Regulatory Alerts2022-10-28
On Amending the Business Conduct Regulation Series 3000
The Capital Markets Authority, in coordination with the Central Bank of Lebanon, has amended Article 3306, Paragraph 1 of the Business Conduct Regulation Series 3000 to mandate that licensed institutions obtain client information on personal and financial status, experience, and investment objectives before opening accounts or executing transactions. The revised rule requires this information to satisfy the minimum data standards of Annex No. 5, with a streamlined requirement for "Execution Only" accounts covering only personal and financial data, all documented in a dated form signed by the client. This amendment takes immediate effect upon its publication in the Official Gazette, effective October 28, 2022.
Notice No. 88 Regarding Amending the Business Conduct Regulation Series 3000
Pursuant to Law No. 161 dated 2011/8/17 regarding Financial Markets, and pursuant to Capital Markets Authority Board Decision No. 22/6/13 taken in its meeting held on 2022/7/6, as follows:
We hereby inform you:
First: Paragraph 1 of Article 3306 of the Business Conduct Regulation Series 3000 is amended to read as follows: -1 Before opening an account or dealing with a client, the institution licensed to open accounts must obtain information from the client regarding their personal and financial status, experience, and investment objectives. The information must: a. include at least the data required by Annex No. 5, except for "Execution Only" (Account Only-Execution) accounts where the institution must obtain only the information specified in Section A (Personal Information) and Section B (Financial Information) of Annex No. 5, b. be recorded in a dated form signed by the client.
Second: This notice takes effect upon its publication in the Official Gazette.
Beirut, on October 28, 2022 Chairman of the Capital Markets Authority / Governor of the Central Bank
Riad T. Salameh