Jordan Securities Commission Issues a Circular on Capital Adequacy to Financial Brokerage Companies

Jordan Securities Commission (JSC) issued a circular to oblige financial brokerage companies to submit electronic capital adequacy reports, instead of the previously submitted paper form. The circular obliges all operating financial brokerage companies at Amman Stock Exchange (ASE) to submit these reports to the (JSC) on a weekly base. The intention of issuing this circular is to develop regulatory & supervisory procedures of financial brokerage companies businesses to enhance the protection of dealers in the capital market. As well as, to cope with technical developments, to facilitate work mechanism & to access information accurately as agreed upon between the (JSC) & financial brokerage companies.
To facilitate & accelerate provision & processing of financial data of financial brokerage companies & to ease the level of analytical reports output on all financial brokerage companies, (JSC) designed an electronic file for capital adequacy as well as, the contents of this file & on April 19.2009 it circulated it to all financial brokerage companies. (JSC) also, reviewed & verified for a long period of time the accuracy & conformity of data with the outcome of the capital adequacy paper form of operating accounting systems at financial brokerage companies.
To provide (JSC) with an electronic version of the capital adequacy report, it installed in financial brokerage companies a unique infrastructure of a website on the local network of brokers that can be accessed via a user name & a password for each financial brokerage company.
For a period of time exceeding one year, companies accounting systems have been examined & reviewed to ensure readiness of these systems to issue the weekly electronic report of the capital adequacy within the required specifications & specified dates. (JSC) also requested financial brokerage companies & the company providing the system to submit a written letter ensuring that the accounting & brokerage systems include all (JSC) current requirements, any (JSC) future amendments relevant to these systems & that the electronic capital adequacy file contents & specifications are correct & in conformity with the paper form capital adequacy.
To protect dealers in securities in particular & the national capital market in general, (JSC) aspires from requesting brokerage companies submission of a weekly capital adequacy report, to view brokerage companies financial status, to ensure these companies capability to fulfill obligations on due dates & not to have insolvency. As well as, to ensure these companies capability to solve financial problems prior getting worse.
(JSC) emphasized the importance to comply with the previously issued circular on April 19th.2009 & its stated items. These mainly included: that companies represented by Board of Directors or the Management Committee, or the General Manager & the Compliance Officer, must take all procedures to ensure accuracy of submitted information, provide the (JSC) with a weekly electronic file of its capital adequacy report at a date not exceeding the first working day of the coming week, provide the (JSC) upon request with the capital adequacy report at any day of the company official working days & continuously keep additional copies of the electronic capital adequacy report of the one provided to the (JSC). Moreover, it is necessary to a brokerage company to pursue checking its official email accredited for correspondence with official entities.