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The Jordan Securities Commission affirmed in a circular sent out to brokerage firms last week the need to abide by account segregation requirements as per regulations issued in April 2014. The regulations call for the separation of brokerage firms funds from those of their clients.
Please find Arabic version for the Account Segregation Regulations at link below:
http://www.jsc.gov.jo/Public/Arabic.aspx?Site_ID=2&Page_ID=2820
Furthermore, brokerage firms are required to provide the commission with a monthly report which matches balances of client accounts on the firm’s books with client bank account balances, within the first five business days of each month. The report is to be signed by the brokerage firm’s general manager as well as its compliance officer.
Article (4) of the Account Segregation Regulations issued by the JSC states that:
- Financial Brokers shall conduct a daily review at the end of each working day of their customers’ accounts to calculate closing balances.
- Financial Brokers shall conduct a regular reconciliation to match customers’ account balances on the firm’s books with the total bank balances of customers’ accounts and submit a monthly report to the JSC in this regard signed by the general manager and the compliance officer.
