Regulatory Alerts2023-05-23
Related to Perpetual Preferred Shares
The Capital Market Authority and Bank of Lebanon issued Notice No. 94 to repeal prior guidance and mandate licensed Lebanese banks to ensure Perpetual Preferred Shares held in client portfolios reflect prevailing market prices. The directive requires institutions to immediately suspend pricing and mark these shares as "unavailable" in client statements if prior valuation methods fail, pending a proper fair market value assessment. Additionally, banks must review the deposit fees charged on these shares to align with current economic conditions.
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