BDL tightens ethical control at the BSE

Confidential information use or disclose is prohibited

The Central Bank (BDL) issued a new circular aiming at organizing trading in capital markets. The circular stipulates that any person, whether a legal entity or an individual, is not allowed to use any confidential information, not yet disclosed to the public, regarding listed shares, in order to achieve a gain for his own interest or for the interest of a third party.

The ‘confidential information’ could be related to financial products or to issuers of such products, and its disclosure may influence financial products prices or investors’ decisions.

It is not allowed to disclose any special confidential information related mainly to profits, losses, mergers and acquisitions, bids, changes in assets, innovative products, new licenses, patents, registered brands, contracts, management changes, audit, shares, bankruptcy, or lawsuits.

This measure mainly concerns chairpersons of concerned companies, shareholders, members of the board of directors, managers, employees, or auditors related to the issuer of the financial products.

The above mentioned persons are not allowed to disclose information to any third party out of their work duties, or to provide them with any advice, in order to gain any or cede any rights from financial products.

In case of any doubt about undue use or disclosing of confidential information related to financial products, the investment services provider at the Beirut Stock Exchange (BSE) should notify without delay the Capital Markets Authority with all available details. Sanctions will be made according to law number 160/2011.