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  • Client Money

    • C4-3.3.7

      Category 4 investment firms must hold all client money in a client bank account.

      Added: January 2022

    • C4-3.3.8

      For the purposes of C4-3.3.7, a client bank account is an account holding client money of one or more clients in a bank account designated as such in accordance with the terms of agreement with the client/clients.

      Added: January 2022

    • C4-3.3.9

      Client bank accounts in respect of Bahrain domiciled CIUs may only be opened with banks licensed to do business in the Kingdom of Bahrain unless approved by CBB for any given justifiable circumstances.

      Added: January 2022

    • C4-3.3.10

      If the bank holding client money is located outside the Kingdom of Bahrain, category 4 investment firms should take reasonable steps to establish that the bank is appropriate considering, among other factors, the following:

      (a) Whether it is a duly licensed bank in good regulatory standing in the jurisdiction it operates;
      (b) The capital adequacy of the bank is reasonable;
      (c) The amount of client money to be placed, as a proportion of the bank’s capital and deposits is not disproportionate; and
      (d) The credit rating of the bank, if available is good.
      Added: January 2022