Regulatory Alerts2017-01-12
Decision No. 23 on Segregation of Accounts for Securities Business and Custody Services
The Securities Commission and Bank of Lebanon issued Decision No. 23 to mandate strict segregation of client assets and funds for all financial intermediaries operating in Lebanon. The decision requires intermediaries to maintain dedicated client asset and bank accounts, clearly distinguishing proprietary holdings from client holdings both on and off the balance sheet. It further establishes comprehensive custody service rules, including mandatory written agreements with local and foreign custodians, due diligence obligations, and a six-month compliance grace period following publication.
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