The Capital Markets Authority (CMA) signed a Memorandum of Understanding (MoU) with its counterpart in France, Autorité des Marchés Financiers (AMF) to bring the local financial markets to par with international standards.
“The MoU is based on international standards, especially European ones. It aims to enhance cooperation between financial market authorities in both countries in terms of control over stock exchanges,” said Sami Saliba, Executive Board Member at the CMA. The MoU is intended to strengthen confidence in the local stock market in terms of transparency and protection of investors.
Riad Salameh, Governor of the Central Bank (BDL) and Chairman of the CMA, said: “We are currently working on establishing a new financial market to finance the private sector by laying foundations that ensure governance and transparency, while trading with all financial tools that provide benefits for the economy, especially bank savers.”
The MoU calls for exchanging information and fighting illegal transactions. “French experts have a long experience in financial markets,” said Saliba. According to him, technical assistance may be provided by the AMF through training programs and support in the legal, technical, and control aspects.
The CMA is preparing to sign similar MoUs with Arab counterparts, as well as European countries, and the United States. “We may even sign MoUs with countries in South America,” Saliba said. “The signature of all these MoUs is a main target for the CMA. It is a major condition to be able to join the International Organization of Securities Commissions (IOSCO),” he said.
IOSCO is an association of organizations that regulates international securities and future markets. It has members from over 100 countries, which regulate more than 90 percent of the world's securities markets.