Jordan – CM P – Update 2023

Mar 27, 2023

Country Manuals Products

We would like to inform you that BRP has updated its COUNTRY MANUALS PRODUCTS for the following jurisdictions:

  Law / Regulation    YES
  New Position of the Authorities    NO
  Evolution of Expert’s interpretation    YES

Definitions & Concepts, Regulatory Overview and Behaviour Template

Regulatory changes

> The Jordan Securities Commission (JSC) introduced the Instructions for Marketing or Selling Non-Jordanian Securities in Jordan (the “Marketing Instructions”). The purpose of the Marketing Instructions is to provide for greater clarity on the roles, rights and obligations of all relevant parties with respect to any and all activities relating to marketing and/or sale of non-Jordanian securities in Jordan, including any ancillary activities relating to the promotion or advertisement of the same. The Marketing Instructions have stipulated that the provision of securities-related services is limited to locally licensed financial service providers and prohibits any foreign (unlicensed) fiancial service provider from conducting the same in Jordan whether directly or indirectly.

Material changes
In line with the regulatory changes outlined above, the Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date. The changes/modifications are as follows:
> In alignment with the Country Manual Private Banking (CM PB), the provision of execution only and advisory services as well as the distribution of marketing material (with the exception of macroeconomic information and/or investment research and financial analysis) is no longer permitted onshore in Jordan (at target). The CM P Behaviour Template (CM P BT) therefore now provides the answer “NO” for these scenarios.
> In this context, please note that the provision of macroeconomic information and/or investment research and financial analysis is only permitted in Jordan (at target) on an occasional basis. The CM P BT hence answers these scenarios with “Grey zone/YES”.
> The provision of investment advice generally triggers the “local distribution rules”. However, as is the case in today’s approach, the provision of advice within the framework of a written “advisory agreement” does not trigger the “local distribution rules”, as the advice in such a context is deemed to be provided on a one-to-one basis (and therefore outside the definition of “public offer”). In order to better express this latter condition (“on a one-to-one basis”) and to reflect the licensing requirements of the CM PB, the CM P BT therefore provides the answer “Grey zone/YES – On a one-to-one (and limited basis – for active spot advice)”. Please note that this “one-to-one approach”, in addition without/outside the scope of a written “advisory agreement”, has not been officially recognized and may change without notice depending on future court decisions, amendments of the applicable laws and regulations and/or official statements by the local authorities.
> Finally, in line with the CM PB, the CM P BT answers “Grey zone/Yes” to emphasise that any discretionary asset management agreement should be concluded in accordance with Jordanian cross-border restrictions.

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Best regards,