Capital Markets Authority Decision on Financial Instrument Business Information Requirements

Decision Number 9 Pursuant to Law No. 161 dated August 17, 2011, on capital markets; Pursuant to the decision of the Capital Markets Authority’s Board No. 5/10/2013 taken in its meeting held on November 11, 2013; Pursuant to the decision of the Capital Markets Authority’s Board taken in its meeting held on December 20, 2013; The Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon declares the following, Article 1: The provisions of the present decision shall govern all the institutions and authorities exercising business related to financial instruments in Lebanon for the account of their clients and/or for their own account in accordance with the provisions of articles 1, 2 and 5 of law No. 161 dated August 17, 2011 (on capital markets). Article 2: The abovementioned institutions should provide the Financial Control Unit with all the documents and information requested in conformity with the appendix enclosed herewith and with any other information or documents which may be requested in performing the control duties thereof in accordance with in the provisions of the applicable laws and regulations. Article 3: Whoever violates the provisions of this decision shall incur the administrative sanctions mentioned in the applicable laws and regulations especially those stipulated in law No. 161 dated August 17, 2011 (on capital markets). Article 4: Institutions and authorities subject to the present decision shall be granted a maximum period of three months as of the date of publication of the same in the Official Gazette for the purpose of providing the Financial Control Unit with all the documents and information requested according to this decision. Article 5: This decision shall be enter into force upon its publication in the Official Gazette. Beirut on December 27, 2013 Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon Riad Toufic Salameh (Signature)

Appendix A- Financial Intermediation Institutions: Financial Intermediation Institutions should provide the Financial Control Unit with the following information and documents: 1- Name and address (with the number of registration on the list of the Central Bank of Lebanon) and copy of the license granted by the Central Bank of Lebanon for the purpose of exercising the business thereof. 2- Articles of Association of the financial intermediation institution. 3- Names of shareholders who own more than five percent of the total number of shares of the financial intermediation institution or of the rights of voting in the same. 4- Updated administrative and organizational structure with the name of every person designated by the institution to conduct permanent communication with the Financial Control Unit. 5- Type of financial services provided by the institution. 6- Information on any legal or regular procedures that the institution is currently subject to or that the same could have been subject to previously within the scope of carrying out the business thereof related to financial instruments. 7- A copy of the reports of the external auditors and the reports of internal audit. B- Financial institutions Financial institutions which exercise business related to financial instruments according to the provisions of articles 1, 2 and 5 of law No. 161 dated August 17, 2011, should provide the Financial Control Unit with the following information and documents: 1- Name and address (with the number of registration on the list of the Central Bank of Lebanon) and copy of the license granted by the Central Bank of Lebanon for the purpose of exercising the business thereof. 1- Articles of association of the financial institution. 2- Names of shareholders who own more than five percent of the total number of shares of the financial institution or of the rights of voting in the same. 3- Updated administrative and organizational structure with the name of every person designated by the institution to conduct permanent communication with the Financial Control Unit. 4- Type of financial services provided by the institution. 5- Information on any legal or regular procedures that the institution is currently subject to or that the same could have been subject to previously within the scope of carrying out the business thereof related to financial instruments. 6- A copy of the reports of the external auditors and the reports of internal audit.

C- Banks Banks, in relation to the business conducted on financial instruments according to the provisions of articles 1, 2 and 5 of law No. 161 dated August 17, 2011, should provide the Financial Control Unit with the following information and documents: 1- Name and address (with the number of registration on the list of the Central Bank of Lebanon) and copy of the license granted by the Central Bank of Lebanon for the purpose of exercising the business thereof. 2- Articles of association of the bank. 3- Names of shareholders who own more than five percent of the total number of shares of the bank or of the rights of voting in the same. 4- Updated administrative and organizational structure with the name of a person designated by the institution to conduct permanent communication with the Financial Control Unit; type of financial services provided by the institution. 5- Information on any legal or regular procedures that the bank is currently subject to or that the same could have been subject to previously within the scope of carrying out the business thereof related to financial instruments. 6- A copy of the reports of the external auditors and the reports of internal audit. D- Collective Investment Schemes and Joint Investment Funds for securitization operations. Collective Investment Schemes and Joint Investment Funds for securitization operations should provide the Financial Control Unit with the following information and documents: 1- Name and address 2- Name and address of a person designated by collective investment authorities and joint investment funds for securitization operations to conduct permanent communication with the Financial Control Unit. 3- All information and documents requested in accordance with the provisions of laws No. 706 and 705 dated December 9, 2005, and to the issued regulations in implementation of the abovementioned laws. 4- Information on any legal or regular procedures to which are subject the collective investment schemes and joint investment funds for securitization operations currently or that the same would have been subject to previously within the scope of conducting business related to financial instruments.