Amendment of Market Conduct Regulation Series 4000 and Repeal of CMA Decisions on Price Manipulation and Insider Trading

Announcement No. 23
Related to the Amendment of the Market Conduct Regulation issued by CMA￾Series 4000 Related to the Repeal of Decision No.22 dated 9/8/2016 (on Price Manipulation) and related to the Repeal of Decision No.6 dated 20/11/2013 (on the Prohibition of Exploitation of Inside Non Public Information when Trading in the Capital Markets) 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 No 6/4/17 taken in its meeting held on March 3, 2017, Pursuant to the decision of the Capital Markets Authority’s Board No 14/8/17 taken in its meeting held on June 12, 2017, And pursuant to announcement 22 of 20/6/2017 on the implementation of the implementing regulations and decisions issued by the CMA, We inform you of the following:
1- First: The text of sub-article 8 of article 4202 of the Market Conduct regulation, related to the prohibition of manipulative or deceptive acts or practices, was abrogated and replaced with the following text:
“8- The approved institution must include in the client agreement at the time of account opening, that’s prior to any security transaction with or in the name of the client, a sub article on clear disclosure of the schedule of fees and commissions to be paid by the client; a dated version of this schedule must be signed by the client. If the approved institution decides to update the schedule of fees and commissions, it must:

• Notify the client of the updated schedule as soon as possible by sending a notice to the
  latest postal address indicated by the client,
• Grant the client a two week period -from the date of notification- to submit an objection
  to the schedule, since the fees and commissions that will be incurred along with the updated schedule shall not apply to the client unless the two-week period mentioned above has passed without objection. Failure to object within that period shall result in the updated schedule being considered as implicitly approved. The approved institution can then charge the fees and commissions in line with the updated schedule that the client was notified of but did not object to. The compliance department shall ensure that the approved institution sends the notice to the postal address indicated by the client and updated constantly by the compliance department / department in charge at the approved institution. 2- Second: In the process of combining all the regulations and decisions issued by the CMA within one comprehensive set:

1. Decision No.22 dated 9/8/2016 (on Price Manipulation) was abrogated
2. Decision No.6 dated 20/11/2013 (on the Prohibition of Exploitation of Inside
   Non Public Information when Trading in the Capital Markets) was abrogated 3- Third: Attached is the Market Conduct Regulation - Series 4000 as amended in line with article “First” above. Beirut, June 20, 2017 Chairman of CMA/Governor of the Central Bank Riad Toufic Salame (Signature)