Jordanian Financial Institutions Face Increased Regulatory Scrutiny as Securities Commission Steps Up Compliance Efforts
The Jordan Securities Commission (JSC) has been working diligently to develop and implement a robust regulatory framework to ensure the stability, reliability, and growth of Jordan’s capital market. As part of its efforts, the commission is stepping up compliance efforts, subjecting financial institutions to increased scrutiny.
Background
Established in 1997 with financial and administrative autonomy, the JSC is responsible for protecting investors, regulating and developing the capital market, and promoting fairness, efficiency, and transparency. The commission’s regulatory framework has contributed significantly to maintaining a healthy trading environment.
Regulatory Oversight
The JSC’s oversight extends to various entities, including:
- Amman Stock Exchange (ASE)
- Securities Depository Center
- Financial Services Companies
- Issuers of Securities
- Mutual Funds
Electronic Disclosure System
In collaboration with the ASE, the JSC has introduced an electronic XBRL disclosure system to promote transparency and investor confidence. This initiative requires all supervised entities, listed companies, and ASE members to submit their financial and non-financial disclosures using the XBRL language.
International Cooperation
The JSC is working closely with international organizations, including:
- European Bank for Reconstruction and Development (EBRD)
- Joint roadmap launched to enhance capital market growth, attractiveness, stability, and reliability
- Recommendations being implemented to increase investor interest, improve infrastructure, strengthen regulatory processes, and create more attractive investment products
Adherence to International Standards
As a member of the International Organization of Securities Commissions (IOSCO), the JSC adheres to international standards, including:
- IOSCO’s Objectives and Principles of Securities Regulation
- International Financial Reporting Standards (IFRS)
- International Auditing Standards (IAS)
- Committee on Payment and Settlement Systems (CPSS-10) Principles for Financial Market Infrastructures
- OECD Principles of Corporate Governance
- Financial Action Task Force’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) Standards
Conclusion
The JSC’s commitment to compliance has been instrumental in fostering a sustainable capital market environment in Jordan. As the financial landscape continues to evolve, the commission remains vigilant in its efforts to maintain regulatory excellence and ensure the continued growth and development of the country’s securities industry.