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                Strategic Plan 2005-2009

                Introduction

                1. Overview.

                2. Strategic Planning Process.

                2.1. Methodology.
                2.2. Preparing the strategy document.

                3. Status of the Jordan Securities Commission.

                3.1. SWOT analysis of internal and external environment.
                3.2. Treatment of findings of SWOT analysis of the internal and external environment.

                4. Strategy Components.

                4.1. Vision.
                4.2. Mission.
                4.3. Core values.
                4.4. National Aims.
                4.5. Institutional Aims.

                5.Strategies and plans.

                5.1. Strategies to achieve institutional aims.
                5.2. Preparing work plans.
                5.3. Performance measurement.

                 

                Introduction

                1. Overview

                The Jordan Securities Commission (JSC) is a governmental supervisory entity that regulates the capital market.  Established by virtue of the Securities Law No. 23 for the year 1997, the JSC shall report to the Prime Minister.  It has a legal personality with financial and administrative autonomy.  The Commission was established to protect investors in securities, regulate and develop the capital market to ensure fairness, efficiency, and transparency, and to protect the capital market from the risks it might face.

                The Commission is administered by a board of five full time Commissioners who have experience and specialization in this field, including the Chairman and his Deputy.   Commissioners are appointed by a decision of the Council of Ministers supported by a royal decree, for a term of five years. The functions of the Board of Commissioners include:
                a. Preparing draft laws and regulations related to securities,
                b. Approving instructions and bylaws related to capital market institutions,
                c. Granting licenses to undertake financial services activities and certified financial professional activities.
                d. Approving the registration of securities and mutual funds,
                e. Adopting the accounting, auditing and performance evaluation standards to be followed by parties subject to the Commission‘s monitoring.

                By virtue of the Securities Law No. 76 for the year 2002, parties subject to the Commission’s monitoring include companies that issue securities, financial services companies and certified financial professionals, the Amman Stock Exchange, the Securities Depository Center, mutual funds and investment companies in securities.

                The Jordan Securities Commission believes that the achievements of the Jordan capital market are the result of studies, experience, and local and external partnerships.  It also believes that the openness of capital market institutions to the world development trends, and their ability to adapt and develop were behind the achievements of the market and the confidence that it enjoys. As a result, the Jordan Securities Commission pays considerable attention to fostering cooperation and the exchange of information and experience with Arab and international organizations.  The Commission is linked to its counterpart organizations internationally by information exchange agreements and MoUs that help achieve the Commission’s aims and develop the capital market.  These agreements and MoUs are governed by international standards adopted by the International Organization of Securities Commissions (IOSCO).  Agreements and MoUs were signed with Bahrain, Kuwait, Malaysia, Egypt, and Romania, and there are draft agreements and MoUs with Oman, Palestine, Poland, Ukraine, and Pakistan that await signature.  Locally, the Commission has prepared a draft MoU with the Central Bank of Jordan (CBJ) to enhance cooperation and coordination in the areas of regulation and surveillance.  The draft was submitted to the CBJ to review it in preparation for signature.

                The Commission is working to disseminate and consolidate the culture of investment in securities in order to expand the base of investors, by publishing public awareness material through the media, organizing lectures and special meetings, and receiving student visits from universities and other educational institutes.

                The Commission is working to apply the Corporate Governance Code for Shareholding Companies Listed on the Amman Stock Exchange in order to enhance investor confidence.  The Commission, in cooperation with capital market institutions, has started drawing the bases and criteria for applying international corporate governance principles, especially those issued by the Organization for Economic Cooperation and Development (OECD), on registered companies at the JSC and listed on the ASE.

                The Commission believes in maintaining a partnership with judicial and legislative authorities and the media in order to protect investors and upgrade the national capital market.

                The Commission also pays great attention to developing its human resources through internal and external training courses in order to enhance their abilities, which reflects positively on the national capital market.

                The Commission believes that Jordan’s moderation and economic stability, under the leadership of our pioneering King, is a crucial element in the progress of the national capital market and in gaining the confidence of dealers.

                 

                2. Strategic Planning Process

                2.1. Methodology

                Drawing on modern theories in strategic planning, and through analyzing the Commission’s internal and external environments, the JSC drew its strategy for the period 2005-2009, which was based on the following points:

                • The Commission’s current state. This includes viewing legislations governing the Commission’s activities, specialization, duties, activities, principal functions, present organizational structure, administration, human resources, internal bylaws, and beneficiaries at large.  A SWOT analysis was conducted to identify the internal areas of strengths and weaknesses and challenges in the Commission’s external environment, and to indentify key internal and external issues that influence the future of the Commission and that should be taken into consideration in the planning process.
                • Horizons and ambitions. This includes defining a comprehensive vision of the Commission’s desired state in the future, its mission, principles of work, core values, institutional aims that the Commissions wishes to achieve through its plans, and the outputs that the Commission will achieve in order to realize the aims defined in the plan. 
                • Planning. This includes selecting and preparing work plans that deal with key issues and achieve the Commission’s institutional aims, taking into consideration deadlines and resources.
                • Oversight and assessment.  This includes studying the Commission’s outputs in order to follow up and to assess progress towards realizing aims and monitoring performance measures related to institutional and departmental aims.  It also includes data collection and referencing, and preparing progress reports. 

                2.2. Preparing the strategy document

                In building its strategy, the Commission appreciates the team spirit.  The team is composed of experts on the Commission’s affairs, different functions, and its external environment, in order to achieve a clear definition of the Commission’s overall vision, duties, principles, aims, and strategies, and by consequence define its performance measures.

                • Defining the participating parties in drawing and implementing the plan by the following means:
                  1. Entrust the planning committee with following up the preparation of the plan and approving it.
                  2. Form a main taskforce for the plan to define the best means for preparing the plan.
                  3. Cooperate with an external planning consultant.
                • Data collection and analysis using a number of methods that include:
                  1. Reviewing previous theories on strategic planning.
                  2. Organizing a series of internal and external workshops.
                  3. Using a number of polls to understand the external environment and take it into consideration in external planning.
                  4. Comparing the effectiveness of different strategic options that emerge from workshops, memoranda, and documents, and keeping all the findings of workshops to review them subsequently.

                 

                3. Status of the Jordan Securities Commission

                3.1. SWOT analysis of internal and external environment

                The Commission organized a number of internal and external workshops to draw the strategic plan by analyzing its internal environment (strengths and weaknesses) and external environment (opportunities and threats).  By taking the input of all participants in these workshops, it is possible to present the findings of the SWOT analysis as follows:

                Internal analysis

                • Areas of Strength
                  1. Granted powers to the Commission by virtue of the Securities Law and regulations and instructions issued pursuant thereto.
                  2. The Commission supports modernization, development, and customer service.
                  3. A highly qualified technical cadre to perform the principal tasks and functions of the Commission.
                  4. The Commission is the official and sole supervisory organization at the national capital market.
                  5. Excellent technical and infrastructure facilities.
                  6. Excellent relations with Arab and international capital markets and a good international reputation.
                  7. A clearly defined vision, mission, and aims of the Commission in the Securities Law.
                  8. Extensive benefit from international aid programs particularly in technical development.
                  9. High administrative and financial independence and flexibility.
                  10. Excellent human relations among the staff that create a good work environment.
                • Areas of Weakness
                  1. A nascent experience in regulating the national capital market.
                  2. The need for more highly specialized staff in specific technical areas.
                  3. The need for a more developed electronic system for monitoring trading in the national capital market,
                  4. Some shortcomings in the competitiveness of remunerations and bonuses.
                  5. Working in the context of inflexible administrative and financial instructions.
                  6. Some employees have difficulty in adapting to the changes taking place at the Commission.

                External analysis

                • Opportunities
                  1. The potential for international bilateral cooperation and building partnerships.
                  2. The international interest in capital markets of emerging countries.
                  3. Political stability and security in a troubled region.
                  4. The seriousness of the Jordanian government to reform and develop the public sector.
                  5. Increase of confidence in Jordan capital market institutions.

                 

                • Threats
                  1. Hotbeds of instability nearby.
                  2. Strong competition between emerging markets to attract investments.
                  3. A multiplicity of agencies supervising public shareholding companies and banks licensed to perform financial services.
                  4. Poor local savings.
                  5. Limited expertise and qualified personnel working in financial services.
                  6. Limited public awareness of the importance of investing in securities.
                  7. The possibility of losing a number of personnel who may receive tempting job offers. 

                3.2. Treatment of findings of SWOT analysis of the internal and external environment

                To treat the results of the SWOT analysis, benefit from the strengths and remedy the weakness areas and threats, the Commission has set a number of strategies that can be summarized as follows:

                • Strengthening cooperation and coordination and building partnerships with homologous local, Arab, and international organizations.
                  • Signing a number of bilateral and multilateral agreements with securities commissions and organizations.
                  • Encouraging the government to integrate supervisory authorities on public shareholding companies into one authority, and to develop working mechanisms with the concerned official organizations and ministries.
                  • Continuous reviewing of various agreements and updating them in agreement with the concerned parties. 
                • Launching initiatives to deepen the capital market and to consolidate the culture of investment.
                  • Adopting a national strategy for investment in securities to support and encourage local and foreign investments.
                  • Adopting a comprehensive national campaign that indicates the importance of investment in securities in coordination with academic institutes.
                  • Providing investors with a safe investment environment.
                  • Raising the efficiency of electronic devices and trading and clearance systems.
                • Developing and institutionalizing of internal bylaws, particularly those related to human resources, through:
                  • Developing and upgrading efficiency and efficacy in the Commission, raising customer satisfaction, the efficiency of human resources, and increasing their awareness of work requirements and attracting highly qualified professionals to work for the Commission.
                  • Reviewing and upgrading instructions and regulations pursuant to the new Securities Law.
                  • Adopting a knowledge management strategy, developing mechanisms and means of accessing implicit knowledge, and activating existing information systems.

                The following table indicates the link between the SWOT analysis results and the strategies adopted to treat them

                Areas of Strength & Weekness

                 

                 

                 

                 

                 

                 

                Opportunities & Threats

                 

                Areas of Weakness                       

                Areas of Strength

                1. A nascent experience in regulating the national capital market.
                2. The need for more highly specialized staff in specific technical areas.
                3. The need for a more developed electronic system for monitoring trading in the national capital market.
                4. Some shortcomings in the competitiveness of remunerations and bonuses.
                5. Working in the context of inflexible administrative and financial instructions.
                6. Some employees have difficulty in adapting with changes taking place at the Commission
                1. Powers granted to the Commission by virtue of the Securities Law and regulations and instructions issued pursuant thereto.
                2. The Commission supports modernization, development, and customer service.
                3. A highly qualified technical cadre to perform the principal tasks and functions of the Commission.
                4. The Commission is the official and sole supervisory organization at the national capital market.
                5. Excellent technical and infrastructure facilities.
                6. Excellent relations with Arab and international capital markets and a good international reputation.
                7. Clearly defined vision, mission, and aims of the Commission in the Securities Law.
                8. Extensive benefit from international aid programs particularly in technical development.
                9.  High administrative and financial independence and flexibility.
                10. Excellent human relations among the staff that create a good work environment
                Opportunities
                1. The potential for international bilateral cooperation and building partnerships.
                2. The international interest in capital markets of emerging countries.
                3. Political stability and security in a troubled region.
                4. The seriousness of the Jordanian government to reform and develop the public sector.
                5. Enhance confidence in Jordan capital market institutions.

                Weaknesses Strategies-Opportunities Strategies - WO

                Developing and institutionalizing internal bylaws, particularly those related to human resources.

                (W1,W2, W3, W4, W5, W6, T2,T3, T5, T7)

                Launching initiatives to deepen the capital market and to consolidate the culture of investment.

                (O1,O2,O3,O4,O5,O6,W1,W2, W3, W5)

                Strengths Strategies– Opportunities Strategies - SO

                Strengthening cooperation and coordination and building partnerships with homologous, local, Arab, and international organizations.

                (S1,S4, S6, S7, S8, O2, O3, O4)

                Developing and institutionalizing internal bylaws, particularly those related to human resources.

                (S1, S3,S4,S5, S7,S8,S9,S10, O1, O4,O5,O8,O10)

                Threats
                1. Hotbeds of instability nearby.
                2. Strong competition between emerging markets to attract investment.
                3. A multiplicity of parties supervising public shareholding companies and banks licensed to perform financial services.
                4. Poor local savings.
                5. Limited expertise and qualified personnel working in financial services.
                6. Limited public awareness of the importance of investment in securities.
                7. The possibility of losing a number of personnel who may receive tempting job offers. 

                Weaknesses Strategies -Threats Strategies - WT

                Developing and institutionalizing internal bylaws, particularly those related to human resources.
                (W1,W2, W3, W4, W5, W6, , T2, T3, T5, T7)

                Strengthening cooperation, coordination, and building partnerships with homologous local, Arab, and international organizations.
                (W1,W2, T3,T4, T6)

                Strengths Strategies -Threats Strategies - ST


                Strengthening cooperation, coordination, and building partnerships with homologous local, Arab, and international organizations.
                (S1, S4,S6,  S7,S8, T3, T4, T6)
                Launching initiatives to deepen the capital market and to consolidate the culture of investment.
                (S1,S2,S3,S4,S5,S6,S7,S8, T2, T3, T7)
                Developing and institutionalizing internal bylaws, particularly those related to human resources.
                (S1, S3,S4, S6, S7, S8,S10, T2, T3, T5,T7,T10 )

                 

                4. Strategy Components

                4.1. Vision

                The vision expresses the Commission’s aspirations and major working principles.  To give a clear and specific understanding of its aim, the Commission adopted the following vision:

                “The Jordan Securities Commission aims to upgrade the national capital market in order to create an environment attractive to investment.”

                4.2. Mission

                The mission defines the basic purpose of the Commission’s existence and how it works to realize its aims and highlights the principal functions and responsibilities of the Commission.  The Commission’s mission states that:

                “The Jordan Securities Commission aspires to regulate, monitor, and develop the national capital market by regulating disclosure, financial services activities, and dealing in securities to enhance investor protection, to continuously upgrade legislations and human resources, and to keep abreast with the latest technical developments and apply up-to-date international standards and best practice.”

                4.3. Core values

                The Commission focuses on a set of values and ethical standards and trends that reflect the culture of excellence.  These values are:

                • The rule of law.
                • Integrity and confidentiality.
                • To secure information.
                • Staff are the real wealth.
                • Constant development.
                • Working in team spirit.
                • Consolidating and disseminating knowledge.
                • Initiative and innovation
                • Loyalty and a sense of belonging to the Commission. 
                • Providing a high level of service.

                4.4. National aims

                Based on the findings of workshops and meetings organized to define the national aims that the Commission helps realize, and after reviewing the government’s plans, programs, and aims discerned through royal letters of appointment, speeches from the throne, royal messages, and economic retreats, three national aims were defined that the Commission can help realize.  They are:

                • First national aim: To provide an investment environment capable of attracting capital.
                • Second national aim: To increase the economic growth rate.
                • Third national aim: To build an economy based on knowledge and productivity to achieve best results.

                4.5. Institutional aims

                The Commission has four institutional aims:

                1. To regulate and develop the capital market to ensure fairness, efficiency, and transparency.
                2. To protect investors in securities.
                3. To protect the capital market from the risks it might face.
                4. To continuously upgrade the Commission’s efficiency.

                - National Aims Institutional Aims

                1

                To provide an investment environment capable of attracting capital

                1. To regulate and develop the capital market to ensure fairness, efficiency, and transparency.
                2. To protect investors in securities
                3. To protect the capital market from the risks it might face

                2

                To increase the economic growth rate

                1. To protect investors in securities
                2. To protect the capital market from the risks it might face
                3. To continuously upgrade the Commission’s efficiency

                3

                To build an economy based on knowledge and productivity to achieve best results

                1. To regulate and develop the capital market to ensure fairness, efficiency, and transparency
                2. To protect the capital market from the risks it might face
                3. To continuously upgrade the Commission’s efficiency

                 

                5. Strategies and plans

                5.1. Strategies to achieve institutional aims

                A number of strategies were drawn to achieve institutional aims, which can be listed as follows:

                First national aim: To provide an investment environment capable of attracting capital.

                Institutional Aims

                Strategies to Achieve Aim

                To regulate and develop the capital market to ensure fairness, efficiency, and transparency

                • To follow up and implement international standards issued by specialized international organizations
                • To update legislations related to the capital market
                • To create financial services companies capable of serving dealers in securities efficiently and effectively
                • A trend to integrate supervisory organizations on shareholding companies into one
                • To implement the Principles of Corporate Governance

                To protect investors in securities

                • To affirm the independence of the Commission and its ability to fulfil its duties and responsibilities duly
                • To sign agreements of cooperation and partnership and bilateral and international MoUs
                • To regulate and monitor the issuance of securities
                • To ensure disclosure by issuers of securities and parties subject to the monitoring of the Commission
                • To provide investors with the disclosed information promptly

                To protect the capital market from the risks it might face

                • To create an environment for appropriate legislations on mutual funds and protecting investors
                • To adopt accounting, auditing, and performance evaluation standards to be followed by parties subject to the Commission’s monitoring
                • To regulate licensing and registration, and monitor the activities of licensed and registered persons
                • To ensure the capital adequacy of financial services companies
                • To enhance periodic disclosure by financial services companies
                • To ensure safe dealing in securities

                Second national aim: To increase the economic growth rate.

                Institutional Aims

                Strategies to Achieve Aim

                To protect investors in securities

                • To enhance cooperation and coordination with related Arab and international organizations
                • To consolidate the culture of investment and raise awareness among the public and investors
                • To ensure a high level of professionalism among Registered Persons of financial services

                To protect the capital market from the risks it might face

                • To ensure that all shareholders and investors are treated fairly and equally
                • To establish an Investor Protection Fund
                • To ensure the implementation of measures taken by the Commission against violators and implement measures stated in the law efficiently and transparently

                To continuously upgrade the Commission’s efficiency

                • To prepare the necessary studies to define the training needs of capital market institutions
                • To provide employees with a safe work environment
                • To improve the Commission’s technical infrastructure

                Third national aim: To build an economy based on knowledge and productivity to achieve best results.

                Institutional Aims

                Strategies to Achieve Aim

                To regulate and develop the capital market to ensure fairness, efficiency, and transparency

                • To update the Commission’s electronic surveillance systems
                • To define specific and scientific criteria for assessing investment units and ways of redemption
                • To upgrade financial services companies’ performance and set proper measures

                To protect the capital market from the risks it might face

                • To develop electronic software for monitoring the capital market
                • To adopt the Investment Promotion Strategy

                To continuously upgrade the Commission’s efficiency

                • To develop means of communication and inquiry between the Commission’s departments
                • To maintain the staff’s efficiency through continuous training
                • To use information technology to provide the Commission’s technical departments with software to facilitate their work
                • To develop standards of professional conduct for the staff

                 

                5.2. Preparing work plans

                To connect the aims and strategies that the plan included with the activities of the Commission, all departments of the Commission will prepare work plans that explain the necessary primary and secondary activities to realize these aims.  Work plans will define responsibilities, the required timeframe, and all the needed human, financial and material resources, and performance indicators.  


                5.3. Performance measurement

                To measure and to reassess progress in implementing institutional aims and to compare actual with planned performance, performance indicators will be defined for the Commission’s departments.  A follow up and an assessment system will be created to follow up progress in implementing the strategic plan and work plans drawn pursuant thereto.  This will be achieved through reports and periodic assessment to compare actual progress with targets, indentify reasons for any shortcomings, and mechanisms for corrective action.





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