Financial Crime World

Jordan’s Financial Regulatory Bodies Take Center Stage: A Look at the Jordan Securities Commission

The Jordan Securities Commission (JSC) was established in 1997 as a public institution with financial and administrative autonomy to develop, regulate, and monitor the country’s capital market. Since its inception, the JSC has been working tirelessly to achieve its main goals of protecting investors in securities, safeguarding the capital market from risks, and regulating and developing the market to ensure fairness, efficiency, and transparency.

Key Objectives

  • Protect investors in securities
  • Safeguard the capital market from risks
  • Regulate and develop the market to ensure fairness, efficiency, and transparency

Oversight and Regulations

The JSC’s oversight extends to various entities, including:

  • Amman Stock Exchange (ASE)
  • Securities Depository Center
  • Financial Services Companies
  • Issuers of Securities
  • Mutual Funds

To accomplish these objectives, the JSC has implemented a series of rules that govern the securities industry and promote sustainable market growth. These regulations aim to foster a culture of compliance and encourage sound and healthy trading practices.

Electronic XBRL Disclosure System

In recognition of the importance of full, accurate, and timely disclosure, the commission collaborated with the Amman Stock Exchange to launch an electronic XBRL (eXtensible Business Reporting Language) disclosure system for listed companies. This system provides a standardized format for reporting financial information, making it easier for investors to access and analyze company data.

Collaboration with the European Bank for Reconstruction and Development

As part of its ongoing efforts to promote capital market growth, attractiveness, stability, and reliability, the JSC has been working closely with the European Bank for Reconstruction and Development (EBRD). The two entities have launched a roadmap outlining recommendations aimed at:

  • Increasing investor interest
  • Making the market more attractive to issuers
  • Strengthening the securities industry

Notable progress has been made in areas such as infrastructure development, regulatory process enhancements, and public outreach programs.

International Cooperation

The JSC is also a member of the International Organization of Securities Commissions (IOSCO), ensuring compliance with 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
  • The Financial Action Task Force’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) Standards