Bahraini Investment Firm Licensees
RM-B.2.1
Bahraini investment firm licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their branches, whether located inside or outside the Kingdom of Bahrain, such that these are also subject to an effective risk management framework. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.Adopted: July 2007RM-B.2.2
Bahraini investment firm licensees must satisfy the CBB that their subsidiaries and other group members (where relevant) are subject to appropriate arrangements such that they too effectively manage their risks.Adopted: July 2007RM-B.2.3
Where an
investment firm licensee is unable to satisfy the CBB that its subsidiaries and other group members are subject to appropriate risk management arrangements, the CBB will assess the potential impact of risks — both financial and reputational — that this poses to theinvestment firm licensee . The CBB recognises that different types of activity require different approaches to risk management, and it does not necessarily expect arrangements to be in place elsewhere in a group equivalent to those contained in this Module. However, where the CBB assesses that risk management weaknesses in subsidiaries and other group members pose material risks to theinvestment firm licensee , the CBB may impose restrictions on dealings between thelicensee and other group members. Where such weaknesses are assessed by the CBB to pose a major threat to the stability of theinvestment firm licensee , then its authorisation may be called into question.Adopted: July 2007
