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  • Business Transfers

    • C4-1.2.25

      Category 4 investment firms must seek prior written approval from the CBB before transferring any of its business to a third party.

      Added: January 2022

    • C4-1.2.26

      Paragraph C4-1.2.25 is intended to apply to circumstances where a category 4 investment firm wishes to sell all or part of its business to a third party. It does not apply where a category 4 investment firm is simply allocating client assets to a third party, on instruction from the client concerned or managing client assets through another asset manager.

      Added: January 2022

    • C4-1.2.27

      In the case of a Bahraini category 4 investment firm, business transfer requirements apply both to its business booked in Bahrain and in the firm’s overseas branches. In the case of an overseas category 4 investment firm, the requirements only to business booked in the firm’s Bahrain branch.

      Added: January 2022

    • C4-1.2.28

      In all cases, CBB approval to transfer business will only be given where:

      (a) The transfer of business will not damage or otherwise prejudice the legitimate interests of the licensee’s customers;
      (b) The transferee is duly licensed to undertake the business which it is to receive; and
      (c) The CBB is satisfied that the transfer will not breach any applicable laws or regulations and would not create any supervisory concerns.
      Added: January 2022

    • C4-1.2.29

      In assessing the criteria outlined in Paragraph C4-1.2.28, the CBB will, amongst other factors, take into account the financial strength of the transferee; its capacity to manage the business being transferred; its track record in complying with applicable regulatory requirements; and (where applicable) its track record in treating customers fairly. The CBB will also take into account the impact of the transfer on the transferor, and any consequences this may have for the transferor’s remaining customers.

      Added: January 2022

    • C4-1.2.30

      Category 4 investment firms seeking to obtain the CBB’s permission to transfer business must provide the following information in their request:

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

    • C4-1.2.31

      Licensees intending to apply to transfer business are advised to contact the CBB at the earliest possible opportunity, prior to submitting a formal application, in order that the CBB may determine the nature and level of documentation to be provided and the need for an auditor or other expert opinion to be provided to support the application.

      Added: January 2022

    • C4-1.2.32

      At its discretion, the CBB may require that a notice of proposed transfer of business be published in the Official Gazette, and/or in at least two local daily newspapers (one in Arabic, the other in English), in order to give affected customers, the right to comment on the proposed transfer. Where such a requirement has been imposed, the CBB’s decision on the application will also be published in the Official Gazette and in at least two local daily newspapers. In all such cases, the costs of publication must be met by the transferor.

      Added: January 2022