Financial Instruments related to Insurance Contracts

Announcement no 7
On financial instruments related to insurance contracts Pursuant to the Law No 161 dated 17/8/2011 on capital markets, Pursuant to the decision of the Capital Markets Authority’s Board taken in its meeting held on October 27, 2014, Pursuant to the decision of the Capital Markets Authority’s Board no 14 taken on February 10, 2014 (on Collective Investment schemes) Pursuant to the decision of the Capital Markets Authority’s Board no 16 taken on February 13, 2014 (on financial instruments and products) Whereas some institutions and bodies issue, promote or market financial instruments related to insurance contracts or attract public savings with the purpose of investing them in those securities, without obtaining the prior approval of the Capital Markets Authority, We inform you of the following:
First: Financial intermediation institutions, financial institutions and banks conducting financial instruments related business in Lebanon should refrain, before obtaining the CMA’s prior approval, from issuing promoting or marketing financial instruments related to insurance contracts, and from attracting with the purpose of investing them in those instruments. Second: Insurance companies operating in Lebanon should refrain from offering to the public securities incorporated in insurance contracts before referring them, through the insurance companies’ control commission, to the Capital Markets Authority for prior approval. This announcement shall enter into force upon its publication in the Official Gazette. Beirut, October 27, 2014 Chairman of the CMA/ Governor of Banque du Liban Riad Salame