About Funds & Asset Management Law in Amman, Hashemite Kingdom of Jordan
Funds and asset management refer to the professional management of various securities and assets such as stocks, bonds, real estate, and other investment instruments, on behalf of investors. In Amman, the capital of the Hashemite Kingdom of Jordan, this sector is regulated to ensure transparency, investor protection, and financial stability. Given the strategic location and growing financial markets of Jordan, Amman serves as a hub for asset management firms, investment funds, and wealth management services. The legal landscape is influenced by regional dynamics and global best practices, balancing innovation with rigorous oversight.
Why You May Need a Lawyer
Engaging in funds and asset management activities can involve complex legal and regulatory challenges. Here are common situations where legal expertise is essential:
- Setting up a local or foreign investment fund in Amman
- Complying with licensing and registration requirements for asset management firms
- Drafting and reviewing fund documents, partnership agreements, and investor disclosures
- Navigating regulations involving anti-money laundering and counter-terrorist financing
- Structuring cross-border investments and tax considerations
- Handling disputes between investors, fund managers, or third-party service providers
- Ensuring regulatory compliance for marketing and distributing fund products
- Managing risks and responding to regulatory investigations or audits
A specialized lawyer can guide you through these scenarios and help you avoid costly mistakes.
Local Laws Overview
Funds and asset management in Amman are primarily governed by the Jordan Securities Commission (JSC), along with relevant laws and regulations such as the Securities Law No. 18 of 2017 and instructions related to investment funds and financial services. Here are key aspects to consider:
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Licensing and Registration: Asset management firms and investment funds must acquire licenses from the JSC before operating. This involves fulfilling capital requirements, submitting detailed business plans, and passing fit and proper tests.
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Types of Investment Funds: The law recognizes several forms of funds, including mutual funds, private investment funds, real estate funds, and exchange traded funds.
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Disclosure and Reporting: Firms are required to provide regular disclosures about fund performance, risks, and portfolio holdings to investors and the regulator.
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Investor Protection: There are strict regulations regarding the segregation of client assets, transparency in fees and charges, and ensuring fair treatment for all investors.
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Anti-Money Laundering Rules: Asset managers must adhere to anti-money laundering measures, including customer due diligence and the reporting of suspicious activities.
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Foreign Investors: While foreign investment is encouraged, there are specific rules regarding ownership limits and repatriation of funds.
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Supervision and Enforcement: The JSC conducts regular inspections and can impose penalties or revoke licenses for non-compliance.
Understanding these regulations is crucial for anyone involved in funds and asset management in Amman.
Frequently Asked Questions
What is the role of the Jordan Securities Commission in funds and asset management?
The Jordan Securities Commission (JSC) is the primary regulator overseeing licensing, supervision, and enforcement of laws governing investment funds and asset management firms in Jordan.
Do I need a license to manage assets or run a fund in Amman?
Yes, any entity or individual offering asset management or establishing an investment fund must obtain the appropriate license from the JSC before operating legally in Jordan.
What are the main types of investment funds recognized in Jordan?
The regulatory framework allows for mutual funds, private investment funds, real estate funds, and exchange traded funds, each with specific regulations and requirements.
Are there restrictions on foreign investors in Jordanian funds?
Foreign investors are welcome, but certain limitations may apply regarding ownership percentages, specific sectors, and the repatriation of profits or capital.
How are client assets protected?
Local law mandates segregation of client and firm assets, regular audits, and clear disclosure of investment risks and associated fees, ensuring investor protection.
What disclosures are required from fund managers?
Fund managers are required to provide regular reports on fund performance, investment strategies, key risks, and portfolio changes to both investors and the JSC.
What legal risks do fund managers face?
Fund managers might face regulatory penalties, litigation from investors due to mismanagement, disputes with partners, and reputational risks if legal requirements are not met.
How is anti-money laundering enforced for asset managers in Amman?
Strict anti-money laundering (AML) protocols are in place, requiring firms to verify client identities, monitor transactions, and report suspicious activities to authorities.
What is the process for setting up an investment fund in Amman?
Establishing a fund involves submitting a detailed application, meeting minimum capital requirements, drafting legal documents, and obtaining approval from the JSC.
Can I market foreign investment funds to residents of Amman?
Yes, but foreign funds must comply with local marketing, disclosure, and licensing requirements before offering their products to Jordanian investors.
Additional Resources
For further information and support regarding funds and asset management in Amman, you may consult the following:
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Jordan Securities Commission (JSC) - The main regulatory authority for capital markets, investment funds, and asset managers.
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Central Bank of Jordan - Regulator of banks and certain investment firms, also useful for macroeconomic updates.
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Companies Control Department - Handles company registration and corporate governance matters.
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Union of Investment Companies - An industry body representing the interests of asset management and investment firms in Jordan.
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Local legal firms with expertise in funds and asset management - Can provide tailored advice based on your specific situation.
Next Steps
If you require legal assistance regarding funds and asset management in Amman, start by clearly defining your goals, whether you are launching a fund, seeking compliance support, or resolving a dispute. Gather all relevant documentation including business plans, investment strategies, and any correspondence with regulators. Reach out to a qualified local lawyer or a firm that specializes in financial services law. Schedule an initial consultation to discuss your needs, timelines, and expected outcomes. A legal professional can help you understand your rights and responsibilities, guide you through regulatory procedures, and represent your interests in dealings with authorities or third parties.
Taking these steps will ensure you move forward with confidence and compliance, minimizing risks and maximizing your opportunities in the funds and asset management sector in Amman.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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