Jordan Securities Commission Signs a Cooperation Memorandum with the International Finance Cooperation on April 30.2014

A cooperation memorandum was signed between the Jordan Securities Commission JSC and the International Finance Cooperation IFC. It aims to enhance implementing the Corporate Governance Code for Companies Listed on the Amman Stock Exchange, via creating mechanisms and means to follow up and to assess that shareholding companies comply with the Code. And, to provide investors and relevant monitoring entities such as, advisory and financial services ones with credible information on implementing the Code according to best practices and international standards. Furthermore, to assist managements of companies to specify areas of weakness while implementing the Code.
 
The memorandum was signed by the Chairman of the Commission HE Mr Mohammed Saleh Hourani and Principal Country Officer of the IFC Dr Ahmed Attiga.

HE Mr Hourani indicated that the signing of the memorandum represents the Commission’s consistent efforts to deepen and to enhance the concept of corporate governance in Jordan, in particular for listed companies. This is important to protect investors and to develop the economy as a whole and the financial markets via implementing the Codes of good governance, accountability, disclosure, transparency, utilizing resources, reducing costs, enhancing the rule of law, reducing risks and eliminating potential corruption in companies. Moreover, it is important to enhance the trust in the economy and collect further local and foreign investments.     

HE Mr Hourani added that the Commission cooperates with other monitoring entities and international institutions to enhance implementing the Code and complying with it. The Commission created a specialized administrative unit to follow up implementing the Code and to use up to date mechanisms according to best international practices to measure the compliance of listed companies with the Code. In the future, the Commission shall change a number of the Guideline Code of the Corporate Governance Code for Shareholding Companies Listed on the Amman Stock Exchange to become obligatory since this enhances protecting investors.   

On the other hand, Dr Attiga said the aim of the memorandum is to continue cooperative relations with the JSC in various areas, in particular corporate governance. The IFC shall enhance the concept of governance and implementing it in Jordan via training the Commission’s staff and promoting awareness in the Code and its duties among managements of listed companies. Furthermore, the IFC shall provide measurement and follow up tools to implement and to comply with the Code to enable all relevant entities, in particular monitoring ones to obtain credible, analyzable and assessable information prior to taking proper decisions and actions.   

The project’s estimated cost is JD (100.000) divided equally between the JSC and the IFC. The Commission in kind contribution shall be in providing halls, employees and training preparations.