Lebanon Capital Markets Authority Conduct of Business Regulation – 3000 Series

Regulation Conduct Business – 3000 Series 60 مجموعة 3000 – نظام قواعد العمل في األسواق المالية 2016 10, November :Publication of Date 2021 19, May 1.10 Version

Lebanon of Authority Markets Capital 3000 SERIES Regulation Conduct Business Markets Capital In Contents of Table Introduction –A Part Purpose – 3001 institutions approved for Principles – 3002 persons registered for Principles – 3003 Requirements General – B Part Regulations the with Compliance – 3101 Authority the of Powers – 3102 Controls and Systems ,Governance – C Part Governance Corporate – 3201 responsibilities of Division – 3202 controls and systems Required – 3203 conduct professional of Code – 3204 controls and systems Compliance – 3205 activities of Supervision – 3206 controls and systems Management Risk – 3207 officer laundering money-Anti – 3208 committee Audit – 3209 Auditor – 3210 audit Internal – 3211 functions of Segregation – 3212 agents and Employees – 3213 Insurance – 3214 continuity Business – 3215 functions of Outsourcing – 3216 Clients With Dealing – D Part advertisements Securities – 3301 clients with communications Direct – 3302 to client the with communication of Means – 3303 trading to related instructions and orders receive 1 operations derivatives and funds investment retail-Non – 3304 classification Client – 3305 client your Know – 3306 2018 29, March dated 33 announcement by added was article This 1 1 أضيفت هذه المادة بموجب اإلعالم رقم 33 تاريخ 29 آذار 2018 2021 19, May 1.10 Version Version 2016 10, November :Publication of Date تاريخ النشر: 10 تشرين الثاني، 2016 إصدار ،١.10 19 أ َّيار 2021

Regulation Conduct Business – 3000 Series 2 مجموعة 3000 – نظام قواعد العمل في األسواق المالية financing terrorism and laundering Money Anti – 3307 agreement client :accounts Opening – 3308 accounts client over Mandate – 3309 Clients to Duties – 3310 interest of conflicts Managing – 3311 fees and commissions of Use – 3312 Suitability – 3313 risk Understanding – 3314 securities speculative and Derivatives – 3315 borrowing Client – 3316 requirements Margin – 3317 2 clients to reports of Transmission – 3318 notes Contract – 3319 accounts managed for reports Periodic – 3320 complaints Client – 3321 dealings personal’ Employees – 3322 by Trades of Recording & Executing on Rules – 3323 3 Institutions Approved Keeping Record – E Part requirements keeping Record – 3401 operations of Records – 3402 records Client – 3403 records to access Client – 3404 records of Inspection – 3405 calls Recording – 3406 Assets Client and Money Client – F Part money Client – 3501 bank a with held be to money Client – 3502 assets client and money client of Segregation – 3503 assets client and money client of Records – 3504 accounts money client on bank with Agreement – 3505 money client Handling – 3506 money client of Payments – 3507 requirement money client of Calculation – 3508 reporting money Client – 3509 assets Client – 3510 assets client Holding – 3511 assets Collateral – 3512 Segregation – 3513 assets client of Registration – 3514 custodians foreign of Use – 3515 2019 13, May dated 55 announcement by amended was article This 2 2018 12, March dated 24 announcement by added was article This 3

Regulation Conduct Business – 3000 Series 3 مجموعة 3000 – نظام قواعد العمل في األسواق المالية securities client Lending – 3516 custodians for responsibility and of Assessment – 3517 agreements Client – 3518 agreement Custodian – 3519 Reconciliations – 3520 statements Client – 3521 Financial on Regulations – G Part 4 Transactions Derivative 5 concepts some Defining – 3601 Correspondent a with Transactions Conducting – 3602 when obligations s’institution approved The – 3603 .Correspondent a with dealing when institution approved the on Restrictions – 3604 .Correspondent a with dealing s’regulation this of Enforcement – H Part provisions by provisions s’Regulation this of Enforcement – 3701 Authority the Conduct Professional of Rules – 1 ANNEX Securities Prepared for Requirements Content – 2 ANNEX Advertisements Agreements Client of Terms – 3 ANNEX Notes Contract of Contents – 4 ANNEX Information Client Your Know – 5 ANNEX for Statements Periodic of Contents – 6 ANNEX Portfolios Investment and Policies Dealing Account Personal – 7 ANNEX Procedures 6 Reports Auditors - 8 ANNEX complaint a filing for Template - 9 ANNEX that and met be to have that Requirements - 10 ANNEX the as well as transactions maker market the complete prices best the at liquidity providing for transactions 24 announcement of virtue by regulation this to added were H and G Parts 4 2018 12, March dated 2019 10, April dated 54 announcement by added was article This 5 dated 24 announcement of virtue by added been have 10 and 9 8, Annexes 6 2018 12, March

Regulation Conduct Business – 3000 Series 4 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . 3000 SERIES Regulation Conduct Business Introduction – A Part Purpose – 3001 ‘institutions approved to applies Regulation This– 1 to apply not does It .activities business securities Banque the by regulated activities credit or banking .Liban du :to is Regulation this of purpose The– 2 an that conduct of code and rules the Establish .i carrying in with comply must institution approved ,clients with dealing and business securities out controls and systems ,procedures ,policies the Define .ii keep and establish must institution approved an that ,date-to-up and money client of handling on rules the Establish .iii ,institution approved an by assets client certain report or notify to requirements the out Set .iv and ,Authority the to matters a that conduct of code and rules the Establish .v out carrying in with comply must person registered .institution approved an at responsibilities his institutions approved for Principles – 3002 following the meet must institution approved An– 1 :business securities on carrying in principles and ,integrity and honesty with business its Conduct .i objectives and interests’ clients its for regard due .diligence and care ,skill due with business its Conduct .ii including ,business its of management sound Ensure .iii corporate for systems and policies effective .compliance and management risk ,governance ,business its of soundness financial the Ensure .iv resources financial adequate maintaining including .controls and are assets client and money client that Ensure .v effective to subject and protected adequately .controls ,clear is that manner a in clients its with Communicate .vi .misleading not and fair of suitability the ensure to care reasonable Take.vii clients for decisions discretionary and advice interest of conflicts minimize and identify Effectively .viii disclose and manage effectively and ,clients its with .avoided be cannot that conflict any ,accounts and operations their to regards with Publish .ix reflect that positions and statements periodical 7 situation their accurately 2018 12, March dated 24 announcement by added was paragraph This 7 7 أضيفت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018

Regulation Conduct Business – 3000 Series 5 مجموعة 3000 – نظام قواعد العمل في األسواق المالية the with comply also must institution approved An– 2

1. Annex in out set conduct professional of rules
   persons registered for Principles – 3003 principles following the meet must person registered A– 1 :functions and duties his out carrying in for regard due and ,integrity and honesty with Act .i and interests’ clients s’institution approved the .objectives .diligence and care ,skill due with Act .ii of suitability the ensure to care reasonable Take .iii clients for decisions discretionary and advice an of employees other and person registered A– 2 rules the with comply also must institution approved
2. Annex in out set conduct professional of
   Requirements General – B Part
   Regulations the with Compliance – 3101 person registered a and institution approved An– 1 other and Regulations the ,Law the with comply must applicable Authority the of requirements regulatory .them to securities all to apply Regulation this of provisions The– 2 .institutions approved of activity business submit ,particular in ,must institutions Approved– 3 ,documents ,information required all CMA the to the for ,statements accounting and statistics in ,regulations and laws the implementing of purpose limits time and forms ,conditions the with accordance 8 CMA the by set . is body governing s’institution approved The– 4 the with compliance for responsible ultimately regulatory other all and Regulations the and Law .institution approved the to applicable requirements adequate that ensure must body governing The implemented and place in are controls and systems this by required as ,compliance ensure to effectively .Regulation approved an of employees and body governing The– 5 with comply must persons registered and institution to appear to Authority the by issued directive any relating enquiry any in assist to or matter any explain .Regulations the and Law the of administration the to Authority the of Powers – 3102 provide to power the has Authority The– 1 all to resort and ,instructions and recommendations functioning sound the ensure to as means necessary comply should latter The .institutions approved of by issued instructions and recommendations with 9 Authority the . . . 2018 12, March dated 24 announcement by amended was paragraph This 8 2018 12, March dated 24 announcement by added was paragraph This 9

Regulation Conduct Business – 3000 Series 6 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ً in ,institution approved an exempt may Authority The– 2 ,Regulation this of provision a from ,part in or whole institution approved the of request the upon whether .Authority the by issued decision a of virtue by or with announcement an publish may Authority The– 3 could it that deems it if exemption that to regards it that and ,institutions approved other to apply .Regulation the of implementation sound the ensure Controls and Systems ,Governance – C Part Governance Corporate – 3201 :must institution approved an of body governing The– 1 or (approving or setting for responsible clearly be .i the of objectives and strategy business the) both ,firm individuals of mix and number adequate an comprise .ii ,knowledge relevant the ,them among ,have who to necessary commitment time and expertise ,skills the of functions and duties the out carry effectively and ,body governing to it enable to resources and powers adequate Have .iii .effectively functions and duties its out carry institution approved the of management senior The– 2 day-to-day the for responsible clearly be must accordance in business s’firm the of management approved objectives and strategy business the with body governing the by responsibilities of Division – 3202 and clear a maintain must institution approved An– 1 responsibilities principal the of division appropriate management senior and body governing its between :that so and operations all for responsible is who clear is it .i and ,functions institution approved the of affairs and business the .ii the by overseen and monitored adequately are .management senior and body governing of division the arranging for responsible is CEO The– 2 ensure must and) 1 (article-Sub under responsibilities .documented fully is it the overseeing for responsible is CEO The– 3 approved the of implementation and establishment .controls and systems s’institution controls and systems Required – 3203 maintain and establish must institution approved An– 1 the to appropriate are that controls and systems and systems The .business securities its of nature this of requirements the to conform must controls approved the enable to sufficient be and Regulation ,obligations business its with comply to institution .Regulations the and Law the

Regulation Conduct Business – 3000 Series 7 مجموعة 3000 – نظام قواعد العمل في األسواق المالية approved an ,Authority the of approval the to Subject– 2 the by licensed institution an is that institution and systems apply and use may Liban du Banque ,whole a as institution that for established controls of all meet controls and systems the that provided to apply they as Regulation this of requirements the .business securities s’institution the and systems establish must institution approved The– 3 the account into taking sufficient are that controls :following ,business its of complexity and scale ,nature the .i ,operations its of diversity the .ii and ,transactions its of value and number the .iii its of area each with associated risk of degree the .iv .operations and systems establish must institution approved An– 4 :minimum a at cover to controls of division the – structure Organizational .i with accordance in lines reporting and responsibilities 3202 article controls and systems ,policies management Risk .ii controls financial including ,controls Internal .iii procedures and policies Supervision .iv procedures and policies Compliance .v program monitoring Compliance .vi procedures financing laundering money-Anti.vii conduct professional of Code .viii manual Operations .ix .plans continuity Business .x systems its document must institution approved An– 5 documentation its keep and appropriately controls and .date to up and systems its review must institution approved An– 6 .periodically ,documentation its including ,controls on reports receive must body governing s’firm The .taken be to actions the and reviews the of results the be must controls and systems of documentation The– 7 they whom to staff and management all to available .relevant are conduct professional of Code – 3204 sub by required conduct professional of code The– 1 requirements the least at include must) 4 (3203 article

1. Annex in listed
   registered each require must institution approved An– 2 comply and recognize to employee each and person out carrying in conduct professional of code the with .responsibilities and functions their an of employee each and person registered Each– 3 the with comply to agree must institution approved conduct professional of code s’institution approved to amendment any and code the of copy a signing by .code the .1

Regulation Conduct Business – 3000 Series 8 مجموعة 3000 – نظام قواعد العمل في األسواق المالية controls and systems Compliance – 3205 of complexity and scale ,nature the on Depending– 1 a create may institution approved an ,business its appropriateness the monitor to committee compliance and systems compliance its of effectiveness and .controls institution approved an require may Authority The– 2 considers it if committee compliance a create to and scale ,nature the on based necessary be to one business the of complexity officer senior a appoint must institution approved An– 3 with acts ,competent is who compliance of head as expertise ,qualifications sufficient has and ,integrity .regulations and business securities in knowledge and :that ensure must institution approved An– 4 and officer senior a to reports compliance of head The .i ,body governing the to access direct has independent totally is department compliance The .ii the supervising for charge in body the from ,operations business s’institution sufficient has department compliance The .iii its out carry effectively to authority and resources ,responsibilities place in are procedures and policies Appropriate .iv with comply to institution approved the enable to applicable other all and Regulations and Law the requirements regulatory program reporting and monitoring compliance A .v regulatory with compliance assess to place in is ,basis ongoing an on requirements is conduct professional of code its with Compliance .vi ,monitored the with filed be to required notifications and Reports.vii and ,time on filed and accurate are Authority receive body governing and management senior Its.viii the including ,matters compliance on reports regular of breaches any and monitoring compliance of results .requirements regulatory activities of Supervision – 3206 written establish must institution approved An– 1 supervision proper ensure to procedures and policies :of its with dealings including ,conduct business its .i ,clients and ,conduct market financial its .ii .persons registered its of activities The .iii be must procedures and policies supervision The– 2 the and Law the with compliance achieve to designed .Regulations be must procedures and policies supervision The– 3 .date to up kept and periodically reviewed

Regulation Conduct Business – 3000 Series 9 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . ً controls and systems management Risk – 3207 maintain and establish must institution approved An– 1 to it enable to controls and systems management risk .risks material monitor and control ,assess ,identify and implement ,develop must institution approved An– 2 material manage to procedures and policies maintain .to exposed are clients its or institution the that risks of complexity and scale ,nature the on Depending– 3 a appoint may institution approved an ,business its .officer management risk as officer senior institution approved an require may Authority The– 4 considers it if officer management risk a appoint to and scale ,nature the on based necessary be to one .business the of complexity officer laundering money-Anti – 3208 any in funds client manages that institution licensed A– 1 responsible employee level-high a appoint must way employee The .laundering money combating for with compliance overseeing for responsible be shall the for responsible Also 10 24/11/2015 of 44 .No Law circulars related laundering money all to compliance .regulations and approved the to report must officer AML An– 2 of adequacy the and requirements laundering moneyanti with compliance on body governing s’institution and policies laundering money-anti s’institution the .quarterly least at procedures committee Audit – 3209 its of complexity and scale ,nature the on Depending– 1 an appoint may institution approved an ,business .committee audit to institution approved an require may Authority The– 2 be to one considers it if committee audit an appoint complexity and scale ,nature the on based necessary .business the of .quarterly least at meet must committee audit An– 3 be must meetings committee audit all of Minutes– 4 .file on retained and recorded 2018 12, March dated 24 announcement by amended was paragraph This 10 10 ّ عدلت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018

Regulation Conduct Business – 3000 Series 10 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . . Auditor – 3210 the to communicate must institution approved The– 1 appointed its of name the Authority Markets Capital statements financial its reviewing of charge in Auditor accordance in ,thereon reporting and operations and established auditors to related provisions the with the ,CMA the ,banks the for Liban du Banque the by intermediation financial and institutions financial of provisions the with accordance in and ,institutions Authority Markets Capital The .Commerce of Code the change to institution approved the request may an appoint to it instruct or ,Auditor appointed its mentioned above the undertake to Auditor additional 11 tasks the to apply shall decision this of provisions The– 2 carrying entities and institutions approved of auditors Lebanon in securities with associated activities out ,account own their for or/and account’ clients their for dated 161 no Law of) 2 (and) 1 (articles to according .(markets capital on (17/8/2011 out carrying entities and institutions Approved– 3 for Lebanon in securities with associated activities own their for or/and clients their of account the include to auditors accredited their ask shall account provided and ,audit they statements financial the in on (17/8/2011 dated 161 no Law of 44 Article in for related activities about information ,)markets capital to attached 8 no annex the in mentioned securities to .minimum a at Regulation this institutions approved mentioned above the of Auditors– 4 Unit Control Financial the provide shall entities and and documents ,reports the with markets capital on its conducting while request may it that information with associated activities over functions auditing applicable of provisions the to according ,securities .regulations and laws approved mentioned above the of Auditors– 5 above the complete shall entities and institutions analysis or audit further with reports mentioned approved such by conducted transactions the of with associated activities on entities and institutions by requested directly be could that and ,securities adherence the ensure to as ,Unit Control Financial the the to entities and institutions Approved these of
12. regulations and laws applicable
review must institution approved an of auditor The– 6 ,statements financial s’institution the on report and year fiscal its of days 120 within records and books .end 2019 10, April dated 54 announcement by amended was paragraph This 11 dated 24 announcement by added been have) 5 (to) 2 (from Paragraphs 12 2018 12, March

Regulation Conduct Business – 3000 Series 11 مجموعة 3000 – نظام قواعد العمل في األسواق المالية audit Internal – 3211 its of complexity and scale ,nature the on Depending– 1 an establish may institution approved an ,business appropriateness the monitor to unit audit internal .controls and systems its of effectiveness and provide to licensed is that institution approved An– 2 internal an have must services managing or custody .unit audit to institution approved an require may Authority The– 3 be to one considers it if unit audit internal an establish complexity and scale ,nature the on based necessary .business the of documented have must unit audit internal An– 4 the to lines reporting and procedures ,responsibilities .committees its of one or body governing from independent be must unit audit internal An– 5 have and functions business and operational the of records relevant all to access unrestricted .institution approved the on report and review must unit audit internal An– 6 records and books ,statements financial s’institution for responsible also is unit The .annually least at management risk and controls internal assessing .procedures and policies and recorded be must reports audit internal All– 7 .years 10 least at for file on retained functions of Segregation – 3212 and policies establish must institution approved An– 1 functions of separation appropriate the for procedures :including operations its within from functions control and compliance of separation .i and ,clients with dealing persons investment and finance corporate of separation .ii .functions other from functions banking be must) 1 (article sub in procedures and policies The– 2 of confidentiality the maintain and secure to designed including ,clients to relating information confidential .information public-non inside agents and Employees– 3213 steps appropriate take must institution approved An– 1 are agents and employees its that itself satisfy to responsibilities the out carry to suitable and qualified .them to assigned program a establish must institution approved An– 2 suitably are agents and employees that ensure to with comply to and responsibilities their for trained .them to applicable requirements regulatory conduct the for responsible is institution approved An– 3 they that ensuring for and persons registered its of .responsibilities their out carry to proper and fit remain

Regulation Conduct Business – 3000 Series 12 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . its of records maintain must institution approved An– 4 ,qualifications ,experience their including ,employees filed complaint any and record disciplinary ,training .employee an to relating Insurance – 3214 insurance obtain must institution approved An– 1 and operations business its of all for coverage .risks significant policies insurance the by provided coverage The– 2 necessary as revised and annually reviewed be must the of scale and nature the in changes any reflect to .business securities s’institution approved plan continuity Business – 3215 an place in have must institution approved An– 1 reflects that plan continuity business appropriate to business its of complexity and scale ,nature the business its on carry to continue can it that ensure Law the under obligations its meet and operations unforeseen an of event the in Regulations the and include shall plan Such .operations its in interruption and” c “items to according required information the 3406, Article mentioned below of) 1 (paragraph of” d“ in information such of retrieval the ensure to as so
13. disasters technical or natural of case
licensed institution financial a or bank a of case the In– 2 plan continuity business the ,Liban du Banque the by requirements the meet must business securities its for .operations banking for Liban du Banque the of be must arrangements continuity business The– 3 periodically tested and date to up kept ,documented .effectiveness their ensure to functions of Outsourcing – 3216 specific delegate may institution approved An– 1 that provided ,person external an to functions :including ,place in are safeguards appropriate the of terms the out sets clearly that contract a .i the of limits and extent the and ,arrangement ,functions of delegation performance the supervise to arrangements suitable .ii and,functions delegated the of concerns any to responds institution approved The iii .functions delegated the of performance the about external an that ensure must institution approved An– 2 is functions specific perform to selected person .them perform to qualified 2018 12, March dated 24 announcement by amended was paragraph This 13 13 عدلت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018

Regulation Conduct Business – 3000 Series 13 مجموعة 3000 – نظام قواعد العمل في األسواق المالية the for responsible remains institution approved An– 3 for and functions outsourced any of performance .requirements regulatory with compliance ensuring supervision continuous maintain must institution The the on reports regular and functions outsourced all of functions such of performance of Authority the notify must institution approved An– 4 7 within functions any delegate to arrangements any .services of commencement the of days circular BDL to subject is that institution approved An– 5 compliance any outsourcing from prohibited is 128 .activities monitoring CLIENTS WITH DEALING – D Part advertisements securities Prepared – 3301 any means advertisement securities prepared A– 1 advance in prepared is that advertisement securities or one to ,form any in ,writing in communicated is and .Lebanon in persons more securities prepared a communicating Before– 2 communicated be to one approving or ,advertisement must institution approved an ,person another by :advertisement the that ensure institution approved the identifies .i and Part this of requirements the with complies .ii 2, Annex approved the of officer designated a by approved is .iii ,Part this with complies it confirming after institution and .misleading not and fair ,clear is .iv to relates that advertisement securities prepared A– 3 :must securities specific the of merits the of view balanced and fair a present .i and ,securities to person a enable to information sufficient Contain .ii or securities the of assessment informed an make .described activity securities any contains that advertisement securities prepared A– 4 performance past or forecast future a on information :must securities of any and information the of source the identify .i and ,apply that assumptions may performance past that warning clear a Contain .ii .performance future of indicator reliable a be not of record a maintain must institution approved An– 5 has it that advertisement securities prepared each .approved ً ً

Regulation Conduct Business – 3000 Series 14 مجموعة 3000 – نظام قواعد العمل في األسواق المالية clients with communications Direct – 3302 securities any means” communication Direct– “1 securities prepared a not is that advertisement or client a with meeting a including ,advertisement or presentation a ,call telephone a ,client potential .persons more or one with interaction direct any approved an communication direct a pursuing Before– 2 :that ensure must institution securities a receiving to consents recipient the .i or ,firm the from advertisement with relationship client existing an has recipient the .ii .institution approved the steps reasonable take must institution approved An– 3 an by made communication direct any that ensure to :behalf its on individual ,misleading not and fair ,clear are .i ,statements misleading or false any include not do .ii securities the of purpose the clear make .iii and ,advertisement the and institution approved the both identify .iv .communication the makes who individual direct address must institution approved An– 4 conduct of code its in clients with communications that and article this in requirements the meet that using from behalf its on acting employee an prohibits or misleading any making or pressure undue any .statements deceptive communications direct to apply not does article This– 5 .counterparty with to client the with communication of Means – 3303 trading to related instructions and orders receive operations s’client the receive may institution approved The– 1 operations trading to related instructions and orders with upon agreed communication of means any by through ,form writing in and advance in client the that understanding his expresses client the which approved the with upon agreed means the of use the to agrees and responsibility own his at is institution use the from result may that responsibility the hold .means such of derivatives and funds investment retail-Non – 3304 a communicate not must institution approved An– 1 a to relating client a to advertisement securities or product structured ,fund investment retail-non that determined has it unless securities derivatives .client the for suitable are securities the

Regulation Conduct Business – 3000 Series 15 مجموعة 3000 – نظام قواعد العمل في األسواق المالية classification Client – 3305 a for or with business securities conducting Before– 1 client the classify must institution approved an ,client :following the of one as ,client a .i or ,client professional a .ii .counterparty a .iii a as individual qualified a classifying Before– 2 :must institution approved an ,client professional are as enquiries due such document and out carry .i the has client the that itself satisfy to necessary by required assets investible net of level minimum minimum a has client the that and ,Regulation this in investing experience continuous of years 5 of ,investments and markets securities and rights the between difference the explain .ii the to client a and client professional a of obligations and ,individual being to consent written s’individual the Obtain .iii form consent The .client professional a as classified not but client a to apply that regulations the list must individual the that state and ,client professional a to at client a as classified be to choose to option the has .future the in time any at or time that an ,counterparty a as client a classifying Before– 3 document and out carry must institution approved itself satisfy to necessary are as enquiries due such counterparty a of definition the meets client the that must institution approved An .Regulation this in a as client the treat will it that writing in client a notify .Authority the of Regulations the under counterparty the of record a make must institution approved An– 4 sufficient including ,client each of classification to information s’client the of review its of information .classification that support client your Know – 3306 account an opens institution approved an Before– 1 information obtain must it ,client a with deals or for personal s’client the concerning client the from and experience investment ,situation financial and :must information The .objectives investment 5, Annex by required information the least at include .i and the by signed and dated is that form a on recorded be .ii .account onlyexecution an to apply not does article sub This .client for account an opens institution approved an Before– 2 obtain must it ,client professional a with deals or s’client the concerning client the from information :must information The .position financial and identity 5, Annex by required information the least at include .i and ,)applicable as (B and A parts the by signed and dated is that form a on recorded be .ii .client

Regulation Conduct Business – 3000 Series 16 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . of update an request must institution approved An– 3 a whenever client each from information s’client the ,years five every least at and ,occurs change material .changes significant any document and required information the provide to refuses client a If– 4 not must institution approved the ,article this under .client the to services business securities provide all of record a retain must institution approved An– 5 to pursuant client each from obtained information .article this a with dealings to apply not does article This– 6 counterparty financing terrorism and laundering money-Anti – 3307 or account an opens institution licensed the Before– 1 with complies it that ensure must it ,client a with deals 14 24/11/2015 dated 44 .No Law of requirements the all Special the by issued regulations and circulars all and the or Liban Du Banque ,Commission Investigation Money-Anti to regard in Authority Markets Capital .Terrorism of financing and Laundry agreement client :accounts Opening – 3308 for or with business securities any conducting Before– 1 an into enter must institution approved an ,client a and terms the out sets that client the with agreement and client the for business conducting of conditions :that and 3, Annex in out set requirements the includes .i .client the by signed is .ii of record a retain must institution approved An– 2 any including ,client each for agreements the .amendments each to disclose fully must institution approved An– 3 charged currently commissions and fees the client to provided are services any before clients its to the obtain must institution approved An .client the .schedule fee its of copy dated a on signature s’client fifteen least at contain must account client A– 4 cash in amount equivalent an or Dollars US thousand be shall amount Such .opening on securities or/and to due reduction any for except ,is as maintained .losses investment three of period a given be shall institutions Approved present the of date publication the of as ,months their settle to ,Gazette Official the in Announcement less to amounting accounts to regards with position equivalent an or Dollars US thousand fifteen than
15. securities or/and cash in amount
only-execution an ,account regular a open may client A– 5 not must institution approved an but ,both or account made transactions on services advising any provide account only-execution an in made be to or 2018 12, March dated 24 announcement by amended was paragraph This 14 2019 10, April dated 54 announcement by amended was paragraph This 15

Regulation Conduct Business – 3000 Series 17 مجموعة 3000 – نظام قواعد العمل في األسواق المالية accounts client over Mandate – 3309 taking from prohibited is institution approved An– 1 account client a on person any from instructions authorized person another or client that from except been has identity whose and writing in client that by .institution approved the by confirmed maintain and establish must institution approved An– 2 ensure to controls internal and records adequate .(1) article sub with compliance from prohibited is person moral or natural Any 16– 3 client one than more from mandate a obtaining with opened accounts dealing own his to pertaining or Lebanon in institutions/institution approved an .abroad the to apply not does prohibition this ,However :following ,members family his by mandated person natural The - the or ,descendants and ascendants the including own his manage to sisters and brothers and spouse .accounts dealing securities conducting for institutions approved The - ,institutions these that knowing ,activities related can ,clients their from mandates obtaining after and dealing own their to pertaining orders their execute in institutions approved with opened accounts mandated approved the ,However .abroad or Lebanon any clients its to disclose to bound is institution the receiving institution the from gets it commission .instructions all that ensure must institution approved An– 4 scope the within are account client a for transactions .client the by to agreed authority the of change to permitted is client the than other person No– 5 for address the or client the for information contact of statements or reports ,notes contract of delivery .account clients to Duties – 3310 in ,honestly ,fairly act must institution approved An– 1 .clients its of interests the in and faith good s’client a use not must institution approved An– 2 or own its for opportunities or information ,property institution approved the unless ,benefit s’else anyone and client the to usage such of disclosure full makes .consent his obtains the protect must institution approved An– 3 a from obtained information of confidentiality including ,account s’client a to relating and client transactions proposed or transactions on information for request any to apply not does This (.client a for (.Authority the from information 2018, 12, March dated 24 announcement by added was paragraph This 16 which 2018 29, May dated 34 announcement of virtue by amended then 2018 14, June dated 40 announcement by amended was

Regulation Conduct Business – 3000 Series 18 مجموعة 3000 – نظام قواعد العمل في األسواق المالية conflicts any prevent must institution approved An– 4 a between and client a and itself between interest of conflicts such that ensure or ,client another and client
article with accordance in ,appropriately managed are
3311. to duty a client the owes institution approved An– 5
be would that diligence and skill ,care the exercise institution an by circumstances same the in exercised that experience and skills ,knowledge the has that carrying institution an of expected be reasonably may .business securities of types same the on all to apply also article this in out set duties The– 6 approved an of employees and persons registered .institution interest of conflicts Managing – 3311 potential a or actual an has institution approved an If– 1 service or transaction a to relating interest of conflict to interest of conflict the disclose must it ,client a for .writing in client the disclose to required not is institution approved An– 2 require would disclosure if interest of conflict a the to information public-non inside providing must institution approved an case that In .client the of treatment fair ensure to steps reasonable take .client an of interest an between exists conflict a If– 3 any in client a of interest an and institution approved the client the to pay must institution the ,transaction the by incurred loss financial direct any of amount the unless conflict the of result a as account s’client interest of conflict the disclosed institution approved the to writing in agreed client the and client the to .conflict the of spite in transaction sound a that ensure shall institution approved The– 4 is assessment) year a once least at (periodic and reduces which (body independent an by undertaken all of ,)interest of conflict potential a avoids or shares private of offers (securities offering private ‘clients the in registered) products compound and accounts portfolios related the in and ,portfolios also shall institutions Approved .institution the of /reflected is securities these of value the that ensure ‘clients all in assessment such to according recorded the of accounts portfolios related and statements offering private to subject securities The .institution s’client the in shown and identified clearly be shall to as added being text explicit an with ,statements ,assessment the in followed methodology the indicate it date the and it undertook that body the as well as .conducted was obtain to unable is institution approved the case In until ,refrain should it ,assessment fair and sound a :from ,assessment such obtaining ‘clients its in shares mentioned above the Pricing - value market the replacing and ,statements accounts not “expression the with pricing for used previously .“available . ً

Regulation Conduct Business – 3000 Series 19 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . ً . ً the from shares to related fees deposit the Collecting -
17. clients
segregate to fails that institution approved The– 5 any with assets’ clients its from assets own its from credits obtain to decides that and ,depositary assets its both holding accounts for depositary such :following the by abide shall ,assets’ clients its and regarding clients the of consent written the Obtain - .depositary the with assets of segregation-non the upon clients the of consent written the Obtain - its both holding accounts for credits the receiving .assets’ clients its and assets on ,ensure to auditors external appointed their Ask - the of value assets the that ,basis annual-semi a
18. debt the cover to sufficient is institution approved
obligations the by abide shall institution approved The– 6 in Regulation Conduct Business the in for provided Client the with undertakes it transaction dealing any .(appropriate as (account own its from executing to paid fees and commissions of Use – 3312 firms to party third a pays institution approved an If– 1 all use must it ,clients its for transactions execute clients its to charged fees or commissions the of undertaking or transactions trading executing for services such and ,purposes investment for research .clients benefit directly must third for clients to charged fees and Commissions general for pay to used be not must services party of benefit the for party third a by provided services .institution approved the the both inform must institution approved An– 2 the of part paying upon Authority the and client and goods for clients to charged fees or commissions .thereof request upon ,services Suitability – 3313 ,client a with deal not must institution approved An– 1 ,him for account an manage ,advice with him provide ,client a from account own its for collateral take or the considering for basis reasonable a has it unless ,client that for suitable be to transaction or advice he that objectives investment and facts the on based client that about facts relevant other and ,discloses .of aware is institution the that and for transaction a or advice of suitability the reviewing In– 2 :to regard have must institution approved an ,client a the of understanding and knowledge s’client the .i advice the of matter subject markets and securities ,involved risks the of and ,transaction or ,income his including ,position financial s’client the .ii the on based ,portfolio his of value the and worth net ,client the by disclosed information 2018 12, March dated 24 announcement by added was paragraph This 17 2019 10, April dated 54 announcement by amended was paragraph This 18

Regulation Conduct Business – 3000 Series 20 مجموعة 3000 – نظام قواعد العمل في األسواق المالية securities in investments with experience s’client the .iii ,securities in dealings his of frequency the ,markets advice the on relies he which to extent the and ,institution approved the by provided other to relative transaction the of nature and size the .iv ,client the for made transactions and horizon time ,objectives investment s’client the .v and ,tolerance risk and age including ,situation personal s’client the .vi .dependents of number approved an if ,provisions) 2 (article sub to Subject– 3 is transaction a that client a advised has institution proceed to decides client the and him for suitable not may institution approved an ,transaction the with the sell or buy to client the by issued order an accept to given advice the of record a that provided ,security .retained is client the a for dealing or advising to apply not does article This– 4 the that provided ,account only-execution an in client advice investment given not has institution approved .client the to for dealing or advising to apply not does article This– 5 .client professional a or counterparty risk Understanding – 3314 or advise ,deal not must institution approved An– 1 collateral take or ,client a for investments manage has it unless ,client a from account own its for to client the enable to measures reasonable taken that in involved risks the of nature the understand transaction of type securities speculative and Derivatives – 3315 or ,advise ,deal not must institution approved An– 1 :client a for investments manage securities liability contingent ,securities derivatives in .i has client the unless ,funds investment retail-non or nature the of aware is he that writing in acknowledged ,securities such in involved risks the of extent and has it unless ,securities speculative or illiquid in .ii the of extent and nature the of client the informed issues the including ,securities such in involved risks .value their determining in involved the case in account managed a to or ,account onlyexecution an for dealing to apply not does article This– 2 in deal to client the authorizes mandate investment .securities such borrowing Client – 3316 or money lend not must institution approved An– 1 and ,transaction margin a in client a to credit extend money lend to person other any for arrange not must ,securities in investing of purposes for client a to :unless

Regulation Conduct Business – 3000 Series 21 مجموعة 3000 – نظام قواعد العمل في األسواق المالية s’client the assessed has institution approved the .i by disclosed information on based ,position financial the and amount the that satisfied is and ,client that for suitable are credit or loan the for arrangements and; client the to consent written prior his given has client The .ii maximum the specifying ,facility credit or loan the amount the of details ,credit or loan the of amount .levied be to charges any of and approved an when apply not does) 1 (article Sub– 2 settle to transaction dealing a undertakes institution .client a by default payment or delivery a requirements Margin – 3317 margin a make may institution approved An– 1 first has latter the if client a for or with transaction out setting agreement margin written a into entered :terms following the required be may client the which in circumstances the .i ,margin provide to transactions margin in involved risks the .ii ,provided be may margin the which in form the .iii be may institution approved the that steps the .iv required the provide to fails client the if take to entitled by) s(method communication the including ,margin ,client the to made be may call margin a which may call margin a meet to client the by failure that .v sufficient out closing institution approved the to lead a after ,margin the cover to account the in positions and ,institution approved the by specified limit time s’client the to lead may that circumstances Any .vi .him with contact prior without closed being position margin a makes that institution approved An– 2 :must client a for or with transaction the that itself satisfy to measures reasonable take .i transactions margin of risks the of aware is client ,transaction the making to prior of rates minimum the provide to client the require .ii Banque the of requirements the in out set margin the of value current the to relative CMA and Liban du and ,margin to subject securities and ,daily client the by provided margin the monitor .iii minimum the at maintained is margin the that ensure the to relative Liban du Banque the by required level .margin to subject securities the of value current margin of rate higher a prescribe may Authority The– 3 or security any in transactions for provided be to institution approved the and ,securities of category prescribed such any provide to client a require must .days 5 within margin of rate on transactions margin prohibit may Authority The– 4 .securities of category or security any or account on cash of form the in be must Margin– 5 .positions securities paid-fully

Regulation Conduct Business – 3000 Series 22 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . . . ً clients to reports of Transmission – 3318 ,reports all send shall institution approved The– 1 the under required clients to notices and statements provided ,mail-e by or copies hard in either regulations ,transmission electronic of case the in compliance 18/10/2018, dated 81 .No Law of provisions the all with keeping and organizing of terms in especially secure to as so manner a such in correspondence the introducing means secure of use the ,safety their signature electronic of association the and website approval the by adopted measures protection the with 19 .provider service each of record a retain must institution approved The .client a to sent communication electronic notes Contract – 3319 purchase or sale a makes that institution approved An– 1 client the send must client the for or with security a of .forthwith note contract a required information the provide must note contract A– 2
4. Annex by
where cases the decide shall institution approved The– 3 on receive and sign may ,applicable as ,agent the provisions the with accordance in ,client the of behalf
20. attorney of power the of
the by managed accounts for reports Periodic – 3320 institution approved for manager as acts that institution approved An– 1 (discretion without or with (investments s’client a least at client the to report periodic a send must has activity trading no if except ,months three every may report a case which in ,account the in place taken .annually sent be information the provide must report periodic A– 2
6. Annex by required
complaint a Filing – 3321 all about complaints receive shall Board CMA The– 1 the to according competence its within falling matters .markets capital the on 17/8/2011 dated 161 .No Law Capital the at filed complaint no be shall There– 2 first had complainant the before Authority Markets is he which against party the with communicated Capital the to submit to has He .complaint the filing communication such that proof a Authority Markets efforts intensive despite that and ,place taken has he nor ,dispute the of settlement no been has there days 60 of period a within reply any received had the received party concerned the date the from .communication 2019 13, May dated 55 announcement by amended was paragraph This 19 24, September dated 62 announcement by amended was article-sub This 20

Regulation Conduct Business – 3000 Series 23 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ً . and decision this to attached form complaint A– 3 file to used is website CMA the on published risk the at ,based be must complaint The .complaints by confirmed violation precise a on ,rejected being of at filed complaint the supporting documents written .Authority Markets Capital the the examine shall Authority Markets Capital The– 4 ,investigation necessary conducts ,complaints in ,be need when decisions appropriate takes and ;regulations and laws applicable with accordance inform shall it ,done is review the when and Capital The .thereof writing in complainant the the inform to right the reserves Authority Markets its of results the about party other any or complainant in taken be may that decisions the or investigations ,complaint the reviewing In .appropriate if regard this to limited is Authority Markets Capital the of role the laws the of violations with dealing and for checking The .competences its within falling regulations and authorized entity the not is Authority Markets Capital which damage any for complainant the compensate to .violation the of result a as incurred be may to right the reserves Authority Markets Capital The– 5 stipulated measures administrative and legal all take .markets capital on 17/8/2011 dated 161 .No Law in Capital the at complaint a filed having ,However complainant the prevent not does Authority Markets appropriate deems he that action legal any taking from
21. rights his protect to
procedures written have must institution approved An– 6 :ensure to including ,made are complaints written all of records .i each ,to response and ,of review the of details ,complaint received complaint each of review proper and timely .ii ,client a from complaint a to response written a receives client each .iii the to responds that receipt of days 60 within and ,complaint the of substance to taken promptly is action remedial Appropriate .iv .complaints valid address the with filed be must complaints written all of copy A– 7 resolution the oversee must who ,compliance of head any with compliance to relates that complaint any of .Regulations the or law be must complaints written material all of copy A– 8 by receipt of days 5 within Authority the with filed about complaints for except ,institution approved the be also must Authority The .only issues service client .resolved was complaint material each how of notified dealings personal’ Employees – 3322 of employees all of dealings the to applies article This– 1 s’institution the in work who institution approved an .persons registered all including ,business securities dated 24 announcement by added been have) 5 (to) 1 (from Paragraphs 21 2018 12, March

Regulation Conduct Business – 3000 Series 24 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ً ." 2019 10, April dated 54 announcement by amended was paragraph This 22 2019 10, April dated 54 announcement by amended was paragraph This 23 written establish must institution approved An– 2 dealings personal’ employees all to apply to procedures of requirements the with accordance in securities in ensure to dealings such monitor must and 7, Annex .Regulations the with compliance not must institution approved an of employee An– 3 security a in transaction any to party a be knowingly .to party a is institution approved the of client a that another with account trading a opening Before– 4 any ,abroad or Lebanon in institution approved the inform shall institution approved an at employee
22. thereof latter
an holds institution approved an at employee an If– 5 Lebanon in institution approved another at account must institution approved s’employee the ,abroad or account and notes contract all of copy a receive must latter The .employee the to sent statements his authorize to consents necessary all provide
23. copies such receive to employer
by Trades of Recording & Executing on Rules – 3323 Institutions Approved their describe and record must institutions Approved– 1 the and ,manner precise and clear a in operations in available readily be should information following :time any at and basis daily a on detail of behalf on conducted operations the to regards With .i :clients their and ,client each of address and ,name full The 1- .her/him to allocated number personal and operation each of date execution exact The 2- .number serial its of number and price ,nature ,quantity The 3- .sold or purchased instruments financial number reference personal a have must client Each another to ,given be can ,circumstances no in ,that client the between relationship the if even ,client been has institution approved the and question in more assigned be not may client The .terminated .number one than own their for conducted operations the to regards In– 2 :account its and operation each of date execution exact The ,nature ,quantity the to addition in ,number serial purchased instruments financial of number and price .sold or

Regulation Conduct Business – 3000 Series 25 مجموعة 3000 – نظام قواعد العمل في األسواق المالية KEEPING RECORD – E PART requirements Recordkeeping – 3401 that records all keep must institution approved An– 1 for Regulations the under retained be to required are specifies Authority the unless ,years ten of period a .otherwise digital in including ,form any in kept be may Records– 2 but ,files paper and files computer or electronic ,files in reproduced being of capable and secure be must .form printed and systems have must institution approved An– 3 ,adequacy ,security the covering place in controls and ,records its of keeping of period and ,to access its for arrangements up-back adequate ensure must .place in are records operations of Records – 3402 keep and organize must institution approved An– 1 ,operations business securities its of records proper .transactions and operations financial times all at updated be must operations of records All– 2 the with compliance demonstrate to sufficient be and .Regulations records Client – 3403 maintain and keep must institution approved An– 1 records The .accounts client all of records proper :must each of liabilities and assets the record accurately .i ,collectively clients all of and client a prepare to necessary information the contain .ii and ,liabilities and assets s’client each of statement and; client the for made transactions of details the that assets client and money client all identify .iii responsible are ,custodian its or ,institution approved .for all at current be must accounts client of records All– 2 compliance demonstrate to sufficient be and times .Regulations the with maintain and keep must institution approved An– 3 a for transactions and orders all of records proper .account own its or client :contain must institution approved the of records The– 4 or client a by entered security a for orders all of details .i ,account own s’institution approved the for made security a of sales and purchases all of details .ii own its for or client a for institution approved the by ,account by required assessments suitability the of record a .iii 3313, article ,client each for expenses and income all of record a .iv ,nature their explaining

Regulation Conduct Business – 3000 Series 26 مجموعة 3000 – نظام قواعد العمل في األسواق المالية money client of payments and receipts all of details .v ,assets client and ,account client each in cash the of record a .vi client each in positions securities the of record a.vii security each of description clear a including ,account and ,held amount the and including ,assets client and money client all of record a.viii each for money client where bank the of name the .held is client records to access Client – 3404 institution approved an of client former a or client a If– 1 ,account his to relating records any of copy a requests of period reasonable a within ,provide must firm the :time institution approved the that records any of copy a .i and ,client that to ,send to required was or ,sent to sent or from received correspondence any of copy a .ii .account his to relating client that records of Inspection – 3405 approved an by kept be to required records All– 1 be must Regulations the or Law the under institution on forthwith Authority the by inspection for available .request s’institution approved an inspect may Authority The– 2 for appoints it person a through or directly records .purpose that calls Recording – 3406 :shall institution approved An24– 1 actual with call telephone any receive or make not .i transactions securities to related clients potential or advice ,instructions execute to orders including( all as well as ,clients to institution the by provided on made negotiations and discussions ,deliberations unless ,)transactions these to related and phone the .recorded is call phone such it that clients potential or actual its to Disclose .ii securities to related calls phone the recording is .transactions to related calls phone the of recordings the Keep .iii years ten of period a for transactions securities related is call phone the If .date call phone the after official an to or client a with arising conflict a to until kept be shall recording the ,investigation .investigation the of end or conflict the of settlement ً 2018 12, March dated 24 announcement by amended was paragraph This 24 24 ّ عدلت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018

Regulation Conduct Business – 3000 Series 27 مجموعة 3000 – نظام قواعد العمل في األسواق المالية Bloomberg through made is transaction the case In .iv having conversation entire the of copy a ,Terminal for kept be shall platform that through place taken ,date conversation the after years ten of period a all of narrative a includes record the that provided was it way the and transaction the of details the .completed of concept the that fact the consideration into Take .v :includes article this to according client Individuals - companies or Institutions - Counterparty - party other Any - ASSETS CLIENT AND MONEY CLIENT – F PART money Client – 3501 approved an that money all 3507, article to Subject– 1 in client a of behalf on or from receives institution client is business securities on carrying of course the .money money client transfer may institution approved An– 2 or agency clearing a through (person another to securities a settling of purpose the for) otherwise a for person other that through or with transaction .client a for collateral provide to or ,client due immediately is it if money client not is Money– 3 own its for institution approved the to payable and due are that commissions and fees including (account .(institution approved the to may institution approved an ,counterparty is client a If– 4 Regulation the of Part this of application the exclude .consent written prior s’client the obtains it if bank a with held be to money Client – 3502 in money client hold must institution approved An– 1 a with only money client for account segregated a ,Liban du Banque the by licensed bank commercial .applies) 4 (article sub if except account client a open may institution approved An– 2 first it if ,group corporate own its in bank a with does client the and intention its of client the notifies .object not or fees any charge not must institution approved An– 3 .money client holding for client a to commissions an of client each notify must institution approved An– 4 outside bank a with money client hold to intention ,name s’bank each of details including (Lebanon obtain must and ,)information contact and address money client hold to consent written prior s’client the .manner that in د. في حال تمت العملية عبر الـ Terminal Bloomberg، االحتفاظ

Regulation Conduct Business – 3000 Series 28 مجموعة 3000 – نظام قواعد العمل في األسواق المالية assets client and money client of Segregation – 3503 or money client holds that institution approved An– 1 and money own its segregate must assets client .assets client and money client from assets client a in held be must assets client and money Client– 2 approved the for exclusively held are and ,account .clients s’institution treated be not must assets client and money Client– 3 ,purpose any for institution approved the of assets as margin to subject is that position security a for except .Regulation this with accordance in have not does institution approved an of creditor A– 4 or money client to entitlement or claim ,right any .assets client assets client and money client of Records – 3504 of records maintain must institution approved An– 1 to sufficient are that assets client and money client to and Regulation this with compliance demonstrate holdings ,withdrawals ,receipts all of details record .payments and must auditors external s'institution approved An– 2 of records s'institution approved an annually review compliance s’institution the and ,assets ,money client the report and ,Regulation this of Part this with approved the of audit its of part as review its of results .institution be must assets client and money client of Records– 3 .years ten least at for retained accounts money client on bank with Agreement – 3505 with agreement an have must institution approved An– 1 of terms The .money client holds it where bank each agreement s’bank the include must agreement the :that this in defined as money client holds account client a .i ,right no has institution approved the and Regulation ,money client to entitlement or claim has it that claim or right any enforce not will bank the .ii in held funds against institution approved the against and ,account client a any with account client the combine not will bank the .iii .account other money client Handling – 3506 funds receive only must institution approved An– 1 electronic or cheque certified ,cheque by client a from
25. machine POS a using by or transfer
an when ,Part this in provided otherwise as Except– 2 must it money client receives institution approved :either . آلة نقاط البيع الـ machine POS، فقط25 2019 22, August dated 60 announcement by amended was paragraph This 25 25 اضيفت هذه الفقرة بموجب اإلعالم رقم 60 تاريخ 22 آب 2019

Regulation Conduct Business – 3000 Series 29 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . 2018 12, March dated 24 announcement by added was paragraph This 26 26 أضيفت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018 than later no account client a into money the deposit .i or,receipt after day next the
3507. article with accordance in out money the pay .ii
an through funds deposits or receives client a If– 3 full in paid be must funds the ,institution approved not is funds the of part any If .account client a into from transferred be should part that ,money client .possible as soon as money client a in account client a in held be may money Client– 4 writing in agreed has client the if currency foreign specified more or one in held be may money client that .currencies foreign ‘clients its at ,execute may institution approved The– 5 ,abroad or Lebanon in parties third of favor in request ,transfers incoming or outgoing ,domestic or foreign of excess in not is amount transfer any that provided 26 /1,500 USD money client of Payments – 3507 approved the if money client be to ceases Money– 1 :it pays institution ,client the to directly .i or ,client the of name the in account bank a into .ii due is money the if ,itself institution approved the to .iii .institution approved the to payable and requirement money client of Calculation – 3508 confirm must institution approved an ,weekly least At– 1 at as accounts client its of all of balance total the that least at was day business preceding the of close the in calculated" requirement money client "the to equal .Authority the by prescribed manner the “requirement money client “the in exists shortfall any If– 2 the of amount the pay must institution approved an business of close the by account client a into shortfall amount Any .performed is calculation the day the on .money client becomes account client a into paid Authority the notify must institution approved An– 3 :if immediately sub by required calculation the perform to unable is it .i or ,)1 (article at” requirement money client “its in exists shortfall a .ii .time any reporting money Client – 3509 money client holds that institution approved An– 1 money client to relating reports any submit must specified time the within Authority the by requested .Authority the by

Regulation Conduct Business – 3000 Series 30 مجموعة 3000 – نظام قواعد العمل في األسواق المالية assets Client – 3510 financial or securities including ,assets All– 1 receives institution approved an that ,instruments on carrying of course the in client a of behalf on or from ,assets client as treated be must business securities which ,collateral or cash constitute that assets except .money client as treated be must assets client Holding – 3511 the by licensed be must institution approved An– 1 hold to order in services custody provide to Authority .assets client client all segregate must institution approved An– 2 .assets own its from holds it that assets client any use not must institution approved An– 3 a of account the for or ,account own its for assets .client different assets Collateral – 3512 pledge of way by taken collateral include assets Client– 1 until pledge that from arising obligation an satisfy to .obligation that satisfy to applied is asset an for institution approved an by retained Collateral– 2 that provided ,asset client a not is account own its the with complied has institution approved the .Part this of requirements Segregation – 3513 an of account an in recorded is asset client a If– 1 must institution approved the ,institution approved that clear it makes account the to title the that ensure from segregated is and client a to belongs asset such .assets s'institution approved the a with account an in recorded are assets client If 27– 2 approved the ,custodian foreign a with or custodian by abides custodian the that ensure must institution :conditions following the of clients to belonging accounts in deposited Assets - after pooled be only shall institution approved the ,approval written explicit s’client the obtaining approved the between accounts assets Joint - knowing ,opened be not shall clients its and institution assets the segregate to has custodian the that the of that from institution approved the of account in clear it make to as so ,clients s’institution approved belongs asset client the that account the of title the The .institution approved the of clients more or one to belonging account assets the record also shall latter .budget own its outside clients those to by text this with replaced and canceled was paragraph this of text The 27 2018 12, March dated 24 announcement of virtue

Regulation Conduct Business – 3000 Series 31 مجموعة 3000 – نظام قواعد العمل في األسواق المالية . assets client of Registration – 3514 by held be to law by required are that Securities– 1 account an in held be must safekeeping for Midclear .Midclear with name s'client relevant the in title of document a hold must institution approved An– 2 the hold or ,possession physical its in asset client a to with ,assets client for designated account an in asset a have could that custodian foreign a or custodian a
28. not or rating credit
to title records or registers institution approved an If– 3 or registered is it that ensure must it asset client a client the unless ,client the of name the in recorded own its of behalf on acting institution approved an is in registered be must asset the case which in ,client .client s’institution approved that of name the to title ,overseas acquired security a is asset client a If– 4 name the in recorded or registered be may asset the approved the of name the in or custodian foreign a of :institution approved the if ,institution be to asset the for feasible not is it determined has .i and ,name s’client the in recorded or registered client the of agreement written prior the obtained has .ii in registered or recorded being assets s'client the to the of name the in or custodian foreign a of name the .institution approved custodians foreign of Use – 3515 assets client hold not must institution approved An– 1 foreign secondary a or custodian foreign a with writing in client the notifying after except custodian secondary or custodian foreign the of name the of would assets s’client the which with custodian foreign . 29 held be ,custodian foreign a with assets client holding Before– 2 in client the notify must institution approved an :that writing regulatory and legal ,settlement different .i ,jurisdiction relevant the in apply may requirements and ,assets client of segregation the on particular in the from segregated be not may assets client the .ii the to subject (and assets own s'institution approved claims to subject be may) 3517 article of provisions event the in creditors s’institution approved the from .failure its of securities client Lending – 3516 securities lend not must institution approved An– 1 ,client a to securities lend or ,client a to belonging and consent written prior s’client the obtains it unless the with agreement lending securities a into enters out set conditions and terms such includes that client .relevant are as 3 Annex in 2018 12, March dated 24 announcement by amended was paragraph This 28 2018 12, March dated 24 announcement by amended was paragraph This 29

Regulation Conduct Business – 3000 Series 32 مجموعة 3000 – نظام قواعد العمل في األسواق المالية securities all that ensure must institution approved An– 2 ,documented appropriately are transactions lending .transactions all of maintained are records that and than more ,for held or ,to registered are that Securities– 3 lending securities for used be not must client one written prior provide clients affected the of all unless .consent approved an ,transaction lending securities any In– 4 :must institution the cover to collateral provides borrower the ensure .i and ,lent being securities the of value current is collateral the of amount the whether Monitor .ii a on securities the of value the cover to sufficient level the up make ,insufficient is it if and ,basis daily .collateral of custodians for responsibility and of Assessment – 3517 client a to care of duty a owes institution approved An– 1 client the hold to where recommending or deciding in .assets risk a undertake must institution approved An–2 to prior ,diligence due show and ,assessment with assets client hold to deciding or recommending secondary a or custodian foreign a or ,custodian a the ,custodian the that ensure to ,custodian foreign custodian foreign secondary the or custodian foreign assets the safeguard to arrangements adequate has or custodian foreign the ,custodian the with place in to subject is and ,custodian foreign secondary the .oversight regulatory of standards appropriate risk new a conduct must institution approved An custodian foreign the ,custodian the of assessment client holds that custodian foreign secondary the or occurs change material adverse an whenever assets
30. custodian the at
agreements Client – 3518 custody provides institution approved an Before– 1 agreement an into enter must it ,client a to services :following the cover must that client the with ,registered be will assets client the how .i on instructions give to client the for arrangements .ii ,services custody the for client the to liability s'institution approved the .iii ,services custody s'else somebody sell or keep to right legal the (lien any .iv interest security or) debt a for security as property approved the by taken be to assets client the in ,party another or institution may institution approved the which in conditions the .v s'client the meet to collateral as held assets client sell ,liabilities ً . 2018 12, March dated 24 announcement by amended was paragraph This 30 30 ّعدلت هذه الفقرة بموجب اإلعالم رقم 24 تاريخ 12 آذار 2018

Regulation Conduct Business – 3000 Series 33 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ,dividends with deal will institution approved the how .vi entitlements and income other and commissions ,client the to accruing corporate with deal will institution approved the how.vii capital ,shares of voting the as such ,actions ,overs-take and reorganizations about client the to provided be to information The .viii ,institution approved the with held being assets client 31 thereof client the notifying of means and ,client the to statements periodic of provision .ix and ,services custody the for charges and fees the .x the with pooled be will assets s'client the Whether .xi and written prior the to subject ,clients other of assets explanation an ,so if ,and ,client the of consent explicit
32. pooling that of effect the of
client the of part form may agreement custody A– 2 .Regulation this of D Part by required agreement agreement Custodian – 3519 assets client holds institution approved an Before– 1 the with writing in agree must it ,custodian a with must which ,business of terms appropriate custodian :following the cover that indicates assets client for account any of title the .i to belong not do account the to credited assets the ,institution approved the any of withdrawal permit not must custodian the .ii the to than other account the from assets client directed as person another to or institution approved ,institution approved the by asset client a record or hold will custodian the .iii client s'institution approved the to belonging of assets other or securities any from separately the in assets the treat will it that and ,custodian the ,assets client as account institution approved the to deliver will custodian the .iv the by specified dates or date a at as statement a and description the details that institution approved .account the to credited securities the all of amounts approved the to delivered be must statement The .statement the of date the of days 7 within institution retention of right ,lien any claim not will custodian The .v account client any in securities the over sale or :except ,agreement the by covered has client each of consent written prior the if - or ,obtained been the for client specific that to charges cover to - .agreement the by covered services custody of institution approved the notify shall custodian The .vi such (custodian secondary a appointing of intention its secondary the of name the include shall notification its and information contact ,address ,name custodian
33. (laws by applicable
2018 12, March dated 24 announcement by amended was article sub This 31 2018 12, March dated 24 announcement by amended was article sub This 32 2018 12, March dated 24 announcement by added was article sub This 33 . .

Regulation Conduct Business – 3000 Series 34 مجموعة 3000 – نظام قواعد العمل في األسواق المالية client to apply) 1 (paragraph of requirements The– 2 .custodian foreign a with account an in placed assets Reconciliations – 3520 must institution approved an 34, monthly least At– 1 statements with assets client of record its reconcile (applicable if (and custodians other ,Midclear from statements with as well as ,custodians foreign of record a maintains that person other any from .assets client of entitlement ,necessary as often as must institution approved An– 2 :out carry ,months six every least at ut ,holds physically it that assets client any of count a .i own its to count that of results the reconcile and and ,records s'institution approved the between reconciliation a .ii the of records its and ,holdings client of record .assets client of location must) 2 (subarticle in reconciliation and count The– 3 and books s'institution approved the of all cover and counting by performed be must and ,records at as assets client other and securities all reconciling .date same the the perform must institution approved An– 4 the which to date the of days 10 within reconciliations .relates reconciliation discrepancy any correct must institution approved An– 5 discrepancy any If .days 3 within reconciliation the in any good make days 3 within must it ,shortfall a is within resolved not is discrepancy the if and ,shortfall .Authority the to matter the report ,days 7 statements account Client – 3521 client each provide must institution approved An– 1 every of end the of as statement account an with the in place taken has activity no if except ,month every least at provided be must statement a account clients providing of responsibility The .months 3 an to restrained be shall accounts of statements with Front the from independent is that body autonomous
35. Office
institution approved an ,closed is account s'client a If– 2 statement account closing a client the send must longer no institution approved the that confirms that .client the for collateral or assets client any holds 2018 12, March dated 24 announcement by amended was paragraph This 34 24 announcement of virtue by paragraph this to added was term last The 35 2018 12, March dated .

Regulation Conduct Business – 3000 Series 35 مجموعة 3000 – نظام قواعد العمل في األسواق المالية client the send shall institution approved An 36– 3 his showing statement account his of copy a a by ,made he transactions all and portfolio address postal the to sent notification monthly .provided he address email the or specified he the that ensure shall department compliance The postal the to notice the sends institution approved and client the by indicated address email or address /department compliance the by updated constantly .institution approved the at charge in party any or any challenge to right his maintains client The the from weeks two within document or transaction 37.date email the from or /and date notification compliance its through ,institution approved The :shall ,department client the to sent was notification the that Ascertain - above the to according .year a once least at portfolio his sign client the Have - cases the determine may institution approved The - and sign may ,applicable where ,agent the which in the with accordance in client the of behalf on receive 38.attorney of power the of provisions client ,money client all list must statement account An– 4 client the by owned assets other and collateral ,assets A .accountable is institution approved the which for :also must statement ,period the during account the for activity all show .i payments ,received payments ,transactions including any and transfers ,withdrawals ,deposits ,made ,positions security the in changes name s'client the in registered securities any identify .ii ,name another in registered those from separately of value market current the and cost original the show .iii ,statement the of date the at as ,security each sold or bought been have that securities any identify .iv ,completed been not has trade the of settlement but as used being assets and securities any identify .v from separately ,parties third to pledged or ,collateral ,assets or securities other any the at as ,held collateral any of value market the show .vi and,statement the of date date trade the either of as information on based be.vii the on disclosed be must which ,date settlement or .statement .counterparty to apply not does article This– 5 2019 24, September dated 62 announcement by added was clause This 38 2021 19, May dated 73 announcement by amended was article sub This 37 2018 12, March dated 24 announcement by added was paragraph This 36 . .

Regulation Conduct Business – 3000 Series 36 مجموعة 3000 – نظام قواعد العمل في األسواق المالية Financial on Regulations – G Part Transactions Derivative concepts some Defining – 3601 derivatives and instruments financial of Concept– 1
Part this under
derivatives and instruments financial ,Part this In products and instruments financial any mean shall ,securities ,schemes ,offer public for held shares( financial structured or certificates ,derivatives ,deeds instruments and contracts financial or… instruments ,assets financial/kind-in to linked is value whose or returns whose those including…) rates or indexes :following the to linked is repayment capital including deposit of certificates ,shares ,Stocks - price the at or ,therefrom resulting flows financial ,certificates or shares ,stocks such any of level or bonds government ,certificates ,bills trade ,Debts - resulting flows financial including ,securities debt and bills such any of level price the at or ,therefrom ,certificates ,metals precious and currencies of rates Exchange - ,rates Interest - ,prices Goods - .derivatives financial or Indexes -
Part this under balance account of Concept– 2
client the by deposited amounts all encompasses It the by deposited those including institution the with any and margins initial of value the cover to client
39. amounts cash other
Correspondent a with Transactions Conducting – 3602 from prohibited is institution approved The– 1 its of behalf on or account own its for ,performing or derivatives financial on transaction a ,clients a with transaction Forex Retail Exchange -Off an :is latter the when except ,correspondent States United the in activities out carries that party A .i that condition on ,States United the of resident a is or Association Futures National the of member a is it Trading Futures Commodity the by licensed and) NFA( .(CFTC (Commission the outside activities its out carries that party A .ii ,States United the of resident a not is or States United trade to licensed is party this that condition on regulatory relevant the by derivatives financial in of rating sovereign a with countries in authorities the with accordance in ,above and” Grade Investment“ ratings similar with or Poors and Standard of ratings .agencies rating international other by adopted :ِ . )Forex Retail Exchange-Off )مع مراسل، بإستثناء:
")NFA (Association Futures National"ومرخص من قبل لجنة "Commission Trading Futures Commodity) CFTC"). ً "Grade Investment "وما فوق حسب تصنيف 39 2019 10, April dated 54 announcement by amended was paragraph This ّعدلت هذه الفقرة بموجب اإلعالم رقم 54 تاريخ 10 نيسان 2019 39

Regulation Conduct Business – 3000 Series 37 مجموعة 3000 – نظام قواعد العمل في األسواق المالية when obligations s’institution approved The – 3603 .Correspondent a with dealing institution approved The– 1 transactions all ,orders’ clients to pursuant ,Confirm .i including ,correspondents with clients for performed ,derivatives and instruments financial to related those ,markets financial regulated the in unlisted or listed its with transactions trading of exception the with .agents principal as clients long on premium whole the pay to client the Require .ii .contracts option when margin initial an deposit to client the Require .iii on ,derivatives financial for position a opening one ,daily revalued is position said the that condition .least at time monetary initial the rebuild to client the Require .iv the to drops balance account the when margin of 75% be shall which ,level margin maintenance the ,refusal s’client the of case In .margin initial the immediately liquidate shall institution approved the of equivalent the cover to as positions enough the below dropped that balance account the of value client the inform shall institution The .margin required of selection the for principles followed of advance in .(LIFO or FIFO .g.e (event such in closed be to positions net a on correspondents the to margins the Pay .v approved the provided ,positions open in basis position monetary the establish to commits institution in them record and clients the from required margins positions open overall the of basis the on books its knowing ,separately position short or long each for is positions short with positions long clearing that .prohibited margins maintenance and initial the Determine .vi instruments financial on held positions the for and regulated in unlisted or listed ,derivatives and held those including ,markets financial unregulated following the in ,platform electronic an through :manner raw or currencies on transactions Concerning 1- :goods other or metals or ,material of value contractual the of 5% :margin Initial - metals precious or currencies in transactions of value contractual the of 10% :margin Initial - goods other or material raw in transactions all on margin initial the of 75% :margin Maintenance - .transactions mentioned above ، ً المثال FIFO أو LIFO).

Regulation Conduct Business – 3000 Series 38 مجموعة 3000 – نظام قواعد العمل في األسواق المالية percentages the up follow shall institutions Approved Markets and Securities European the by imposed margins the raises latter the case in) ESMA (Authority paragraph in mentioned transactions on percentages institutions Approved 5%. than more to above) 1( and percentages new the apply immediately shall by set margins If .positions open all to them apply are transactions mentioned previously the on ESMA 5% the apply then shall institution the 5%, than less
40. margin
of exception the with :contracts futures Concerning– 2 metals or ,material raw or currencies on transactions in mentioned margins the which on goods other or ,position short or long each for ,apply above) 1 (item required margin the than less no be must margins from required margin the or correspondent the from .higher is whichever ,exchange stock concerned the of exception the with :options short Concerning– 3 metals or ,material raw or currencies on transactions in mentioned margins the which on goods other or than less no be must margins ,apply above) 1 (item the and correspondent the from required margin the ,exchange stock concerned the from required margin maturity or liquidation the until ,higher is whichever .option short concerned the of date ,given be may assets underlying of formed guarantee A in immediately liquidated be can it that condition on .option call sell a of case options short on apply not do margins Monetary– 4 the in assets underlying are there case in positions .institution approved the with portfolio s’client for margins maintenance and initial the Determine financial unlisted and listed on held positions the ,markets unregulated and regulated in derivatives amount the than less no are margins these that so .correspondent the from required when institution approved the on Restrictions – 3604 Correspondent a with dealing :from prohibited is institution approved The interests own its in account credit s’client any Using .i .client another of interest the in or mentioned margins the finance to facilities Granting .ii therein shortage any cover to or Regulations these in of provisions the of Enforcement– H PART Regulation this provisions the of Authority the by Enforcement– 3701 Regulation this of publication its upon force into enters regulation This Authority Markets Capital The .Gazette Official the in that party any on sanctions administrative impose can conformity in ,regulation this of provisions the violates 161 .No Law to according imposed sanctions the with 17/8/2011. on issued 2019 10, April dated 54 announcement by amended was paragraph This 40 . )Option Call Sell).

Regulation Conduct Business – 3000 Series 39 مجموعة 3000 – نظام قواعد العمل في األسواق المالية CONDUCT PROFESSIONAL OF RULES– 1 ANNEX following the with comply must institution approved An– 1
article with accordance in ,conduct professional of rules
.Regulation this and Law the of 51 of code a adopt must institution approved An– 2 the least at includes that conduct professional 52 article with accordance in ,requirements following .Regulation this and Law the of registered its that ensure must institution approved An– 3 their recognize employees other and persons ,conduct professional of code the under obligations the that statement a with code the of copy a sign and ,code the with complying to committed is individual :thereto related amendments any including ,integrity and honesty with business its on Carry .i ,diligence and care ,skill due with business its on Carry .ii s,objective and interests’ clients its to priority Give .iii indirect or direct any avoid and identify Effectively .iv ,institution approved the between interest of conflicts effectively and ,clients its and ,employees its of any or be cannot that conflict any disclose and manage .avoided offer or accept to refusing by objectivity its Preserve .v .inducements or benefits other or gifts any relating information of confidentiality the Preserve .vi or disclosure its prevent and ,client each to .parties third by misappropriation s’customer each of assessment thorough a Make.vii .objectives investment and situation to relevant is that information all customers to Disclose .viii .involved risks the particular in ,transaction proposed a advice of suitability the ensure to care reasonable Take .ix .clients for decisions discretionary and investment making on rules clear Adopt .x clearly including ,customers to recommendations .opinions and facts between distinguishing and recommendations investment that Ensure .xi his on based ,customer a for suitable are decisions .objectives investment each with signed be agreement client a that Require.xii .Regulation this of requirements the meets that client ,information public-non inside any of use the Prohibit.xiii .indirectly or directly deceptive or manipulative any of use the Prohibit.xiv Conduct Market the in prescribed as ,practices or acts .Regulation of distribution fair the ensure to policy clear a Adopt .xv .investors amongst securities duties (3310 articles of provisions the with xviCompliance and) interest of conflicts managing including ,clients to (fees and commissions of use (3312 .regulations and laws applicable with Comply .xvii

Regulation Conduct Business – 3000 Series 40 مجموعة 3000 – نظام قواعد العمل في األسواق المالية and compliance for responsible person a Appoint .xviii complaints any investigating and ,monitoring .received ,procedures and policies written thorough Develop .xix .dateto-up are they ensure to periodically them review and cover that records and documents the Authenticate .xx and ,recommendations and decisions investment .clients for performed transactions :following the basis periodic a on client each to Disclose .xxi ,account its of performance investment the - ,recommendations and decisions relatedinvestment execute and take to used method the - of method the and ,account its to charged sionscommis and expenses ,fees related-investment all - ,computation and securities in trading on policies s’institution the - ;investors among transactions allocating ,entities financial in results audit - ,investment on returns computing of method the - ,interest of conflicts - ,investments assessing of methods the - services or goods ,commissions any of value the - s’client the to relation in institution the by received s’client the for used were they how and account .benefit

Regulation Conduct Business – 3000 Series 41 مجموعة 3000 – نظام قواعد العمل في األسواق المالية PREPARED FOR REQUIREMENTS CONTENT – 2 ANNEX ADVERTISEMENTS SECURITIES a promoting advertisement securities prepared A securities specific a or securities or security specific .information following the contain must service Guarantees– 1 security a describe not must advertisement The enforceable legally a is there unless guaranteed as to undertakes who party third a with arrangement If .guarantee the under claim s’investor an full in meet the both about details give must advertisement the ,so investor an for sufficient guarantee the and guarantor the of value the about assessment fair a make to .guarantee Securities of Comparisons– 2 or securities different compares that advertisement An :must services approved the by verified facts on either based be - the in stated assumptions on or institution advertisement way balanced and fair a in presented be - .comparison the to fact material any omit not - securities in interest Material– 3 statement a include must institution approved An :associates its of any or it whether disclosing (indirect or direct (holding or position a have may or has - or ,securities related in or Concerned securities the in 12 previous the within provided has or ,providing is - business securities or advice significant ,months .securities the of issuer the to services performance Past– 4 securities of performance past the about Information an in included is that institution approved an of or past the of representation fair a be must advertisement .institution approved or securities the of performance performance past the by covered time of period The the exaggerate to order in chosen been have not must .institution approved or securities the of performance : must advertisement The ,information the of source the state - information verifiable on based be - guide a necessarily not is performance past that warn - performance future to rights Cancellation– 5 rights cancellation that securities for advertisement An including ,rights such of details contain must to apply rights the of exercise for period the ً ً

Regulation Conduct Business – 3000 Series 42 مجموعة 3000 – نظام قواعد العمل في األسواق المالية value in Fluctuations– 6 a ,value or price in fluctuate can securities the If income or values ,prices that made be must statement investor the that warning a ,applicable if ,and fall may .invested he than less back get may Suitability– 7 a to refers or contains advertisement an If securities or security specific a about recommendation it that warning made be must statement a ,service investors that and ,investors all for suitable be not may .adviser investment their from advice seek should income Investment– 8 an for suitable being as described is security a If a security the to applicable if ,income seeking investor :that warning made be must statement not is and fluctuate may security the from income - guaranteed of rate a pay to used be may invested capital the of part - .return exposure currency Foreign– 9 ,currency foreign a in denominated is security a If foreign in changes that warned be must investor an ,value the on effect adverse an have may rates exchange .security the of income or price securities speculative or Illiquid– 10 security speculative a or illiquid an for advertisement An sell to investor the for difficult be may it that state must its about information reliable obtain to or security the .involved risk of degree the or value fees and charges Sales– 11 which to security a to relates advertisement an If expenses or commissions ,fees ,charges for deductions when or made is investment initial the time the at apply be must apply charges such that warning a ,sold is it .included that security a to relates advertisement an If charges such that warning a ,to apply fees performance .included be must apply

Regulation Conduct Business – 3000 Series 43 مجموعة 3000 – نظام قواعد العمل في األسواق المالية AGREEMENTS CLIENT OF TERMS – 3 ANNEX Clients with Agreements – A into entered be to agreement s’institution approved An as (terms following the include must client a with attachment an in included be may Details .)applicable .agreement the to agreement client a requires 234 Law that statement A– 1 the with comply contents its that and ,signed be to .Regulations the and 234 Law the of requirements the of information contact and address ,name The– 2 number license its and ,institution approved ,institution approved the of status regulatory The– 3 Authority the from license of categories its including becomes it date the and agreement the of date The– 4 effective ,terminated or amended be may agreement the How– 5 party either that statement a include must which provided ,time any at agreement the terminate may or completed been have that transactions any that .binding are performed being of process the in are will institution approved the that services of Types– 6 client the to provide account the on restrictions investment Any– 7 imposed be to charges other and costs ,fees of Details– 8 for basis the and ,institution approved the by charges other and costs ,fees calculating relating instructions giving for arrangements The– 9 for and institution approved the to account the to instructions those confirming the to transactions confirming for arrangements The– 10 client a in principal as act may institution approved the If– 11 ,client the with transaction to sent be to statements account of frequency The– 12 delivery for address the and ,periodically client the client the to execution best provide to obligation The– 13 may investments financial that warning statement A– 14 ,value in loss of risk significant a to client a expose ,nature in speculative is that investment an especially the from acknowledgement specific a with together understands and received has client the that client .warning the may institution approved the that statement A– 15 party third a from benefits or payments receive or ,client the for into entered transactions to relating payments such any of amount the that statement a to writing in disclosed separately be will benefits or .client the institution approved the of right any of description A– 16 or out close to or ,customer the of assets sell to transaction a settle to failure a on positions liquidate .account on payment make to or ، ً

Regulation Conduct Business – 3000 Series 44 مجموعة 3000 – نظام قواعد العمل في األسواق المالية client holding for arrangements the of description A– 17 including ,assets client of custody the and money the and securities of registration ,services s’Midclear client of holding s’institution the governing terms key .assets client and money transactions to relating calls telephone that Notice– 18 .recorded be must securities in Clients Professional with Agreements – B entered be to agreement s’institution approved An the of all include must client professional a with into addition In .)14 item except ,above A under items the that statement a include must agreement the that ensuring for responsible not is institution approved the for suitable are recommendations or investments .client Custodians with Agreements – C into entered be to agreement s’institution approved An under items following the include must custodian a with also must agreement The .)10 and) 9 ,)5 ,)4 :above A the to apply will Regulation this of F Part whether state prior its provide must client the that not if and ,client .consent written Investments of Managing covering Agreements – D of manager a as acts institution approved the If also must agreement the ,client a for investments :following the include authority s’manager the of extent the of statement a– 1 the including ,investments s’client the manage to authority that on restrictions measured be will performance how– 2 calculated be will portfolio the of valuations how– 3 portfolio managed the of value initial the– 4 management investment discretionary of case the in– 5 :services is institution approved the that statement a .i the of behalf on transactions make to authorized basis discretionary a on client the by exercised be to discretion the of extent the .ii that on limitations any and institution approved discretion ,made be to investments the on restrictions any .iii or type particular any on limitations including derivatives as such ,holding or investment of class such no are there that statement a or (transactions ,(restrictions permitted are that arrangements lending margin any .iv .arrangements those of terms the and

Regulation Conduct Business – 3000 Series 45 مجموعة 3000 – نظام قواعد العمل في األسواق المالية NOTES CONTRACT OF CONTENTS – 4 ANNEX following the include must institution approved An every for client a to sent note contract a in information :transaction address and name s’institution approved the– 1 the executed institution approved the whether– 2 agent or principal as transaction number account and ,address ,name s’client the– 3 transaction the of date the– 4 transaction the of number serial the– 5 financial or security the of description exact an– 6 sold or purchased instrument the of details ,included is contract derivatives a if– 7 the of date expiry and price strike ,series ,contract contract financial or security the of number serial the– 8 instrument or sold amount other or units ,shares of number the– 9 purchased purchase or sale a is transaction the whether– 10 transaction the of price unit or price the– 11 payable or paid amount total the– 12 foreign any if and ,transaction the of currency the– 13 exchange foreign the ,involved is conversion exchange rate transaction the for date settlement the– 14 charged fees other or commission of amount the– 15 amount the including,institution approved the by whether (price the of down-mark or up-mark any of any and ,)not or client the to price net a as contracted duties or taxes duties or fees transactions ,taxes any of amount the– 16 directly client the by paid be must and apply that the where exchange securities or market the– 17 if counter-the over or (made was transaction (applicable .transaction bond a of case the in ,interest Accrued– 18 INFORMATION CLIENT YOUR KNOW – 5 ANNEX below out set information all provide must Customers for account an opens it before institution approved an to .customer the set information the provide must clients Professional to) client the to applicable as (below B and A part in out for account an opens it before institution approved an .client the a with dealings to apply not does Annex This .counterparty

Regulation Conduct Business – 3000 Series 46 مجموعة 3000 – نظام قواعد العمل في األسواق المالية INFORMATION CLIENT YOUR KNOW – 5 ANNEX Information Personal – A :Name– 1
................................................................................................
:birth of Date– 2
.................................................................................................
:documents Identification– 3
.................................................................................................
:Status Marital– 4
.................................................................................................
:age and dependents of Number– 5
.................................................................................................
:Citizenship– 6
.................................................................................................
:Correspondence for Address– 7
.................................................................................................
:address Email– 8
.................................................................................................
:telephone primary / Home– 9
.................................................................................................
:telephone Mobile– 10
.................................................................................................
:telephone Other– 11
.................................................................................................
:Name s’Employer– 12
.................................................................................................
:Address s’Employer– 13
.................................................................................................
:telephone s’Employer– 14
.................................................................................................
:Title / Position– 15
.................................................................................................
:employment of Length– 16
.................................................................................................
officer or director a client the Is– 17 ?company listed publicly a of
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Regulation Conduct Business – 3000 Series 47 مجموعة 3000 – نظام قواعد العمل في األسواق المالية INFORMATION CLIENT YOUR KNOW – 5 ANNEX Information Financial – B :income annual Approximate –1
.................................................................................................
:(residence primary excluding (worth net Approximate –2 ,cash including ,debt and assets of breakdown require[ [estate real ,investments
.................................................................................................
:bank Primary – 3
.................................................................................................
:address and Branch – 4
.................................................................................................
:Number Account Main –5
.................................................................................................
Objectives and Information Investment – C Lebanese Identify (:value and investments Current –1 indicate and separately investments foreign and (holdings of currency shares common Equity– shares Preferred– instruments debt other and bonds Government– instruments debt and bonds Other– (funds of types specify (funds Investment– exchange Foreign– (purposes investment for (estate Real– certificates and deposits Bank– notes and products Structured– Commodities– (contracts of types specify (contracts Futures– (contracts of types specify (contracts Options– :experience and knowledge Investment –2 (investments of types by Specify( :objectives Investment –3 goals and needs Investment– (below percentages Specify (horizon Time– capital of preservation - Safety– Income– capital of Growth– risk high / Speculative– set of losses for tolerance Specify (:tolerance Risk –4 (portfolio of percentages investments of mix desired out Set (:profile Investment –5 (each for level risk and
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Regulation Conduct Business – 3000 Series 48 مجموعة 3000 – نظام قواعد العمل في األسواق المالية FOR STATEMENTS PERIODIC OF CONTENTS – 6 ANNEX PORTFOLIOS INVESTMENT portfolio of value and Contents – A ,account the in held money client all of Statement– 1 and ,portfolio the in held security each of Description– 2 held contracts or units ,shares of number the position security each of value market current The– 3 balances cash closing and opening of Amount– 4 portfolio the of value Total– 5 statement last the since portfolio the of value the in Change– 6 each of value the which on basis the of statement A– 7 calculated been has security than currency different a in valued are securities any If– 8 as ,rates exchange foreign relevant the ,portfolio the .date valuation the of portfolio in changes and Transactions – B the during portfolio the for transaction each of Details– 9 period transactions) settled yet not (pending of Details– 10 out paid and into transferred money of amount Total– 11 period the during portfolio the of the of out or into transferred securities any of Details– 12 period the during portfolio dividends ,commissions ,interest of amount Total– 13 the during portfolio the by received income other and .period charges and Fees – C costs other and taxes ,charges ,fees of amount Total– 14 of sales and purchases for portfolio the of out paid period the during securities for costs other and charges ,fees of amount Total– 15 provided services other any and portfolio the managing period the during institution approved the by debit for charges other or interest of amount Total– 16 account the in balances approved the by received payments any of Details– 17 transactions to relating party third a from institution the that statement a or ,portfolio the for into entered been has remuneration such any of amount or basis .client the to writing in disclosed separately charged or pledged Securities – D pledged been have that securities any of Details– 18 borrowings secure to charged or for collateral as the of identity the and ,portfolio the of behalf on to pledged are securities the person the or institution payments other or commission any of amount Total– 19 .period the during borrowings such of respect in made

Regulation Conduct Business – 3000 Series 49 مجموعة 3000 – نظام قواعد العمل في األسواق المالية positions Derivatives – E a out close to transaction each on loss or Profit– 20 any including (period the during position derivatives (transaction the for payable fees other or commissions the on position derivatives open each of Details– 21 :including ,date valuation any or index ,commodity ,securities underlying the– asset other transaction opening the of date and price trade the– contract derivatives the of price market current the– position the on loss or profit unrealized current the– .contract the of date expiry and price exercise the–

Regulation Conduct Business – 3000 Series 50 مجموعة 3000 – نظام قواعد العمل في األسواق المالية AND POLICIES DEALING ACCOUNT PERSONAL – 7 ANNEX PROCEDURES policies written establish must institution approved An personal’ employees all to apply to procedures and this of requirements the meet that securities in dealings a with employee each provide must it ,addition In .Annex personal to apply that requirements the of notice written .Annex this by prescribed as ,dealings undertaking written a provide must employee Each procedures and policies s’institution the observe to the to it returning and notice the of copy a signing by .institution approved an policy this of interpretation the about doubt any in If or officer compliance the [with consult must employee .[deputy his securities in deal to Permission– 1 in securities sell and buy to permitted is employee An ,consent prior obtaining without categories following the .list dealing restricted the on is employee the unless permits institution the securities of types of list Insert[ dealings whose employees of list Insert .trade to employees [.positions their of nature the on based restricted are other any selling or buying from prohibited is employee An of consent written prior the obtains he unless securities .[officer senior other or officer compliance the[ :prohibited strictly are transactions following The s’institution the with conflicts that transaction Any– interests the with or ,client a to obligations or duties ,client a of s’client a with compete would that transaction Any– the of purchase a as such (transaction sell or buy ,(time same the at security same a or ,from purchase a involves that transaction Any– ,client a ,to sale information any of use the involves that transaction Any– .client a from obtained is that or client a about takeovers ,issues Rights– 2 accepting or making to extend notice this in restrictions The taking ,securities sell or buy to offer informal or formal any or conversion any exercising ,issue rights a on rights up .option any exercising and ,rights subscription securities selling or buying to extend also restrictions The tender or takeover a including ,offer formal any pursuant (all substantially or (all or public the to made is which ,offer .security a of holders

Regulation Conduct Business – 3000 Series 51 مجموعة 3000 – نظام قواعد العمل في األسواق المالية persons other for transactions and Agents– 3 an by dealings to extend policy this in restrictions The made transactions only except, person other any for employee an of course the in institution approved the of account the for .duties s’employee an as employee an by dealings to apply also restrictions The of member family a or employee the which in will a of executor .interest significant a has employee the accounts Managed– 4 any to extend not do policy this in restrictions The an for account discretionary or managed a in transaction consulting without made is transaction the if ,employee the from advice of kind any obtaining or employee the .employee counselling or Advising– 5 transaction a making from prohibited is employee an If also is employee the ,policy this under security a in that suggesting or counselling ,advising from prohibited employee An .transaction a such make person other any information any communicating from prohibited also is or ,to intended is that person other any to opinion or another lead will believe to reason has employee the that counsel or advise to or ,transaction a such make to person apply not does prohibition This (.so do to else someone his of course the in takes employee an that actions to (.institution approved the with employment transactions of Reporting– 6 approved the to report immediately must employee An sale or purchase any of details the writing in institution of outside into enters employee the that security a of made has employee the If .institution approved the to promptly institution approved the for arrangements ,transaction the for note contract the of copy a receive .separately it report to have not does employee the recommendation research a of ahead Dealing– 7 security a in dealing from prohibited is employee An or report research investment an of subject the is that until institution approved the from recommendation the and issued been has recommendation or report the hours 24 least at had have it receive to are who clients .it to react to) days trading on(

Regulation Conduct Business – 3000 Series 52 مجموعة 3000 – نظام قواعد العمل في األسواق المالية benefits Personal– 8 ,securities on advising involve functions s'employee an If or reports research of preparation the including securities in transactions making or ,recommendations ‘clients or account own s’institution approved the for or benefit any accept not must employee the ,accounts interest of conflict a in result to likely is that inducement approved the to obligations or duties s'employee the with .clients its of any or institution other any or credit includes” inducement or Benefit“ ,vacations ,entertainment ,money ,benefits financial or services any of provision as well as ,gifts or property increase or receive ,make to opportunity any or ,facilities expense or loss a reduce or avoid to or revenue or gain a REPORTS AUDITORS – 8 ANNEX statements financial on report Annual– 1 budgetary extra and budget the of copies Include .a the between basis comparative a on transactions the and report the of matter subject year fiscal .year fiscal previous comparative a on account loss and profit the Present .b the of matter subject year fiscal the between basis .year fiscal previous the and report control the of explanation detailed a Provide .c budgetary the of item each for followed procedures profits the for and ,transactions budgetary extra and .accounts losses and :following the manner adequate and clear a in Present .d on margins finance to granted credits of value The 1- in credits these reclassify and ,any if ,transactions so notification and publication for intended positions .figures actual the reflect could they constituted provisions the ,debts doubtful The 2- these of each to related interests unrealized the and .any if ,debts of units the with accounts debtor and credit The 3- net a on not and gross a on ,any if ,group other the .basis .transactions budgetary Extra 4- been has following the that expressly Indicate .e :verified from segregated are accounts’ clients the Whether 1- .(sheet balance-Off (accounts s’institution the deposited are accounts’ clients the Whether 2- in or ,account omnibus one in correspondents with the from and other each from segregated accounts ,accounts s’institution the and ,office middle the of operations the Audit 3- circulars applicable the by abides it which to extent 20% of limit losses daily the whether see to order in to according (exceeded is funds private basic the of .(Authority Markets Capital the of 10 Annex )sheet balance-Off). ّ موحد )account omnibus one )أو في حسابات منفصلة )Accounts Segregated )عن بعضها وعن حسابات المؤسسة.

Regulation Conduct Business – 3000 Series 53 مجموعة 3000 – نظام قواعد العمل في األسواق المالية the and ,office middle the of operations the Audit 4- circulars applicable the by abides it which to extent the of 20% of limit losses the whether see to order in
Annex to according (exceeded is funds private basic
.(Authority Markets Capital the of 10 and positions open of value notional the Audit 5- according (funds private basic the with them compare .(Authority Markets Capital the of 10 Annex to and publication for intended positions that Ensure .f in included figures the accurately reflect notification Markets Capital the to submitted positions final the conclusions the clearly show they that and ,Authority .procedures followed the after reached (materiality (amounts minimum gross the Mention .g extra and budgetary the of audits the in adopted and revenues the as well as accounts budgetary .accounts charges corrective the all of volume and nature the Mention .h conducted was that reclassification the and ,entries for thresholds the exceed which of amounts the and .degrees materiality extent what to indicate expressly should Auditors .i and rules accounting the by abides institution the and budgetary the recording in followed principles revenues the as well as transactions budgetary extra the in occurs that change any show and ,charges and ,any if cycle financial previous the in followed rules and figures compared the on thereof effect the and .criteria adopted figures the of accuracy the that indicate Expressly .j been has statements accounts the in mentioned .verified and statements financial the about opinion an Give .k according transactions s’institution the of results the indicate clearly and ,rules accounting followed the to the to according conducted were audits the that done being this ,rules control accounting upon agreed the of definition the includes that paragraph the in .scope audit their in include should auditors ,reservations of case In .l the of explanation exhaustive an opinion qualified consequences their and opinion an such for grounds exchange of results the and situation financial the on .activities about observations their submit shall Auditors .m in system control internal the of weaknesses the financial in activities to exclusively related (force well as ,institution the in) securities and instruments on weaknesses these of effects and importance the as .institution the of activities future and present the by submitted recommendations and Proposals .n control internal the strengthen to auditors the financial in activities to exclusively related (system actual overcome to and ,)securities and instruments .problems potential and management s’institution the of views the Present .o .thereto reply their and weaknesses these towards

Regulation Conduct Business – 3000 Series 54 مجموعة 3000 – نظام قواعد العمل في األسواق المالية and 152 article in for provided report’ auditors The– 2 Money of Code the of 187 article of) 3 (paragraph in .Credit and and relations all verified have they that Indicate .a s’Board its and institution the between agreements other and institution the between and ,members to according ,members s’Board to related institutions Code the of 158 Article in for provided principles the .Commerce of are that statements the about opinion an Give .b .necessary when ,legality their of terms in submitted 187 and 152 articles to subject credits all that Ensure .c the in included are Credit and Money of Code the of .report concerned kind and nature the manner exhaustive an in Mention .d between exist that transactions and relationships of .group the of units relevant the all and institution the requirements Other– 3 immediately Authority Markets Capital the Inform .a :following the about when encounter they pressures or constraints Any 1- .duties their fulfilling immediately be should that infringements Any 2- ,circulars and regulations ,laws of virtue by notified have they believe auditors infringements those and the to them notify to obligation professional the .Authority ,Commerce of Code the of 174 article to Pursuant .b Auditors the of attention the draws Authority the the encompasses scope audit the that fact the to and ,year fiscal whole the for activities s’institution .accounts annual the auditing of date the by only not for systems technology information the Verify .c ;activities intermediation financial conducting to lead could that procedures on reports the prepare there when particular in ,risks error or fraud increase control the of abuse individual an for possibility a is be cannot that transactions fraudulent for or system of complications and development the given revealed .absence their or systems IT the and documents ,papers all keep shall Auditors .d financial ,banks in activities auditing of justifications and institutions intermediation and institutions .request its upon CMA the to them submit

Regulation Conduct Business – 3000 Series 55 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ً
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COMPLAINT A FILING FOR TEMPLATE – 9 ANNEX person natural a is Complainant the If :Name– 1
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:birth of Date– 2
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:ID of Number– 3
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:Nationality– 4
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:Address Postal– 5
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:Address mail-E– 6
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:Number Phone– 7
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:Number Phone Mobile– 8
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:Profession– 9
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person legal a is Complainant the If :Name– 1
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:Registration of Number– 2
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:Address Registered–3
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:Registration of Country– 4
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:Number Phone– 5
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:Number Fax– 6
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:representative company the of capacity and Name– 7
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Regulation Conduct Business – 3000 Series 56 مجموعة 3000 – نظام قواعد العمل في األسواق المالية
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assigned is person third/lawyer a If :capacity and Name– 1
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:address Postal– 2
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:number phone Office– 3
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:number fax Office– 4
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:number phone Mobile– 5
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:address mail-E– 6
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complaint the by concerned Institution :complaint the by concerned institution the of Name– 1
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:complaint the by concerned service or Product– 2
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:address Registered– 3
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:Registration of Country– 4
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:Number Phone– 5
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:Number Fax– 6
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:Representative the of capacity and Name– 7
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Complaint the of Subject specify and ,dates and facts complaints the Describe your in text legal violated the as well as violation the :complainant as opinion
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Regulation Conduct Business – 3000 Series 57 مجموعة 3000 – نظام قواعد العمل في األسواق المالية ً(.
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صانع السوق )MAKER MARKET )ولعمليات تأمين )PROVIDER LIQUIDITY) (Pi x Ni x Qi (n 1=i complaints your to attached be to Documents to addressed have you that email or fax ,letter Prior– 1 .institution concerned the of management the ,available if ,institution the of answer the of Copy– 2 s’Institution the why reason the of indication the and not did you if mention Please .satisfactory is answer .institution the from answer an obtain Extract (capacity your showing document a of Copy– 3 A/Passport/Card ID/Record Registry Civil Individual of the showing document official an of copy valid a is complainant the if ,representative the of capacity .(person legal the to notary the by attorney of power the of Copy– 4 .person third or lawyer Representative or Complainant the of Signature
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MET BE SHOULD THAT REQUIREMENTS – 10 ANNEX MAKER MARKET THE COMPLETE THAT AND LIQUIDITY THE AND TRANSACTIONS BEST THE AT TRANSACTIONS PROVIDER PRICE Requirements Quantitative– 1 not shall speculations from resulting losses daily The .a that provided ,funds private basic the of 20% exceed any at ,exceed not does losses accrued of total the .funds private basic the of 20% ,time private basic the of 20% exceed losses the case In .b excess this liquidate either shall institution the ,funds on so do to unable is it if day business next the on Lebanese in reserve special a deposit or ,day same the .excess this of amount the to equivalent Pounds be not shall positions open of value Notional The .c :deducting after ,funds basic private the than higher of elements the and provisions of shortage The - and ,Credit and Money of Code the of 153 Article Code the of 152 Article of provisions of infringement .institutions financial regarding Credit and Money of financial regarding provisions of shortage The - .institutions intermediation in positions open authorized of number the Calculate .d does positions these of value notional the that way a .funds basic private the ,time any at ,exceed not total the of basis the on value notional the Calculate .e positions open of value notional the) x (positions open the to according ,positions these to price entry the) x( :equation following (Pi x Ni x Qi(n 1=i

Regulation Conduct Business – 3000 Series 58 مجموعة 3000 – نظام قواعد العمل في األسواق المالية contract of type each for positions open of Number= Qi position open each of value Notional= Ni contract each for price Entry= Pi :Requirements Qualitative 2- provisions the to according Committee Risk a Establish .i 21/7/2008. dated 9956 .No Decision Basic the of with accordance in unit management risk a Establish .ii that ,regard this in issued circulars and regulations :following the undertake would and management risk for policy public a Draft - derivatives and instruments financial the identify be could that transactions acceptable the as well as financial the or institution financial the by conducted .institution intermediation positions all for limits risk acceptable the Determine - yearly and monthly ,weekly ,daily (securities and (...limits the for methodology documented a Establish - their reducing and positions open of management periodically is methodology this provided risks .Committee Risks the by revised pricing and risks measuring for systems Adopt .iii .derivatives and instruments financial ,office back the and office front the to addition In .iv with tasked be would that office middle a establish extent the verify and ,positions all of control daily the .observed are margins and limits set the which to 7737 .No Decision Basic the of provisions the by Abide .v with ,Liban du Banque by issued 15/12/2000 dated control internal of efficiency the assessing to regards .risks reducing in procedures and systems .2008/7/21 )Office Back)، إنشــــاء مكتب وســــطي )Office Middle)