Back Custom print Link Text Only Rich Text Print

  • Obligation to Maintain Adequate Capital

    • CA-1.1.A

      Bahraini investment firm licensees must calculate their Regulatory Capital based on their shareholders' equity (and other eligible components of Regulatory Capital, as defined in Chapter CA-2).

      Adopted: January 2011

    • CA-1.1.1

      In accordance with Principle of Business 9 (cf. Section PB-1.9), investment firm licensees must maintain adequate human, financial and other resources sufficient to run their business in an orderly manner. This includes meeting the minimum capital requirements specified in Section CA-1.2 onwards and maintaining, at all times, a level of financial resources commensurate with the nature, size and complexity of their business.

      Amended: October 2019

    • CA-1.1.2

      In addition to the minimum capital requirements specified in Section CA-1.2 onwards, the CBB may, at its discretion, require investment firm licensees to hold additional capital, should this be necessary (in the CBB's view) to meet additional risks that are not sufficiently addressed in either the Risk-based Capital Requirement or the Minimum Capital Requirement.

      Amended: October 2009
      Amended: January 2007

    • CA-1.1.3

      The CBB would typically invoke Rule CA-1.1.2 in rare circumstances — for instance, where in its assessment a licensee was running high levels of operational risk because of a particularly weak controls environment.

      Amended: January 2007

    • CA-1.1.4

      Investment firm licensees are required to deposit the initial capital specified in Section AU-5.1.12K in a retail bank licensed to operate in the Kingdom of Bahrain. Assets equivalent to the minimum capital requirement are required to be maintained, at all times, free from any pledge or any other restriction.

      Amended: October 2019
      Adopted: October 2009

    • CA-1.1.5

      In the event that an investment firm licensee fails to meet any of the requirements specified in this Module, it must, on becoming aware that it has breached these requirements, immediately notify the CBB in writing. Unless otherwise directed, the licensee must in addition submit to CBB, within 30 calendar days of its notification, a plan demonstrating how it will achieve compliance with these requirements.

      Amended: October 2009
      Amended: January 2007

    • CA-1.1.5A

      Should the CBB direct an investment firm licensee to inject additional working capital in order to maintain the minimum capital requirements for its category of license, the investment firm licensee may inject cash in the form of a subordinated loan from the shareholders, subject to the CBB's prior approval. Such amount will be included as Tier 2 capital and must have a minimum original fixed term to maturity of more than 5 years (See Rule CA-2.1.8(h)).

      Amended: January 2016
      Amended: January 2013
      Adopted: January 2011

    • CA-1.1.5B

      Subject to the CBB's prior approval, an investment firm licenseemay settle a subordinated debt, partially or in full, prior to the end of its term.

      Added: January 2013

    • CA-1.1.5C

      Where Paragraph CA-1.1.5B applies, the CBB will take into consideration whether the investment firm licensee has received confirmation from its external auditor that the investment firm licensee's financial position has improved and its capability to repay the debt (see Paragraph BR-2.3.27B).

      Added: January 2013

    • CA-1.1.6

      Should an investment firm licensee fail to comply with the requirements of this Module, the CBB may impose enforcement measures, as described in Module EN.

      Amended: October 2009
      Amended: January 2007

    • CA-1.1.7

      [This Paragraph was deleted in July 2015.]

      Deleted: July 2015
      Amended: October 2009

    • CA-1.1.8

      [This Paragraph was deleted in July 2015.]

      Deleted: July 2015
      Amended: October 2009
      Amended: January 2007