BC-9.8 BC-9.8 Disclosure of Information
Applicability
BC-9.8.1
This Paragraph was deleted in July 2015.
Deleted: July 2015
Added: April 08Initial Disclosure Requirement
BC-9.8.2
An
Islamic bank licensee must provide (with respect toregulated banking services ), comprehensible information tocustomers or potentialcustomers on:(a) Itself and the types of services that it can provide;(b) [This Subparagraph was deleted in July 2015];(c) Fees, costs and associated charges payable by thecustomer such as:(i) The basis or amount of its charges, remuneration and commission for conducting regulated financial services and(ii) The nature or amount of any other income receivable by it or, to its knowledge, by its associate and attributable to thatregulated banking service ; and(d) [This Subparagraph was deleted in July 2015];(e) Information about methods of redress.Amended: July 2015
Amended: January 2011
Added: April 2008BC-9.8.3
This Paragraph was deleted in July 2015.
Amended: July 2015
Amended: January 2011
Added: April 2008Risks
BC-9.8.4
Islamic bank licensees must disclose adequate information to all classes ofcustomers about risks underlying the financial products or services that are not readily apparent and which relate to theregulated Islamic banking service being provided.Amended: July 2015
Added: April 08Disclosure of Information for Investment Activities
BC-9.8.5
In case of investment activities,
Islamic bank licensees must providecustomers with appropriate guidance on, and warnings of, relevant risks when providingregulated banking services , in relation to:(a) Transactions in illiquidfinancial instruments ;(b) Leveraged transactions, including asset portfolios or collective investment schemes that have embedded leverage;(c)Financial instruments subject to high volatility in normal market conditions;(d) Securities repurchase agreements or securities lending agreements;(e) Transactions which involve credit, margin payments, or deposit of collateral;(f) Transactions involving material foreign exchange risk;(g) Interests in real estate; and/or(h) Islamicfinancial instruments .Amended: July 2015
Added: April 08BC-9.8.6
In relation to transactions involving derivatives,
Islamic bank licensees must providecustomers with a written statement that includes explanations of their characteristics, in particular their leverage effect, liquidity and price volatility.Amended: July 2015
Added: April 08BC-9.8.7
This Paragraph was deleted in July 2015.
Deleted: July 2015
Added: April 08BC-9.8.8
This Paragraph was deleted in July 2015.
Deleted: July 2015
Added: April 08BC-9.8.9
This Paragraph was deleted in July 2015.
Deleted: July 2015
Added: April 08BC-9.8.10
In relation to a transaction in a
financial instrument that is not readily realisable,Islamic bank licensees must:(a) Warn thecustomer that there is a restricted market for suchfinancial instruments , and that it may therefore be difficult to deal in thefinancial instrument or to obtain reliable information about its value; and(b) Disclose any position knowingly held by theIslamic bank licensee or any of its associates in thefinancial instrument or in a relatedfinancial instrument .Amended: July 2015
Amended: January 2011
Added: April 2008BC-9.8.11
The risk warning given to a
customer or potentialcustomer must be given due prominence in all related materials and must not be concealed or masked in any way by the wording, design or format of the information provided.Amended: July 2015
Added: April 08BC-9.8.12
Risk warnings provided to a
customer or potentialcustomer about Shari'a compliant derivatives must make clear that the instrument can be subject to sudden and sharp falls in value. Where thecustomer may not only lose his entire investment but may also be required to pay more later, he must also be warned about this fact and the possible obligation to provide extra funding.Amended: July 2015
Added: April 08Cancellation and Withdrawals
BC-9.8.13
Islamic bank licensees must disclose in their terms of business the existence or absence of a right to cancel as per the provisions of Paragraph BC-9.6.2.Added: April 08BC-9.8.14
Islamic bank licensees must pay due regard to the interests of theircustomers and treat them fairly.Added: April 08Records
BC-9.8.15
Islamic bank licensees must keep a record of statements issued in compliance with Rules in this Chapter, and of other information or recommendations provided to theircustomers , and be able to demonstrate to the CBB compliance with this Chapter.Amended: July 2015
Added: April 08