Regulatory Alerts2017-12-14
Related to Existing Financial Intermediary Institutions
The Capital Markets Authority and Banque du Liban have issued this announcement to formally approve registered financial intermediation institutions for conducting operations on financial instruments under the Licensing and Registration Regulation (Series 2000). These institutions must comply with Series 2000 provisions by submitting a signed document detailing their activity categories and allocated minimum capital, alongside professional indemnity insurance coverage of at least two billion Lebanese Pounds or their allocated business capital. They must also provide a signed external auditor report confirming full regulatory compliance before the announcement takes effect upon its Official Gazette publication.
Announcement No 28 On Financial Intermediation Institutions Pursuant to the Law No 161 dated 17/8/2011 on Capital Markets, Pursuant to the decision of the Capital Markets Authority No 25 dated 24/1/2017 regarding the list of Financial Intermediation Institutions, Pursuant to the decision of the Capital Markets Authority’s Board No 17/16/17 taken in its meeting held on 28/11/2017, We inform you of the following: First: This announcement applies to Financial Intermediation Institutions duly registered and identified in the list published according to the decision of the Capital Markets Authority No 25 taken on 24/1/2017 Second: Institutions mentioned in the above paragraph “First” are considered to be approved for conducting operations on financial instruments, according to the Licensing and Registration Regulation in Capital Markets- Series 2000. Third: The above mentioned institutions should comply to the provisions of the Licensing and Registration Regulation in Capital Markets- Series 2000, especially with regards to introduce amendments and take all necessary measures to abide by the mentioned regulation, and provide the Capital Markets Authority with the following:
- A duly signed document defining the categories of activities related to operations on financial instruments that the approved institutions intend to conduct, as well as the minimum capital allocated to each category.
- The subscription policy to the insurance product related to professional Indemnity for a minimum amount of /2,000, 000,000/ LBP (two billion Lebanese Pounds), or the equivalent of the capital allocated to its business; whichever is higher. A report signed by a its external auditor proving the compliance of the institution to all the provisions of the Licensing and Registration Regulation in Capital Markets- Series 2000 Fourth: This Announcement shall enter in force upon its publication in the Official Gazette. Beirut, January 14, 2017 Chairman of the CMA/ Governor of Banque du Liban Riad Toufic Salame