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  • BC-8.5 BC-8.5 Marketing and Promotion

    • BC-8.5.1

      The requirements of this section apply to product specific or service specific material and not to general brand awareness promotional material.

      Added: April 2008

    • BC-8.5.2

      Conventional bank licensees must ensure that all advertising and promotional material that is sent to any class of customer is fair, clear and not misleading.

      Added: April 2008

    • BC-8.5.3

      With respect to retail customers, in ensuring that the description of the product or the service in the promotional material is fair, clear and not misleading, the conventional bank licensee should, among other precautionary measures, ensure that:

      a) The purpose, and to the extent practicable, the content, of the information or communication are likely to be understood by the average member of the group to whom the communication is addressed;
      b) Key items contained in the information are given due prominence;
      c) The method of presentation in the information does not disguise, diminish, or obscure important risks, warnings or information; and
      d) The communication does not omit information that is material to ensure it is fair, clear and not misleading.

      Added: April 2008

    • BC-8.5.4

      In ensuring that the description of the product or the service in the promotional material is fair, the conventional bank licensee should avoid exaggerating the potential benefits of the investment service or financial instrument in any communication with a retail customer or potential retail customer.

      Added: April 2008

    • BC-8.5.5

      In ensuring that the description of the product or the service in relation to promotional material directed at retail customers is adequate, the conventional bank licensee should: ensure that the promotional material contains a balanced description of the main characteristics of the financial instrument and/or service state it relates, including the nature of the financial commitment and risks involved; whether or not the financial instruments involved are illiquid, and traded in a recognised exchange or market; the existence or absence of any right of withdrawal or cancellation and, where such a right exists, its duration and the conditions for exercising it, including information on any amount that the retail customer may be required to pay to exercise that right; and state if the communication relates to a financial instrument or service of a person other than the conventional bank licensee, the name of the person.

      Added: April 2008

    • BC-8.5.6

      Conventional bank licensees must ensure that the accuracy of all material statements of fact in promotional materials is supported by adequate evidence.

      Added: April 2008

    • BC-8.5.7

      Conventional bank licensees must not, in any form of communication with an individual customer or any class of customer, unreasonably attempt to limit or avoid any duty or liability it may have to that individual customer or class of customer in relation to regulated banking services, unless otherwise agreed in writing by both parties.

      Added: April 2008

    • BC-8.5.8

      An example of an unreasonable attempt to limit liability is where a financial product is given protection or compensation status in its home country and such status is not given by the Bahrain Bank (or branch) to its customers.

      Added: April 2008

    • BC-8.5.9

      Conventional bank licensees that underwrite or market public offerings must ensure that their promotional material complies with the relevant capital markets disclosure standards of the CBB.

      Added: April 2008

    • BD-8.5.10

      Capital markets disclosure standards are currently contained in the Disclosure Standards Regulation of 3 December 2003.

      Added: April 2008

    • Content of Promotions

      • BC-8.5.11

        Before a conventional bank licensee communicates any promotional material on a specific product or service to a customer or a potential customer it must ensure that the promotional material at the very least contains the information laid out in Paragraph BC-8.13.1.

        Added: April 2008

      • BC-8.5.12

        Conventional bank licensees must not make use of the name of the CBB in any promotion in such a way that would indicate endorsement or approval of its products or services.

        Added: April 2008

      • BC-8.5.12A

        For greater certainty, notification in promotion material that a bank is licensed by the CBB is not regarded as endorsement or approval by the CBB of any products or services being offered by the bank and does not contravene the requirements of Paragraph BC-8.5.12.

        Added: July 2012

    • Records

      • BC-8.5.13

        Conventional bank licensees must maintain a record of all promotional materials issued by them or on their behalf.

        Added: April 2008

    • Real Time Promotions

      • BC-8.5.14

        Conventional bank licensees must not make a real time promotion to retail customers unless the concerned customer has been notified of the fact in advance and has agreed in writing to receive real time promotions.

        Added: April 2008

      • BC-8.5.15

        For the purposes of Paragraph BC-8.5.14, a real time promotion is a promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.

        Added: April 2008

      • BC-8.5.16

        Consent to receive real time promotions could be, for instance, at the time of the initial customer profiling, by means of signing a form clearly indicating such consent.

        Added: April 2008

      • BC-8.5.17

        A representative of the conventional bank licensee must, on making contact for the first time with a customer, and again at any time when asked to do so by the customer:

        (a) Identify himself as being a representative of the conventional bank licensee;
        (b) State the name of the conventional bank licensee; and
        (c) Present the customer with a business card on meeting that customer, unless he has given him such a card at a previous meeting. The business card must include a statement of the conventional bank licensee's licensing status.
        Amended: October 2010
        Added: April 2008

      • BC-8.5.18

        For the purposes of Rule BC-8.5.17(c), the statement on the business card should make clear the licensing status of the conventional bank licensee; however it should not lead the customer to believe that the product being offered has been approved by the CBB. The suggested wording for the statement of licensing status is as follows: "Licensed as a conventional retail /wholesale bank by the CBB".

        Amended: October 2010
        Added: April 2008

      • BC-8.5.19

        In oral communications with a retail customer, whether in person or by telephone, the representative of the conventional bank licensee must:

        (i) Conduct himself in a polite manner and respect the wishes of the customer;
        (ii) State the genuine purpose of the call at the commencement of the conversation;
        (iii) Ascertain whether or not the customer wishes him to proceed with the conversation if the time of the conversation was not previously agreed by the customer;
        (iv) Explain clearly the financial instruments or other services which he is authorised to arrange;
        (v) Recognise and respect the right of the customer to terminate the call at any time; and
        (vi) If he requests another appointment and the customer refuses, shall accept that refusal courteously and in such a manner as to cause no embarrassment to the customer.

        Added: April 2008

      • Records

        • BC-8.5.20

          Conventional bank licensees must keep sufficient records of real time promotions made by them, or on their behalf by other persons, for CBB’s supervision purposes.

          Added: April 2008

        • BC-8.5.21

          These records should include evidence that customers have been notified in advance and agreed to receive real time promotions, as required under Rule BC-8.5.14.

          Added: April 2008