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  • AU-6.2 Annual License Fees

    • AU-6.2.1

      Investment firm licensees must pay the relevant annual license fee to the CBB, on the 1st of December of the preceding year for which the fees are due.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.2

      The relevant fees are specified in Rules AU-6.2.3 to AU-6.2.5 below: different fees are specified for Category 1, Category 2 and Category 3 investment firms. The fees due on 1st December are those due for the following calendar year, and are calculated on the basis of the firm's latest audited financial statements for the previous calendar year: i.e. the fee payable on 1st December 2013 for the 2014 year (for example) is calculated using the audited financial statements for 2012, assuming a 31st December year end. Where a licensee does not operate its accounts on a calendar-year basis, then the most recent audited financial statements available are used instead.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.3

      Category 1 investment firms must pay a variable annual licensing fee based on 0.25% of their relevant operating expenses, subject to a minimum ('floor') of BD 6,000 and a maximum ('cap') of BD 24,000.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.4

      Category 2 investment firms must pay a variable annual licensing fee based on 0.25% of their relevant operating expenses, subject to a minimum ('floor') of BD 4,000 and a maximum ('cap') of BD 12,000.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.5

      Category 3 investment firms must pay a variable annual licensing fee based on 0.25% of their relevant operating expenses, subject to a minimum ('floor') of BD 1,000 and a maximum ('cap') of BD 4,000.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.6

      Relevant operating expenses are defined as the total operating expenses of the licensee concerned, as recorded in the most recent audited financial statements available, subject to the adjustments specified in Rule AU-6.2.7.

      Adopted: July 2007

    • AU-6.2.7

      The adjustments to be made to relevant operating expenses are the exclusion of the following items from total operating expenses:

      (a) Training costs;
      (b) Charitable donations;
      (c) CBB fees paid; and
      (d) Non-executive Directors' remuneration.
      Adopted: July 2007

    • AU-6.2.8

      For the avoidance of doubt, operating expenses for the purposes of this Section, do not include items such as depreciation, provisions, interest expense, and dividends.

      Adopted: July 2007

    • AU-6.2.9

      The CBB would normally rely on the audited accounts of a licensee as representing a true and fair picture of its operating expenses. However, the CBB reserves the right to enquire about the accounting treatment of expenses, and/or policies on intra-group charging, if it believes that these are being used artificially to reduce a license fee.

      Adopted: July 2007

    • AU-6.2.9A

      Investment firm licensees must pay a fixed annual fee of BD 1,000 for each locally incorporated SPV in Bahrain which is under the control of and/or providing an actual business function, service or activity (whether actively or passively) for the licensee and/or others at the licensee's direction or having been established under the licensee's direction for that purpose.

      Adopted: April 2011

    • AU-6.2.9B

      The annual fee for SPVs stipulated in Paragraph AU-6.2.9A does not apply to SPVs of Bahrain domiciled CIUs. In the case of Bahrain domiciled CIUs, investment firm licensees should refer to the relevant Chapter in Module ARR of Volume 7, depending on the classification of the Bahrain domiciled CIU.

      Amended: July 2013
      Added: January 2012

    • AU-6.2.10

      Investment firm licensees must complete and submit Form ALF (Annual License Fee) to the CBB, no later than 15th October of the preceding year for which the fees are due.

      Amended: July 2013
      Adopted: July 2007

    • AU-6.2.10A

      All licensees are subject to direct debit for the payment of the annual fee and must complete and submit to the CBB a Direct Debit Authorisation Form by 15th September available under Part B of Volume 4 (Investment Business) CBB Rulebook on the CBB Website.

      Added: July 2013

    • AU-6.2.11

      For new licensees, their first annual license fee is payable when their license is issued by the CBB. The amount payable is the floor amount specified for their category of license.

      Amended: July 2010
      Adopted: July 2007

    • AU-6.2.12

      For the first full year of operation for investment firm licensees, the licensee would calculate its fee as the floor amount. For future years, the licensee would submit a Form ALF by 15th October of the preceding year for which the fees are due and calculate its fee using its last audited financial statements (or alternative arrangements as agreed with CBB, should its first set of accounts cover an 18-month period).

      Amended: July 2013
      Deleted: July 2010
      Adopted: July 2007

    • AU-6.2.13

      Where a license is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question.

      Amended: July 2010
      Adopted: July 2007

    • AU-6.2.14

      Investment firm licensees failing to comply with this Section may be subject to financial penalties for date sensitive requirements as outlined in Section EN-5.3A or may have their licenses withdrawn by the CBB.

      Added: July 2013

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