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  • Financial Resources

    • C4-1.1.14

      Category 4 investment firms must maintain a level of financial resources, as agreed with the CBB, adequate for the level of business proposed. In all cases, category 4 investment firms must maintain a minimum capital of:

      (a) BD 100,000 if it operates exempt CIUs and PIUs; and
      (b) BD 25,000 if it only operates/manages venture capital CIUs.
      Added: January 2022

    • C4-1.1.15

      The CBB may require category 4 investment firms to maintain higher capital and liquidity than those specified in Paragraph C4-1.1.14 depending on the nature, size and profile of the licensee on a case by case basis.

      Added: January 2022

    • C4-1.1.16

      An investment by a category 4 investment firm into a CIU it operates (or directly into any company underlying a CIU it operates) must only be made out of the capital it holds in excess of its minimum capital.

      Added: January 2022

    • C4-1.1.17

      For the purposes of Paragraph C4-1.1.14, capital is defined as the shareholder’s equity or the net assets of the licensee.

      Added: January 2022

    • C4-1.1.18

      In the event that a category 4 investment firm fails to meet the minimum capital requirements, it must, on becoming aware that it has breached these requirements, immediately notify the CBB in writing. Unless otherwise directed, the licensee must in addition submit to the CBB, within 30 calendar days of its notification, a plan demonstrating how it will achieve compliance with these requirements.

      Added: January 2022

    • C4-1.1.19

      Category 4 investment firms must maintain adequate liquid funds representing 25% of operating expenses incurred in the preceding financial year at all times in the form of cash or liquid assets that can be converted to cash in the short-term to cover its operating expenses.

      Added: January 2022

    • C4-1.1.20

      For the purposes of Paragraph C4-1.1.15, Category 4 investment firms in their first year of operation should use the estimated forecasted operating expenses as per the business plan submitted to the CBB at the time of obtaining the CBB license as the basis of computation of liquid funds.

      Added: January 2022

    • C4-1.1.21

      Overseas applicants must provide a written confirmation from their head office that they will provide sufficient financial support to the branch to enable them to meet their obligations as and when they fall due. Overseas applicants must also demonstrate that the company as a whole will be adequately resourced at all times to cater to the risks and their obligations.

      Added: January 2022