Regulatory Alerts2016-03-21
Amendment of Decision 10 on Financial Intermediation Institutions
The Capital Markets Authority amended Decision No. 10 to require approved financial intermediation institutions to record all client-related securities phone calls and explicitly notify clients of this practice. The regulation mandates retaining recorded calls and Bloomberg Terminal conversations for ten years, with extended storage for ongoing disputes or investigations, while integrating data preservation into institutional contingency plans. This amendment broadly defines clients to encompass individuals, corporations, counterparties, and correspondents, ensuring comprehensive compliance across all securities communications.
Announcement No. 19 On the Amendment of Decision no. 10 of 9/1/2014 (Related to Financial Intermediation Institutions) Pursuant to Law 161 of August 17, 2011 on Capital Markets, Pursuant to the Decision of the Capital Markets Authority’s Board ref 10/1/16, taken in its meeting of January 25, 2016, And pursuant to the Decision of the Capital Markets Authority’s Board ref 8/4/16, taken in its meeting of March 21, 2016, Please be informed of the following: First: Sub article 7 of Article 9 of the said decision was cancelled and replaced with the following text: "7. Approved institutions must: A. Refrain from receiving or making unrecorded phone calls with clients or potential clients related to all securities business (including calls relating to orders, advice provided by the institution to the clients, as well as all deliberations and discussions and negotiations conducted over the phone and relating to those transactions). B. Make their clients or potential clients know that the calls relating to securities business are being recorded. C. Save recorded telephone calls relating to securities business for a period of ten years after the date of the call; if the phone call is relating to a dispute with a customer or an official investigation, it must be kept up until the conflict is solved or the investigation is complete. D. Save, in the case the transaction has been made through Bloomberg Terminal, a copy of the full conversation that has taken place on Bloomberg Chat, for a period of ten years after the conversation date, containing all the details of the transaction and completion process. E. Incorporate in their own contingency plans the information required in sub articles "C" and "D" mentioned above so as to ensure information retrieval in the event of natural and technological hazards. F. Take into account that, according to this sub article, the client concept includes:
Individuals Institutions or companies Counterparty and / or Correspondent Any other party.” Second: Attached is Decision no. 10 of 9/1/2014 (on Financial Intermediation Institutions), amended as per the above. Beirut, on March 21, 2016. CMA Chairman/ Governor of the BDL Riad Toufic Salame (signature)