Amendment to Market Conduct and Business Conduct Regulations Series 4000 and 3000

CAPITAL MARKETS AUTHORITY
Announcement No. 73
On Amending the Market Conduct Regulation Series 4000 and the Business Conduct Regulation Series 3000 Pursuant to Law No. 161 dated 17/08/2011 on Capital Markets, Pursuant to the decision of the Board of the Capital Markets Authority No. 17/3/21 adopted in its meeting held on 13/04/2021, Pursuant to the decision of the Board of the Capital Markets Authority No. 10/4/21 adopted in its meeting held on 05/05/2021, We advise you of the following:
First: Sub Article (8) of Article 4202 of the Market Conduct Regulation Series 4000 shall be amended to become as follows:
“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 either sending a notice to
  the latest postal address indicated by the client or via an email sent for this purpose at the email address provided by the client.
• Grant the client a two-week period- from the date of notification and/ or from the date the
  email is sent- to file an objection to the updated 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 was notified and/ or emailed to the client with no objection on his part.
  The compliance department shall ensure that the approved institution sends the notice to the postal address or email address indicated by the client and updated constantly by the compliance department / department in charge at the approved institution”. Second: Sub Article (3) of Article 3521 of the Business Conduct Regulation Series 3000 shall be amended to become as follows:
  “3. An approved institution shall send the client a copy of his account statement showing his portfolio and all transactions he made, by a monthly notification sent to the postal address he specified or the email address he provided. The compliance department shall ensure that the approved institution sends the notice to the postal address or email address indicated by the client and constantly updated by the compliance department / department in charge / or any responsible party at the approved institution.

The client maintains his right to challenge any transaction or document within two weeks from the notification date and/ or from the date the email is sent. The approved institution, through its compliance department, shall:

• Ascertain that the notification was sent to the client according to the above
• Have the client sign his portfolio at least once a year.
  The approved institution may determine the cases in which the agent, where applicable, may sign and receive of behalf of the client in accordance with the provisions of the power of attorney”. Third: This Announcement shall enter into force upon its publication in the Official Gazette. Beirut, May 19, 2021 Chairman of the Capital Markets Authority/ Governor of the Central Bank of Lebanon Riad Toufic Salame (Signature)