Back Custom print Link Text Only Rich Text Print

  • Definitions

    • CA-1.2.5

      For Bahraini investment firm licensees, Regulatory Capital is capital held by the firm that satisfies the criteria set out in Chapter CA-2. For overseas investment firm licensees, Regulatory Capital is defined as audited net assets booked in the Bahrain branch, determined in accordance with accounting standards that would be applicable if they were a joint stock company incorporated in Bahrain.

      Amended: July 2007

    • CA-1.2.6

      See Section CA-B.1 above, regarding scope of application. Overseas investment firms are also required to provide information — and meet certain requirements — with respect to the capital adequacy of their parent entity and — where relevant — their wider group. See Module GS (Group Supervision).

    • CA-1.2.7

      Minimum Capital Requirements are:

      (a) Category 1 investment firms: BD 1,000,000;
      (b) Category 2 investment firms: BD 1,000,000 if undertaking the activity of safeguarding financial instruments (i.e. custodian), BD250,000 in all other cases; and
      (c) Category 3 investment firms: BD25,000.
      Amended: April 2023
      Amended: October 2009
      Amended: January 2007

    • CA-1.2.7A

      Category 3 investment firms must maintain adequate liquid funds representing 25% of operating expenses incurred in the preceding financial year at all times in the form of cash or liquid assets that can be converted to cash in the short-term to cover its operating expenses.

      Added: April 2023

    • CA-1.2.8

      The Risk-based Capital Requirement is the sum of a firm's Expenditure Requirement, Position Risk Requirement (PRR), Counterparty Risk requirement (CRR), and Foreign Exchange Risk Requirement (FER), as defined in Chapter CA-3.