Jordan Securities Commission Issues Instructions to Central Risks for Dealers in Securities for the year 2013

On September 4.2013 Jordan Securities Commission (JSC) Board of Commissioners chaired by HE Mr Mohammed Saleh Hourani decided by virtue of the provisions of Articles (8), (12/Q) and (123/B) of the Securities Law No. (76) for the year 2002, to approve issuing the “Instructions to the Central Risks System for Dealers in Securities for the year 2013”. The Instructions shall come into effect as of the date of January 1. 2014.

Instructions to the Central Risks System for Dealers in Securities, Issued by Virtue of the Provisions of Articles (8), (12/Q) and (123/B) of the Securities Law No. (76) for the Year 2002 and Approved by the Board of Commissioners Decision No. (333/2013) Dated September 4.2013


Article (1):
These Instructions shall be known as the “Instructions to the Central Risks System for Dealers in Securities for the year 2013” and shall come into effect as of the date of January 1.2014.

Article (2):
Subject to the meanings ascribed to the terms mentioned in the Securities Law and the Regulations and Instructions issued pursuant thereto, the following words and phrases wherever mentioned in these Instructions shall have the meanings ascribed thereto hereunder unless the context indicates otherwise:
? The Commission: The Jordan Securities Commission (JSC).
? The Board: The Board of Commissioners of the Commission.
? The Market: The Amman Stock Exchange or any Trading Market in Securities licensed by the Commission.
? Financial Broker: Any person engaged in the business of buying and selling securities for the account of others.
? Client: Any Natural or Legal Person identified in the Securities Depository Center (SDC), dealing or wishing to deal with a Financial Broker for the purposes of trading in the Market.
? The System: The Electronic Central Risks System.
? Central Risks System: Is an electronic system at the Commission enabling the Financial Broker to download data and to inquire about his clients’ information of central risks with all Financial Brokers.
? Authorize Access: The written and properly signed approval of the client, authorizing the concerned Financial Broker to access his information of central risks with all Financial Brokers. 
? Guarantees: The securities in the client’s portfolio evaluated in the market value in return to account receivables excluded from it suspended or lien or sequestrated securities.
 
Article (3):
The Commission shall provide the Financial Broker with the electronic service of the Central Risks System, enabling him to access client’s information of central risks with all licensed Financial Brokers by the Commission and according to information provided by all Financial Brokerage Companies to the Commission, consecutively.

Article (4):
A. The licensed Financial Broker by the Commission shall submit an electronic file to the Commission on the adopted form by the Board, including his client’s information of central risks, the volume and amount of provided funds and the market value of the portfolio as well as lawsuits in courts concerning account receivables on his clients.
B. The Financial Broker shall submit the referred to file in Paragraph (A) of this Article to the Commission by the end of every working day. The information shall be accessible to System users according to periods specified by the Board.  
C. The Financial Broker shall be liable to emphasize and to verify that his clients’ information of central risks is correct, accurate and complete and that the Commission shall not be liable.
  
Article (5):
The Financial Broker has the right according to the provided Authorize Access by the client, to inquire about his client’s information of central risks with all Financial Brokers through the System, for the purposes of taking decisions to fund him or to pursue solvency of his standing liabilities with Financial Brokers.

Article (6):
The Authorize Access includes the following:
A. The client approves that the Financial Broker shall inquire about and accesses his information of central risks through the System with all Financial Brokers. 
B. Specify the purpose of having the client’s information of central risks with all brokers and emphasize his right to access this information.

Article (7):
The Financial Broker shall keep the Authorize Access entitling him to inquire about his clients’ information of central risks with all Financial Brokers for five years after the contractual obligation with the client concludes.

Article (8):
A. The authority to inquire about clients data and to access the Central Risks System shall be confined to the General Manager and/or the Financial Manager and/or the Compliance Officer at the Financial Broker.
B. The Financial Broker shall notify the Commission of the names of authorizers to use the System. Authorizers shall sign their written consent to maintain the confidentiality of information and not to disclose it.
C. The Financial Broker shall promptly notify the Commission of any changes in the names of authorizers to use the System.

Article (9):
A. The System shall provide a special record of all inquiry processes and their periods made by the Financial Broker.
B. The Commission shall have the right to inquire about the purpose of any process made by the Financial Broker through the System.

Article (10):
The Financial Broker shall not conduct any of the following subject to taking legal measures:
A. Misuse of the System.
B. Inquire about any client without having a properly signed Authorize Access by him.
C. Inquire about any clients for other than the specified purpose in the Authorize Access.
D. Provide information taken from the System about any clients to others.
E. Enable any persons not mentioned in Article (8) of these Instructions to access the System.

Article (11):
A. The client has the right to obtain his information of central risks with all brokers from any broker of the Financial Brokers he is dealing with or from the Commission.
B. The Financial Broker shall not refrain to provide the client with his information of central risks with all Financial Brokers and inquired about through the System.
C. The client shall have the right to object to the Commission any of his information of central risks according to procedures adopted by the Board.

Article (12):
A. The Financial Broker shall comply with maintaining the confidentiality of information of central risks available on the System and not using it for other than the specified purposes by virtue of these Instructions.
B. The Financial Broker shall apply safety and security procedures to protect information stated on the System from any unauthorized users or from any change, subject to taking legal procedures against them.

Article (13):
The Commission may take legal measures stipulated in the Securities Law against parties violating the provisions of these Instructions.


Mohammed Saleh Hourani