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  • C4-A.1 C4-A.1 Purpose and Scope

    • C4-A.1.1

      This Module sets out the Central Bank of Bahrain’s (CBB) regulations for category 4 investment firms offering regulated investment services in the Kingdom of Bahrain. Category 4 investment firms are subject to the provisions of this Module and the following modules of CBB Rulebook Volume 4:

      (a) Authorisation Module (AU Module);
      (b) Principles of Business Module (PB Module);
      (c) Financial Crime Module (FC Module); and
      (d) Enforcement Module (EN Module).
      Added: January 2022

    • C4-A.1.2

      Persons who operate/manage a collective investment undertaking (CIU) within or from the Kingdom of Bahrain and are not otherwise licensed by CBB as a bank, a category 1 investment firm, or a category 2 investment firm are required to be licensed by CBB as category 4 investment firm.

      Added: January 2022

    • C4-A.1.3

      Category 4 investment firms are operators of CIUs targeted at accredited investors i.e. exempt CIUs, venture capital CIUs or private investment undertakings (PIU). Moreover, category 4 investment firms can provide the regulated service of safeguarding financial instruments (i.e. act as custodian) of the venture capital CIUs they operate/manage.

      Added: January 2022

    • C4-A.1.4

      Locally incorporated category 4 investment firms are called Bahraini category 4 investment firms. Investment firms that are incorporated in an overseas jurisdiction and operate via a ‘branch’ presence in the Kingdom of Bahrain are called overseas investment firms.

      Added: January 2022

    • C4-A.1.5

      Persons undertaking certain functions in relation to category 4 investment firms require prior CBB approval. These functions (called 'controlled functions') include directors and members of senior management. The controlled functions requirements supplement the licensing requirements by ensuring that key persons involved in the running of category 4 investment firms are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

      Added: January 2022

    • Legal Basis

      • C4-A.1.6

        This Module contains the CBB’s Directive, Regulation and Resolutions (as amended from time to time) applicable to category 4 investment firms under Volume 4 of the CBB Rulebook. It is issued under the powers available to the CBB under Articles 37 to 42, 44 to 48 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 (‘CBB Law’). It includes the requirements contained in Resolution No (1) of 2007 with respect to determining fees categories due for licensees and services provided by the CBB, Regulation No (1) of 2007 pertaining to the CBB’s regulated services issued under Article 39 of the CBB Law and contains requirements governing the conditions of granting a license for the provision of regulated services as prescribed under Resolution No. (43) of 2011 and issued under the powers available to the CBB under Article 44(c). The Module contains requirements under Resolution No. (16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law. This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015.

        Added: January 2022