Financial Services Companies Required to Maintain Financial Confidentiality of Clients' Accounts

 
The Board of Commissioners of the Jordan Securities Commission has decided to require financial services companies to maintain the financial confidentiality of their clients' accounts. This decision applies to the managers of these companies, members of their boards of directors or management committees, authorized representatives, and those who, by virtue of their positions and professions, have direct or indirect access to the company's records and systems.

The confidential information that the decision prohibits disclosing includes any data or information related to clients' accounts, including buy or sell orders or any information related to securities transactions. Disclosing this information to any party is prohibited under penalty of law.

Conversely, the decision specifies four exceptions: approval of a plan by the client or their legal representative, a request from the competent judicial authorities, a request from the Securities Commission or any other entity that approves it, or in compliance with applicable legislation. The decision also obligates financial services companies to take all necessary measures to ensure that information pertaining to their clients or their accounts is not leaked. These measures must be incorporated into the company's internal policies and procedures. Financial services companies were given until July 31, 2024, to provide the Authority with this information and to review it periodically according to their internal controls.

This decision comes within the framework of efforts aimed at enhancing investor confidence in the market's investment environment and protecting them from potential risks. The decision also aims to regulate and develop the financial market to ensure fairness, efficiency, and transparency, and to improve the efficiency of market regulation and oversight.

It is worth noting that the Securities Authority issued a circular to financial services companies informing them of this decision. The Authority calls upon all investors to report any violations of this decision and to provide the necessary supporting evidence so that legal measures and procedures can be taken against violators.