BC-8.4 BC-8.4 Customer Classification
BC-8.4.1
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conventional bank licensee must classify the persons with or for whom it intends to carry onregulated banking services listed in Paragraph BC-8.2.1, in accordance with the requirements in this Section, and communicate its classification to the person concerned. The customer must be notified of his/her customer classification before any documentation is finalised or whereregulated banking services or products listed in Paragraph BC-8.2.1 are offered.Amended: January 2011
Added: April 2008BC-8.4.2
The purpose of the classification is to ensure that
conventional bank licensees ’customers are appropriately categorised so that regulatory protections are focused on those classes ofcustomer that need them most: The following wording may be used forcustomer notification of status. ‘According to the Central Bank of Bahrain Rulebook, we are required to notify all customers of their status for the purpose of investment business and certain regulated banking services. For the purpose of this relationship, you are classified as an accredited investor/retail customer.’Added: April 2008BC-8.4.3
Before conducting
regulated banking services listed in Paragraph BC-8.2.1 with or for anyperson , aconventional bank licensee must take reasonable steps to obtain appropriate information to establish whether thatperson is an accredited investor or aretail customer .Amended: January 2011
Added: April 2008BC-8.4.4
The treatment of a
conventional bank licensee ’scustomers must be in accordance with the classification it has established for the purpose of Rule BC-8.4.3.Added: April 2008BC-8.4.5
Where specific rules do not exist for a particular class of
customers , the CBB requires appropriate treatment in accordance with the overarching principles set forth in Section BC-8.3.Added: April 2008Accredited Investors
BC-8.4.6
For the purpose of Rule BC 8.4.3, an
accredited investor includes:(a) Individuals holding financial assets (either singly or jointly with their spouse) of USD 1,000,000 or more;(b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 1,000,000; or(c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest infinancial instruments (such as state pension funds).Amended: January 2011
Added: April 2008BC-8.4.7
Conventional bank licensees must notify acustomer (that is not licensee of the CBB or a licensed financial institution in a foreign country) in writing, that he is being classified as anaccredited investor and provide a written warning that he will not benefit from the specific protections afforded to retail investors.Amended: January 2011
Added: April 2008BC-8.4.8
Persons classified as
accredited investors under Rule BC-8.4.6 may, however, request treatment asretail customers where the concerned product is a listed security or is retail in nature, in which caseconventional bank licensees must agree to treat them asretail customers .Amended: January 2011
Added: April 2008BC-8.4.9
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retail customer , as defined in Rule BC-8.4.10, may voluntarily elect to be treated as anaccredited investor . In this instance theconventional bank licensee must obtain a signed declaration to that effect prior to any provision ofregulated banking services .Added: April 2008Retail Customer
Records
BC-8.4.11
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conventional bank licensee must make a record of the classification established for eachcustomer , including sufficient information to support such classification.Added: April 2008
