CBB Volume 2: Contents

Central Bank of Bahrain Volume 2—Islamic Banks
Part A
Business Standards
BC Business and Market Conduct
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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-9.5 Marketing and Promotion > BC-9.5.9
  • 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

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