Back Custom print Link Text Only Rich Text Print

  • Cancellation of Authorisation

    • C4-1.2.17

      In accordance with Article 50 of the CBB Law, category 4 investment firms wishing to cancel their license or cease activities must obtain the CBB’s written approval, before ceasing their activities. All such requests must be made in writing and include the following in support of the request:

      (a) Full details of the business to be terminated;
      (b) The rationale for the cessation;
      (c) How the licensee proposes to cease business;
      (d) Evidence that the proposed cessation has been duly authorised by the licensee (such as a certified copy of a Board resolution approving the cessation); and
      (e) If applicable, an assessment of the impact of the cessation on the licensee’s remaining business and customers, and any mitigating factors or measures.
      Added: January 2022

    • C4-1.2.18

      Category 4 investment firms, after receiving the CBB’s in-principle approval for cessation of business, must invite the CBB to the Extraordinary General Meeting (EGM) held to seek the shareholder’s approval on the following:

      (a) Cessation and subsequent liquidation of business; and
      (b) Appointment of a liquidator.
      Added: January 2022

    • C4-1.2.19

      Once the shareholders give their approval to cease business, the licensee must publish a notice of its intention to cease business in two local daily newspapers (one in Arabic, the other in English). Notices must also be displayed in the premises (including any branch offices) of the licensee concerned. These notices must be given not less than 30 calendar days before the cessation is to take effect and must include such information as the CBB may specify including a statement that written representations concerning the liquidation may be submitted to the CBB before a specified day, which shall not be later than thirty calendar days after the day of the first publication of the notice. Prior to publication, the draft notices will be reviewed by the CBB.

      Added: January 2022

    • C4-1.2.20

      Upon completion of the period specified in Paragraph C4-1.2.19, category 4 investment firms must request the CBB’s final approval on the cessation and provide the proposed cut-off date. Licensees must also confirm in their request that either no objections to the cessation were received and/or any objections received have been adequately dealt with. The CBB will then grant the final approval to proceed with liquidation.

      Added: January 2022

    • C4-1.2.21

      Upon completion of the liquidation process, the liquidator must provide the CBB with the following:

      (a) Liquidation report;
      (b) Final audited accounts;
      (c) Proof of cancellation of the name of the licensee from the Commercial Registry;
      (d) The original CBB license certificate;
      (e) Proof of payment of publication fees for the CBB to publish the cancellation of license;
      (f) Confirm that there are no outstanding liabilities, claims or legal proceedings; and
      (g) Request the CBB to cancel the license.
      Added: January 2022

    • C4-1.2.22

      The category 4 investment firm must continue to comply with all applicable CBB requirements until such time as it is formally notified by the CBB that its obligations have been discharged and a final written notice of license cancellation is issued.

      Added: January 2022