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 3investment 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 2023HC-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 certainlicensees (e.g. overseasinvestment 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 2023HC-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 2023HC-B.1.4
Overseas investment firm licensees should satisfy the CBB that equivalent or similar arrangements are in place at either the branch or theparent 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 thelicensee satisfy that compensating alternative arrangements are in place to address any risks relevant to the Bahrain operations.Added: July 2023
