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-8.7 Suitability > Information and Communication > BC-8.7.2
  • Information and Communication

    • BC-8.7.2

      Conventional bank licenseesG must seek information from their retail customersG (and potential retail customersG about their needs, circumstances and investment objectives (including their risk appetite), relevant to the services to be provided.

      Added: April 2008

    • BC-8.7.3

      For the purposes of Rule BC-8.7.2, the conventional bank licenseeG , when providing the regulated investment servicesG , should ask the customerG or potential customerG to provide information regarding his knowledge and experience in the investment field relevant to the specific type of financial instrumentG or service offered or demanded so as to enable the licensee to assess whether the financial instrument or service is appropriate to the customerG . The evaluation of the customer'sG needs, circumstances and investment objectives (including risk appetite) can be done through a structured questionnaire.

      Amended: January 2011
      Added: April 2008

    • BC-8.7.4

      For the purposes of satisfying the requirement under Rule BC-8.7.2, conventional bank licenseesG must ensure that the information and facts they hold about their customersG are accurate, complete and up to date.

      Added: April 2008

    • BC-8.7.5

      Where a conventional bank licenseeG is managing financial instrumentsG for a customerG , it must periodically assess whether the customerG ’s portfolio or account remains suitable over the lifetime of the customerG relationship and advise the customerG if it is no longer suitable.

      Added: April 2008

    • BC-8.7.6

      Where a conventional bank licenseeG has pooled a customerG ’s assets with those of others, with a view to taking common discretionary management decisions, the conventional bank licenseeG must take reasonable steps to ensure that the transaction is suitable for the related customersG having regard to their stated investment objectives.

      Added: April 2008

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