Jordanian Financial Services Firms Urged to Strengthen Compliance
The Jordan Securities Commission (JSE) has issued guidelines to improve the compliance of local financial services firms, emphasizing the importance of implementing effective internal controls and robust procedures.
Recommendations for Improving Compliance
- Implement effective internal controls and robust procedures
- Develop and examine a comprehensive compliance program, including risk assessments
- Maintain accurate records
- Take immediate corrective action when violations or potential violations are discovered
Compliance Manual Essentials
A key component of an effective compliance program is the preparation of a comprehensive compliance manual. The manual should include essential elements such as:
- Internal controls
- Anti-money laundering programs
- Customer information programs
- Business continuity plans
- Financial controls
- Books and records maintenance requirements
Staying Informed and Trained
- Review the regulator’s website and other regulatory bodies’ websites to stay informed about best practices and regulatory changes
- Participate in training programs
- Become a member of professional associations to enhance knowledge and skills
Conducting Regular Audits and Reviews
To ensure compliance with regulatory requirements, firms should conduct regular audits and reviews of their internal controls, procedures, and systems. The JSE recommends that:
- Compliance officers review the completed compliance manual at least once a year
- Provide quarterly reports to senior management on regulatory issues
Addressing Violations
The JSE stresses the importance of taking immediate action when violations or potential violations are discovered. Compliance officers must be firm in their delivery of requirements and able to act decisively to address any non-compliance issues.
Recent Case Studies
During the workshop, attendees were presented with recent case studies highlighting the consequences of non-compliance, including:
- Deep systemic insider trading
- Poor internal controls
- Misuse of customer funds
Conclusion
The JSE’s recommendations aim to strengthen compliance practices among local financial services firms, ensuring a safer and more transparent regulatory environment for investors.