One of the important achievements & developments related to Jordan Securities Commission’s (JSC) relation with the International Organization of Securities Commissions (IOSCO) & its presence on the international level was the notification of JSC by the IOSCO concerned committee, that it has fulfilled all conditions & standards to qualify to be a signatory to the IOSCO Multilateral Memorandum of Understanding (MMOU). The final approval by the concerned higher committee in IOSCO was granted in February 2008.
The IOSCO MMOU is an international memorandum of understanding prepared by IOSCO that defines frameworks for corporation & information exchange between regulators according to defined standards & principles that depend on international standards. It aims to achieve compliance with legislations in force in the markets of member countries, protect investors, enhance disclosure & transparency, & prohibit illegal practices & financial crimes in international markets.
The admission of JSC to become a signatory to the MMOU is an important achievement for it, for the national capital market & an indicator of JSC’s compliance with international standards in adopting legislations & regulatory frameworks in the capital market. This is reflected positivity on the level of confidence in the national capital market, in legislative & regulatory frameworks & enhances JSC’s stand on the international level.
Joining signatories to the MMOU is one indicator adopted by international institutions especially, the World Bank (WB) & the International Monetary Fund (IMF) of the extent of compliance with international standards as part of the Financial Sector Assessment Program (FSAP). It is one of the important factors which international institutions & a number of international financial & investment organizations rely on in rating & classifying markets throughout the world. It is also, a sign of strength of legislative & regulatory frameworks, which increases confidence in the market & its attractiveness to foreign investments.
The admission of JSC came after a thorough assessment of the legislative & regulatory frameworks that were issued by JSC in the capital market by special IOSCO committees made up of international experts. As a first step, they worked on studying JSC’s application to join the signatories, which was prepared by JSC’s staff without the need to refer to the offered technical assistance proposed by IOSCO for developing countries. The (130) page application included a detailed description of all technical, legislative & regulatory aspects adopted by JSC in the capital market that are related to the IOSCO’s standards & principles for qualifying any supervisory body as a signatory to the MMOU. Inquiries & requests for clarifications were sought afterwards from the JSC. The IOSCO Verification Team submitted a report to the concerned higher committee, which in turn decided that JSC fulfilled all IOSCO’s standards & principles, thereby admitting JSC to the group of signatories that mainly includes developed countries markets such as the United States, United Kingdom, Japan & France. Jordan was the first Arab country to fulfill terms of the Memorandum.
And, in order to promote the national capital market, an investment symposium concerning Jordan capital market titled ‘Jordan Capital Market Day’ was held in London, in cooperation with JSC, capital market institutions & London Stock Exchange. Eight Jordanian Public Shareholding Companies & more than (49) British investment institutions participated in this symposium; a major opportunity for Jordanian companies to meet British investors & acquaint them with investment opportunities in the market.
Furthermore, to encourage foreign investment in the national capital market, JSC & capital market institutions held a promotional meeting in New York. The meeting was held in cooperation with The Bank of New York Mellon during Oct.3-4.2007. Participants in the meeting included listed Jordanian companies at the Amman Stock Exchange (ASE) representing major financial & industrial companies & Chairmen of the Board of Directors & managers of national capital market institutions. In addition, 80 investment managers representing the largest companies & investment funds in the United States of America.
Arab & International Cooperation:
1.S&P ranked Jordan third among emerging markets in 2005.
2.CalPERS Fund raised the market rank to (10) among (27) emerging markets targeted for investment.
3.This year & by the end of July, Non-Jordanian ownership in Public Shareholding Companies increased to (50.9%) of the market value of ASE.
4.JSC received Arab & international delegates. For instance, delegates from the Chinese Financial Supervisory Authority, New Zealand Securities Commission, Libya Securities Market, Malaysia Supervisory Authority, Malaysia Central Bank, Palestine Stock Exchange & the General Commission of Oman Capital Market. Various delegates were also received from the Syrian Arab Republic.
5.JSC received students from public & private Jordanian universities. Meetings were also held with postgraduate students from the French university of Marseille-Provence Aix.
6.JSC chosen first for presidency of the Council of Arab Supervisory Commissions Union on Securities Markets established on Jan. 31. 2007.
7.On Feb. 14. 2005, the World Bank Report on Corporate Governance indicated that the rank of Jordan over passed world average accredited by the World Bank & by the Organization for Economic Cooperation & Development (OECD).
8.New MOUs were signed in 2007 & beginning of 2008 between JSC & New Zealand, China & Romania.
9.JSC qualifies to be a signatory to the Multilateral IOSCO Memorandum of Understanding (IOSCO MMOU).
10.Lord Mayer of the City of London, Alderman David Lewis visited the JSC & capital market institutions.
11.A gathering was held, to promote investment in the national capital market at London Stock Exchange & the Bank of New York Mellon at the City of New York in cooperation with the previously mentioned Bank & Auerbach Grayson.