Regulatory Alerts2019-01-01
Amended Investors Protection Fund in Securities Regulation No. 47 (2018) Pursuant to Regulation No. 24 (2019)
Issued by the Securities Commission, this amended regulation establishes and governs the Investors Protection Fund in Securities to compensate clients of licensed Financial Brokers for losses arising from unauthorized asset disposal or broker insolvency. It mandates compulsory membership for all licensed Financial Brokers, funds the pool through a 0.01% deduction from daily trading volumes and existing reserves, and empowers the Fund’s Board of Directors to assess claims, manage investments, and enforce liquidation procedures. The regulation caps individual client compensation at ten thousand Jordanian Dinars and total fund liability at three million Jordanian Dinars, while explicitly excluding losses from foreign exchange trading and claims by broker executives or partners.