CBB Volume 3: Contents
AU-A.2 Module History
This Module was first issued in April 2005 by the BMA, together with the rest of Volume 3 (Insurance). Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made. UG-3 provides further details on Rulebook maintenance and version control.Amended: July 2007
When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 3 was updated in January 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where these involved changes in the substance of Rules.Added: July 2007
A list of recent changes made to this Module is provided below:
Module Ref. Change Date Description of Changes AU-1.1 01/07/05 Corrections made to cross references. AU-1.2 01/07/05 Correction to typo and clarification to AU-1.2.4. AU-1.4 01/07/05 Clarified possible exclusion to regulated insurance services. AU-5.1 01/07/05 Clarified AU-5.1.2 and amended AU-5.1.8(e) to reflect that the cash deposit to be held with a commercial bank also applies to insurance brokers. AU-5.2 01/07/05 Correction made to cross reference. AU-5.3 01/07/05 Corrected reference to Form 4 (Application for Registration). AU-1.1 01/10/05 Clarified application of grandfathering provisions for composite companies. AU-2.1 01/10/05 Clarified legal status for E.C. companies and added the option for insurance manager to operate as a branch resident in Bahrain of a company incorporated in another jurisdiction. AU-2.2 01/10/05 Clarified guidance on mind and management for insurance licensees originally licensed as exempt companies. AU-2.8 01/10/05 Clarified the application of IFRS and AAOIFI standards. AU-2.1 01/01/06 Clarified legal status for EC companies that are insurance brokers and insurance consultants. AU-2.1.6 01/04/06 Guidance Paragraph deleted in October 2005. AU-1.2.2 01/01/07 Added Signing Actuary (where the Signing Actuary is an employee of the insurance firm) to the list of controlled functions for which an application for approved person must be submitted. AU-A.1.13 01/2007 New Rule introduced, categorising this Module as a Directive. AU-1.1.24 01/2007 Added Rule pertaining to suitability of applicants for authorisation. AU-2.1.11 01/2007 Corrected legal status requirements for insurance consultants. AU-2.6.1A 01/2007 Added a Rule dealing with the segregation of staff responsibilities. AU-5.1. 01/2007 Section amended to reflect new procedures reflecting CBB Law. AU-5.4 01/2007 Amended to reflect new CBB Law procedures. AU-5.5 01/2007 Amended to reflect new CBB Law procedures. AU-6 01/2007 New Chapter on Licensing and Registration Fees added. AU-1.1.14 10/2007 Pure reinsurers can undertake both general insurance businessG and long-term insurance businessG within the same entity. AU-1.2.3 and 1.2.4 10/2007 Clarified the controlled functions for which CBB prior approval is required. AU-2.5.4 10/2007 Clarified that insurance brokersG must also maintain a cash deposit as per Section GR-7.1. AU-5.1.5 and 5.1.5A 01/2008 Clarified CBB's requirements for letters of comfort and/or letters of guarantee. AU-5.1.13 01/2008 Clarified CBB's requirements for items that must be in place within 6 months of a new license being issued. AU-5.2.2 04/2008 Clarified to whom Form 3 should be sent to if dealing with a request for an appointment of MLRO from an existing investment firm licensee. AU-5.5.6 04/2008 Outlined CBB's requirements in instances where a controlled function becomes vacant. AU-6.3 04/2008 Clarified the payment of annual fees for new insurance licensees and registered persons. AU-5.2.5 07/2008 Clarified that the refusal decision by the CBB to grant a person 'approved person' status is issued to the insurance licensee. AU-5.2.6 07/2008 Added cross reference. AU-6.3 10/2008 Introduced a minimum licensing fee for new applicants whose annual licensing fees may be prorated. AU-2.1.8 04/2009 Amended the legal status of insurance broker to no longer allow the establishment of new licensees as single person company. AU-6.3.12 and 6.3.12A 04/2009 Clarified the rules regarding annual license fees to be paid by new licensees in relation to the first year in which the license has been granted. AU-6.3.16 04/2009 Deleted Paragraph waiving annual fees for insurance licensees in run-off and whose license has been restricted to servicing existing business. AU-A.1, AU-B.2, AU-1.3A, AU-4, AU-5.3, AU-5.5 and AU-6.3 10/2009 Added registration requirements for appointed representatives. AU-A.1.13 10/2009 Reference to Regulations added to Paragraph under Legal Basis. AU-2.1.8 and AU-2.1.11 10/2009 The legal status option for insurance brokers and insurance consultants to be established as a branch resident in Bahrain of a company incorporated in another jurisdiction has been deleted. AU-1.4.16A 04/2010 Guidance provided on the definition of regulated services for insurance consultants. AU-2.1.8 04/2010 Clarified the legal status for insurance brokers. AU-4.1.2A 04/2010 Added guidance on relevant loss adjusters associations used in evaluating expertise condition. AU-5.2.1 04/2010 Added requirement for licensees to verify accuracy of information contained in form 3 (Approved persons). AU-5.2.2A and B 04/2010 Clarified requirements when submitting Form 3. AU-5.2.7 and 5.2.8 04/2010 Clarified notification requirements when applying for Approved person status. AU-A.1.13 01/2011 Clarified legal basis. AU-5.1.5A 01/2011 Removed the reference to a letter of comfort that may be provided with an application for license. AU-1.2.9A 04/2011 Clarified the position of Chairman and that of managing director. This Rule was moved from the former version of Module HC. AU-1.2.11A 04/2011 Added a definition Paragraph for the compliance officer. AU-A.1.10 10/2011 Guidance Paragraph amended as Volume 5_Representative Offices was issued in December 2010. AU-A.1.13 10/2011 Legal basis updated to reflect all Articles of the CBB Law covered by this Module as well as applicable Resolutions. AU-5.1.13 10/2011 Clarified CBB's requirements for items that must be in place within 6 months of a new license being issued to be in line with other Volumes of the Rulebook. AU-5.5 10/2011 Clarified language on cancellation of a license to be in line with other Volumes of the CBB Rulebook. AU-1.4.10 04/2012 Reference added to appointed representatives. AU-2.1.8 and AU-2.1.9 10/2012 Clarified legal status for single person company and natural person. AU-5.5.4A 10/2012 Corrected cross reference. AU-A.1.13 01/2013 Updated legal basis. AU-B.1.1 01/2013 Updated prohibition as per issuance of Resolution No.(16) for the year 2012. AU-1.1 01/2013 References added to requirements under Resolution No.(16) for the year 2012. AU-6.3 07/2013 Amended due date and collection process for annual license and registration fees. AU-1.2 04/2014 Approved persons requirement updated to reflect consultation undertaken on the enhanced operational and solvency framework. AU-1.4.13 10/2014 Amended the definition of exempt introducer. AU-2.1.11 10/2014 Aligned with Commercial Companies Law. AU-A.1.13 07/2015 Legal basis updated to reflect Resolution No (23) of 2015. AU-5.2 07/2015 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons. AU-1.2 01/2016 Clarified general requirements for approved persons. AU-3 01/2016 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons. AU-4.2.2 01/2016 Corrected cross reference. AU-5.1.4 01/2016 Paragraph deleted as no longer applicable. AU-5.2 01/2016 Minor amendments to be aligned with other Volumes of the Rulebook. AU-5.6 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License. AU-A.1.10 04/2018 Amended Paragraph. AU-5.1.1 04/2018 Amended Paragraph. AU-5.1.12E 04/2018 Amended sub-paragraph. AU-5.2.2 04/2018 Amended Paragraph. AU-5.3.1 04/2018 Amended Paragraph. AU-5.1.1 07/2019 Amended Paragraph to remove references to hardcopy Form 1 submission to online submission.
Guidance on the implementation and transition to Volume 3 (Insurance) is given in Module ES (Executive Summary).Amended: July 2007