Jordan Securities Commission Board of Commissioners Decisions on February 27.2013
27-Feb-2013
On February 19.2013, Jordan Securities Commission (JSC) Board of Commissioners chaired by H.E Mr. Mohammed Saleh Hourani, decided by virtue of the provisions of Article (5) of the Securities Law No. (76) for the year 2002 to approve the registration of the 3rd issuance of Jordanian Treasury Bonds for the year 2013 at a maturity date on January 29.2015, at a value of JD (70) million & to address the Securities Depository Center (SDC) to register them.
The Board of Commissioners also decided to Renew Granted Licenses to Financial Services Companies for the year 2013, after submitting their renewal application, settling fees & providing bank guarantees as deemed proper.
Moreover, they decided to Renew Granted Licenses to Registered Persons for the year 2013, such as:
Financial Brokers Investment Managers Financial Advisors Investment Trustees
Issuance Managers Compliance Officers Issuance Trustees Custodians
Furthermore, the Board of Commissioners decided to Amend Several Items of the signed Memorandum of Understanding (MOU) with the Anti Money Laundering & Counter Terrorist Financing Unit to enhance work mechanism & cooperation between the two entities.
The Board of Commissioners also decided to send a Circulation to Financial Brokerage Companies Concerning Owning Real-Estates for their Own Use including the following:
Pursuant to the provisions of Article (12) Item (Q) of the Securities Law No. (76) for the year of 2002 & in order to regulate the running process of Financial Brokerage Companies of their Available Funds, the Board of Commissioners demanded these Companies to comply with the following:
A Financial Brokerage Company is forbidden from owning real-estates unless they are for its own use, in condition the value of these real-estates are not in any time more than 25% of the company’s net owners equity.
If any company exceeds the above ratio, the Commission may possibly grant it a period of time of one year to rectify its status of its owned real-estates to 25% at minimum of the total net owners equity.
If the company is unable to comply with Item (2) above, the Commission upon justified reasons may possibly grant the company an additional period of time of one more year to rectify its status.
If the company is unable to rectify its status by the specified ratio in Item (1) above within the granted period of time, the Fair Value to the Surplus shall be subtracted from the Value of the Real-estate of what is above 25% of the total net owners equity for the company to calculate the ratio of capital adequacy & all other applied financial ratios by the Commission.
Every Financial Brokerage Companies & within a maximum period of one week from the date of being notified with this decision must provide the Commission with the value of its owned real-estates & percentages of these from net owners equity. Any changes in the value of real-estates shall be followed on a monthly base, via the capital adequacy information provided to the Commission by the last week of every month.