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  • Client Money

    • CL-1.1.6

      An investment firm licensee must hold client money in a client bank account.

    • CL-1.1.7

      For the purposes of CL-1.1.5, a client bank account is an account holding client money of one or more clients in a bank account designated as such in accordance with the terms of agreement with the client/clients.

    • CL-1.1.8

      Client bank accounts may only be opened with banks licensed to do business in the Kingdom of Bahrain, after being subject to due diligence by the investment firm licensee. Islamic investment firms may only hold client bank accounts with Islamic banks licensed to do business in the Kingdom of Bahrain.

      Amended: April 2008

    • CL-1.1.9

      For the purposes of CL-1.1.8, when undertaking due diligence, the investment firm licensee should take reasonable steps to establish that the bank is appropriate considering, among other factors, the following:

      (a) Whether it is a duly licensed bank in good regulatory standing;
      (b) The capital adequacy of the bank;
      (c) The amount of client money to be placed, as a proportion of the bank's capital and deposits; and
      (d) The credit rating of the bank, if available.
      Amended: January 2007