The Jordan Securities Commission (JSC) emerged as an independent public organization in 1997. The organization’s mission is to develop, regulate, and administer Jordan’s capital market. In addition, to protect investors and maintain a sound investment environment.
Additionally, to achieve fairness, safety, and transparency. In addition, to attract domestic and foreign investors. JSC strives to develop the capital market according to international standards.
JSC continually strives to improve the rules that govern the capital market. Its institutions should be strengthened to ensure a higher level of protection and transparency.
Additionally, the JSC regulatory entity monitors financial institutions’ activities in the capital market to ensure that they comply with disclosure regulations. For investors, it facilitates informed investment decisions.
The JSC enforces the Securities Law and related regulations to ensure fairness, sovereignty, and proper administration of the Securities Law.
JSC responsibilities
As part of its mandate, the commission aims to protect stakeholders, develop legislation to reduce risk, and reinforce disclosure instructions. Additionally, it increases investor protection.
Furthermore, the commission intends to disseminate information on investment culture and ensure that parties under its jurisdiction comply with laws and regulations.
JSC Commission aim
- Regulate and monitor the capital market by developing and enacting legislation. Furthermore, it provides a conducive environment for investing in securities.
- Transparency and disclosure must be provided to all parties the commission supervises or monitors. In addition, the agency regulates issuer companies, traders, and other parties.
- Create financial services necessary for the growth of the capital market.
- Promotes the establishment of mutual funds and regulates them to provide small investors with investment opportunities and efficient investment management.
- Ensuring compliance with all the latest international standards regarding disclosures, electronic trading, record keeping, and security price settlements for the capital markets and related entities. In addition, the entities must also comply with the international accounting and auditing standards that are under the regulation of JSC monitoring and supervision.
- Accredit the ASE, JSC, SDC, and their members as to their professional conduct standards.
- Enforce the Law by imposing penalties on those who violate it.
- Raising investor and local awareness of national capital markets, their entities, and other issues about securities investments.
- Train the staff at the JSC, the SDC, and ASE, and the registered persons continues to be at the highest level academically and professionally.
- Investigate complaints from investors and the public and apply sanctions to those who violate the laws and regulations.
- Enhance the daily monitoring of trading at ASE and the software that monitors parties under JSC surveillance.
JSC regulated entities
Monitoring and supervision of the following is the responsibility of the commission.
- Public shareholding companies
- Amman Stock Exchange
- Mutual funds and Investment companies
- Securities Depository Center
- Licensed financial services companies
JSC services
Following are the specified services of the Jordan securities commission:
- Enhance disclosure and transparency
- Registration and licensing
- Continuous inspection of financial services companies
Enhance disclosure and transparency
Its main duty is to ensure that public shareholding companies comply with securities law requirements and disclosure instructions. The commission also encourages companies to disclose their preliminary business results, annual reports, and semiannual data as specified in the securities law.
The act also requires companies to disclose information about key events affecting investors and affecting the price of securities.
Due to the JSC’s enforcement of the disclosure instructions and increased awareness, companies adhere to the disclosure of data and annual reports more consistently.
Especially after implementing securities law no. 76 for 2002, companies that fail to provide periodic data to the JSC within specified dates will be sanctioned.
Registration and licensing
By issuing the instructions for licensing and registering financial services and regulating them, JSC undergoes necessary preparations to regulate financial services. In addition, it protects dealers in financial services companies and enhances confidence in capital markets.
Through the design of training programs, JSC also improves the performance and qualifies natural persons engaged in financial services. Specifically concerning protecting investors and ensuring the smooth operation of the securities market.
Many new financial companies have been granted licenses to conduct financial brokerage and financial consulting activities.
Additionally, several real estate companies and financial institutions obtain licenses to engage in financial brokerage, investment management, financial consulting, safekeeping, and issuance management.
Continuous inspection of financial services companies
Jordan Services Commission regularly conducts meetings and seminars to promote Jordan securities to various stakeholders. In addition, to encourage saving habits across Jordan.
Similarly, during the first quarter, JSC held meetings with Jordanian Arab armed forces and the Jordanian army. JSC also conducts seminars with Jordanian universities, the local economic press, and third-grade students from various public and private schools.
In addition, it participates in international and Arab exhibitions. In addition, pay working visits to ASEs to promote investment.
It has also established a customer service office to receive complaints from customers. Its objective is to provide capital market services to interested investors and concerned individuals.
The ASE also provides financial data and periodic reports on listed companies. A section is available to receive investor complaints and register them in an area dedicated to this purpose.
In addition, a special committee investigates and prosecutes complaints under this section.
Client money segregation
All clients will be classified as retail clients when they open an account. Equity Group Ltd is required by the Jordan Securities Commission to segregate its clients’ money completely. In addition, client funds are mixed with firm funds because all client money is kept in separate bank accounts.
Bottom line
JSC supervises, supervises, and regulates the Amman Stock Exchange, Securities Depository, financial services companies, public companies, and investment funds while maintaining market integrity.
Additionally, the JSC protects investors and promotes market development while enforcing disclosure regulations.
