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  • GR-A GR-A Introduction

    • GR-A.1 GR-A.1 Purpose

      • Executive Summary

        • GR-A.1.1

          The General Requirements Module presents a variety of different requirements that are not extensive enough to warrant their own stand-alone Module, but for the most part are generally applicable. These include requirements on books and records; on the use of corporate and trade names; and on controllers and close links. Each set of requirements is contained in its own Chapter: a table listing these and their application to licensees is given in Chapter GR-B.

          Amended: July 2007

      • Legal Basis

        • GR-A.1.2

          This Module contains the Central Bank of Bahrain ('CBB') Directive (as amended from time to time) regarding general requirements applicable to investment firm licensees, and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). This Module contains the requirements governing control in investment firm licensees under Resolution No (27) of 2015. Requirements regarding transfers of business (see Chapter GR-4) are also included in Regulations, to be issued by the CBB.

          Amended: October 2015
          Amended: January 2011
          Adopted: July 2007

        • GR-A.1.3

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

          Adopted: July 2007

    • GR-A.2 GR-A.2 Module History

      • Evolution of Module

        • GR-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: July 2007

        • GR-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.

          Adopted: July 2007

        • GR-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
          GR-A.1.2 07/2007 New Rule, classifying this Module as a Directive.
          GR-B.1.2 07/2007 Reference to GR-10 in table removed, to reflect deletion of this Chapter (the contents of which have been moved to Module AU).
          GR-4 07/2007 Amendments made to align the Chapter with the requirements of the CBB Law.
          GR-5.1 07/2007 Minor changes to align controller requirements with the CBB Law.
          GR-5.2 07/2007 Clarification of definition of controller.
          GR-5.3 07/2007 Clarification of criteria for assessing suitability of controllers.
          GR-5.4 07/2007 Alignment of procedures for approving controllers with CBB Law.
          GR-7 07/2007 Amendments made to align the Chapter with the requirements of the CBB Law.
          GR-1.2.1 01/2008 Clarified the record retention period for customer and transaction records in line with Article 60 of the CBB Law.
          GR-9.1.1A 04/2008 Added Guidance concerning limitations on indemnification coverage.
          GR-B.1 10/2009 Corrected to reflect applicability of Chapter GR-3.
          GR-5.3.3 10/2009 Paragraph changed from Guidance to Rule.
          GR-5.3.5 10/2009 Paragraph changed from Guidance to Rule.
          GR-5.4.2 10/2009 Amended to read notices of refusal.
          GR-7.1 10/2009 Updated to include additional requirements for cessation of business.
          GR-9 10/2009 Amended heading to read Key Provisions
          GR-9.1.1 10/2009 Amended to include reference to Form PIIR.
          GR-9.1.4 10/2009 New rule added regarding professional indemnity insurance needs of licensees.
          GR-9.1.7 10/2009 Prior approval changed to prior notification
          GR-1 07/2010 Updated and amended to include cross reference and new paragraph regarding books and records.
          GR-2.2 07/2010 New section added regarding publication of documents by the licensee.
          GR-3.1.1 07/2010 Updated to include requirement for dividends.
          GR-A.1.2 01/2011 Clarified legal basis.
          GR-3.1.3 01/2011 Expanded guidance dealing with dividends.
          GR-5.1.4A 01/2011 Added a new Rule related to changes in shareholding when legal person is a controller.
          GR-5.1.5 01/2011 Clarified rule.
          GR-5.3.6 01/2011 Corrected minor typo.
          GR-10 04/2011 Added a new Chapter on Subsidiaries, Branches and Representative Offices.
          GR-3.1.3 10/2011 Clarified guidance Paragraph on CBB's non-objection for dividends to be in line with other Volumes of the CBB Rulebook.
          GR-5.3 10/2011 Amended to be in line with other Volumes of the CBB rulebook and to reflect the issuance of Resolution No.(43) of 2011.
          GR-7 10/2011 Clarified language on cessation of business to be in line with other Volumes of the CBB Rulebook.
          GR-1.3.1(d) 01/2012 Added reference to reports from the compliance officer.
          GR-1.1.3 04/2013 Corrected reference to 'transaction' records.
          GR-4.1.12 04/2013 Corrected cross reference to CBB Law.
          GR-B.1.2 07/2013 Added the reference to Chapter GR-10 under the scope of application.
          GR-10.1 07/2013 Various corrections and amendments.
          GR-B.1.2 and GR-8 10/2013 The Chapter on appointed representatives was deleted.
          GR-A.1.2, GR-B.1.2 and GR-5 10/2015 Updated to reflect issuance of Resolution No. (27) of 2015 governing control in investment firm licensees.
          GR-2.2 04/2016 Clarified Rule on publication of documents by the licensee.
          GR-10.1.8B 10/2016 Added reference to Module BR
          GR-5.1.5 01/2017 Consistency of notification timeline rule on controllers with other Volumes of the CBB Rulebook.
          GR-1.2.1 07/2017 Amended paragraph according to the Legislative Decree No. (28) of 2002.
          GR-1.2.2 07/2017 Deleted paragraph.
          GR-3.1.3 10/2017 Added additional requirement to submit when requesting no-objection letter for propose dividend.
          GR-5.1.1A 04/2019 Added a new Paragraph on exposure to controllers.
          GR-5.1.1B 04/2019 Added a new Paragraph on exposure to controllers.
          GR-3.1.1 07/2019 Amended Paragraph.
          GR-1.2.1 01/2020 Amended Paragraph.
          GR-7.1.8 04/2020 Amended Paragraph.
          GR-2.1.1 01/2022 Amended Paragraph on licensee legal and corporate name.
          GR-2.1.3 01/2022 Amended Paragraph on change in licensee legal name.

      • Superseded Requirements

        • GR-A.2.3

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

          Circular Ref. Module Ref. Subject
          BS/07/2004 GR-1 Record-keeping requirements
          BC/8/2000 GR-5 Controllers of, and holdings and transfers of significant ownership or controlling interests in Agency licensees
          Standard Conditions & Licensing Criteria for Licensing for Investment Advisor/Broker GR-1, GR-9, GR-10 Books and Records; Professional Indemnity Insurance
          Standard Conditions & Licensing Criteria for Licensing Investment Advisor/Consultants GR-1, GR-9, GR-10 Books and Records; Professional Indemnity Insurance; License Fees.
          Standard Conditions & Licensing Criteria for Licensing Stockbroking Company GR-1, GR-9, GR-10 Books and Records; Professional Indemnity Insurance; License Fees.
          Standard Conditions & Standard Criteria for Licensing Broking Company GR-1, GR-9, GR-10 Books and Records; Professional Indemnity Insurance; License Fees.

        • GR-A.2.4

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