Amendment of Decision 10 on Financial Intermediation Institutions

Announcement No. 20
On the Amendment of Decision no. 10 of 9/1/2014 (Related to Financial Intermediation Institutions) Pursuant to Law 161 of August 17, 2011 on Capital Markets, Pursuant to the Decision of the Capital Markets Authority’s Board ref 10/1/16, taken in its meeting of January 25, 2016, Pursuant to the Decision of the Capital Markets Authority’s Board ref 8/4/16, taken in its meeting of March 21, 2016, And pursuant to the Decision of the Capital Markets Authority’s Board ref 7/7/16, taken in its meeting of May 9, 2016, Please be informed of the following:
First: Sub article 9 has been added to Article 9 of decision 10 of 9/1/2014 on specifying some of the obligations incumbent upon all the institutions which, according to the first and second articles, deal with financial intermediation in Lebanon; following is the text of the sub article added:
"9. Ensure that a proper valuation, (which minimizes / avoids any possible conflict of interest, is conducted on a periodic basis (at least once a year) on all Privately Placed securities (private equity offerings and structured products) held in client portfolios as well as in relevant proprietary books. The approved institutions should reflect / record the values of those securities accordingly in all client statements and relevant proprietary records. All privately placed securities should be clearly marked as such in client statements and a disclaimer should be added in the statement indicating the valuation methodology adopted the entity that conducted the valuation, and the date of the valuation." Second: Attached is Decision no. 10 of 9/1/2014 (on Financial Intermediation Institutions), amended as per the above. Beirut, on June 9, 2016. CMA Chairman/ Governor of the BDL Riad Toufic Salame (signature)