JSC Chairman Receives President & Members of the Financial Services Companies Association 16/10/2012

Jordan Securities Commission (JSC) Chairman & its Board of Commissioners, received the President & Members of the Financial Services Companies Association (FSCA). The meeting which was attended by a number of people from Financial Services Companies (FSC) intended to enhance bridges of cooperation between all parties in Jordan capital market, to facilitate their responsibilities, to review the status of the market from all its aspects & to surmount any difficulties or challenges facing them.

At the beginning of the meeting, (JSC) Chairman H.E Mr. Mohammed Saleh Hourani expressed his appreciation of positive efforts made by the (FSCA) as an effective tool to develop the Financial Services & Brokerage Profession in the capital market. Mr. Hourani talked about capital market institutions, their role in regulating the market & (JSC) plans to issue instructions relevant to the work of (FSC).

Mr. Hourani presented the main projects (JSC) intends to implement. The (JSC) is studying how to create a Central Risk System in consultation with that achieved by the Central Bank of Jordan (CBJ). This shall enable the broker to know the client credit status in the market in terms of dealing in Margin Finance & Account Receivables. The (JSC) shall in cooperation with Brokerage Companies set & implement the bases to Segregate Funds of Brokerage Companies from Clients Funds taking into account internationally accredited standards. Moreover, (JSC) shall solve the problem of high default in account receivables resulting from the decline of securities market value via gradual direction of trading to merely deal in cash & margin. The (JSC) prepared also recommendations to amend the Securities Law, including protecting the rights of Financial Brokerage Companies upon seizure on their clients.  

Mr. Hourani clarified the new divisions of listing markets in Amman Stock Exchange (ASE), which is no doubt a qualitative step forward for Jordan capital market. By virtue of the Instructions of Listing, the number of companies in the First, Second & Third Markets reached (55), (147) & (41) companies respectively. Further details need to be concluded so that investors, brokers & listed companies can fully benefit from this development.

In his speech, President of the (FSCA) Mr. Mohammad Bahjat Al-Bilbasi emphasized the importance of Jordan capital market as the mirror of Jordan economic indicators & stressed the importance of mutual efforts to return trust to the market, to rearrange the three markets & to eliminate & neutralize default companies.

Mr. Al-Bilbasi presented key challenges facing them, chief among which is the prevailing political & economic situations during the last years that have influenced the performance of (ASE) & resulted in the decline in the performance of a great number of listed companies & default in many companies for various reasons such as, mismanagement. Moreover, restrictions imposed by banks on lending to invest in the market since risks are high & constrictions on operating companies in the market & reducing provided facilities.

At the end of the meeting, Mr. Hourani suggested that a periodic & regular meeting shall be held every three months with the Boards of (FSCA) & the Association of Certified Capital Market Professionals (ACCMP) & representatives of Brokerage Companies in (ASE) Board of Directors, to pursue & to enhance greater cooperation among them. The attendees indicated their gratefulness to the (JSC) Chairman for holding this fruitful & important meeting & for creating a link between all operating parties in the capital market.