Board Decisions 19/07/2011

The Board of Commissioners decided to accredit Miss Amani “Mohammad Saeed” Abu Zeed to undertake the activities of Issuance Management/Best Efforts. The Board took their decision after Miss Abu Zeed paid a fee of JD (25).
Approve Regional Food Industries Company, Messrs Jack George Kayat & George Jack Kayat request, to settle imposed monetary fines on them through six equal installments. The first installment will start at the end of July 2011, while the last one will be at the end of December 2011.
By virtue of the provisions of Article (21/B) of the Securities Law, the Board of Commissioners decided the following on Al-Sahm International for Investment & Brokerage Company:
First: Impose monetary fines on the Company as follows:
JD (1000) for violating the provisions of Article (54/B) of the Instructions of Financial Services Licensing & Registration of 2005 by not certifying the validity of clients’ signatures in Palestine.
JD (1000) for violating the provisions of Article (16) of the Instructions of Financial Services Licensing & Registration of 2005 for not obtaining written or over the phone authorizations from clients in Palestine & not from the Universal Company in Palestine. And for violating the provisions of Article (6/A) of the Trading Directives relevant to keeping all its clients authorizations either in Palestine or in Jordan.  
All fines must be settled within two weeks from notifying the Company of the Board decision to impose fines & record violations in the Company professional record.
Second: By virtue of the provisions of Article (61/A) of the Instructions of Financial Services Licensing & Registration of 2005, ensure on the Company to send periodic account statements to every client at least every three months.
Third: Grant the Company a period of time expiring on December 31st.2011 to rectify the status of Palestine clients to cope with the effective legislations in particular the following:
By virtue of the provisions of Article (54/B) of the Instructions of Financial Services Licensing & Registration of 2005, certify the validity of clients’ signatures in Palestine.
By virtue of the provisions of Article (16) of the Instructions of Financial Services Licensing & Registration of 2005, obtain written or over the phone authorizations from its clients in Palestine who are duly documented according to the Instructions in force.
 
By virtue of the provisions of Articles (8), (12) & (50) of the Securities Law, the Board of Commissioners decided the following on Jordan River Financial Investment Company:
First: Request the Company to submit an additional new guarantee of JD (200.000), instead of the expired guarantee no. 14821/2009 of April 15th.2009, within a period of two weeks from notifying the Company of the Board decision under legal liability as is vested in the Securities Law.
Second:
A- Licensed companies by Jordan Securities Commission (JSC) shall approve the following statement & add it on future guarantees: “this guarantee shall remain effective until…. It shall be renewed spontaneously for successive periods of time, without notifying any party. Without an official letter from the (JSC), this guarantee cannot be canceled.  The original guarantee must be returned to the bank. This guarantee is unconditional & irrevocable. It shall be paid to the beneficiary, despite any objection from the guaranteed or the bank upon paying”.   
B- Despite the above stated in Item (1), the concerned department shall request clarifications to extend/renew the guarantee from the bank under the same terms by virtue of an official letter prior the specified date concludes. These clarifications must be in the guarantee text, the bank signature upon receiving & sending a copy to the company. 
Third: Concerning existing guarantees with the approved current context expiring on a specified date, the concerned department shall request the company to extend its guarantee prior at least one month from its expiry date. Simultaneously, address the issuing bank of the guarantee to extend it otherwise, liquidate it & ensure signatures upon receiving claim letters are available by both the company & the bank.
Fourth: By virtue of the provisions of Article (49) of the Securities Law, ensure guarantees are effective for at least another year prior the Board of Commissioners decision to renew licenses.
By virtue of the provisions of Article (21/B) of the Securities Law, the Board of Commissioners decided the following on Al-Mawared for Brokerage Company:
First: Impose monetary fines on the Company as follows:
JD (1000) for violating the provisions of Article (54/B) of the Instructions of Financial Services Licensing & Registration of 2005 by not certifying the validity of clients’ signatures.
JD (1000) for violating the provisions of Article (16) of the Instructions of Financial Services Licensing & Registration of 2005 & for violating the provisions of Article (6) of the Trading Directives relevant to not obtaining authorizations from its clients.
JD (500) for violating the provisions of Article (15/A) of the Instructions of Margin Finance for not collecting Initial Margin.
All fines must be settled within two weeks from notifying the Company of the Board decision to impose fines & record violations in the Company professional record.
Second: Ensure that the Company adheres with the following during one month from notifying the Company of the Board decision:
The approved requirements by the Board of Commissioners decision on February 9th.2011, to open an account for securities & to deal with clients through an external broker. Their decision includes the following:
A- If dealing between the Jordanian financial broker & his client takes place through an external broker, the Jordanian financial broker must keep documents proving that the external broker is working on behalf of the client in signing the dealing in securities agreement, opening an account & issuing sell & buy orders of securities. Any of the following documents may be accepted:  
An issued bail bond from the client, certified from relevant parties in the issuing country & from official sources.
A written agreement signed between the client & the external broker, certified by the accredited safe keeper of the client valid signature. This agreement shall include the following:
An official authorization to sign the dealing agreement with the Jordanian broker, to open an account & give the sell & buy orders. The client must provide his external broker with this authorization.
The client (foreign fund) is liable on the account to be opened at the financial brokerage company & on all received orders.
B- The Jordanian financial broker may depend on ascertaining & verifying a client identity from his preserved documents with his accredited safe keeper. These documents must be appended with the safe keeper clarifications ensuring they are identical with the already preserved ones. The same applies to ascertaining & verifying the deputy of the client.         
C- The Jordanian financial broker must adhere to the provisions of Article (63/A & B) of the Securities Law, governing the relationship between him & his foreign fund client or the client deputy (Universal Brokerage Company) by a written agreement. He shall also certify the validity of his client or his deputy signatures & shall be responsible for the validity of the said signatures.
By virtue of the provisions of Articles (66 & 67) of the Instructions of Financial Services Licensing & Registration of 2005, the accountant businesses shall be independent from those of the financial manager to enhance internal supervision.
By virtue of the provisions of Article (4) of the Instructions on Anti Money Laundering & Counter Terrorist Financing in Securities Activities, a form to ascertain & verify the clients’ identity & activities must be applied. For anti money laundering purposes, this form must be filled by clients.
The Board of Commissioners decided to register capital increase in shares of Jordan Dubai Islamic Bank of (14) million shares by:
Capitalizing JD (10.605.800) million representing whole issuance premium.
Capitalizing JD (3.394.200) million from voluntary reserves & distributing these shares as free shares to shareholders; each shareholder according to his contribution in the capital, in condition that fees are settled as deemed proper.
The Board of Commissioners decided to register capital increase in shares of Jordan Press Foundation/Al-Ra’i of (2.5) million shares at an issuance price of JD (6) per share, representing the share nominal value of JD (1) added to it the issuance premium of JD (5). The Board also decided to offer these shares to Company shareholders through public offer & to affect the relevant prospectus, in condition that fees are settled as deemed proper.