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  • GR-5.1 Key Provisions for Bahraini Investment Firm Licensees

    • GR-5.1.1

      Bahraini investment firm licensees must obtain prior approval from the CBB for any of the following changes to their controllers (as defined in Section GR-5.2):

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

    • GR-5.1.1A

      Licensees must not incur or otherwise have an exposure (either directly or indirectly) to their controllers, including subsidiaries and associated companies of such controllers.

      Added: April 2019

    • GR-5.1.1B

      For the purpose of Paragraph GR-5.1.1A, licensees that already have an exposure to controllers 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 controllers of licensees and of listed companies; it further gives the CBB the right to refuse approval of controllers if deemed damaging to the interests of the market, customers, or in contravention of the criteria set by the CBB.

      Amended: July 2007

    • GR-5.1.3 [This Paragraph deleted 07/2007.]

      Deleted: July 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: July 2007

    • GR-5.1.4A

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

      Added: October 2015

    • GR-5.1.4B

      Bahraini investment firm licensees must immediately notify the CBB in case of any material change to the information provided in a Form 2 submitted for a controller.

      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 at the earlier of:

      (a) When the change takes effect; and
      (b) When the controller becomes aware of the proposed change.
      Amended: October 2015
      Adopted: January 2011

    • GR-5.1.5

      If, as a result of circumstances outside the Bahraini investment firm licensee's 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 Bahraini investment firm licensee must notify the CBB no later than 15 calendar days from the date on which those changes have occurred (see Paragraph BR-2.2.23).

      Amended: January 2017
      Amended: October 2015
      Amended: January 2011
      Amended: July 2007

    • GR-5.1.6

      For approval under Rule GR-5.1.1 to be granted, the applicant must satisfy the CBB that the proposed change in controller 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 controllers, contained in Section GR-5.3.

      Adopted: July 2007

    • GR-5.1.7

      An approval of controller 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: October 2015
      Amended: July 2007

    • GR-5.1.7A

      The approval process is specified in Section GR-5.4.

      Adopted: July 2007

    • GR-5.1.8

      Bahraini investment firm licensees must submit, within 3 months of their financial year-end, a report on their controllers. This report must identify all controllers of the licensee, as defined in Section GR-5.2 (see Paragraph BR-1.4.1).

      Amended: October 2015
      Amended: July 2007

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