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  • HC-B Scope of Application

    • HC-B.1 Scope of Application

      • HC-B.1.1

        The contents of this Module, unless otherwise stated, apply to Category 1, Category 2 and Category 3 investment firm licensees. The requirements in this Module must, however, be treated as guidance for Category 3 investment firm licensees , except for Paragraphs HC-1.1.3, HC-2.2.3, HC-2.3.3, HC-3.1.6, HC-7.1.1, HC-8.1.1, HC-9.1.1 and HC-9.1.2, which must be treated as Rules.

        Added: July 2023

      • HC-B.1.2

        The implementation of the rules in this Module should be commensurate with the size, complexity, structure, economic significance, risk profile and business model of the licensee and the group to which it belongs, if any. In cases of certain licensees (e.g. overseas investment firm licensees, smaller and limited scope firms where CBB assesses that certain specific rules in this Module are less relevant or too cumbersome to apply, it will be willing to consider alternative governance arrangement.

        Added: July 2023

      • HC-B.1.3

        For overseas investment firm licensees, all references in this Module to the board of directors or a board sub-committee should be interpreted as references to the Head Office (HO), Regional Office (RO) or the relevant function(s) at HO or RO (as applicable).

        Added: July 2023

      • HC-B.1.4

        Overseas investment firm licensees should satisfy the CBB that equivalent or similar arrangements are in place at either the branch or the parent entity level, and that such arrangements provide for effective high-level controls over activities conducted by the branch, commensurate with the size, complexity, nature and the risk profile of the branch. If the branch is unable to satisfy the CBB that the governance arrangements are equivalent, the CBB will assess the potential impact of risks and require that the licensee satisfy that compensating alternative arrangements are in place to address any risks relevant to the Bahrain operations.

        Added: July 2023

    • HC-B.2 Subsidiaries and overseas Branches of Bahraini Investment Firm Licensees

      • HC-B.2.1

        Licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their subsidiaries and overseas branches. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.

        Added: July 2023

      • HC-B.2.2

        Where a licensee is unable to satisfy the CBB that its subsidiaries and overseas branches are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks to the licensee arising from inadequate high-level controls. In such instances, the CBB may impose certain restrictions on the licensee. Where weaknesses in controls are assessed by the CBB to pose a major threat to the financial soundness of the licensee and/or the financial stability in the Kingdom, then its license may be called into question.

        Added: July 2023