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  • AA-A.2 AA-A.2 Module History

    • Evolution of Module

      • AA-A.2.1

        This Module was first issued in April 2006 by the BMA, as part of the first phase of Volume 4 (Investment Business) to be released. 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 4 was updated in July 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        Added: January 2007

      • AA-A.2.3

        A list of recent changes made to this Module is provided below:

        Module Ref. Change Date Description of Changes
        AA-A.1 07/2007 New Rule AA-A.1.3 introduced, categorising this Module as a Directive.
        AA-1.2 07/2007 Rule AA-1.2.3 redrafted to clarify reporting obligation
        AA-1.5 07/2007 Paragraphs AA-1.5.4 and AA-1.5.6 updated to reflect CBB Law requirements on auditor independence.
        AA-3.1.1 04/2008 Clarified that auditor's review is to be attached to the QPR.
        AA-1.5 10/2009 Paragraphs AA-1.5.2 and AA-1.5.3 updated to clarify outsourcing of internal audit function.
        AA-3.1.1 10/2009 Updated to reflect requirement in Module BR.
        AA-5 07/2010 New Chapter added regarding Reporting Accountants.
        AA-A.1.3 01/2011 Clarified legal basis.
        AA-1.1.1A 01/2011 Added Guidance referring to the CBB's power to appoint an external auditor should the investment firm licensee fail to do so.
        AA-5 10/2011 Chapter amended and content moved to Section BR-3.5 and retitled as Role of External Auditor as Appointed Expert.
        AA-3.3 01/2012 Deleted Section on Compliance with Financial Crime Rules.
        AA-4.1 10/2014 Clarified the application of accounting standards for investment firms based on whether they undertake conventional and/or Shari'a compliant activities.
        AA-3.1 07/2016 Clarified that this requirement only applies to Category 1 and Category 2 investment firm licensees.
        AA-3.2.1 10/2017 Amended Paragraph to clarify that licensees are to formally declare in writing that they do not possess any Client assets.
        AA-3.2.2 04/2018 Amended Paragraph.

    • Superseded Requirements

      • AA-A.2.4

        This Module supersedes the following provisions contained in circulars or other regulatory instruments:

        Circular / other reference Provision Subject
        Standard Conditions and Licensing Criteria: investment advisers/brokers. Article 7 Auditors
        Standard Conditions and Licensing Criteria: broking company Article 6 Auditors
        Standard Conditions and Licensing Criteria: stockbrokerage Article 6 Auditors

      • AA-A.2.5

        Guidance on the implementation and transition to Volume 4 (Investment Business) is given in Module ES (Executive Summary).