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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > High Level Standards > AU Authorisation > AU-A Introduction > AU-A.1 Purpose > Registered Administrators
  • AU-A.1 Purpose

    • Executive Summary

      • AU-A.1.1

        The Authorisation Module sets out the Central Bank of Bahrain's (CBB) approach to licensing providers of regulated investment servicesG in the Kingdom of Bahrain. It also sets out CBB requirements for approving persons in those providers.

        Amended: January 2011
        Amended: July 2007

      • AU-A.1.2

        Persons who provide any of the following regulated investment servicesG within or from the Kingdom of Bahrain, and are not otherwise licensed by CBB as a bank, are required to be licensed by CBB as an investment firm licenseeG :

        a) Dealing in financial instrumentsG as principal;
        b) Dealing in financial instrumentsG as agent;
        c) Arranging deals in financial instrumentsG ;
        d) Managing financial instrumentsG ;
        e) Safeguarding financial instrumentsG (i.e. a custodianG );
        f) Advising on financial instrumentsG ; and
        g) Operating a collective investment undertakingG (i.e. an operatorG )
        Amended: July 2007

      • AU-A.1.3

        Three categories of investment firm licenseG are provided for, depending on the type of regulated investment servicesG undertaken. The requirements in Volume 4 (Investment Business) are tailored in certain respects, according to the license category concerned, in order to address the specific features and risks associated with each type of regulated investment serviceG .

        Amended: July 2007

      • AU-A.1.4

        Collectively, licensed providers of regulated investment servicesG are called investment firm licenseesG . Bahrain-incorporated investment firm licenseesG are called Bahraini investment firm licenseesG . Investment firm licenseesG that are incorporated in an overseas jurisdiction and operate via a branch presence in the Kingdom of Bahrain are called overseas investment firm licenseesG . The same naming convention applies to the various sub-categories of investment firms (e.g. Bahraini Category 1 investment firmG , overseas Category 1 investment firmG etc).

        Amended: July 2007

      • AU-A.1.5

        Regulated investment servicesG are defined in Section AU-1.4. Their definition excludes operating a recognised exchange (such as the Bahrain Stock Exchange) and related infrastructure (such as central clearing and depository systems). These activities are separately addressed, in the form of individual regulations issued by the CBB's Capital Markets Supervision Directorate, and the Bahrain Stock Exchange.

        Amended: July 2007

      • AU-A.1.6

        Persons undertaking certain functions in relation to investment firm licenseesG require prior CBB approval. These functions (called 'controlled functionsG ') include DirectorsG and members of senior management. The controlled functionsG regime supplements the licensing regime by ensuring that key persons involved in the running of investment firm licenseesG are fit and proper. Those authorised by the CBB to undertake controlled functionsG are called approved personsG .

        Amended: July 2007

    • Retaining Authorised Status

      • AU-A.1.7

        The requirements set out in Chapters AU-2 and AU-3 represent the minimum conditions that have to be met in each case, both at the point of authorisation and on an on-going basis thereafter, in order for authorised status to be retained.

        Amended: July 2007

    • Representative Offices and Ancillary Services Providers

      • AU-A.1.8

        Neither representative officesG of foreign investment firms, nor ancillary services providersG , are covered in Volume 4 (Investment Business). Requirements covering these types of activities will instead be included in Volume 5.

        Amended: July 2007

      • AU-A.1.9

        Volume 5 (Specialised Activities) of the CBB Rulebook issued in December 2010 deals with representative officesG of foreign investment firms.

        Amended: October 2011
        Amended: July 2007

      • AU-A.1.10

        Until such time as Volume 5 (Specialised Activities) of the CBB Rulebook is issued, ancillary services providersG remain subject to the requirements contained in the CBB's 'Standard Conditions and Licensing Criteria', dealing with providers of ancillary services to the financial sector.

        Amended: July 2007

    • Legal Basis

      • AU-A.1.11

        This Module contains the CBB's Directive, Regulation and Resolutions (as amended from time to time) regarding authorisation under Volume 4 of the CBB Rulebook. It is applicable to all investment firm licenseesG (as well as to approved personsG ), and is issued under the powers available to the CBB under Articles 37 to 42, 44 to 48 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). It includes the requirements contained in Resolution No (1) of 2007 with respect to determining fees categories due for licensees and services provided by the CBB. The Module also contains requirements under Regulation No (1) of 2007 pertaining to the CBB's regulated services issued under Article 39 of the CBB Law and contains requirements governing the conditions of granting a license for the provision of regulated services as prescribed under Resolution No. (43) of 2011 and issued under the powers available to the CBB under Article 44(c). The Module contains requirements under Resolution No.(16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law. This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015.

        Amended: July 2015
        Amended: January 2013
        Amended: October 2011
        Amended: January 2011
        Adopted: July 2007

      • AU-A.1.12

        For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

        Adopted: July 2007

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