Licensing Banks Operating in Lebanon to Act as Brokers/Intermediaries on the Beirut Stock Exchange

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Submitted herewith is Basic Decision No. 5996 dated September 7, 1995, under which banks operating in Lebanon are authorized to participate in brokerage activities at the Beirut Stock Exchange.

Beirut, September 7, 1995
Governor of the Central Bank of Lebanon
Riad T. Salamé

1

• The subject of this decision was the authorization for specialized banks subject to Legislative Decree No. 50 dated July 15, 1983, to participate in brokerage activities at the Beirut Stock Exchange. Authorization for banks to participate in brokerage activities at the Beirut Stock Exchange is now governed by Interim Decision No. 13408 dated February 4, 2022 (Interim Circulation No. 613).

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Basic Decision No. 5996

The Governor of the Central Bank of Lebanon, based on the Monetary and Banking Law, particularly Article 70 thereof, based on the provisions of Legislative Decree No. 50 dated July 15, 1983, based on the decision of the Central Council adopted in its meeting held on September 6, 1995,

decides as follows:

Article One:
First: Banks operating in Lebanon are authorized to participate in brokerage activities at the trading floor of the Beirut Stock Exchange and to provide various financial brokerage services permitted under the law and regulations of the aforementioned stock exchange, subject to the approval of the Central Bank of Lebanon. Specialized banks subject to Legislative Decree No. 50 dated July 15, 1983, are exempt from the aforementioned approval. Second: Banks not subject to Legislative Decree No. 50 dated July 15, 1983 shall:

1. Open separate accounts dedicated to the aforementioned operations, subject to all conditions and requirements stipulated in relevant laws and under the supervision of the Financial Markets Authority (FMA) and its issued executive regulations.
2. Comply with the requirements stipulated in relevant laws and executive regulations issued by the FMA regarding the signing of contracts with clients, subject to the supervision of the latter.
3. Establish a specialized unit, composed of competent and sufficiently experienced persons in financial markets and the activities subject to this article, which performs these operations on behalf of its clients through a clear and defined mechanism governing the operation of this unit, subject to the supervision of the FMA and its issued executive regulations.
4. Refrain from using depositors' funds to lend to any client on its balance sheet, and consequently must use the bank's own funds in this case.
5. Take appropriate legal measures to ensure regulatory oversight of the obligations mentioned in this section by both the Banking Supervision Committee and the Financial Markets Authority, each within its respective jurisdiction.

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• This article was amended by Interim Decision No. 13408 dated February 4, 2022 (Interim Circulation No. 613).

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Article Two: This decision shall take effect upon issuance.

Article Three: This decision shall be published in the Official Gazette.

Beirut, September 7, 1995
Governor of the Central Bank of Lebanon
Riad T. Salamé