Rules for financial markets

Authority led by BDL starts action

The Financial Markets Authority (FMA) has issued its first two decisions for companies who have stocks traded through the stock exchange market, or over the counter.

The first decision stated that joint stock companies (SAL) and joint investment committees that are operating locally and that have at least 20 investors should establish a ‘disclosure policy’ to ensure commitment to corporate governance practices.

The companies should present a copy of the disclosure policy to the FMA at least three months before it is applied.

Companies are also required to publish information pertaining to their stocks or derivatives swiftly. They should also publish in the future any additional information about the stocks and derivatives whenever it is necessary.

The FMA’s second decision specified that companies and investment bodies with publicly traded stocks should keep all shareholders informed of their basic share data, like the maturity and number of shares, as well as the annual financial results.

The recently launched FMA was appointed to regulate the capital markets. It is also tasked with protecting investors from illegal practices, fining violations of the capital markets law, and initiating legal action against insider trading crimes.

The FMA is led by a board of directors comprising seven members. It is chaired by the governor of the Central Bank. Its board of directors includes the director general of the Ministry of Finance, the director general of the Ministry of Economy and Trade, the chairman of the Banking Control Commission (BCC), and three experts, Sami Saliba, Firas Safieddine, and Fadi el Fakih.