THE OBLIGATIONS OF LEGAL CONSULTANTS IN THE INDEPENDENT LEGAL DILIGENCE OF THE CAPITAL MARKET SUPPORTING PROPORTION OF LEGAL PREPPAREMENT

Abstract

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 capital market. When in line with Law on Advocates, wording of article contradicts that the lawyer is acting in law for legal benefit of a customer as set out in Article 1(2) of Law No. 18 of 2003 on Advocates. This contradiction, therefore, provides background to following proposed problems: 1) primarily obligations of legal adviser to provide legal protection for investor for capital market supporting 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 regulation of capital markets. The findings were: 1) An independent attitude expressed after 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 legal relation between lawyer and 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).