CA-A.1 CA-A.1 Purpose
Executive Summary
CA-A.1.1
This Module lays down requirements that apply to all
investment firm licensees , with respect to the minimum level of capital they must maintain.Category 1 investment firms are also required to make their own assessment of the appropriate level of capital that they need to hold.Amended: January 2007CA-A.1.2
Principle 9 of the Principles of Business requires that
investment firm licensees maintain adequate human, financial and other resources, sufficient to run their business in an orderly manner (see Section PB-1.9). In addition, Condition 5 of the Central Bank of Bahrain's ('CBB') Licensing Conditions (Section AU-2.5) requiresinvestment firm licensees to maintain financial resources in excess of the minimum requirements specified in Module CA (Capital Adequacy).Amended: January 2011
Amended: January 2007CA-A.1.3
The requirements specified in this Module vary according to the category of
investment firm licensee concerned, their inherent risk profile, and the volume and type of business undertaken. The purpose of such requirements is to ensure thatinvestment firm licensees hold sufficient capital to provide some protection against unexpected losses, and otherwise allow investment firms to effect an orderly wind-down of their operations, without loss to their customers or those of other firms. The minimum capital requirements specified here are not sufficient to absorb all unexpected losses.Legal Basis
CA-A.1.4
This Module contains the CBB's Directive (as amended from time to time) relating to the capital adequacy of
investment firm licensees , and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to allinvestment firm licensees .Amended: January 2011
Adopted: January 2007CA-A.1.5
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
Adopted: January 2007
