Amendment to the Capital Markets Licensing and Registration Regulation Series 2000

CAPITAL MARKETS AUTHORITY
Announcement No. 61
On the amendment of the Capital Markets Licensing and Registration Regulation Series 2000 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. 26/12/19 adopted in its meeting held on 16/07/2019, We advise you of the following:
First: Paragraph (7) of Article 2205 of the Capital Markets Licensing and Registration Regulation related to the requirements for license shall be amended to read as follows:
“The applicant must also contribute to the insurance product of Financial Institution Professional Indemnity (FIPI) that includes the coverage of herebelow risks; the insurance coverage amounts to two (2) billion Lebanese Pounds as a minimum (1.333 Million USD) or the equivalent of the required capital. The highest amount is then adopted. 1- Incomplete transaction; 2- Crime 3- Neglect (omission) and error. The approved institutions with a capital exceeding five billion Lebanese Pounds shall be exempted from the requirement of contribution to the above-mentioned insurance product. The standardized definition and drafting of the above are detailed in Annex VII. In addition to the above-mentioned insurance policies, it would be recommended for any institution conducting securities business to have an insurance against the administrative liability of managers and staff that covers the legal fees and the damages incurred by managers and officials as a consequence of lawsuits filed against them for unlawful acts”. Second: This announcement shall enter in force upon its publication in the Official Gazette.

Beirut, August 23, 2019
Chairman of the Capital Markets Authority/
Governor of the Central Bank of Lebanon
Riad Toufic Salame
(Signed)