The financial markets in Jordan are highly lucrative and plentiful with a large array of trading brokerages. These markets are also highly regulated, which is part of the reason the financial markets are so healthy. Jordan is home to numerous competent trading brokerages that fall under the regulation of the Jordan Securities Commission (JSC). Let’s discover what this regulator is all about in the following article.show more
The Jordan Securities Commission (JSC) is a public institution with regulatory authority over the capital market in Jordan. It was established in 1997 with the goal of protecting investors and providing them with a safe, secure, fair and transparent investing environment. The JSC ensures this environment is provided by enforcing the securities law and various regulations on financial services companies and businesses. The types of financial businesses and entities under JSC regulation include the Amman Stock Exchange, the Securities Depository Center,public shareholding companies, trading brokerages, and other financial services. The three main objectives of the JSC include;
• The regulation and development of financial markets.
• Protect the Financial markets and its participants.
• Increase investor awareness on the markets.
The JSC is the primary regulator of the financial markets in Jordan and therefore has many responsibilities.See some of their most important responsibilities listed below.
• The issuance of legislations to develop and regulate the financial markets.
• Provide investors with the necessary information needed to participate in investments.
• Develop and implement the services needed in the financial markets.
• Stay relevant and implement up to date international standards of regulation.
• Penalize those who do not follow the rules and regulations set in place.
• Take formal complaints from investors and enforce legal actions on fraudulent entities if necessary.
Investors and traders investing and trading with JSC regulated trading brokerages can rest assured they’ll be protected. The JSC protects investors by enforcing the various rules and regulations on the businesses and services they regulate. They also supervise and monitor these businesses to ensure they are providing fair and transparent services. As well, the JSC informs investors with all the necessary information required for investing and trading safely and smartly. The JFC also takes complaints from investors and will initiate formal investigations and take legal action when needed. Additionally, they will warn investors of fraudulent operations and provide them with precautionary measures to take when investing and choosing a broker.
All trading brokers operating in or out of Jordan are required to be licenced and regulated by the JSC. The JSC then imposes various regulatory guidelines on them. For instance, brokers must hold their client funds in segregated bank accounts. As well, they must submit periodic reports of their finances and operations. Brokers must also be audited yearly by a trusted third party auditing company.