CBB Volume 1: Contents

Central Bank of Bahrain Volume 1—Conventional Banks
Part A
Business Standards
BC Business and Market Conduct
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Location: Central Bank of Bahrain Volume 1—Conventional Banks > Part A > Business Standards > BC Business and Market Conduct > BC-8 Investment Business Activities > BC-8.10 Reporting to Customers
  • BC-8.10 Reporting to Customers

    • BC-8.10.1

      Section BC-8.10 applies to all customerG categories.

      Added: April 2008

    • Confirmation of Transactions

      • BC-8.10.2

        When a conventional bank licenseeG executes a transaction in a financial instrumentG for a customerG on a specific order, it must establish procedures to keep the customer informed of the essential details of the transaction and essential information regarding the carrying out of his order.

        Added: April 2008

      • BC-8.10.3

        For the purposes of Rule BC-8.10.2, the essential details of the transaction and essential information regarding the carrying out of the order include:

        (a) Execution price;
        (b) Charges; and
        (c) Date of execution.

        Added: April 2008

      • BC-8.10.4

        For the purposes of Rule BC-8.10.2, conventional bank licenseesG must include at the very least in their confirmation notes, the information included in Paragraph BC-8.13.7.

        Added: April 2008

    • Periodic Statements

      • BC-8.10.5

        Conventional bank licenseesG must promptly and at suitable intervals provide their customersG with a written statement when they:

        (a) Undertake the activity of managing financial instrumentsG ; or
        (b) Operate a customerG 's account containing financial instrumentsG .
        Added: April 2008

      • BC-8.10.6

        Conventional bank licenseesG must provide a periodic statement:

        (a) Monthly, if the customerG is a retail customerG and the retail customer'sG portfolio includes derivative transactions in highly volatile classes of financial instrumentsG or leveraged transactions; or
        (b) At least every six months in other cases.
        Amended: July 2012
        Added: April 2008

      • BC-8.10.7

        Periodic statements, issued in accordance with Rule BC-8.10.6, must contain, at the very least, the information contained in Paragraph BC-8.13.8, as at the end of the period covered.

        Amended: January 2011
        Added: April 2008

      • BC-8.10.8

        Where a conventional bank licenseeG undertakes the activity of managing financial instrumentsG on a discretionary basis, the periodic statements, issued in accordance with Rule BC-8.10.6, must also include at the very least the information included in Paragraph BC-8.13.9.

        Amended: January 2011
        Added: April 2008

      • BC-8.10.9

        In addition to Rules BC-8.10.7 and BC-8.10.8, where the retail customerG may not only lose his entire investment but may also be required to pay more later, conventional bank licenseesG must also include the additional information included in Paragraph BC-8.13.10.

        Added: April 2008

    • Records

      • BC-8.10.10

        Conventional bank licenseesG must immediately record the essential elements of all orders that are received.

        Added: April 2008

      • BC-8.10.11

        For the purposes of Rule BC-8.10.10, essential elements of orders received include the particulars of the customerG and order, time, price of execution, and number of instruments.

        Added: April 2008

      • BC-8.10.12

        Conventional bank licenseesG must record the essential elements of all:

        (a) Orders executed;
        (b) Transactions executed for their own account;
        (c) Non-market price transactions entered into by the conventional bank licenseeG ; and
        (d) Orders that have been aggregated with their basis of allocation.

        Added: April 2008

      • BC-8.10.13

        For purposes of Rule BC-8.10.12, conventional bank licenseesG should include, at the very least, the information provided in Paragraph BC-8.13.9.

        Added: April 2008

      • BC-8.10.14

        Conventional bank licenseesG must make a copy of any confirmation of a transaction or periodic statement provided to a customerG , and retain it for at least five years from the date on which it was provided.

        Added: April 2008

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