Suspension of consideration of applications for new financial services companies and applications for licenses in foreign exchanges
04-Oct-2020
The Board of Commissioners of the Jordan Securities Commission decided to suspend the consideration of applications for new financial services companies and applications for licenses in foreign exchanges, and it has circulated these decisions on its website.
These decisions are aiming at the first of all to protect investors in securities by ensuring of continuity of financial services provided to them within the highest standards of transparency, quickness and safety and via financial companies who's their financial status are strong and have the ability to adapt with market variables. In addition to protection of capital market, at the second stage, particularly, in shadow of unstable new situations what international and regional capital markets witness in paralleling with corona pandemic repercussions.
As such, the decisions aim to open the door for what market needs of legislation, regulation and constructional amendments, according to a road map of national capital market development is implemented fully in cooperation with EBRD. besides to that, the decisions are aiming to achieve more of consulting with JSC Partners either financial firms or securities issuers or services receivers on enhancing of financial services sector effectiveness in national economy as an attractive environment to investment.
As a result of studies what JSC carried out and stated that capital market is full of financial services firms which are doing their businesses either in local capital market or in foreign stock markets and hence this situation caused to high competition among those firms and it will reflect negatively on total performance of the sector at the end.