Major Developments of 2024

 1.           Legislative Environment

–       Issuance of Instructions Regarding Brokerage Companies Dealing with Unregulated Foreign Exchanges No. (1) for 2024.

–       Issuance of standards for treating shares as liquid assets.

–       Circular regulating the approval of third-party reliance by member securities companies.

–       Suspension of new license applications for securities companies until 30/6/2025 for review of securities activities.

–       Contracting a consultancy to study legal separation of the Depository and Transfer Center from the Palestine Exchange, covering legal, financial, technical, and IT aspects.

–       Publication of the first draft of corporate governance instructions and guidelines for licensing exchange-traded funds (ETFs) for public consultation.

2.           Supervisory Measures on Trading in the Palestine Exchange

–       Monitoring and addressing violations by some listed securities and investors, in accordance with supervisory guidelines.

–       Notifying member brokerage firms of market and financial solvency violations.

–       Regulating the acquisition process by National Insurance Company of Abraj National Company, through the purchase of shares held by minority shareholders in Abraj National Company, and mandating their sale, given that the National Insurance Company holds the majority stake in the company.

–       Approving the delisting of Abraj National Company following its conversion to a private shareholding company.

–       Capital reduction of Al-Safa Bank and Jerusalem Real Estate Investment Company by 22,865,817 and 2,000,000 shares respectively.

–       Reviewing IPO prospectuses for Al Baraka Islamic Insurance and Holy Land Takaful Insurance.

–       Enforcing field inspections of entities and parties licensed by the PCMA. In 2024, inspection rounds were completed in accordance with the approved plan, focusing on risk-based inspections and anti-money laundering and counter-terrorism financing efforts.

–       Completion of surprise inspection activities on entities licensed by the PCMA, based on received directives and with violations referred to the competent authority.

–       Reviewing financial disclosures and conducting regular follow-up on the capital adequacy reports of member securities companies to ensure their compliance with the Securities Law and the capital adequacy instructions issued by the PCMA, in a manner that safeguards the soundness and stability of member securities companies and protects investors’ funds and rights.

–       Listing the names of two individuals on the blacklist, which prevents them from obtaining licenses from the PCMA to engage in any legally permitted financial activities.

3.           Supervisory Measures on Unregulated Foreign Exchanges

–       Licensing 3 member securities companies to operate in unregulated foreign exchanges after meeting all requirements.

–       Launching the electronic system for central custody and monitoring investors’ foreign trading.

–       Linking securities companies to the electronic custody system and generating regulatory reports related to investor data, cash deposits and withdrawals, active clients, open trades, leverage, company transactions with the liquidity provider, and statistical reports.

–       Implementing the digital awareness campaign strategy “Forex Activity 2024,” with a focus on raising awareness among traders and investors about the high risks associated with engaging in forex activities.

–       Executing targeted advertising campaigns on social media to reach a specific audience through sponsored ads.

–       Publishing a list of unlicensed platforms and pages by the PCMA that promote forex trading, education, and marketing activities in Palestine.

4.           Measures Aimed at Protecting Investors’ Rights.

–       Requiring the National Insurance Company, as part of its acquisition procedures of Abraj National Company, to provide the PCMA with an unconditional payment guarantee, payable to the order of the PCMA, in the amount of USD (401,969.80), to be re-evaluated on a quarterly basis in accordance with what is paid to the shareholders of Abraj National Company in return for the transfer of their shares to the National Insurance Company, and in return for their unpaid cash dividends for previous years.

–       Requiring the Holy Land Insurance Company, as part of the approval procedures for the license of the initial public offering share issuance prospectus, to provide the PCMA with an unconditional payment guarantee payable to the order of the PCMA for the full issuance amount, in the sum of USD (1,817,500), ensuring the PCMA is authorized to compensate the rights of the ultimate beneficiary shareholder, provided that the guarantee remains valid for two years from its date, and does not include the contributions of the shares of the company’s chairman and board members, insiders, and founders whose names are listed in the approved issuance prospectus.

–       Requiring the Holy Land Insurance Company, as part of the approval procedures for the license of the initial public offering share issuance prospectus, to submit an independent declaration accompanied by the company’s legal advisor’s declaration, which is attached to the subscription form, and the investor acknowledges that they have reviewed the legal advisor’s declaration of the issuing company regarding the initial public offering, that they are aware of the material events, that they understand the risks of the subscription, and that they bear legal responsibility individually.

5.           Services Provided to the Sector

–       Approval of the appointments of board members and designations of professionals at member securities companies.

–       Renewal of the licenses of 10 member securities companies to conduct financial brokerage activities for their own account, for others, and for managing issuances. In addition, the renewal of licenses for 26 accredited brokers, 6 financial advisors, and 5 banks to operate as custodians, alongside the renewal of the Palestine Exchange license and other legal entities to conduct investment advisory and issuance management activities.

–       Handling 13 written complaints and taking the necessary legal measures accordingly, in order to protect the rights of market participants.

Approval of the Following Issuances:

6.            Disclosures

The following table shows the extent of compliance by the listed companies with the disclosure of periodic reports during the year 2024.