Capital Markets Authority Decision on Centralized Information for Financial Instrument Institutions

Decision Number 8 Pursuant to the Law No. 161 dated 17/8/2011, on the capital markets; Pursuant to the decision of the Capital Markets Authority’s Board taken in its meeting held on December 20, 2013; The Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon declares the following, Article 1: The provisions of this decision shall govern all the institutions and authorities exercising business related to financial instruments in Lebanon for the account of their clients and/or for their own account such as banks, financial institutions, financial intermediation institutions, collective investment schemes in securities, and all financial instruments and joint investment funds in securitization operations. Article 2: The abovementioned institutions should provide the Financial Control Unit with all the documents and information requested in conformity with the appendices enclosed herewith and with any other information or documents which may be requested in performing the control duties thereof in accordance with in the provisions of the applicable laws and regulations. Article 3: Whoever violates the provisions of this decision shall incur the administrative sanctions mentioned in the applicable laws and regulations especially those stipulated in law No. 161 dated August 17, 2011 (on capital markets). Article 4: Institutions and authorities subject to the present decision shall be granted a maximum period of three months as of the date of publication of the same in the Official Gazette for the purpose of providing the Financial Control Unit with all the documents and information requested according to this decision. Article 5: The present decision shall be enter into force upon its publication in the Official Gazette. Beirut on December 27, 2013 Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon Riad Toufic Salameh (Signature)

Appendix Clarification on appendices (1, 2 and 3) enclosed herewith The purpose of this decision and the appendices enclosed herewith, is to create centralized information at the Capital Markets Authority in relation to assigned persons, persons under supervision and persons concerned, who exercise one of the organized duties related to the business of financial instruments in order to facilitate the duties of the Financial Control Unit concerning the commitment of all institutions and authorities which exercise business related to financial instruments in Lebanon for the account of its clients and/or for its own account according to the concept of article 1, 2 and 5 of law No. 161 dated August 17, 2011 (on capital markets). All the organized duties, examinations and deadlines referred to in the appendices enclosed herewith are those stipulated in basic decision No. 9286 dated March 9, 2006, related to scientific, technical and literary qualifications that should be available for the exercising of some duties in both the banking and financial sectors (basic circular No. 103) issued by the Central Bank of Lebanon. The abovementioned institutions or authorities should provide the Capital Markets Authority with the appendices enclosed herewith in addition to the following information:

1. Specialized number for each of the persons exercising organized duties at the institution aimed at identifying them without the need to reveal their names. The said number should start with the specialized number of the institution on the list of the Central Bank of Lebanon and should be linked to the person permanently whereas it cannot be assigned to another person for any reason whatsoever.
2. The category of duties carried out by persons who exercise organized duties at the institution in accordance with table No. 1 enclosed herewith. In the event that the person was conducting many organized duties, there should be a reference to each.
3. Date of enrollment of each of the persons exercising organized duties at the institution in the banking or financial sectors, the start date of their job at the institution and the start date of receiving the current organized duties.
4. All the examinations required from every person exercising organized duties at the institution while certifying whether the person is partially exempt from any of them according to article 5 of basic circular No. 103 referred to hereinabove, or succeeded in any.
5. Numbers of persons totally exempt from examinations while referring to the reason of exemption (appendix No. 3).
6. All institutions and authorities which exercise business related to financial instruments in Lebanon for the accounts of their clients and/or for their own account according to the concept of articles 1, 2 and 5 of law No. 161 dated August 17, 2011 (on capital markets) and concerned in the implementation of the abovementioned basic circular No. 103,

should provide the Capital Markets Authority with two copies of the appendices enclosed herewith, a duly signed hard copy and a soft copy (Microsoft Excel format) saved on a compact disk (CD). In the event that the company concerned is a subsidiary, such company shall complete the said supplements personally and not through the parent company and shall provide the Financial Control Unit with the same duly.