Capital Markets Authority
Newsletter Special Issue #3 - February 2016
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The Special Issue: Launching the Implementing Regulation on Collective Investment Schemes
Welcome Note

It is fair to say that 2015 marked significant milestones for the CMA and more broadly the Lebanese capital markets.  During the year 2015, the CMA successfully completed the preparation of the majority of its regulations: Licensing & Registration, Business Conduct, Market Conduct, Listing Rules, and Offers of Securities following wide ranging consultation with stakeholders.  These regulations have been approved by the Executive Board of the CMA and they are currently being translated to Arabic prior to their publication in the official gazette. However, the final English draft of these regulations have been communicated to the market so that financial institutions could put in place the necessary arrangements for their implementation.

Looking ahead, the CMA will try to finalize the Collective Schemes regulation shortly given that this regulation was also the theme of the latest round of consultation held with market participants in November 2015, and the focus of this special issue of the newsletter. The CMA is confident that the enforcement of these regulations in 2016 will provide the confidence necessary to revitalize and deepen the capital markets in Lebanon.

As for the Electronic Trading Platform (ETP) to be licensed by the Capital Markets Authority, we are pleased to note that the Request for Proposal (RFP) for the establishment and licensing of the ETP has recently been approved by the CMA Board.  The RFP has been shared with many financial institutions so they can provide their comments and it will also be the subject of consultation with potential interested parties in the next few weeks. The ETP is expected to make the capital markets in Lebanon more dynamic, liquid and efficient for IPOs, start-up companies, SMEs, and will allow trade in all kind of financial instruments, major currencies and Gold among others.

At the level of cooperation with international financial bodies, the CMA is closely cooperating with the World Bank and the IMF on the Financial Sector Assessment Program (FSAP) which provides in-depth examination of a country's financial sector. The FSAP is the cornerstone assessment document that will serve as a benchmark to the state of development of the capital markets.  The successful completion of this process will be an important development which further increases international confidence in the Lebanese financial markets.

This special issue of the newsletter focuses on the consultation seminar that launched the Collective Investments Scheme (CIS) implementing regulation on November 24, 2015 at the Four Seasons Hotel, Beirut. The consultation, which was held in the presence of various market participants, allowed for a well-rounded and comprehensive discussion and commentary on the CIS regulation. This one-stop-shop tool will act as your reference to the CIS consultation seminar. As a reader you will be able to access useful resources and view the presentations given out by the speakers.  It will also allow you to access the Q&A session videos and download the final draft of the introduced CIS regulation. It also features two interviews with the Vice Chairman of the CMA, Mr. Fadi Fakih and the Secretary General of the CMA, Dr. Saade Chami focusing on the CIS and the ETP, respectively.

We hope that you enjoy this special issue of the newsletter. 

Capital Markets Authority

Opening Remarks

Fadi Fakih, Vice Chairman, delivers the opening remarks at the CIS consultation seminar 

Mr. Fadi Fakih, Vice Chairman of the CMA, introduces the sixth implementing regulation, "Collective Investment Schemes" and offers an overview on the seminar's topic.


“The local schemes are mostly contractual (funds), which is typically different from corporate schemes. This means that the regulator of contractual schemes plays a more important role of ensuring a secure framework for the investors which helps increase confidence and investments
Mrs. Sally Buxton, World Bank lead expert, introducing the important characteristics of the new CIS regulation.
"Any person seeking to establish a Collective Investment Scheme for public offer in Lebanon must submit an application to the Authority, thus the applicant must be a locally approved institution by the CMA licensed to manage C.I.S."
Mr. Khalil Ghalayini, Head of the CMA Financial Control Unit, explaining about the public offering of Collective Investment Schemes. 

"My concern is with the development of the local market, where foreign funds are more existent. Thus, all of the money will end up being invested outside of Lebanon. And the solution for this issue can be solved with the creation of a local fund of funds."
Mrs. Sally Buxton, World Bank lead expert, answering a participant of the seminar on a question related to the development of the local market.



Fadi Fakih, CMA Vice Chairman

CMA Vice Chairman Mr. Fadi Fakih shares his views on the securitization market in Lebanon, and the CMA's cooperation with international bodies such as the World Bank and IMF. 


Saade Chami, CMA General Secretary

CMA General Secretary Mr. Saade Chami offers an overview on the CMA's upcoming activities in 2016, and discusses the launching of the Electronic Trading Platform to be licensed by the CMA.

Click here to read the full interview

The Regulation: In brief

Collective Investment Schemes Regulation
Collective Investment Schemes regulation covers the establishment and operation of collective
investment schemes, including Islamic schemes in Lebanon under Law 706 of December 2005. The regulation requires collective investment schemes offered to the public to be subject to rules that provide a higher standard of investor protection. The purpose of this regulation is to regulate the establishment, approval, offering and management of collective investment schemes and associated activities in Lebanon and to establish requirements governing CIS managers, CIS custodians and approved distribution agents. 

Click here to download the latest draft of the regulation. 

*Regulations might still be subject to further amendments by the CMA

Seminar Presentation

Collective Investment Schemes Presentation
Presentation Video
Collective Investment Schemes: Q&A (Video)

The Media Hub

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