• BC-9.13 BC-9.13 Appendix

    • BC-9.13.1

      For the purpose of Paragraph BC-9.5.11, the minimum information that should be contained in promotional material for specific products includes:

      (a) The name of the Islamic bank licensee communicating the promotional material;
      (b) The licensing status of the Islamic bank licensee;
      (c) The Islamic bank licensee's address;
      (d) A description of the main characteristics of the financial product involved or service offered;
      (e) Suitable warning regarding the risks of the financial product involved and/or service offered; and
      (f) A clear statement indicating that, if a customer (as defined in Section BC-9.4) is in any doubt about the suitability of the agreement which is the subject of the promotion, he should consult his own financial adviser, or else the Islamic bank licensee.
      Amended: July 2015
      Added: April 08

    • BC-9.13.2

      For the purpose of Paragraph BC-9.6.2, the minimum information that should be contained in terms of business includes:

      (a) The licensing status of the Islamic bank licensee;
      (b) A statement that the licensee is bound by the CBB's regulation and licensing conditions;
      (c) The licensee's name, address, e-mail and telephone number;
      (d) A statement of the products and services provided by the licensee, as permitted by the CBB;
      (e) The total price to be paid by the customer to the Islamic bank licensee for its services, or, where an exact price cannot be indicated, the basis for the calculation of the price enabling the customer to verify it;
      (f) Information on any rights the parties may have to terminate the contract early or unilaterally under its terms, including any penalties imposed by the contract in such cases;
      (g) Where appropriate, the customer's investment objectives;
      (h) Where appropriate, the extent to which the Islamic bank licensee will consider the customers' personal circumstances when considering suitability (as required under Section BC-9.7) and the details of such matters that will be taken into account;
      (i) Any conflict of interest disclosure as required by Section BC-9.12;
      (j) Where appropriate, any disclosure of soft dollar agreements under Section BC-9.12;
      (k) A statement that clearly indicates the following:
      (i) The customer's right to obtain copies of records relating to his business with the licensee;
      (ii) The customer's record will be kept for 5 years or as otherwise required by Bahrain Law; and
      (iii) The name and job title, address and telephone number of the person in the Islamic bank licensee to whom any complaint should be addressed (in writing) by the customer.
      Amended: July 2015
      Added: April 08

    • BC-9.13.3

      This Paragraph was deleted in July 2015.

      Deleted: July 2015
      Added: April 08

    • BC-9.13.4

      This Paragraph was deleted in July 2015.

      Deleted: July 2015
      Added: April 08

    • BC-9.13.5

      This Paragraph was deleted in July 2015.

      Deleted: July 2015
      Added: April 08

    • BC-9.13.6

      This Paragraph was deleted in July 2015.

      Deleted: July 2015
      Added: April 08

    • BC-9.13.7

      For the purpose of Paragraph BC-9.10.4, the minimum information that should be included in a transaction confirmation includes:

      (a) The Islamic bank licensee's name and address;
      (b) Whether the Islamic bank licensee executed the transaction as principal or agent;
      (c) The customer's name, account number or other identifier;
      (d) Where relevant, a description of the collective investment undertaking or fund, including the amount invested or number of units involved;
      (e) Whether the transaction was a sale or purchase;
      (f) The price or unit price at which the transaction was executed;
      (g) If applicable, a statement that the transaction was executed on an execution only basis;
      (h) The date and time of the transaction or a statement that the time of execution will be provided on request;
      (i) Due date and procedure for settlement of transaction and the bank account;
      (j) The amount the Islamic bank licensee charges in connection with the transaction, including commission charges and the amount of any mark-up or mark-down, fees, taxes or duties;
      (k) The amount or basis of any charges shared with another person or statement that this will be made available on request;
      (l) For collective investment undertakings, a statement that the price at which the transaction has been executed is on a historic price or forward price basis, as the case may be;
      (m) The regulated market on which the transaction was carried out or the fact that the transaction was undertaken outside a regulated market; and
      (n) Whether the customer's counterparty was the Islamic bank licensee itself or any other person in the Islamic bank group.
      Amended: July 2015
      Amended: January 2013
      Added: April 08

    • BC-9.13.8

      For the purpose of Paragraph BC-9.10.7, the minimum information that should be included in a periodic statement includes:

      (a) The number, description and value of each financial instrument;
      (b) The amount of cash held;
      (c) The total value of the portfolio; and
      (d) A statement as to the basis on which the value of each financial instrument was calculated.
      Amended: July 2015
      Added: April 08

    • BC-9.13.9

      For the purpose of Paragraph BC-9.10.8, the minimum information that should be included in a periodic statement, where the relationship includes portfolio management, includes:

      (a) [This Subparagraph was deleted in October 2015];
      (b) The aggregate of any payments made and income received during the account period in respect of financing or borrowings made during that period;
      (c) A management report on the strategy implemented (provided at least yearly);
      (d) Total amount of fees and charges incurred during the period and an indication of their nature;
      (e) Information on any remuneration received from a third party and details of calculation basis;
      (f) Total amount of dividends, and other payments received during the period in relation to the customers portfolio;
      (g) Details of each transaction which have been entered into for the portfolio during the period;
      (h) The aggregate of money and details of all financial instruments transferred into and out of the portfolio during the period;
      (i) The aggregate of any payments including the dates of their application and dividends or other benefits received by the Islamic bank licensee from the portfolio for its own account during that period;
      (j) A statement of the aggregate charges of the Islamic bank licensee and its associates; and
      (k) A statement of the amount of any remuneration received by the Islamic bank licensee or its associates or both from a third party.
      Amended: October 2015
      Amended: July 2015
      Added: April 08

    • BC-9.13.10

      For the purpose of Paragraph BC-9.10.9, the minimum information that should be included in periodic statements, where the relationship includes contingent liability investment transactions, includes:

      (a) The aggregate of money transferred into and out of the portfolio during the valuation period;
      (b) In relation to each open position in the account at the end of the account period, the unrealised profit or loss to the customer (before deducting or adding any commission which would be payable on closing out);
      (c) In relation to each transaction executed during the account period to close out a customer's position, the resulting profit or loss to the customer after deducting or adding any commission; and
      (d) The aggregate of each of the following in, or relating to, the customer's portfolio at the close of business on the valuation date:
      (i) Cash;
      (ii) Collateral value;
      (iii) Management fees; and
      (iv) Commissions;
      (e) [This Subparagraph was deleted in July 2015.]
      Amended: July 2015
      Added: April 08

    • BC-9.13.11

      For the purpose of Paragraph BC-9.12.8, the minimum requirements that should be met where the Islamic bank licensee prepares and publishes investment research include:

      (a) Analysts must not trade in securities or related derivatives ahead of publishing research on the issuer of these securities;
      (b) Analysts must not trade in securities or related derivatives of any issuer that they review in a manner contrary to their existing recommendations except in special circumstances subject to pre-approval by compliance or legal personnel;
      (c) Analysts must not accept inducements by issuers or others with a material interest in the subject matter of investment research; and
      (d) Islamic banks must not promise issuers favourable research coverage, specific ratings or specific target prices in return for a future or continued business relationship, service or investment.
      Amended: July 2015
      Amended: January 2011
      Added: April 2008

    • BC-9.13.12

      For the purpose of Paragraph BC-9.12.17, the minimum requirements that should be met where the Islamic bank licensee has a soft dollar agreement under which it deals with customers include:

      (a) The percentage paid under soft dollar agreements of the total commission paid by or at the direction of:
      (i) The Islamic bank licensee; and
      (ii) Any other member of the Islamic bank licensee's group which is a party to those agreements;
      (b) The value, on a cost price basis, of the goods and services received by the Islamic bank licensee under soft dollar agreements, expressed as a percentage of the total commission paid by or at the direction of:
      (i) The Islamic bank licensee; or
      (ii) Other members of the Islamic bank licensee's group;
      (c) A summary of the nature of the goods and services received by the Islamic bank licensee under the soft dollar agreements; and
      (d) The total commission paid from the portfolio of that customer.
      Amended: July 2015
      Amended: April 2011
      Added: April 2008