CBB Volume 2: Contents

Central Bank of Bahrain Volume 2—Islamic Banks
Part A
Business Standards
BC Business and Market Conduct
BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



Location: Central Bank of Bahrain Volume 2—Islamic Banks > Part A > Business Standards > BC Business and Market Conduct > BC-9 Regulated Islamic Banking Services
  • BC-9 Regulated Islamic Banking Services

    • BC-9.1 Scope of Application in Relation to Customer Categories [Deleted]

      [This Section was deleted in July 2015]

      Deleted: July 2015

      • BC-9.1.1

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

      • BC-9.1.2

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

      • Overseas Branches and Subsidiaries [Deleted]

        [This heading was deleted in July 2015]

        • BC-9.1.3

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Added: April 08

        • BC-9.1.4

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.1.5

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

    • BC-9.2 General Rules

      • BC-9.2.1

        This Chapter applies to all the regulated Islamic banking servicesG listed in Paragraph LR-1.3.1 of all Islamic bank licenseesG , except where otherwise indicated.

        Amended: July 2015
        Amended: April 2011
        Amended: January 2011
        Added: April 2008

      • BC-9.2.1A

        Where reference is made to investment activities, these refer to regulated Islamic banking servicesG as per Subparagraphs LR-1.3.1 (c to k).

        Added: July 2015

      • BC-9.2.2

        This Module aims to encourage high standards of business conduct, which are broadly applicable to all Islamic bank licenseesG , all regulated banking servicesG referred to in Paragraph BC-9.2.1, and all types of customersG .

        Amended: July 2015
        Amended: January 2011
        Added: April 2008

      • BC-9.2.3

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • BC-9.2.4

        Islamic bank licenseesG must maintain adequate records, as required in Chapter OM-7 to demonstrate compliance with the requirements of this Module, in addition to the requirements in the 'Code of Best Practice for Consumer Finance'.

        Amended: July 2015
        Added: April 08

      • BC-9.2.5

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

    • BC-9.3 Overarching Principles [Deleted]

      [This Section was deleted in July 2015]

      Deleted: July 2015

      • BC-9.3.1

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Amended: January 2011
        Added: April 2008

      • BC-9.3.2

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

    • BC-9.4 Customer Classification [Deleted]

      [This Section was deleted in July 2015]

      Deleted: July 2015

      • BC-9.4.1

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Amended: January 2011
        Added: April 2008

      • BC-9.4.2

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

      • BC-9.4.3

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Amended: January 2011
        Added: April 2008

      • BC-9.4.4

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

      • BC-9.4.5

        [This Paragraph was deleted in July 2015]

        Deleted: July 2015
        Added: April 08

      • Accredited Investors

        [This heading was deleted in July 2015]

        • BC-9.4.6

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.4.7

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.4.8

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.4.9

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

      • Retail Customer

        [This heading was deleted in July 2015]

        • BC-9.4.10

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

      • Records

        [This heading was deleted in July 2015]

        • BC-9.4.11

          [This Paragraph was deleted in July 2015]

          Deleted: July 2015
          Added: April 08

    • BC-9.5 Marketing and Promotion

      • BC-9.5.1

        The requirements of this section apply to product specific or service specific material and not to general brand awareness promotional material. In addition to the requirements of this Section, licensees should consider Section BC-9.8.

        Amended: July 2015
        Added: April 08

      • BC-9.5.2

        Islamic bank licenseesG must ensure that all advertising and promotional material for specific products that is sent to any class of customerG is fair, clear and not misleading.

        Added: April 08

      • BC-9.5.3

        With respect to customersG , in ensuring that the description of the product or the service in the promotional material is fair, clear and not misleading, the Islamic bank licenseeG should, among other precautionary measures, ensure that:

        (a) The purpose, and to the extent practicable, the content, of the information or communication are likely to be understood by the average member of the group to whom the communication is addressed;
        (b) Key items contained in the information are given due prominence;
        (c) The method of presentation in the information does not disguise, diminish, or obscure important risks, warnings or information; and
        (d) The communication does not omit information that is material to ensure it is fair, clear and not misleading.
        Amended: July 2015
        Added: April 08

      • BC-9.5.4

        In ensuring that the description of the product or the service in the promotional material is fair, the Islamic bank licenseeG should avoid exaggerating the potential benefits of the products or services being offered in any communication with a customerG or potential customerG .

        Amended: July 2015
        Added: April 08

      • BC-9.5.5

        In ensuring that the description of the product or the service in relation to promotional material directed at customersG is adequate, the Islamic bank licenseeG should: ensure that the promotional material contains a balanced description of the main characteristics of the product or service it relates to, including the nature of the financial commitment and risks involved.

        Amended: July 2015
        Added: April 08

      • BC-9.5.5A

        In addition, the description must state the name of the person, if the communication relates to a product or service of a person other than the Islamic bank licenseeG .

        Added: July 2015

      • BC-9.5.5B

        In the case of investment activities, the description should indicate whether or not the financial instrumentsG involved are illiquid, and traded in a recognised exchange or market; the existence or absence of any right of withdrawal or cancellation and, where such a right exists, its duration and the conditions for exercising it, including information on any amount that the customerG may be required to pay to exercise that right; and state if the communication relates to a financial instrumentG or service of a person other than the Islamic bank licenseeG , the name of the person.

        Added: July 2015

      • BC-9.5.6

        Islamic bank licenseesG must ensure that the accuracy of all material statements of fact in promotional materials is supported by adequate evidence.

        Added: April 08

      • BC-9.5.7

        Islamic bank licenseesG must not, in any form of communication with an individual customerG or any class of customerG , unreasonably attempt to limit or avoid any duty or liability it may have to that individual customerG or class of customerG in relation to regulated banking servicesG , unless otherwise agreed in writing by both parties.

        Added: April 08

      • BC-9.5.8

        An example of an unreasonable attempt to limit liability is where a financial product is given protection or compensation status in its home country and such status is not given by the Bahrain Bank (or branch) to its customers.

        Added: April 08

      • BC-9.5.9

        Islamic bank licenseesG that underwrite or market public offeringsG must ensure that their promotional material complies with the relevant capital markets disclosure standards of the CBB.

        Added: April 08

      • BC-9.5.10

        Capital markets disclosure standards are currently contained in the Disclosure Standards Regulation of 3 December 2003.

        Added: April 08

      • Content of Promotions

        • BC-9.5.11

          Before an Islamic bank licenseeG communicates any promotional material on a specific product or service to a customerG or a potential customerG it must ensure that the promotional material at the very least contains the information laid out in Paragraph BC-9.13.1.

          Added: April 08

        • BC-9.5.12

          Islamic bank licenseesG must not make use of the name of the CBB in any promotionG in such a way that would indicate endorsement or approval of its products or services.

          Added: April 08

        • BC-9.5.12A

          For greater certainty, notification in promotion material that a bank is licensed by the CBB is not regarded as endorsement or approval by the CBB of any products or services being offered by the bank and does not contravene the requirements of Paragraph BC-9.5.12.

          Added: July 2012

      • Records

        • BC-9.5.13

          Islamic bank licenseesG must maintain a record of all promotional materials issued by them or on their behalf.

          Added: April 08

      • Real Time Promotions

        • BC-9.5.14

          Islamic bank licenseesG must not make a real time promotionG to customersG unless the concerned customerG has been notified of the fact in advance and has agreed in writing to receive real time promotionsG .

          Amended: July 2015
          Added: April 08

        • BC-9.5.15

          For the purposes of Paragraph BC-9.5.14, a real time promotionG is a promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.

          Added: April 08

        • BC-9.5.16

          Consent to receive real time promotionsG could be, for instance, at the time of the initial customer profiling, by means of signing a form clearly indicating such consent.

          Added: April 08

        • BC-9.5.17

          A representative of the Islamic bank licenseeG must, on making contact for the first time with a customerG , and again at any time when asked to do so by the customerG :

          (a) Identify himself as being a representative of the Islamic bank licenseeG ;
          (b) State the name of the Islamic bank licenseeG ; and
          (c) Present the customer with a business card on meeting that customer, unless he has given him such a card at a previous meeting. The business card must include a statement of the Islamic bank licensee's licensing status.
          Amended October 2010
          Added: April 08

        • BC-9.5.18

          For the purposes of Rule BC-9.5.17(c), the statement on the business card should make clear the licensing status of the Islamic bank licenseeG ; however it should not lead the customer to believe that the product being offered has been approved by the CBB. The suggested wording for the statement of licensing status is as follows: “Licensed as an Islamic retail/wholesale bank by the CBB”.

          Amended: October 2010
          Added: April 08

        • BC-9.5.19

          In oral communications with a customerG , whether in person or by telephone, the representative of the Islamic bank licenseeG must:

          (i) Conduct himself in a polite manner and respect the wishes of the customerG ;
          (ii) State the genuine purpose of the call at the commencement of the conversation;
          (iii) Ascertain whether or not the customerG wishes him to proceed with the conversation if the time of the conversation was not previously agreed by the customerG ;
          (iv) Explain clearly the financial products or other services which he is authorised to arrange;
          (v) Recognise and respect the right of the customerG to terminate the call at any time; and
          (vi) If he requests another appointment and the customerG refuses, shall accept that refusal courteously and in such a manner as to cause no embarrassment to the customerG .
          Amended: July 2015
          Amended: January 2011
          Added: April 2008

      • Records

        • BC-9.5.20

          Islamic bank licenseesG must keep sufficient records of real time promotionsG made by them, or on their behalf by other persons, for CBB’s supervision purposes.

          Added: April 08

        • BC-9.5.21

          These records should include evidence that customersG have been notified in advance and agreed to receive real time promotionsG , as required under Rule BC-9.5.14.

          Added: April 08

    • BC-9.6 Accepting Customers

      • Applicability

        • BC-9.6.1

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

      • Terms of Business

        • BC-9.6.2

          Islamic bank licenseesG must provide their customersG with their terms of business, setting out the basis on which the regulated banking servicesG are to be conducted (see also Paragraph BC-9.8.13).

          Amended: July 2015
          Amended: January 2011
          Amended: October 2009
          Added: April 2008

        • BC-9.6.3

          The terms of business in relation to providing regulated banking servicesG as defined in Paragraph BC-9.2.1 to a customerG must take the form of a customer agreement.

          Amended: July 2015
          Amended: January 2011
          Amended: October 2009
          Added: April 2008

        • BC-9.6.4

          The terms of business must include the rights and obligations of parties to the agreement, as well as other terms relevant to the regulated banking servicesG . The terms of business must include, but are not limited to, the items included in Paragraph BC-9.13.2.

          Amended: October 2009
          Added: April 08

        • BC-9.6.5

          An application form in relation to regulated banking servicesG will be deemed to be a customer agreementG , provided the form includes the principal terms and conditions of the service, such that the customerG is provided sufficient information to allow him to understand the basis on which the service is to be conducted.

          Added: April 08

        • BC-9.6.6

          The customer agreementG must be provided in good time prior to providing the regulated banking serviceG .

          Added: April 08

        • BC-9.6.7

          For the purposes of Rule BC-9.6.6, "good time" should be taken to mean sufficient time to enable the customerG to consider properly the product or service on offer before he is bound, and that customer agreement must comply with the requirements in BC-B.5.13 regarding a 'cooling off period'.

          Amended: July 2015
          Added: April 08

      • Customer Understanding and Acknowledgement

        • BC-9.6.8

          Islamic bank licenseesG must not enter into a customer agreement unless they have taken reasonable care to ensure that their customerG has had a proper opportunity to consider the terms.

          Amended: July 2015
          Added: April 08

        • BC-9.6.9

          Islamic bank licenseesG must obtain their customer'sG consent to the terms of the customer agreement as evidenced by a signature or an equivalent mechanism.

          Amended: July 2015
          Added: April 08

        • BC-9.6.10

          The equivalent mechanism refers to instances where a customerG may have signed a mandate letter or other document accompanying the terms of the customer agreement.

          Amended: October 2009
          Added: April 2008

        • BC-9.6.11

          The customer agreement must contain the signatures of both parties to the agreement. If the agreement is signed by only the customerG (in case it is in the form of an application), copies of the signed agreement must be provided by the Islamic bank licenseeG to the customerG .

          Amended: October 2009
          Added: April 2008

      • Records

        • BC-9.6.12

          Islamic bank licenseesG must keep sufficient records of customer agreements and any documents referred to in the customer agreement as soon as the agreement comes into force, for CBB's supervision purposes.

          Amended: October 2009
          Added: April 2008

        • BC-9.6.13

          Detailed record-keeping requirements are contained in Module OM (Operational Risk Management) and Module FC (Financial Crime).

          Amended: July 2015
          Added: April 08

    • BC-9.7 Suitability

      • Applicability

        • BC-9.7.1

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

      • Information and Communication

        • BC-9.7.2

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

          Amended: July 2015
          Amended: July 2014
          Amended: January 2011
          Added: April 2008

        • BC-9.7.3

          For the purposes of Rule BC-9.7.2, the Islamic bank licenseeG , when providing the regulated Islamic banking services, should ask the customerG or potential customerG to provide information regarding his knowledge and experience in the field relevant to the specific type of financial products and/or services offered or demanded so as to enable the licensee to assess whether the financial product or service is appropriate to the customerG . The evaluation of the customer'sG needs, circumstances and objectives (including risk appetite) can be done through a structured questionnaire.

          Amended: July 2015
          Added: April 08

        • BC-9.7.4

          For the purposes of satisfying the requirement under Rule BC-9.7.2, Islamic bank licenseesG must ensure that the information and facts they hold about their customersG are accurate, complete and up to date.

          Added: April 08

        • BC-9.7.5

          In case of investment activities, where an Islamic bank licenseeG is managing financial instrumentsG for a customerG , it must periodically assess whether the customer'sG portfolio or account remains suitable over the lifetime of the customerG relationship and advise the customerG if it is no longer suitable.

          Amended: July 2015
          Added: April 08

        • BC-9.7.6

          In case of investment activities, where an Islamic bank licenseeG has pooled a customer'sG assets with those of others, with a view to taking common discretionary management decisions, the Islamic bank licenseeG must take reasonable steps to ensure that the transaction is suitable for the related customersG having regard to their stated investment objectives.

          Amended: July 2015
          Added: April 08

      • Records

        • BC-9.7.7

          Islamic bank licenseesG must keep a record of each recommendation made to customersG , and be able to demonstrate to the CBB compliance with this Section.

          Amended: July 2015
          Added: April 08

    • BC-9.8 Disclosure of Information

      • Applicability

        • BC-9.8.1

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

      • Initial Disclosure Requirement

        • BC-9.8.2

          An Islamic bank licenseeG must provide (with respect to regulated banking servicesG ), comprehensible information to customersG or potential customersG on:

          (a) Itself and the types of services that it can provide;
          (b) [This Subparagraph was deleted in July 2015];
          (c) Fees, costs and associated charges payable by the customerG such as:
          (i)  The basis or amount of its charges, remuneration and commission for conducting regulated financial services and
          (ii)  The nature or amount of any other income receivable by it or, to its knowledge, by its associate and attributable to that regulated banking serviceG ; and
          (d) [This Subparagraph was deleted in July 2015];
          (e) Information about methods of redress.
          Amended: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.8.3

          This Paragraph was deleted in July 2015.

          Amended: July 2015
          Amended: January 2011
          Added: April 2008

      • Risks

        • BC-9.8.4

          Islamic bank licenseesG must disclose adequate information to all classes of customersG about risks underlying the financial products or services that are not readily apparent and which relate to the regulated Islamic banking serviceG being provided.

          Amended: July 2015
          Added: April 08

      • Disclosure of Information for Investment Activities

        • BC-9.8.5

          In case of investment activities, Islamic bank licenseesG must provide customersG with appropriate guidance on, and warnings of, relevant risks when providing regulated banking servicesG , in relation to:

          (a) Transactions in illiquid financial instrumentsG ;
          (b) Leveraged transactions, including asset portfolios or collective investment schemes that have embedded leverage;
          (c) Financial instrumentsG subject to high volatility in normal market conditions;
          (d) Securities repurchase agreements or securities lending agreements;
          (e) Transactions which involve credit, margin payments, or deposit of collateral;
          (f) Transactions involving material foreign exchange risk;
          (g) Interests in real estate; and/or
          (h) Islamic financial instrumentsG .
          Amended: July 2015
          Added: April 08

        • BC-9.8.6

          In relation to transactions involving derivatives, Islamic bank licenseesG must provide customersG with a written statement that includes explanations of their characteristics, in particular their leverage effect, liquidity and price volatility.

          Amended: July 2015
          Added: April 08

        • BC-9.8.7

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

        • BC-9.8.8

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

        • BC-9.8.9

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Added: April 08

        • BC-9.8.10

          In relation to a transaction in a financial instrumentG that is not readily realisable, Islamic bank licenseesG must:

          (a) Warn the customerG that there is a restricted market for such financial instrumentsG , and that it may therefore be difficult to deal in the financial instrumentG or to obtain reliable information about its value; and
          (b) Disclose any position knowingly held by the Islamic bank licenseeG or any of its associates in the financial instrumentG or in a related financial instrumentG .
          Amended: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.8.11

          The risk warning given to a customerG or potential customerG must be given due prominence in all related materials and must not be concealed or masked in any way by the wording, design or format of the information provided.

          Amended: July 2015
          Added: April 08

        • BC-9.8.12

          Risk warnings provided to a customerG or potential customerG about Shari'a compliant derivatives must make clear that the instrument can be subject to sudden and sharp falls in value. Where the customerG may not only lose his entire investment but may also be required to pay more later, he must also be warned about this fact and the possible obligation to provide extra funding.

          Amended: July 2015
          Added: April 08

      • Cancellation and Withdrawals

        • BC-9.8.13

          Islamic bank licenseesG must disclose in their terms of business the existence or absence of a right to cancel as per the provisions of Paragraph BC-9.6.2.

          Added: April 08

        • BC-9.8.14

          Islamic bank licenseesG must pay due regard to the interests of their customersG and treat them fairly.

          Added: April 08

      • Records

        • BC-9.8.15

          Islamic bank licenseesG must keep a record of statements issued in compliance with Rules in this Chapter, and of other information or recommendations provided to their customersG , and be able to demonstrate to the CBB compliance with this Chapter.

          Amended: July 2015
          Added: April 08

    • BC-9.9 Dealing and Managing

      • BC-9.9.1

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • Best and Timely Execution

        • BC-9.9.2

          Islamic bank licenseesG must take all reasonable steps to obtain, when executing orders, the best possible result for customersG taking into account price, costs, speed, likelihood of execution and settlement, and any other consideration relevant to the execution of the order (subject to Paragraph BC-9.9.5 below).

          Amended: January 2011
          Added: April 2008

        • BC-9.9.3

          Islamic bank licenseesG must establish and implement effective arrangements for complying with Rule BC-9.9.2:

          a) Execution policies for each class of financial instrumentG ;
          b) Maintenance of and disclosure to customersG of information regarding execution venues and arrangements for disclosure to customersG if orders are to be executed outside regulated markets;
          c) Monitoring of effectiveness of the order execution arrangements and execution policies in order to identify and, where appropriate, correct any deficiencies; and
          d) Maintenance of audit trails to demonstrate to their customersG that orders were executed in accordance with the relevant execution policy.
          Added: April 08

        • BC-9.9.4

          This Paragraph was deleted in July 2015.

          Deleted: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.9.5

          In determining whether an Islamic bank licenseeG has taken reasonable care to provide the best overall price for a customerG in accordance with Rules BC-9.9.2 to BC-9.9.4, the CBB will take into account whether an Islamic bank licenseeG has:

          (a) Executed orders promptly and sequentially;
          (b) Discounted any fees and charges previously disclosed to the customerG ;
          (c) Disclosed the price at which an order is executed; and
          (d) Taken into account the available range of price sources for the execution of its customers'G transactions. In the case where the Islamic bank licenseeG has access to prices of different regulated financial markets or alternative trading systems, it must execute the transaction at the best overall price available having considered other relevant factors.
          Added: April 08

        • BC-9.9.6

          Islamic bank licenseesG may only postpone the execution of a transaction if it is in the best interests of the customerG , and the prior consent of the customerG has been given, or when circumstances are beyond its control. The Islamic bank licenseeG must maintain a record of all postponements together with the reasons for the postponement.

          Added: April 08

        • BC-9.9.7

          Factors relevant to whether the postponement of an existing customerG order may be in the best interests of the customerG include where:

          (a) The customerG order is received outside of normal trading hours;
          (b) A foreseeable improvement in the level of liquidity in the financial instrumentG is likely to enhance the terms on which the Islamic bank licenseeG can execute the order; or
          (c) Executing the order as a series of partial executions over a period of time is likely to improve the terms on which the order as a whole is executed.
          Added: April 08

      • Non-market Price Transactions

        • BC-9.9.8

          Islamic bank licenseesG must not enter into a non-market price transaction in any capacity, with or for a customerG , if it has reasonable grounds to suspect that the customerG is entering into the transaction for an illegal or improper purpose.

          Added: April 08

        • BC-9.9.9

          For the purposes of Paragraph BC-9.9.8, a non-market price transaction is one where the price paid by the Islamic bank licenseeG , or its customerG , differs from the prevailing market price. With respect to transactions in financial instrumentsG traded on a licensed exchangeG , licensees are reminded that in Bahrain the law prohibits off-market transactions.

          Amended: January 2011
          Added: April 2008

        • BC-9.9.10

          For the purposes of Paragraph BC-9.9.8, examples of improper purposes for transactions include:

          (a) The perpetration of a fraud;
          (b) The disguising or concealment of the nature of a transaction or of profits, losses or cash flows;
          (c) Transactions which amount to market abuse;
          (d) High-risk transactions under the Anti Money Laundering Regulations; and
          (e) "Window dressing", in particular around the year end, to disguise the true financial position of the person concerned.
          Added: April 08

        • BC-9.9.11

          Rule BC-9.9.8 does not apply to a non-market-price transaction if it is subject to the rules of a recognised investment exchange.

          Added: April 08

      • Aggregation and Allocation

        • BC-9.9.12

          Islamic bank licenseesG may only aggregate an order for a customerG with an order for other customersG , or with an order for its own account, where:

          (a) It is unlikely that the aggregation will disadvantage the customersG whose orders have been aggregated; and
          (b) It has disclosed to each customerG concerned in writing that it may aggregate orders, where these work to the customer'sG advantage.
          Added: April 08

        • BC-9.9.13

          If an Islamic bank licenseeG has aggregated orders of customersG , it must make a record of the intended basis of allocation and the identity of each customerG before the order is effected (subject to the “best execution” provisions of Paragraph BC-9.9.2).

          Amended: January 2011
          Added: April 2008

        • BC-9.9.14

          Where an allocation takes place, prices must not be changed. The order must be allocated equally so that no customer or broker is advantaged over any change.

          Amended: April 2013
          Added: April 08

        • BC-9.9.15

          Islamic bank licenseesG must have written policies on aggregation and allocation which are consistently applied; these must include the policy that will be adopted when only part of the aggregated order has been filled.

          Added: April 08

        • BC-9.9.16

          Where an Islamic bank licenseeG has aggregated a customerG order with an order for other customersG or with an order for its own account, and part or all of the aggregated order has been filled, it must:

          (a) Promptly allocate the financial instrumentsG concerned;
          (b) Allocate the financial instrumentsG in accordance with its stated policy;
          (c) Ensure the allocation is done fairly and uniformly by not giving undue preference to itself or to any of those for whom it dealt;
          (d) Give priority to satisfying customerG orders where the aggregation order combines a customerG order and an own account order, if the aggregate total of all orders cannot be satisfied, unless it can demonstrate on reasonable grounds that without its own participation it would not have been able to execute those orders on such favourable terms, or at all; and
          (e) Make and maintain a record of:
          (i) The date and time of the allocation;
          (ii) The relevant financial instrumentsG ;
          (iii) The identity of each customerG concerned;
          (iv) The amount allocated to each customer and to the Islamic bank licenseeG ; and
          (v) The price of each financial instrumentG and allocation.
          Amended: April 2013
          Added: April 08

      • Excessive Dealing

        • BC-9.9.17

          Islamic bank licenseesG must not advise any customerG to transact with a frequency or in amounts that might result in those transactions being deemed excessive in light of historical volumes, market capitalisation, customerG portfolio size and related factors.

          Amended: July 2015
          Amended: October 2009
          Added: April 2008

      • Right to Realise a Customer's Assets

        • BC-9.9.18

          Islamic bank licenseesG must not realise a customer'sG assets, unless it is legally entitled to do so, and has either:

          (a) Set out in the terms of business:
          (i) The action it may take to realise any assets of the customerG ;
          (ii) The circumstances in which it may do so;
          (iii) The asset (if relevant) or type or class of asset over which it may exercise the right; or
          (b) Given the customerG written or oral notice of its intention to exercise its rights before it does so.
          Amended: July 2015
          Added: April 08

      • Margin Requirements

        • BC-9.9.19

          Before conducting a transaction with or for a customerG , Islamic bank licenseesG must notify the customerG of:

          (a) The circumstances in which the customerG may be required to provide any margin;
          (b) The form in which the margin may be provided;
          (c) The steps the Islamic bank licenseeG may be required or entitled to take if the customerG fails to provide the required margin, including:
          (i) The fact that the customer'sG failure to provide margin may lead to the Islamic bank licenseeG closing out his position after a time limit specified by the firm;
          (ii) The circumstances in which the Islamic bank licenseeG will have the right or duty to close out the customer'sG position; and
          (iii) The circumstances, other than failure to provide the required margin, that may lead to the Islamic bank licenseeG closing out the customer'sG position without prior reference to him.
          Amended: July 2015
          Added: April 08

        • BC-9.9.20

          Islamic bank licenseesG must close out a customer'sG open position if that customerG has failed to meet a margin call within a maximum of five business days following the date on which the obligation to meet the call accrues, unless:

          (a) The Islamic bank licenseeG has received confirmation from a relevant third party (such as a clearing firm) that the customerG has given instructions to pay in full; or
          (b) The Islamic bank licenseeG has taken reasonable care to establish that the delay is owing to circumstances beyond the customer'sG control.
          Amended: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.9.21

          For the purposes of Rule BC-9.9.20, Islamic bank licenseesG may require the closing of a customer'sG open position in less than five business days, for their own risk management purposes.

          Amended: July 2015
          Added: April 08

        • BC-9.9.22

          Islamic bank licenseesG must also follow the requirements of Chapter BC-8 concerning the operation of the margin trading system.

          Amended: October 2015
          Amended: January 2011
          Added: April 2008

      • Programme Trading

        • BC-9.9.23

          Before an Islamic bank licenseeG executes a programme trade, it must disclose to its customerG whether it will be acting as a principal or agent. An Islamic bank licenseeG must not subsequently act in a different capacity from that which is disclosed without the prior consent of the customerG .

          Added: April 08

        • BC-9.9.24

          The term “programme trade” describes a single transaction or series of transactions executed for the purpose of acquiring or disposing of, for a customerG , all or part of a portfolio or a large basket of financial instrumentsG .

          Added: April 08

        • BC-9.9.25

          Islamic bank licenseesG must ensure that neither they, nor an associate, execute an own account transaction in any financial instrumentG included in a programme trade, unless they have notified the customerG in advance that they may do this, or can otherwise demonstrate that they have provided fair treatment to the customerG concerned.

          Added: April 08

      • Records

        • BC-9.9.26

          Islamic bank licenseesG must keep a record of each step they undertake in relation to each transaction to demonstrate to the CBB compliance with Section BC-9.9.

          Added: April 08

    • BC-9.10 Reporting to Customers

      • BC-9.10.1

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • Confirmation of Transactions

        • BC-9.10.2

          When an Islamic bank licenseeG provides regulated Islamic banking servicesG , it must establish procedures to keep the customerG informed of the essential details of the financial product or service.

          Amended: July 2015
          Added: April 08

        • BC-9.10.3

          For the purposes of Rule BC-9.10.2, reference should be made to Chapter BC-4 and to Chapter CM-7.

          Amended: July 2015
          Added: April 08

        • BC-9.10.4

          For the purposes of Rule BC-9.10.2, in case of investment activities, Islamic bank licenseesG must include at the very least in their confirmation notes, the information included in Paragraph BC-9.13.7.

          Amended: July 2015
          Added: April 08

      • Periodic Statements

        • BC-9.10.5

          Islamic bank licenseesG must promptly and at suitable intervals provide their customersG with periodic statements on regulated Islamic banking servicesG provided, throughout the duration of the contractual relationship between the bank and the customerG .

          Added: July 2015

        • BC-9.10.6A

          In case of credit activities, Islamic bank licenseesG must provide periodic statements as required by the Code of Best Practice on Consumer Credit and Charging and in accordance with Section BC-4.3.

          Added: July 2015

        • BC-9.10.6B

          In case of investment activities, Islamic 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 customer'sG account containing financial instrumentsG .
          Amended: July 2015
          Added: April 08

        • BC-9.10.6C

          For the purposes of Rule BC-9.10.6B suitable intervals means:

          (a) Monthly, if the customer'sG portfolio includes derivative transactions in highly volatile classes of financial instruments or leveraged transactions; or
          (b) At least six-monthly in other cases.
          Added: July 2015

        • BC-9.10.6

          Islamic 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 six-monthly in other cases.
          Added: April 08

        • BC-9.10.7

          Periodic statements, issued in accordance with Rule BC-9.10.6 (A and B), must contain, at the very least, the information contained in Paragraph BC-9.13.8, as at the end of the period covered.

          Amended: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.10.8

          Where an Islamic bank licenseeG undertakes the activity of managing financial instrumentsG on a discretionary basis, the periodic statements, issued in accordance with Rule BC-9.10.6, must also include at the very least the information included in Paragraph BC-9.13.9.

          Amended: July 2015
          Amended: January 2011
          Added: April 2008

        • BC-9.10.9

          In addition to Rules BC-9.10.7 and BC-9.10.8, where the customerG may not only lose his entire investment but may also be required to pay more later, Islamic bank licenseesG must also include the additional information included in Paragraph BC-9.13.9.

          Amended: July 2015
          Added: April 08

      • Records

        • BC-9.10.10

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

          Added: April 08

        • BC-9.10.11

          For the purposes of Rule BC-9.10.10, essential elements of orders received include the particulars of the customerG and order, time, price of execution, and number of instruments.

          Added: April 08

        • BC-9.10.12

          Islamic bank licenseesG must immediately record the essential elements of individual orders received, including:

          (a) Particulars of the customerG and order;
          (b) Time of execution;
          (c) Price of execution; and
          (d) Number of instruments.
          Amended: July 2015
          Added: April 08

        • BC-9.10.13

          For purposes of Rule BC-9.10.12, Islamic bank licenseesG should include, at the very least, the information provided in Paragraph BC-9.13.9.

          Amended: July 2015
          Added: April 08

        • BC-9.10.14

          Islamic 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 08

    • BC-9.11 Complaints

      [This section was deleted in October 2011]

      • BC-9.11.1

        [This paragraph was deleted in October 2011].

        Deleted: October 2011

      • BC-9.11.2

        [This paragraph was deleted in October 2011].

        Deleted: October 2011

      • BC-9.11.3

        [This paragraph was deleted in October 2011].

        Deleted: October 2011

      • [Deleted]

        Deleted: October 2011

        • BC-9.11.4

          [This paragraph was deleted in October 2011].

          Deleted: October 2011

        • BC-9.11.5

          [This paragraph was deleted in October 2011].

          Deleted: October 2011

    • BC-9.12 Conflicts of Interest

      • BC-9.12.1

        Islamic bank licenseesG must undertake all reasonable steps to identify conflicts of interest between themselves (or any person directly or indirectly linked to them by control) and their customersG , which may arise in the course of providing a regulated Islamic banking serviceG .

        Amended: July 2015
        Added: April 08

      • BC-9.12.2

        Where conflicts arise, Islamic bank licenseesG must:

        (a) Disclose any material interest or conflict of interest to the customerG in writing (which may include a disclosure in the Islamic bank licensee'sG terms of business) either generally or in relation to a specific transaction, and take reasonable steps to ensure that the customerG does not object;
        (b) Establish information barriers between activities such as proprietary trading, portfolio management and corporate finance business; and
        (c) Produce a written policy of independence, which requires an employee to disregard any conflict of interest or material interest when advising a customerG or exercising discretion.
        Added: April 08

      • BC-9.12.3

        If an Islamic bank licenseeG determines that it is unable to manage a conflict of interest or material interest using one of the methods described in Rule BC-9.12.2 it must decline to act for the customerG .

        Added: April 08

      • Personal Account Transactions

        • BC-9.12.4

          Islamic bank licenseesG must establish and maintain adequate policies and procedures, to ensure that:

          (a) Employees involved with advising and arranging do not undertake a personal account transactionG unless:
          (i) The Islamic bank licenseeG has, in a written notice, drawn to the attention of the employee the conditions upon which the employee may undertake personal account transactions and that the contents of such a notice are made a term of his contract of employment or services;
          (ii) The Islamic bank licenseeG has given its written permission to that employee for that transaction or to transactions generally in financial instrumentsG of that kind; and
          (iii) The transaction will not conflict with the Islamic bank licensee'sG duties to its customersG ;
          (b) It receives prompt notification or is otherwise aware of each employee's personal account transactionsG ; and
          (c) If an employee's personal account transactionsG are conducted with the Islamic bank licenseeG , each employee's account must be clearly identified and distinguishable from other customers'G accounts.
          Added: April 08

        • BC-9.12.5

          The written notice in sub-Paragraph BC-9.12.4 (a)(i) must make it explicit that, if an employee is prohibited from undertaking a personal account transactionG , he must not, except in the proper course of his employment:

          (a) Procure another person to enter into such a transaction; or
          (b) Communicate any information or opinion to another person if he knows, or ought to know, that the person will as a result, enter into such a transaction or procure some other person to do so.
          Added: April 08

        • BC-9.12.6

          Where an Islamic bank licenseeG has taken reasonable steps to determine that an employee will not be involved to any material extent in, or have access to information about, the Islamic bank licensee'sG investment business, then the conditions or restrictions on personal account transactionsG , in Rule BC-9.12.4, need not be applied to that employee.

          Added: April 08

        • BC-9.12.7

          Islamic bank licenseesG must establish and maintain procedures and controls so as to ensure that an investment analystG does not undertake a personal account transactionG in a financial instrumentG if the investment analystG is preparing investment research:

          (a) On that investment or its issuer; or
          (b) On a related investment, or its issuer;

          until the investment researchG is published or made available to the Islamic bank licensee'sG customersG .

          Added: April 08

      • Investment Research

        • BC-9.12.8

          Where an Islamic bank licenseeG issues investment researchG , its conflicts policy must specify the types of investment researchG issued by it. An Islamic bank licenseeG that prepares and publishes investment research must have adequate procedures and controls to ensure:

          (a) The effective supervision of investment analystsG by following at the very least the items listed in Paragraph BC-9.13.11;
          (b) That any actual or potential conflicts of interest are managed in accordance with Rule BC-9.12.1; and
          (c) That the investment research issued to customersG is not biased.
          Added: April 08

        • BC-9.12.9

          Islamic bank licenseesG that publish investment researchG must take reasonable steps to ensure that the investment researchG :

          (a) Identifies the types of customersG for which it is principally intended;
          (b) Distinguishes fact from opinion or estimates, and includes references to sources of data used;
          (c) Specifies the date when it was first published;
          (d) Specifies the period the ratings or recommendations are intended to cover;
          (e) Contains a clear and unambiguous explanation of the rating or recommendation system used;
          (f) Includes a price chart or line graph depicting the performance of the financial instrument for the period that the Islamic bank licensee has assigned a rating or recommendation for that financial instrument, which must also show the dates on which the ratings were revised; and
          (g) Includes a distribution of the different ratings or recommendations, in percentage terms:
          (i) For all financial instrumentsG in respect of which the Islamic bank licenseeG publishes investment research; and
          (ii) For financial instrumentsG , if any, where the Islamic bank licenseeG has undertaken corporate finance business with or for the issuer over the past 12 months.
          Added: April 08

        • BC-9.12.10

          An Islamic bank licenseeG must take reasonable steps to ensure that when it publishes investment researchG , disclosure is made of the following matters:

          (a) Any financial interest or material interest that the investment analystG or a close relative has, which relates to the financial instrumentG ;
          (b) Any shareholding by the Islamic bank licenseeG or its associate of 1% or more of the total issued share capital of the issuer;
          (c) Whether the Islamic bank licenseeG or its associate acts as corporate broker for the issuer;
          (d) Any material shareholding by the issuer in the Islamic bank licenseeG ;
          (e) Any corporate finance business undertaken by the Islamic bank licenseeG with or for the issuer over the past 12 months, and any future relevant corporate finance business initiatives; and
          (f) Whether the Islamic bank licenseeG is a market maker in the financial instrumentG .
          Amended: January 2011
          Added: April 2008

        • BC-9.12.11

          If an Islamic bank licensee acts as a manager or co-manager of an initial public offering or a secondary offering it must take reasonable steps to ensure that it does not publish investment researchG relating to the financial instrumentG during the period beginning on the day of publication of the listing particulars or a prospectus relating to the offering of that financial instrumentG and ending on the 30th calendar day after the day on which the financial instrumentG is admitted to trading.

          Amended: January 2011
          Added: April 2008

        • BC-9.12.12

          An Islamic bank licenseeG and its associates must not knowingly execute an own account transaction in a financial instrumentG , which is the subject of investment researchG , prepared either by the Islamic bank licenseeG or its associate, until the customersG for whom the investment researchG was principally intended have had a reasonable opportunity to act upon it.

          Amended: January 2011
          Added: April 2008

        • BC-9.12.13

          The restriction in Rule BC-9.12.11 does not apply if:

          (a) The Islamic bank licenseeG or its associate is a market maker in the relevant financial instrumentG ;
          (b) The Islamic bank licenseeG or its associate executes an unsolicited transaction for a customerG ; or
          (c) It is not expected to materially affect the price of the financial instrumentG .
          Added: April 08

      • Inducements

        • BC-9.12.14

          Islamic bank licenseesG must have systems and controls, policies and procedures to ensure that neither they, nor any of their employees, offer, give, solicit or accept any inducement which is likely to conflict significantly with any duty that they owe to their customersG .

          Added: April 08

        • BC-9.12.15

          An Islamic bank licenseeG may only accept goods and services under a soft dollar agreementG if:

          (a) The goods and services do not constitute an inducement;
          (b) The goods and services are reasonably expected to assist in the provision of regulated investment services to the Islamic bank licensee'sG customersG ;
          (c) The agreement is a written agreement for the supply of goods or services described in Rule BC-9.12.14, and these goods and services do not take the form of, or include, cash or any other direct financial benefit; and
          (d) The Islamic bank licenseeG makes adequate disclosures regarding the use of soft dollar agreementsG .
          Amended: October 2015
          Added: April 08

        • BC-9.12.16

          For the purpose of Sub-Paragraph BC-9.12.15(d), Paragraph BC-9.12.12 sets out the minimum disclosure requirements.

          Added: April 08

        • BC-9.12.17

          A soft dollar agreementG is an agreement in any form under which an Islamic bank licenseeG receives goods or services in return for investment business put through or in the way of another person.

          Added: April 08

        • BC-9.12.18

          Before an Islamic bank licenseeG enters into a transaction for a customerG , either directly or indirectly, with or through the agency of another person, under a soft dollar agreementG which the Islamic bank licenseeG has, or knows that another member of its group has, with that other person, it must disclose to its customerG :

          (a) The existence of the soft dollar agreementG ; and
          (b) The Islamic bank licensee'sG or its group’s policy relating to soft dollar agreementsG .
          Added: April 08

        • BC-9.12.19

          If an Islamic bank licenseeG has a soft dollar agreementG under which the Islamic bank licenseeG deals for a customerG , the Islamic bank licenseeG must provide that customerG with information as set out in Paragraph BC-9.13.12.

          Added: April 08

    • BC-9.13 Appendix

      • BC-9.13.1

        For the purpose of Paragraph BC-9.5.11, the minimum information that should be contained in promotional material for specific products includes:

        (a) The name of the Islamic bank licenseeG communicating the promotional material;
        (b) The licensing status of the Islamic bank licenseeG ;
        (c) The Islamic bank licensee'sG address;
        (d) A description of the main characteristics of the financial product involved or service offered;
        (e) Suitable warning regarding the risks of the financial product involved and/or service offered; and
        (f) A clear statement indicating that, if a customerG (as defined in Section BC-9.4) is in any doubt about the suitability of the agreement which is the subject of the promotion, he should consult his own financial adviser, or else the Islamic bank licenseeG .
        Amended: July 2015
        Added: April 08

      • BC-9.13.2

        For the purpose of Paragraph BC-9.6.2, the minimum information that should be contained in terms of business includes:

        (a) The licensing status of the Islamic bank licenseeG ;
        (b) A statement that the licensee is bound by the CBB's regulation and licensing conditions;
        (c) The licensee's name, address, e-mail and telephone number;
        (d) A statement of the products and services provided by the licensee, as permitted by the CBB;
        (e) The total price to be paid by the customerG to the Islamic bank licenseeG for its services, or, where an exact price cannot be indicated, the basis for the calculation of the price enabling the customerG to verify it;
        (f) Information on any rights the parties may have to terminate the contract early or unilaterally under its terms, including any penalties imposed by the contract in such cases;
        (g) Where appropriate, the customer'sG investment objectives;
        (h) Where appropriate, the extent to which the Islamic bank licenseeG will consider the customers'G personal circumstances when considering suitability (as required under Section BC-9.7) and the details of such matters that will be taken into account;
        (i) Any conflict of interest disclosure as required by Section BC-9.12;
        (j) Where appropriate, any disclosure of soft dollar agreementsG under Section BC-9.12;
        (k) A statement that clearly indicates the following:
        (i) The customer'sG right to obtain copies of records relating to his business with the licensee;
        (ii) The customer'sG record will be kept for 5 years or as otherwise required by Bahrain Law; and
        (iii) The name and job title, address and telephone number of the person in the Islamic bank licenseeG to whom any complaint should be addressed (in writing) by the customerG .
        Amended: July 2015
        Added: April 08

      • BC-9.13.3

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • BC-9.13.4

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • BC-9.13.5

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • BC-9.13.6

        This Paragraph was deleted in July 2015.

        Deleted: July 2015
        Added: April 08

      • BC-9.13.7

        For the purpose of Paragraph BC-9.10.4, the minimum information that should be included in a transaction confirmation includes:

        (a) The Islamic bank licensee'sG name and address;
        (b) Whether the Islamic bank licenseeG executed the transaction as principal or agent;
        (c) The customer'sG name, account number or other identifier;
        (d) Where relevant, a description of the collective investment undertakingG or fund, including the amount invested or number of units involved;
        (e) Whether the transaction was a sale or purchase;
        (f) The price or unit price at which the transaction was executed;
        (g) If applicable, a statement that the transaction was executed on an execution only basis;
        (h) The date and time of the transaction or a statement that the time of execution will be provided on request;
        (i) Due date and procedure for settlement of transaction and the bank account;
        (j) The amount the Islamic bank licenseeG charges in connection with the transaction, including commission charges and the amount of any mark-up or mark-down, fees, taxes or duties;
        (k) The amount or basis of any charges shared with another person or statement that this will be made available on request;
        (l) For collective investment undertakingsG , a statement that the price at which the transaction has been executed is on a historic price or forward price basis, as the case may be;
        (m) The regulated market on which the transaction was carried out or the fact that the transaction was undertaken outside a regulated market; and
        (n) Whether the customer'sG counterparty was the Islamic bank licenseeG itself or any other person in the Islamic bank group.
        Amended: July 2015
        Amended: January 2013
        Added: April 08

      • BC-9.13.8

        For the purpose of Paragraph BC-9.10.7, the minimum information that should be included in a periodic statement includes:

        (a) The number, description and value of each financial instrumentG ;
        (b) The amount of cash held;
        (c) The total value of the portfolio; and
        (d) A statement as to the basis on which the value of each financial instrumentG was calculated.
        Amended: July 2015
        Added: April 08

      • BC-9.13.9

        For the purpose of Paragraph BC-9.10.8, the minimum information that should be included in a periodic statement, where the relationship includes portfolio management, includes:

        (a) [This Subparagraph was deleted in October 2015];
        (b) The aggregate of any payments made and income received during the account period in respect of financing or borrowings made during that period;
        (c) A management report on the strategy implemented (provided at least yearly);
        (d) Total amount of fees and charges incurred during the period and an indication of their nature;
        (e) Information on any remuneration received from a third party and details of calculation basis;
        (f) Total amount of dividends, and other payments received during the period in relation to the customers'G portfolio;
        (g) Details of each transaction which have been entered into for the portfolio during the period;
        (h) The aggregate of money and details of all financial instrumentsG transferred into and out of the portfolio during the period;
        (i) The aggregate of any payments including the dates of their application and dividends or other benefits received by the Islamic bank licenseeG from the portfolio for its own account during that period;
        (j) A statement of the aggregate charges of the Islamic bank licenseeG and its associates; and
        (k) A statement of the amount of any remuneration received by the Islamic bank licenseeG or its associates or both from a third party.
        Amended: October 2015
        Amended: July 2015
        Added: April 08

      • BC-9.13.10

        For the purpose of Paragraph BC-9.10.9, the minimum information that should be included in periodic statements, where the relationship includes contingent liability investment transactions, includes:

        (a) The aggregate of money transferred into and out of the portfolio during the valuation period;
        (b) In relation to each open position in the account at the end of the account period, the unrealised profit or loss to the customerG (before deducting or adding any commission which would be payable on closing out);
        (c) In relation to each transaction executed during the account period to close out a customer'sG position, the resulting profit or loss to the customerG after deducting or adding any commission; and
        (d) The aggregate of each of the following in, or relating to, the customer'sG portfolio at the close of business on the valuation date:
        (i) Cash;
        (ii) Collateral value;
        (iii) Management fees; and
        (iv) Commissions;
        (e) [This Subparagraph was deleted in July 2015.]
        Amended: July 2015
        Added: April 08

      • BC-9.13.11

        For the purpose of Paragraph BC-9.12.8, the minimum requirements that should be met where the Islamic bank licenseeG prepares and publishes investment researchG include:

        (a) Analysts must not trade in securities or related derivatives ahead of publishing research on the issuer of these securities;
        (b) Analysts must not trade in securities or related derivatives of any issuer that they review in a manner contrary to their existing recommendations except in special circumstances subject to pre-approval by compliance or legal personnel;
        (c) Analysts must not accept inducements by issuers or others with a material interest in the subject matter of investment research; and
        (d) Islamic banks must not promise issuers favourable research coverage, specific ratings or specific target prices in return for a future or continued business relationship, service or investment.
        Amended: July 2015
        Amended: January 2011
        Added: April 2008

      • BC-9.13.12

        For the purpose of Paragraph BC-9.12.17, the minimum requirements that should be met where the Islamic bank licenseeG has a soft dollar agreementG under which it deals with customersG include:

        (a) The percentage paid under soft dollar agreementsG of the total commission paid by or at the direction of:
        (i) The Islamic bank licenseeG ; and
        (ii) Any other member of the Islamic bank licensee'sG group which is a party to those agreements;
        (b) The value, on a cost price basis, of the goods and services received by the Islamic bank licenseeG under soft dollar agreementsG , expressed as a percentage of the total commission paid by or at the direction of:
        (i) The Islamic bank licenseeG ; or
        (ii) Other members of the Islamic bank licensee'sG group;
        (c) A summary of the nature of the goods and services received by the Islamic bank licenseeG under the soft dollar agreementsG ; and
        (d) The total commission paid from the portfolio of that customerG .
        Amended: July 2015
        Amended: April 2011
        Added: April 2008

Back to top