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  • Suitability

    • AU-1.1.21

      [This Paragraph was deleted in January 2011].

      Deleted: January 2011
      Amended: July 2007

    • AU-1.1.22

      [This Paragraph was deleted in January 2011].

      Deleted: January 2011
      Amended: July 2007

    • AU-1.1.22A

      As per Article 48 of the CBB Law, investment firm licensees must seek CBB’s prior written approval before undertaking new regulated investment services.

      Added: July 2020

    • AU-1.1.22B

      Investment firm licensees wishing to undertake the activity of Arranging Credit and Advising on Credit must satisfy the CBB that they have sufficient expertise to undertake this activity and must obtain the CBB’s prior written approval for undertaking the same.

      Added: July 2020

    • AU-1.1.22C

      For purposes of Paragraph AU-1.1.22B, investment firm licensees must ensure that the officer responsible for dealing with the customers for Arranging Credit and Advising on Credit is competent and has demonstrated his competence through appropriate qualifications and experience to carry out such function.

      Added: July 2020

    • AU-1.1.22D

      Investment firm licensees wishing to undertake the following regulated investment services involving crypto-assets that fall under the definition of financial instruments must seek the CBB’s prior approval before undertaking such activity:

      (a) Dealing in financial instruments as agent;
      (b) Arranging deals in financial instruments;
      (c) Managing financial instruments;
      (d) Safeguarding financial instruments (i.e. a custodian);
      (e) Advising on financial instruments; and
      (f) Operating a collective investment undertaking (i.e. an operator).

      Investment firm licensees must not undertake the activity of dealing in crypto-assets as principal.

      Added: January 2024

    • AU-1.1.22E

      Investment firm licensees offering the regulated investment services referred to in Paragraph AU-1.1.22D must comply with the requirements stipulated in Appendix AU-1, as applicable.

      Added: January 2024

    • AU-1.1.22F

      Investment firm licensees undertaking the regulated investment service involving safe custody of crypto-assets (custody service), whether through “in house” arrangement or through a “third party”, remain responsible for safeguarding, storing, holding or maintaining custody of crypto-assets and must have systems and controls in place to:

      (a) Ensure the proper safeguarding of crypto-assets;
      (b) Ensure that such safe custody of crypto-assets is identifiable and secure at all times; and
      (c) Ensure protection against the risk of loss, theft or hacking.
      Added: January 2024

    • AU-1.1.22G

      For the purpose of Paragraph AU-1.1.22F, investment firm licensees may implement the following three types of custodial arrangements or any other type of custodial arrangement that is acceptable to the CBB:

      (a) The licensee is wholly responsible for custody of client’s crypto-assets and provides this service “in-house” through its own crypto-assets wallet solution. Such an arrangement includes scenarios where a licensee provides its own inhouse proprietary wallet for clients to store any crypto-assets bought through that licensee or transferred into the wallet from other sources.
      (b) The licensee is wholly responsible for the custody of client’s crypto-assets but outsources this service to a third party crypto-asset custodian. Such an arrangement includes the scenario where a licensee uses a third-party service provider to hold all its clients’ crypto-assets (e.g., all or part of the clients’ private keys).
      (c) The licensee wholly allows clients to “self-custodise” their crypto-assets. Such an arrangement includes scenarios where licensees require clients to self-custodise their crypto-assets. Such licensees only provide the platform for clients to buy and sell crypto-assets. Clients are required to source and use their own third party crypto-asset custodians (which the licensee have no control over or responsibility for). This arrangement also includes the scenario where licensees provide an in-house wallet service for clients, but also allow clients to transfer their crypto-assets out of this wallet to another wallet from a third-party wallet provider chosen by the client (and which the licensee does not control).
      Added: January 2024

    • AU-1.1.22H

      Where investment firm licensees provide a third-party crypto-asset custodian to a client it must undertake an appropriate risk assessment of that crypto-asset custodian. Licensees must also retain ultimate responsibility for safe custody of crypto-assets held on behalf of clients and ensure that they continue to meet all their regulatory obligations with respect to crypto-asset custody service and outsourced activities.

      Added: January 2024

    • AU-1.1.22I

      Investment firm licensees offering the regulated investment services referred to in Paragraph AU-1.1.22D must provide a report from an independent third-party expert that they have established adequate policies, procedures, systems and controls to manage the associated risks and undertake such activities in compliance with the requirements of Chapter FC-11 and Appendix AU-1. In addition, licensees must satisfy the CBB that they have sufficient competence and expertise to undertake the activities.

      Added: January 2024

    • AU-1.1.22J

      For purpose of Paragraph AU-1.1.22D, investment firm licensees must submit a board resolution to undertake the activity together with the following information:

      (a) Description of the services/products;
      (b) Changes to organisation structure and framework (if any);
      (c) Experience of resources responsible for such services and their details; and
      (d) Enhancements to its risk management framework to capture, monitor, measure, control and report risks arising from the activity.
      Added: January 2024