Draft Project of the Instructions to Suspend the Licenses of Financial Services Companies upon Request
18-Feb-2013
Jordan Securities Commission (JSC) recently prepared the Draft Project of the “Instructions to Suspend the Licenses of Financial Services Companies upon Request”, to regulate & to develop the capital market & to protect its dealers & investors. By virtue of these “Instructions”, the Commission shall grant Financial Services Companies upon their request a specified period of time to suspend their work to enable them to rectify & to re-organize their status according to the Securities Law & relevant instructions.
The Commission proposes this “Draft Project” to all concerned parties in Jordan capital market including brokers, investors, auditors & others, to state their opinions on the suggested “Instructions” within two weeks from the date of being disseminated. The Commission wishes to be acquainted with their opinions & suggestions to benefit from these prior to being finalized.
The attached “Instructions” are merely a “Draft Project” that may be altered & amended as deemed proper for public interest, nor is any part of it is final yet.
Kindly send your views & opinions to the following addresses:
Email: info@jsc.gov.jo.
Fax: 5682615.
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Draft Project of the Instructions to Suspend the Licenses of Financial Services Companies upon Request
Article (1):
The Financial Services Company (FSC) shall provide Jordan Securities Commission (JSC) with a signed letter as deemed proper, indicating the purpose of the company’s request to suspend its license. The signed letter shall specify the suspension period of time.
Article (2):
The (FSC) shall provide the Commission with its General Assembly’s consent of its request to suspend its businesses/activities.
Article (3):
The (FSC) shall submit its final financial statements audited by an External Auditor including the following:
A. The balance sheet.
B. Income statement.
C. The cash flow statement.
D. The clarifications on financial statements.
E. The statement of accounts receivables & accounts payables of clients dealing in securities.
F. The other statements of accounts receivables & accounts payables of dealers in the company.
Article (4):
The (FSC) shall provide the Commission with a proof of its clients cash & shares accounts.
Article (5):
The (FSC) shall provide the Commission with a proof of all securities under its control that they are returned to the Securities Depository Center (SDC), except for those concerning its indebted clients.
Article (6):
The (FSC) shall announce in two local daily newspapers for two consecutive days, requesting its clients with claims on dealing in securities, to refer to the company within two weeks of the date of the last announcement & under the supervision of the auditor. If available, the (FSC) shall provide the Commission with these claims.
Article (7):
The (FSC) shall settle all financial claims to the (SDC) & to the Amman Stock Exchange (ASE) & provide a proof of this.
Article (8):
The (FSC) shall provide the Commission with a proof of the company settling its clients accounts payables when dealing in securities & the auditors’ certifying this.
Article (9):
The (FSC) shall keep the submitted capital & guarantees as they are by virtue of the effective legislations to cope with obligations resulting from its granted licenses.
Article (10):
The (FSC) shall submit to the Commission an obligation indicating its whole responsibility to the correctness of data provided to it & that it is fully liable for suspending the decision, not the Commission.
Article (11):
The (FSC) shall have a headquarter having all relevant documents & regulations of its businesses, as well as, a nominee of the Senior Management to be a Liaison Officer to the Commission & to capital market institutions, to pursue any issue related to the company or its clients (in order to facilitate & organize its business with other concerned parties).
Article (12):
The (FSC) shall submit to the Commission an obligation that it rectified all its financial, administrative & regulatory issues upon its wish for terminating the suspension of its businesses by virtue of the currently effective regulations & instructions.
Article (13):
The (FSC) shall submit to the Commission an obligation indicating that the suspension of its license to undertake its businesses shall not affect its rights & obligations to which may have resulted prior to the suspension date.
Article (14):
The consent of the Board of Commissioners to suspend the company businesses upon its request shall conclude on December 31 of the year in which it was requested. Companies shall submit the extension application to coincide with the request to renew licenses, prior to at least 30 working days of the beginning of the next year, taking into consideration that the maximum allowed period of time for suspension is three years.