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Funds and asset management refers to the professional administration and supervision of investments and financial assets on behalf of clients, which may include individuals, corporations, and institutions. In the Hashemite Kingdom of Jordan, this sector is regulated by a combination of national financial laws, securities legislation, and guidance issued by supervisory bodies such as the Jordan Securities Commission (JSC). The purpose of these laws and regulations is to ensure the security of investor interests, maintain the integrity of financial markets, and promote the growth of the asset management industry in Jordan.
The Jordanian funds and asset management landscape has expanded in recent years, offering a range of investment vehicles such as mutual funds, unit trusts, and private equity funds. Foreign investors also participate in this market, subject to compliance with local regulations designed to protect the economy and the interests of Jordanian investors.
Funds and asset management can be complex, and there are many situations where consulting a lawyer is beneficial or even necessary. Common scenarios include:
Jordan’s funds and asset management sector is shaped by several key statutes and regulatory frameworks:
The JSC regulates, supervises, and develops the capital market in Jordan, including funds and asset management firms. It ensures that market participants comply with relevant laws and regulations designed to promote transparency, investor protection, and financial market integrity.
Yes, foreign investors can generally participate in funds or establish asset management firms in Jordan, but there may be specific requirements or limitations related to foreign ownership, operational structure, and licensing.
Establishing an investment fund typically involves drafting a prospectus, obtaining appropriate licenses from the JSC, meeting minimum capital requirements, appointing qualified management, and adhering to ongoing compliance and reporting obligations.
Yes, fund managers must be licensed by the JSC. They must meet criteria related to experience, qualifications, capital adequacy, and operational procedures to ensure proper management of investor assets.
Fund managers must act in the best interests of their investors by providing clear disclosures, managing assets prudently, avoiding conflicts of interest, and keeping investor funds separate from their own assets.
Investor protection is achieved through mandatory disclosures, ongoing supervision by the JSC, segregation of assets, transparent reporting, and mechanisms for addressing investor complaints and disputes.
All funds and managers must comply with AML regulations, including thorough customer identification, suspect transaction reporting, and maintaining adequate records to prevent illicit activities such as money laundering and terrorism financing.
No, providing investment advice or managing funds without appropriate licensing from the JSC is prohibited and may result in fines, sanctions, or criminal liability.
Tax treatment depends on the legal structure of the fund and the residency status of investors. Generally, profits generated within funds may be taxable, and specific provisions apply to both local and foreign investors. Seeking tax advice is recommended.
Disputes may be resolved through negotiation, mediation, arbitration, or litigation, depending on the terms of the fund’s documents and the preferences of the parties involved. The JSC may also intervene in cases of regulatory breaches or unresolved disputes.
If you need further guidance or official information, consider these resources and organizations in Jordan:
If you are considering establishing a fund, investing in an asset management vehicle, or require advice on compliance or investor relations in Jordan, the following steps are recommended:
Legal counsel can assist you in every stage, from strategic planning and regulatory compliance to dispute resolution and ongoing management, ensuring that your interests are protected and that all requirements under Jordanian law are met.
