Capital Markets Authority

CAPITAL MARKETS AUTHORITY

Announcement No. 95

Related to the Cancellation of Announcement No. 82 Dated 31 January 2022 Regarding Expenses, Commissions, and the Collection Mechanism And Its Replacement by This Announcement

Pursuant to Law No. 161 dated 17/8/2011 concerning Financial Markets, and pursuant to Article 23.5 of the Licensing and Registration Regulations for Financial Markets Group 2000, and pursuant to Capital Markets Authority Board Decision No. 16/4/23 taken in its meeting held on 9/5/2023,

We hereby inform you of the following:

First: Announcement No. 82 dated 31 January 2022 is cancelled and replaced by this announcement, and the following are added to the list of applicable expenses and commissions:

• License application for any activities related to financial instruments business is collected upon submission of the license application by the institution.
• Annual fee to maintain the registration of persons for each registered person with the Authority is collected in the first quarter of each year.

Second: This announcement takes effect immediately upon its publication in the Official Gazette.

Beirut, 23 May 2023
Chairman of the Capital Markets Authority / Governor of the Central Bank of Lebanon Riad Tawfiq Salamah

Rome Street, Wardieh Hamra – P.O.Box 5358, Beirut, Lebanon – T +961 1 987 250 info@cma.gov.lb www.cma.gov.lb

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Annex No. (1)

Expenses and Commissions Collected in Lebanese Lira

Application No.	Type of Transaction or Application	Applicant (A) Banks	Applicant (B) Financial Institutions	Applicant (C) Brokerage Firms	Applicant (D) Other Licensed Institutions under the Capital Markets Authority
1	Application to establish an institution to conduct activities related to financial instruments business	20,000,000 L.L.	20,000,000 L.L.	20,000,000 L.L.	20,000,000 L.L.
2	License application for any activities related to financial instruments business	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
3	Annual fee to maintain the license (per activity)¹	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
4	Annual fee to maintain the registration of persons (per person)²	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
5	Application for full cancellation of a licensed institution's license	4,000,000 L.L.	7,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.
6	Application for partial cancellation of a licensed institution's license (per activity)	8,000,000 L.L.	8,000,000 L.L.	8,000,000 L.L.	8,000,000 L.L.
7	Temporary suspension of a licensed institution's operations	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
8	Amendment or replacement of the Articles of Association / Founding Contract	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
9	Application for review / reduction of a person's registration / applicant with regulated functions	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
10	Renewal of a person's registration application / change of status application (appointment assumption notice period)	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.
11	Reorganization / restructuring process	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.	3,000,000 L.L.
12	Issuance of shares / quotas and/or subscription rights and/or cash contributions	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.
13	Change of external audit subject	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.
14	Delegation of functions to external parties	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.
15	License and/or addition for financial instruments including Lebanese or foreign financial instruments and Sukuk: establishment/marketing/promotion of financial instruments	5,000,000 L.L.	5,000,000 L.L.	5,000,000 L.L.	5,000,000 L.L.
16	License and/or addition for collective investment (Lebanese/foreign)	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.
17	Renewal of fund characteristics / collective investment entity	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.
18	License for returns of Lebanese collective investment management companies	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.
19	Collective investment entity: license to manage joint funds / collective investment entity managing joint investment companies	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.	1,000,000 L.L.
20	Clearing process: license to establish a Lebanese/foreign clearing entity / clearing entity shares	8,000,000 L.L.	8,000,000 L.L.	8,000,000 L.L.	8,000,000 L.L.
21	Amendment to the regulations of a Lebanese clearing entity	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.	4,000,000 L.L.
22	Hosting application	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.
23	Deadline determination application	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.
24	Approval and certification (all)	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.
25	Certificates and other miscellaneous applications	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.	2,000,000 L.L.

Notes:
¹ Payable in the first quarter of each year.
² Payable in the first quarter of each year.

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Annex No. (2)

Commission Collection Procedures

1. The requesting entity intending to submit a transaction or application subject to a commission to the Authority must prepay the appropriate financial fee based on Annex No. (1).
2. The fees and commissions specified in Annex No. (1) are paid either by email or by transferring the required amount from a current account to a dedicated account at the Central Bank of Lebanon, bearing the following IBAN:
   LB36 0999 0000 0001 0016 5001 1125
   (noted without spaces when used electronically)
3. The transfer is executed through the BDL-RTGS payment system, according to the mechanism approved by said system, and an (MT202) message is organized so that Field 20 and Field 72 display the necessary information as follows:

   20:InstitutionNumber-Code of Request
   72:/REC/TRNSF/T72/Name of requesting Institution – number of requesting Institution – Code of request (Institution category A, B,C,D plus operation type 1,2,3….) – Amount – Date of Payment
   

4. The requesting entity, upon submitting a transaction or application to the Capital Markets Authority, must attach a bank notification proving the completion of the required transfer (copy of MT 298 message), containing the detailed information specified in Item (3) above.

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For Example:

To pay the commission due for a license application submitted by a brokerage firm marketing and promoting a financial instrument established abroad, the required code to be adopted is C13

20:020-C13
72:/REC/TRNSF/T72/ ABCDE - 020 - C13- 5000000- 31.1.2022