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  • AA-A AA-A Introduction

    • AA-A.1 AA-A.1 Purpose

      • Executive Summary

        • AA-A.1.1

          This Module presents requirements that have to be met by insurance licensees with respect to the appointment of external auditors and actuaries (the requirement for actuaries is only applicable to insurance firms). This Module also sets out certain obligations that external auditors and actuaries have to comply with, by virtue of their appointment by insurance licensees.

          Amended: January 2007

        • AA-A.1.2

          This Module is issued under the powers given to the Central Bank of Bahrain ('the CBB') under Decree No. (64) of 2006 with respect to promulgating the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). It supplements Article 61 of the CBB Law, which requires licensees to appoint an external auditor acceptable to the CBB and Articles 72 to 74 dealing with actuaries.

          Amended: January 2007
          Amended: October 2007

      • Legal Basis

        • AA-A.1.3

          This Module contains the CBB's Directive (as amended from time to time) relating to auditors and actuaries and is issued under the powers available to the CBB under Article 38 of the CBB Law. The Directive in this Module is applicable to insurance licensees.

          Amended: January 2011
          Amended: October 2007
          Adopted: January 2007

        • AA-A.1.4

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          Adopted: January 2007

    • AA-A.2 AA-A.2 Module History

      • AA-A.2.1

        This Module was first issued in April 2005 by the BMA, together with the rest of Volume 3 (Insurance). Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

        Amended: January 2007

      • AA-A.2.2

        When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 3 was updated in January 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        Amended: January 2007

      • AA-A.2.3

        A list of recent changes made to this Module is detailed in the table below:

        Module Ref. Change Date Description of Changes
        AA-3.1 01/10/05 Corrected reference to Form IFR and IMR
        AA-4.1 01/10/05 Added transition rule for requirement for reporting actuary for insurance firms whose long-term insurance business is restricted to group life policies having a maturity of less than or equal to 1 year.
        AA-4.3.2 01/07/06 Added a requirement that the Signing Actuary is subject to the approval of the CBB.
        AA-A.1.3 01/2007 New Rule introduced, categorising this Module as a Directive.
        AA-1.2.3 01/2007 Rule redrafted to clarify reporting obligation.
        AA-1.5 01/2007 Paragraphs AA-1.5.3 and AA-1.5.5 updated to reflect CBB Law requirements on auditor independence.
        AA-3.1.1 01/2007 Clarified that the external auditor's Agreed Upon Procedures are to be submitted to the CBB within four months from the insurance licensee's financial year end.
        AA-3.2 01/2007 Added a new section referring to the audit report required as per Module FC.
        AA-3A 01/2007 Added a new Chapter on Accounting Standards
        AA-4.1.7 01/2007 Clarified that the first three-year period referred to for the report of the signing actuary is for the period ending 31 December 2008.
        AA-1.3.1A 10/2007 Clarified the transition period for the rotation of audit partner.
        AA-4 10/2007 Amended Actuarial reports Chapter to reflect new definitions of Registered Actuary and Signing Actuary
        AA-2.3 01/2008 Corrected reference to Registered Actuary.
        AA-A.1.3 01/2011 Clarified legal basis.
        AA-3.2.1 10/2012 Clarified that an approved consultancy firm can also provide the report on compliance with financial crime rules required under Section FC-3.3.
        AA-1.5.2 04/2013 Changed Guidance to Rule so that insurance licensees may not outsource their internal audit function to the same firm that acts as their external auditor.
        AA-4 04/2014 Amended to be in line with updated actuarial requirements.
        AA-3.2.2 07/2021 Amended Paragraph.

      • AA-A.2.4

        Guidance on the implementation and transition to Volume 3 (Insurance) is given in Module ES (Executive Summary).