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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > AU Authorisation > AU-5 Information Requirements and Processes > AU-5.4 Amendment of Authorisation
  • AU-5.4 Amendment of Authorisation

    • Licenses

      • AU-5.4.1

        Insurance licenseesG wishing to vary the scope of their license must obtain the CBB’s written approval, before effecting any such change. Insurance licenseesG must seek prior CBB approval before undertaking new activities (such as carrying out or broking new classes of business). Approval must be sought whenever a licensee wishes to add or cease undertaking a regulated insurance serviceG , or to vary a condition imposed on their license.

        Amended: July 2007

      • AU-5.4.2

        Failure to secure the CBB approval prior to effecting such changes is likely to be viewed as a serious breach of a licensee's regulatory obligations and may constitute a breach of Article 40(a) of the CBB Law.

        Amended: July 2007

      • AU-5.4.3

        In addition to any other information requested by the CBB, and unless otherwise directed by the CBB, an insurance licenseeG requesting CBB approval to undertake new regulated insurance servicesG must provide the following documentation:

        (a) A summary of the rationale for undertaking the proposed new service;
        (b) A description of how the new service will be managed and controlled;
        (c) An analysis of the financial impact of the new service; and
        (d) A summary of the due diligence undertaken by the Board and management of the insurance licenseeG on the proposed new service.
        Amended: July 2007

      • AU-5.4.4

        The CBB will only agree to amend a license if doing so poses, in its judgement, no unacceptable risks to customersG . As provided for under Article 48 of the CBB Law, the CBB may itself move to amend a license, for instance if a licensee fails to satisfy any of its existing license conditions or protecting the legitimate interests of customers or creditors of the licensee requires such a change. See also Chapter EN-7, regarding the cancellation or amendment of licenses, including the procedures used in such instances.

        Amended: July 2007
        Amended: October 2007

    • Approved Persons

      • AU-5.4.5

        Insurance licenseesG must seek prior CBB approval before an approved personG may move from one controlled functionG to another within the same licensee.

        Added: July 2007

      • AU-5.4.6

        In such instances, a new Form 3 (Application for Approved Person status) should be completed and submitted to the CBB. Note that a person may be considered ‘fit and proper’ for one controlled functionG , but not for another, if for instance the new role requires a different set of skills and experience. Where an approved personG is moving to a controlled functionG in another licensee, the first licensee should notify the CBB of that person’s departure (see Rule AU-5.5.6), and the new licensee should submit a request for approval under Rule AU-1.2.1.

        Added: July 2007

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