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    • Independent Director

      Determination by the Board. Under Module HC an 'independent director' is a director whom the board has specifically determined has no material relationship which could affect his independence of judgment, taking into account all known facts. The board should consider that, although a particular director meets the formal requirements, he may not be independent owing to specific circumstances of the person or the investment firm licensee, ownership structure of the investment firm licensee, or for any other reason. The board's determination should be a good faith finding after diligent review and full discussion.

      Formal Requirements. 'Independent director' means a director of the investment firm licensee who, or whose family shareholders either separately or together with him or each other, does not have any material pecuniary relationships or transactions with the investment firm licensee (not counting director's remuneration for this purpose) and in particular who, during the one year preceding the time in question met all the following conditions:

      (a) Was not an employee of the company;
      (b) Did not:
      (i) Make to, or receive from, the investment firm licensee payments of more than 31,000 BD or equivalent (not counting director's remuneration);
      (ii) Own more than a 10% share or other ownership interest, directly or indirectly, in an entity that made to or received from the investment firm licensee payments of more than such amount;
      (iii) Act as a general partner, manager, director or officer of a partnership or company that made to or received from the investment firm licensee payments of more than such amount;
      (iv) Have any significant contractual or business relationship with the investment firm licensee which could be seen to materially interfere with the person's capacity to act in an independent manner,
      (c) Did not own directly or indirectly (including for this purpose ownership by any family member or related person) 5% or more of the shares of any type or class of the investment firm licensee;
      (d) Was not engaged directly or indirectly as an auditor or professional advisor for the investment firm licensee,
      (e) Was not an associate of a Director or a member of senior management of the investment firm licensee, and
      (f) Was not an associate of a Director, member of senior management or board member of the investment firm licensee’s controller.

      For purposes of this definition, the 'payments' referred to in paragraph (b)(i), (b)(ii) and (b) (iii) do not include monies received from dividends and investment accounts; reference to such payments only applies to contractual payments for services rendered to the licensee by the director or company concerned, or paid (or payable) by the concerned director or company to the licensee for services provided by the licensee.

      Dividends and investment accounts are to be considered under item (b)(iv) of the definition.

      For the purpose of the definition of "independent director":

      (a) Where the term "family" or "family member or related persons" is used reference is made to: spouse, father, mother, son(s) or daughter(s); and
      (b) Where the term "associate" is used reference is made to:
      (i) Spouse, father, mother, son(s) or daughter(s); or
      (ii) A person who is an employee or partner.
      Amended: October 2020
      Amended: July 2020
      Amended: January 2012
      Amended: October 2011
      Added: January 2011

    • Initial Capital Requirement

      Initial capital requirements, as defined in Rule CA-1.2.7, are:

      (a) For Category 1 investment firms, BD 1,000,000;
      (b) For Category 2 investment firms, BD 1,000,000 if undertaking the activity of safeguarding financial instruments (i.e. custodian), BD 250,000 in all other cases; and
      (c) For Category 3 investment firms, BD 125,000.
      Amended: January 2011
      Amended: July 2007

    • Insurance licensee

      A person licensed under Volume 3 of the CBB Rulebook.

      Amended: July 2007

    • Investigator

      An Investigator is a person appointed by the CBB under the authority of Article 121 of the CBB Law to carry out an investigation of the business of a licensee or listed company.

      Added: Oct 09

    • Investment adviser

      A person who performs the function of arranging deals (on behalf of a client) in financial instruments, and/or advising a client on financial instruments (cf. Rule AU-1.2.13).

    • Investment analyst

      An employee of an investment firm licensee who prepares investment research.

    • Investment Business Code of Practice ('the Code')

      The Investment Business Code of Practice contained in Chapter BC-2.

    • Investment consultant

      See definition of investment adviser above.

    • Investment firm license

      A license issued by CBB under Volume 4 of the CBB Rulebook.

      Amended: July 2007

    • Investment firm licensee

      A person licensed under Volume 4 of the CBB Rulebook to undertake regulated investment business services.

      Amended: July 2007

    • Investment Management

      “Investment management” shall mean managing investments or assets in accordance with mandates given by the client, managing a portfolio of assets on a discretionary client-by-client basis where such investments include financial instruments, crypto-assets and other assets, and would include the activity of formation, origination and management of special purpose vehicles, trusts, investment limited partnerships, protected cell companies, collective investment undertakings and or other local or overseas domiciled legal vehicles.

      Added: October 2023

    • Investment research

      A document (other than a recommendation made to an individual client), distributed outside an investment firm licensee, which contains one or more of the following:

      (a) The results of research into an individual financial instrument;
      (b) Analysis of factors likely to influence the future performance of an individual financial instrument or its issuer; and
      (c) Advice or recommendations based on those results or that analysis.
      Amended: January 2011
      Amended: July 2007

    • Islamic bank licensee

      A person licensed under Volume 2 of the CBB Rulebook to undertake regulated Islamic banking services.

      Amended: July 2007

    • Islamic investment firm(s)

      An investment firm licensee, all of whose operations are conducted in compliance with Shar'ia principles.

      Amended: July 2007