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  • Category 3

    • AU-1.1.17

      For the purposes of Volume 4 (Investment Business), Category 3 investment firms may undertake (subject to Rules AU-1.1.18 and AU-1.1.19) the following regulated investment services only:

      (a) Arranging deals in financial instruments;
      (b) Advising on financial instruments; and
      (c) Arranging Credit and Advising on Credit.
      Amended: July 2020
      Added: July 2007

    • AU-1.1.18

      When undertaking either of the regulated investment services listed under Rule AU-1.1.17, Category 3 investment firms:

      a) Must be independent;
      b) May not hold any client assets;
      c) Must refrain from receiving any fees or commissions from any party other than the client; and
      (d) Must not have an 'agency' relationship (tied agent) with an investment provider.
      Amended: October 2016
      Amended: October 2009
      April 2008
      Amended: July 2007

    • AU-1.1.18A

      In assessing the independence of a Category 3 investment firm, the CBB will take into account the regulated investment services offered in relation to financial instruments of a related party.

      Amended: October 2016
      Adopted: April 2008

    • AU-1.1.18B

      For the purpose of Paragraph AU-1.1.18A, a related party of a Category 3 investment firm includes:

      (a) A controller of the Category 3 investment firm as defined in Module GR;
      (b) A close link of the Category 3 investment firm as defined in Module GR;
      (c) An associate of a controller as defined in Module GR;
      (d) The extended family of a controller including a father, mother, father-in-law, mother-in-law, brother, sister, brother-in-law, sister-in-law, or grandparent;
      (e) A corporate entity, whether or not licensed or incorporated in Bahrain, where any of the persons identified in Sub-Paragraphs (c) and (d) is a Director or would be considered a controller were the definition of controller set out in Paragraph GR-5.2.1 applied to that corporate entity; and
      (f) [This Subparagraph has been deleted].
      Amended: October 2016
      Adopted: April 2008