ES-1.1 ES-1.1 Structure of Volume 4 (Investment Business)
ES-1.1.1
Volume 4 of the Rulebook covers the investment business sector, i.e. the provision of
regulated investment services byinvestment firm licensees . It also includes requirements regardingapproved persons .Amended: October 2009ES-1.1.2
Volume 4 excludes representative offices of
overseas investment firm licensee , andancillary services providers : these activities are covered by separate regulations (see AU-A.1.11 and AU-A.1.12). These regulations will later be incorporated into Volume 5 (Specialised Activities) of the CBB Rulebook, to be released later.Amended: July 2010
Amended: January 2007ES-1.1.3
Volume 4 is made up of two volumes: Part A is the main Volume (comprising a range of Modules that contains all applicable Rules and Guidance), whilst Part B is an appendix Volume (containing a glossary of defined terms, CBB authorisation forms, CBB reporting forms and supplementary information).
Amended: July 2010
Amended: January 2007ES-1.1.4
Part A of Volume 4 is organised under the following headings:
• Introduction• High Level Standards• Business Standards• Reporting Requirements• Enforcement and Redress; and• Sector GuidesAmended: July 2010ES-1.1.5
Including this Executive Summary Module, there are plans to issue 23 Modules for inclusion in Part A of Volume 4 (Investment Business). It is planned to release Volume 4 in two phases: the first phase release was in April 2006, and comprised 11 Modules, including most of the key requirements. Remaining Modules will be issued later.
Amended: July 2010
Amended: October 2009
Amended: January 2007ES-1.1.6
Each Module covers a particular subject area — such as capital or conduct of business. The requirements are tailored according to the three categories of
investment firm licensee provided for under the authorisation rules, reflecting the different risk profiles of these categories. Sector Guide Modules, to be released as part of the second phase release, will summarise the key elements of the requirements for each of these 3 categories of investment firm, as well as summarise the additional requirements applicable to those investment firms operating purely on a Shari'a compliant basis.Amended: January 2007ES-1.1.7
Part B of Volume 4 is organised under the following headings:
• Glossary• Authorisation Forms• Reporting Forms• Supplementary InformationAmended: July 2010ES-1.1.8
Defined terms used in the Rulebook are underlined; their definitions can be found in the Glossary. Each Volume has its own Glossary, as definitions of terms used apply only to the Volume in question. It is possible for the same term to be used in a different Volume with a different meaning.
ES-1.1.9
There are three authorisation forms, comprising (i) Form 1 (application for a license); (ii) Form 2 (application for the authorisation of a
controller ); and (iii) Form 3 (application forapproved person status); and (iv) Form 4 (application for registration).Amended: January 2007ES-1.1.10
When completed, Volume 4 will also contain 4 reporting forms: (i) Form QPR (Quarterly Prudential Return); (ii) Form AGR (Annual Group Return); and (iii) Form STR (Suspicious Transaction Report) and (iv) Form ALF (Annual Licence Fee).
Amended: July 2007ES-1.1.11
Finally, space is provided in Part B of Volume 4 for any supplementary information that may be of use to users of the Rulebook. For the time being, Part B contains various additional documents relevant to the Financial Crime Module, notably a copy of Bahrain's anti-money laundering legislation (Amiri Decree Law No. 4 of 2001). It also includes information related to the Client Assets Module (CL) and Enforcement Module (EN).
Amended: July 2010
