HC-B HC-B Scope of Application[versions up to January 2011]
HC-B.1 HC-B.1 Insurance Licensees[versions up to January 2011]
HC-B.1.1 [versions up to January 2011]
The contents of this Module — unless otherwise stated — apply to all
Bahraini insurance licensees , except those operating as a Bahraini single person company or unincorporated entity.HC-B.1.2 [versions up to January 2011]
Overseas insurance licensees must satisfy the CBB that equivalent arrangements are in place at theparent entity level, and that these arrangements provide for effective high-level controls over activities conducted under the Bahrain license.Overseas insurance licensees must also comply with the specific requirement contained in Paragraph HC-3.1.3 and HC-3.4.3.Amended: January 2007HC-B.1.3 [versions up to January 2011]
In assessing compliance with Paragraph HC-B.1.2, the CBB will take into account regulatory requirements applicable to the
parent entity, as well as the governance and systems and controls arrangements actually implemented by theparent entity and applied to the Bahrain operation. With the exception of specific requirements that explicitly apply tooverseas insurance licensees (i.e. Paragraphs HC-B.1.2 and HC-3.1.3),overseas insurance licensees should consider the remaining contents of this Chapter as guidance, in judging whether high-level controls applied to the branch satisfy HC-B.1.2.Amended: January 2007HC-B.2 HC-B.2 Branches, Subsidiaries and Affiliates[versions up to January 2011]
HC-B.2.1 [versions up to January 2011]
Bahraini insurance licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to theirbranches , whether located inside or outside the Kingdom of Bahrain, such that these are also subject to effective high-level controls. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.HC-B.2.2 [versions up to January 2011]
Bahraini insurance licensees must satisfy the CBB that financial services activities conducted insubsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective high-level controls over their activities.Amended: January 2007HC-B.2.3 [versions up to January 2011]
Where an
insurance licensee is unable to satisfy the CBB that itssubsidiaries and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — to the licensee arising from inadequate high-level controls in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between the licensee and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of the licensee, then its authorisation may be called into question.Amended: January 2007
