minimize legal losses in the future. The role of legal consultants is also to remind investors to carry out due diligence on shares to be purchased or executed. Legal consultants or those included in the definition of capital market supporting professions have the role of providing opinions or information (legal opinion). Second, the main basis of legal consultants in the capital markets is to provide legal opinions for investors as a form of legal consideration. However, legal consultants who carry out legal handling in the capital market must not only really understand the ins and outs of the capital market and the legal aspects of the capital market, but must also be able to carry out their duties honestly and have high credibility. Third, the challenge for legal consultants in the capital market is to maintain integrity and protect the interests of clients from parties who will harm the client in order to gain unilateral profits. It is indeed quite vulnerable to handling by capital market legal consultants because insider trading often occurs so that small investors often experience losses in both material and non-material aspects. Therefore, there is a need for the government to form legal consultants for the Capital Market with statutory legal products. In this regard, the author assesses that the legal consultant profession in the capital market requires special regulations regarding a code of ethics in order to maintain integrity in carrying out its duties as a provider of legal opinions for investors as well as its clients.