Regulatory Alerts2023-05-23
Related to the Cancellation of Announcement No. 82 Dated 31 January 2022 on Expenses, Commissions, and Collection Mechanism
The Capital Markets Authority of Lebanon issued Announcement No. 95 to cancel and replace its previous Announcement No. 82, establishing a comprehensive schedule of fees and commissions payable in Lebanese Lira for various licensing, registration, and administrative transactions. The updated framework specifies exact monetary amounts across four applicant categories—banks, financial institutions, brokerage firms, and other licensed entities—and mandates prepayment via the BDL-RTGS system using designated IBANs and standardized MT202 messaging fields. Effective immediately upon publication in the Official Gazette, this announcement standardizes collection procedures and requires applicants to attach bank transfer confirmations alongside their submissions.
Capital Markets Authority
CAPITAL MARKETS AUTHORITY
Announcement No. 95
Related to the Cancellation of Announcement No. 82 Dated 31 January 2022
Regarding Expenses, Commissions, and the Collection Mechanism
And Its Replacement by This Announcement
Pursuant to Law No. 161 dated 17/8/2011 concerning Financial Markets,
and pursuant to Article 23.5 of the Licensing and Registration Regulations for Financial Markets Group 2000,
and pursuant to Capital Markets Authority Board Decision No. 16/4/23 taken in its meeting held on 9/5/2023,
We hereby inform you of the following:
First: Announcement No. 82 dated 31 January 2022 is cancelled and replaced by this announcement, and the following are added to the list of applicable expenses and commissions:
- License application for any activities related to financial instruments business is collected upon submission of the license application by the institution.
- Annual fee to maintain the registration of persons for each registered person with the Authority is collected in the first quarter of each year.
Second: This announcement takes effect immediately upon its publication in the Official Gazette.
Beirut, 23 May 2023
Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon
Riad Tawfiq Salamah
Rome Street, Wardieh Hamra – P.O.Box 5358, Beirut, Lebanon – T +961 1 987 250
info@cma.gov.lb www.cma.gov.lb
Annex No. (1)
Expenses and Commissions Collected in Lebanese Lira
| Application No. | Type of Transaction or Application | Applicant (A) Banks | Applicant (B) Financial Institutions | Applicant (C) Brokerage Firms | Applicant (D) Other Licensed Institutions under the Capital Markets Authority |
|---|---|---|---|---|---|
| 1 | Application to establish an institution to conduct activities related to financial instruments business | 20,000,000 L.L. | 20,000,000 L.L. | 20,000,000 L.L. | 20,000,000 L.L. |
| 2 | License application for any activities related to financial instruments business | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 3 | Annual fee to maintain the license (per activity)¹ | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 4 | Annual fee to maintain the registration of persons (per person)² | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 5 | Application for full cancellation of a licensed institution's license | 4,000,000 L.L. | 7,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. |
| 6 | Application for partial cancellation of a licensed institution's license (per activity) | 8,000,000 L.L. | 8,000,000 L.L. | 8,000,000 L.L. | 8,000,000 L.L. |
| 7 | Temporary suspension of a licensed institution's operations | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 8 | Amendment or replacement of the Articles of Association / Founding Contract | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 9 | Application for review / reduction of a person's registration / applicant with regulated functions | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 10 | Renewal of a person's registration application / change of status application (appointment assumption notice period) | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. |
| 11 | Reorganization / restructuring process | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. | 3,000,000 L.L. |
| 12 | Issuance of shares / quotas and/or subscription rights and/or cash contributions | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. |
| 13 | Change of external audit subject | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
| 14 | Delegation of functions to external parties | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
| 15 | License and/or addition for financial instruments including Lebanese or foreign financial instruments and Sukuk: establishment/marketing/promotion of financial instruments | 5,000,000 L.L. | 5,000,000 L.L. | 5,000,000 L.L. | 5,000,000 L.L. |
| 16 | License and/or addition for collective investment (Lebanese/foreign) | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. |
| 17 | Renewal of fund characteristics / collective investment entity | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. |
| 18 | License for returns of Lebanese collective investment management companies | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. |
| 19 | Collective investment entity: license to manage joint funds / collective investment entity managing joint investment companies | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. | 1,000,000 L.L. |
| 20 | Clearing process: license to establish a Lebanese/foreign clearing entity / clearing entity shares | 8,000,000 L.L. | 8,000,000 L.L. | 8,000,000 L.L. | 8,000,000 L.L. |
| 21 | Amendment to the regulations of a Lebanese clearing entity | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. | 4,000,000 L.L. |
| 22 | Hosting application | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
| 23 | Deadline determination application | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
| 24 | Approval and certification (all) | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
| 25 | Certificates and other miscellaneous applications | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. | 2,000,000 L.L. |
Notes:
¹ Payable in the first quarter of each year.
² Payable in the first quarter of each year.
Annex No. (2)
Commission Collection Procedures
- The requesting entity intending to submit a transaction or application subject to a commission to the Authority must prepay the appropriate financial fee based on Annex No. (1).
- The fees and commissions specified in Annex No. (1) are paid either by email or by transferring the required amount from a current account to a dedicated account at the Central Bank of Lebanon, bearing the following IBAN:
LB36 0999 0000 0001 0016 5001 1125
(noted without spaces when used electronically) - The transfer is executed through the BDL-RTGS payment system, according to the mechanism approved by said system, and an (MT202) message is organized so that Field 20 and Field 72 display the necessary information as follows:
20:InstitutionNumber-Code of Request 72:/REC/TRNSF/T72/Name of requesting Institution – number of requesting Institution – Code of request (Institution category A, B,C,D plus operation type 1,2,3….) – Amount – Date of Payment - The requesting entity, upon submitting a transaction or application to the Capital Markets Authority, must attach a bank notification proving the completion of the required transfer (copy of MT 298 message), containing the detailed information specified in Item (3) above.
For Example:
To pay the commission due for a license application submitted by a brokerage firm marketing and promoting a financial instrument
established abroad, the required code to be adopted is C13
20:020-C13
72:/REC/TRNSF/T72/ ABCDE - 020 - C13- 5000000- 31.1.2022