Regulatory Alerts2024-02-06
Informing the CMA of All Institutions or Persons Acting as Introducing Brokers
The Capital Markets Authority of Lebanon, through Information No. 96 issued by Acting Governor Dr. Wissam Mansouri on February 6, 2024, mandates all licensed institutions to fully comply with Article 2104 by notifying the Authority of every company and person acting as an Introducing Broker on their behalf, while ensuring transparent client disclosure of associated commissions. Should licensed institutions fail to submit these notifications, the CMA Board is empowered to enforce appropriate corrective measures against them under Article 2501 of the Capital Markets Licensing and Registration System. This directive takes immediate legal effect upon its publication in the Official Gazette, reinforcing regulatory oversight of introducing brokerage activities.
Capital Markets Authority INFORMATION NO. 96 Regarding the Obligation to Inform the Capital Markets Authority of All Companies and Persons Engaged in Introducing Brokerage Activities
Pursuant to Law No. 161 dated August 17, 2011, concerning Capital Markets, and pursuant to Article 2104 of the Capital Markets Licensing and Registration System - Group 2000, and pursuant to Capital Markets Authority Board Decision No. 23/8/2 Repeated 7, taken in its meeting held on October 24, 2023,
we hereby inform you of the following:
First: The Capital Markets Authority (hereinafter "the Authority") reminds its licensed institutions of their full compliance with the provisions of Paragraph 2 of Article 2104 of the Capital Markets Licensing and Registration System - Group 2000, regarding the obligation to inform the Authority of the names of all companies and persons engaged in Introducing Brokerage activities on behalf of the licensed institution. The Authority also reminds them of their obligation to clearly and fully disclose to clients all commissions received by these persons as a result of such transactions.
Second: In the event that licensed institutions fail to comply with the aforementioned information obligation, the Capital Markets Authority Board shall have the authority to take appropriate measures against non-compliant institutions, based on Article 2501 of the Capital Markets Licensing and Registration System - Group 2000.
Third: This information shall take effect immediately upon its publication in the Official Gazette.
Beirut, on February 6, 2024 Chairman of the Capital Markets Authority / Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri