SIO-13.5 The Role of the Appointed Expert
SIO-13.5.1
The content of this Chapter is applicable to all stablecoin issuers and appointed experts.
Added: July 2025SIO-13.5.2
The purpose of the contents of this Chapter is to highlight the roles and responsibilities of appointed experts when appointed pursuant to Articles 114 or 121 of the CBB Law.
Added: July 2025SIO-13.5.3
The CBB uses its own inspectors to undertake on-site examinations of stablecoin issuers as an integral part of its regular supervisory role. In addition, the CBB may commission reports on matters relating to the business of stablecoin issuers in order to assist it in assessing their compliance with CBB requirements.
Added: July 2025SIO-13.5.4
Appointed experts must not be the same firm appointed as external auditor of the stablecoin issuer.
Added: July 2025SIO-13.5.5
The CBB will decide on the range, scope and frequency of work to be carried out by appointed experts.
Added: July 2025SIO-13.5.6
The appointment of an appointed expert will be made in writing directly with the appointed experts concerned. A separate letter is sent to the stablecoin issuer, notifying them of the appointment. At the CBB’s discretion, a trilateral meeting may be held at any point, involving the CBB and representatives of the stablecoin issuer and the appointed experts, to discuss any aspect of the inspection or investigation or the report produced by the appointed expert.
Added: July 2025SIO-13.5.7
Following the completion of the investigation, the CBB will normally provide feedback on the findings of the investigation to the stablecoin issuer.
Added: July 2025SIO-13.5.8
Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to the stablecoin issuer’s group structure). The report produced by the appointed experts is the property of the CBB.
Added: July 2025SIO-13.5.9
Compliance by appointed experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a particular stablecoin issuer (i.e. create a conflict of interest).
Added: July 2025SIO-13.5.10
The CBB may appoint one or more of its officials to work with the appointed experts’ team for a particular stablecoin issuer.
Added: July 2025The Required Report
SIO-13.5.11
The scope of the required report will be determined and detailed by the CBB in the appointment letter. Appointed experts would normally be required to report on one or more of the following aspects of a stablecoin issuer’s business:
(a) Accounting and other records;(b) Internal control systems;(c) Returns of information provided to the CBB;(d) Operations of certain departments; and/or(e) Other matters specified by the CBB.Added: July 2025SIO-13.5.12
Appointed experts will be required to form an opinion on whether, during the period examined, the stablecoin issuer is in compliance with the relevant provisions of the CBB Law and the CBB’s other requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.
Added: July 2025Other Notifications to the CBB
SIO-13.5.13
Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, including that the licensing conditions are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concerned stablecoin issuer, or that the interests of clients are at risk because of adverse changes in the financial position or in the management or other resources of the stablecoin issuer. Notwithstanding the above, it is primarily the stablecoin issuer’s responsibility to report such matters to the CBB.
Added: July 2025Permitted Disclosure by the CBB
SIO-13.5.14
Appointed experts must keep all information relating to the stablecoin issuer confidential and not divulge it to a third party except with the CBB’s written permission or unless required by applicable laws in the Kingdom of Bahrain.
Added: July 2025
