UG-A.1.1

The Central Bank of Bahrain ('the CBB'), in its capacity as the regulatory and supervisory authority for all financial institutions in Bahrain, issues regulatory instruments that licensees and other specified persons are legally obliged to comply with. These regulatory instruments are contained in the CBB Rulebook. Much of the Rulebook’s substantive content was previously issued by the Bahrain Monetary Agency (‘the BMA’), and was carried forward when the CBB replaced the BMA in September 2006.

UG-A.1.2

The Rulebook is divided into 7 Volumes, covering different areas of financial services activity. These Volumes are being progressively issued. Volumes 1 and 2, covering conventional and Islamic bank licensees respectively, were issued in July 2004 and January 2005. This Volume (Volume 3), was issued in April 2005. Volume 4, covering investment business, was issued in April 2006. Volumes 5 (covering specialised licensees), and Volume 6 (capital markets) are being issued gradually. Volume 7 on collective investment undertakings (CIUs) was issued in May 2012.

UG-A.1.3

This User's Guide provides guidance on (i) the status and application of the Rulebook, with specific reference to Volume 3 (Insurance); (ii) the structure and design of the Rulebook; and (iii) its maintenance and version control.

UG-A.1.4

Volume 3 (Insurance) covers insurance licensees, i.e. those CBB licensees that solely undertake regulated insurance services. It contains prudential requirements (such as rules on minimum capital and risk management); and conduct of business requirements (such as rules on providing insurance services and the treatment of policyholders). Collectively, these requirements are aimed at ensuring the safety and soundness of the CBB, and providing an appropriate level of protection for policyholders.

Legal Basis