Regulatory Alerts2014-02-13
Decision No. 15 on Islamic Collective Investment Schemes
The Capital Markets Authority and Banque du Liban jointly issued Decision No. 15 to establish a comprehensive regulatory framework for Islamic Collective Investment Schemes in Lebanon, defining their legal structures and Sharia-compliant operational parameters. The regulation restricts scheme establishment to licensed Islamic banks and specialized management companies while mandating detailed management contracts, mandatory Sharia auditing bodies, and comprehensive prospectus disclosures covering investment policies, accounting standards, fee structures, and Zaqat responsibilities. Administrators must prepare and submit standardized financial statements to the regulator by April each year, with all violations subject to administrative sanctions under existing capital markets laws.