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  • GR-5.4 GR-5.4 Approval Process for Bahraini Investment Firm Licensees

    • GR-5.4.1

      Within 3 months of receipt of an approval request under Paragraph GR-5.1.1, with the complete documentation requirements to the satisfaction of the CBB, the CBB will issue a written notice of approval or of refusal by registered mail, to the Bahraini investment firm licensee and the applicant. Where an approval notice is given, it will specify the period for which it is valid and any conditions that may be applied.

      Amended: October 2015
      Amended: July 2007

    • GR-5.4.1A

      The CBB may refuse an application for approval if the applicant does not meet the criteria set forth in Section GR-5.3. The notice of refusal will specify the reasons for the objection and specify the applicant s right of appeal.

      Added: October 2015

    • GR-5.4.2

      Article 53 of the CBB Law allows the CBB up to 3 months in which to respond to an application, although the CBB normally aims to respond within 30 calendar days. Notices of refusal have to be approved by the concerned Executive Director of the CBB.

      Amended: October 2015
      Amended: October 2009
      Adopted: July 2007

    • Appeal Process

      • GR-5.4.2A

        The applicant has 30 calendar days from the date of a notice in which to appeal a decision to refuse the application or any conditions imposed as a condition of approval. The CBB then has 30 calendar days from the date of the appeal in which to consider any mitigating evidence submitted and make a final determination.

        Added: October 2015

      • GR-5.4.3

        Where a person has become a controller by virtue of their shareholding in contravention of Paragraph GR-5.1.1, or a notice of refusal has been served on them under Paragraph GR-5.4.1 and the period of appeal has expired, the CBB may, by notice in writing served on the person concerned, instruct the person concerned to transfer such shares, or refrain from exercising voting rights in respect of such shares.

        Amended: July 2007

      • GR-5.4.4

        If the person concerned fails to take the action specified under Paragraph GR-5.4.3, then the CBB may seek a court order to take appropriate measures: these may include forcing the person to sell their shares.

        Adopted: July 2007

      • GR-5.4.5

        [This Paragraph was deleted in October 2015.]

        Deleted: October 2015
        Adopted: July 2007

      • GR-5.4.6

        In addition to the above requirements, Bahraini investment firm licensees are encouraged to notify the CBB as soon as they become aware of events that are likely to lead to major changes in their controllers. Any supervisory implications of such changes can then be discussed prior to the filing of a formal approval request.

        Amended: October 2015
        Adopted: July 2007

      • GR-5.4.7

        The CBB may contact references and supervisory bodies in connection with any information provided to support an application for controller. The CBB may also ask for further information, in addition to that provided in the Form 2, if required to satisfy itself as to the suitability of the applicant.

        Added: October 2015

      • GR-5.4.8

        In accordance with Paragraph EN-8.2.6, and where a controller is a natural person, the CBB may, depending on the seriousness of a situation, impose enforcement measures, which may include disqualification from being a controller of any licensed firm.

        Added: October 2015