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  • BC-8.6 BC-8.6 Accepting Customers

    • Applicability

      • BC-8.6.1

        This Section applies to retail customers only.

        Added: April 2008

    • Terms of Business

      • BC-8.6.2

        Conventional bank licensees must provide their retail customers with their terms of business, setting out the basis on which the regulated banking services are to be conducted (see also Paragraph BC-8.8.13).

        Amended: January 2011
        Added: April 2008

      • BC-8.6.3

        The terms of business in relation to providing regulated banking services as defined in Paragraph BC-8.2.1 to a retail customer must take the form of a customer agreement.

        Amended: January 2011
        Added: April 2008

      • BC-8.6.4

        The terms of business must include the rights and obligations of parties to the agreement, as well as other terms relevant to the regulated banking services. The terms of business must include, but are not limited to, the items included in Paragraph BC-8.13.2.

        Added: April 2008

      • BC-8.6.5

        An application form in relation to regulated banking services will be deemed to be a customer agreement, provided the form includes the principal terms and conditions of the service, such that the customer is provided sufficient information to allow him to understand the basis on which the service is to be conducted.

        Added: April 2008

      • BC-8.6.6

        The customer agreement must be provided in good time prior to providing the regulated banking service.

        Added: April 2008

      • BC-8.6.7

        For the purposes of Rule BC-8.6.6, ‘good time’ should be taken to mean sufficient time to enable the customer to consider properly the service or financial instrument on offer before he is bound.

        Added: April 2008

    • Customer Understanding and Acknowledgement

      • BC-8.6.8

        Conventional bank licensees must not enter into a customer agreement unless they have taken reasonable care to ensure that their retail customer has had a proper opportunity to consider the terms.

        Added: April 2008

      • BC-8.6.9

        Conventional bank licensees must obtain their retail customer’s consent to the terms of the customer agreement as evidenced by a signature or an equivalent mechanism.

        Added: April 2008

      • BC-8.6.10

        The equivalent mechanism refers to instances where a customer may have signed a mandate letter or other document accompanying the terms of the customer agreement.

        Added: April 2008

      • BC-8.6.11

        The customer agreement must contain the signatures of both parties to the agreement. If the agreement is signed by only the customer (in case it is in the form of an application), copies of the signed agreement must be provided by the conventional bank licensee to the customer.

        Added: April 2008

    • Records

      • BC-8.6.12

        Conventional bank licensees must keep sufficient records of customer agreements and any documents referred to in the customer agreement as soon as the agreement comes into force, for CBB’s supervision purposes.

        Added: April 2008

      • BC-8.6.13

        Detailed record-keeping requirements are contained in Module GR (General Requirements) and Module FC (Financial Crime).

        Added: April 2008