BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player

Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > GR General Requirements > GR-5 Controllers > GR-5.1 Key Provisions for Bahraini Insurance Licensees
  • GR-5.1 Key Provisions for Bahraini Insurance Licensees

    • GR-5.1.1

      Bahraini insurance licenseesG must obtain prior approval from the CBB for any of the following changes to their controllersG (as defined in Section GR-5.2):

      (a) A new controllerG ;
      (b) An existing controllerG increasing its holding from 10% to 20%;
      (c) An existing controllerG increasing its holding from below 20% to 30%;
      (d) An existing controllerG increasing its holding from below 30% to 40%;
      (e) An existing controllerG increasing its holding to above 40% for licensees not listed on any exchange in Bahrain or abroad; and
      (f) An existing controllerG reducing its holding to below 10%.
      Amended: October 2015
      Amended: January 2007

    • GR-5.1.1A

      LicenseesG must not incur or otherwise have an exposure (either directly or indirectly) to their controllersG , including subsidiariesG and associatedG companies of such controllersG .

      Added: April 2019

    • GR-5.1.1B

      For the purpose of Paragraph GR-5.1.1A, licenseesG that already have an exposure to controllersG must have an action plan agreed with the CBB's supervisory point of contact to address such exposures within a timeline agreed with the CBB.

      Added: April 2019

    • GR-5.1.2

      Articles 52 to 56 of the CBB Law require notification to the CBB of all controllersG of licensees and of listed companies; it further gives the CBB the right to refuse approval of controllersG if deemed damaging to the interests of the market, customersG , or in contravention of the criteria set by the CBB.

      Amended: January 2007
      Amended: October 2007

    • GR-5.1.3

      [This Paragraph was deleted in October 2015.]

      Deleted: October 2015
      Amended: January 2007

    • GR-5.1.4

      Requests for approval under Paragraph GR-5.1.1 must be made by submitting a duly completed Form 2 (Application for Authorisation of Controller) to the CBB.

      Amended: October 2015
      Amended: January 2007

    • GR-5.1.4A

      Where the direct controllerG of a Bahraini insurance licenseeG is not the ultimate parent undertakingG of the licenseeG , the CBB will require that Form 2 be completed by the ultimate parent undertakingG and that the details be provided of the structure of the group, clearly detailing the relationship between the licenseeG and the ultimate parent undertakingG (e.g. by providing an organisational structure of the group).

      Added: October 2015

    • GR-5.1.4B

      Bahraini insurance licenseesG must immediately notify the CBB in case of any material change to the information provided in a Form 2 submitted for a controllerG .

      Added: October 2015

    • GR-5.1.4C

      Where a controller is a legal person, any change in its shareholding must be notified to the CBB as the earlier of:

      (a) When the change takes effect; and
      (b) When the controller becomes aware of the proposed change.
      Added: October 2015

    • GR-5.1.5

      If, as a result of circumstances outside the Bahraini insurance licensee'sG knowledge and/or control, one of the changes specified in Paragraph GR-5.1.1 is triggered prior to CBB approval being sought or obtained, the insurance licenseeG must notify the CBB no later than 15 calendar days from the date on which those changes have occurred.

      Amended: January 2017
      Amended: October 2015
      Amended: January 2007

    • GR-5.1.5A

      For approval under Rule GR-5.1.1 to be granted, the applicant must satisfy the CBB that the proposed change in controllerG poses no undue risks to the licensee or its customers, and is not damaging to the interests of the market, as defined in the suitability criteria for controllersG , contained under Section GR-5.3.

      Added: October 2015

    • GR-5.1.6

      An approval of controllerG is valid for the period specified in the approval letter issued by the CBB. The CBB may impose any restrictions that it considers necessary to be observed when granting its approval.

      Amended: January 2007

    • GR-5.1.7

      Bahraini insurance licenseesG must submit, within 3 months of their financial year-end, a report on their controllersG . This report must identify all controllersG of the licensee, as defined in Section GR-5.2. This report is included as part of the CBB annual reporting requirements in Forms IFR or IBR (depending on the type of license issued).

      Amended: October 2015
      Amended: January 2007

Back to top