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  • Chapter BR-1 Chapter BR-1 Prudential Reporting

    • BR-1.1 BR-1.1 Quarterly Prudential Reporting

      • BR-1.1.1

        All investment firm licensees must prepare and submit to the CBB a Quarterly Prudential Return ('Form QPR').

        Adopted: July 2007

      • BR-1.1.2

        A copy of Form QPR is contained in Part B of Volume 4 of the CBB Rulebook. As per the reporting instructions for the Form, Category 1 investment firms and Category 2 investment firms are required to complete all sections of the Form. Category 3 investment firms are required to complete only a subset of the sections of the Form, reflecting their more limited range of activities.

        Adopted: July 2007

      • BR-1.1.4

        For each submission an electronic 'soft copy' must be submitted to the CBB.

        Amended: January 2022
        Adopted: July 2007

      • Scope of the Quarterly Prudential Return

        • BR-1.1.5

          The Quarterly Prudential Return must be submitted using the prescribed Form QPR, as contained in Part B of Volume 4 (Investment Business), together with the required auditor's report only for the quarter ending 30 June (or semi-annually, depending on the licensee's financial year-end).

          Amended: October 2009
          Adopted: July 2007

        • BR-1.1.6

          The Quarterly Prudential Return must be completed by every investment firm licensee as follows:

          (a) In the case of an investment firm licensee incorporated in Bahrain, the Quarterly Prudential Return must be completed on a consolidated basis, i.e. showing the assets and liabilities of the licensee concerned (including any of its branches, subsidiaries or associates); and
          (b) In the case of an overseas investment firm licensee, the Quarterly Prudential Return must be completed in respect of the investment business booked by the overseas investment firm licensee in the Bahrain branch only.
          Amended: July 2015
          Adopted: July 2007

      • Valuation of Assets and Liabilities

        • BR-1.1.7

          Amounts included within the Quarterly Prudential Return must be determined in accordance with the recognition and measurement principles specified by International Financial Reporting Standards.

          Adopted: July 2007

      • Auditor's Report

        • BR-1.1.8

          In accordance with Paragraph AA-3.1.1, for Category 1 and Category 2 investment firm licensees, the Quarterly Prudential Returns for the quarter ending 30 June (or semi-annually, depending on the licensee's financial year-end) must be reviewed by the firm's external auditor, unless otherwise exempted in writing by CBB.

          Amended: October 2016
          Amended: January 2012
          Amended: January 2011
          Amended: October 2009
          Adopted: July 2007

        • BR-1.1.9

          The requirement in Rule BR-1.1.8 aims to ensure accuracy and consistency of the financial data presented in Form QPR. Where auditor reviews reveal no material errors in four successive reviews, an exemption from this requirement may be requested. The CBB will normally grant such an exemption, unless it has other supervisory concerns regarding the licensee. However, material reporting errors identified in subsequent Forms QPR may lead to the exemption being withdrawn.

          Amended: October 2009
          Adopted: July 2007

        • BR-1.1.10

          For the purpose of Rule BR-1.1.8, the time allowed for submission of the Auditor's report is 15 calendar days from the date of submission of the return to the CBB.

          Amended: October 2009
          Adopted: July 2007

      • Preparation and Submission of the Quarterly Prudential Return

        • BR-1.1.11

          If the CBB notifies an investment firm licensee that a Form submitted under Rule BR-1.1.1 appears to be inaccurate or incomplete, the investment firm licensee must promptly look into the matter and within 5 business days of the CBB notification (or as otherwise agreed), correct any inaccuracies or make good any omissions, and submit the amended parts of the Quarterly Prudential Return.

          Amended: October 2009
          Adopted: July 2007

        • BR-1.1.12

          [This Paragraph was deleted in January 2022].

          Deleted: January 2022
          Amended: October 2009
          Adopted: July 2007

      • Public Disclosure

        • BR-1.1.13

          Submitted Forms QPR are not public documents and will not be disclosed to third parties by the CBB without the investment firm licensee's consent. However, the CBB may from time to time publish aggregate information derived from such Forms, relating to categories of investment firm licensees or the Bahrain investment business sector as a whole.

          Adopted: July 2007

        • BR-1.1.14

          Whilst submitted Forms QPR are not public documents, investment firm licensees are not prevented from providing complete copies (including all relevant certifications and reports) to third parties.

          Adopted: July 2007

    • BR-1.2 BR-1.2 [This Section was deleted in January 2022]

      • Annual Group Return

        • BR-1.2.1

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.2

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.3

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.4

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.5

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.6

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.7

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.8

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

        • BR-1.2.9

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Adopted: July 2007

    • BR-1.3 BR-1.3 Prudential and Financial Reporting Dates

      • BR-1.3.1

        For the purpose of reporting requirements under this Module, the quarter end of an investment firm licensee must be a 3-month period ending on 31 March, 30 June, 30 September or 31 December.

        Adopted: July 2007

      • BR-1.3.2

        The financial year of an investment firm licensee must be a 12-month period ending on 31 December, except where the firm has obtained the written consent from the CBB for either the period or the period end to be other than 12 months and 31 December respectively. In any event, the financial year can never be less than a 6-month period or greater than an 18-month period.

        Adopted: July 2007

      • BR-1.3.3

        In instances where the financial year end of the parent undertaking is other than 31 December, the investment firm licensee must notify the CBB that its financial year will coincide with that of its parent undertaking.

        Adopted: October 2009

      • BR-1.3.4

        For the purposes of Rule BR-1.3.2 and BR-1.3.3, the CBB would usually accept that the financial year end of a branch be the same as that of its head office (i.e. the company of which it is part). The CBB may also consider allowing licensees that are part of an overseas group to have a different year end, where imposing a December year-end would cause significant difficulties. Otherwise, the only time that the CBB would be likely to consider allowing an investment firm licensee to adopt a financial period of other than 12 months would be the year in which it is authorised, or when the company's shareholders have themselves approved a change in the reporting period for the purposes of its financial statements.

        Amended: October 2009
        Adopted: July 2007

    • BR-1.4 BR-1.4 Other Reporting Requirements

      • Reports Prepared by Licensee

        • BR-1.4.1

          Investment firm licensees must submit, within 3 months of their financial year-end, a report on their controllers (ref. GR-5.1.8 and GR-5.5.3).

          Amended: October 2015
          Adopted: October 2009

        • BR-1.4.2

          Investment firm licensees must submit to the CBB, within 3 months of their financial year-end, a report on their close links (ref. GR-6.1.3).

          Adopted: October 2009

        • BR-1.4.3

          Investment firm licensees must submit to the CBB, within 6 months of their financial year-end, the annual report of their parent company.

          Amended: January 2022
          Amended: July 2012
          Adopted: October 2009

        • BR-1.4.4

          [This Paragraph was deleted in January 2022]

          Deleted: January 2022
          Amended: July 2012
          Adopted: October 2009

        • BR-1.4.5

          As specified in Article 62 of the CBB Law, an investment firm licensee must submit to the CBB its final audited accounts within 3 months of the licensee's financial year-end. Such accounts should be submitted along with the Management Letter prepared by the Auditors for the financial year.

          Adopted: October 2009

        • BR-1.4.5A

          In accordance with Paragraph EN-B.4.6, investment firm licensees must disclose the amount of any financial penalties paid to the CBB, together with a factual description of the reason(s) given by the CBB for the penalty. Investment firm licensees which fail to comply with this requirement will be required to make the disclosure in the annual audited financial statements of the subsequent year and will be subject to an enforcement action for non-disclosure.

          Added: October 2019

        • BR-1.4.6

          Investment firm licensees that are listed companies must observe, while complying with Rule BR-1.4.5, all applicable CBB Capital Market and licensed exchange requirements, as updated by the relevant authorities, with respect to their final audited accounts. These other requirements are currently issued separately, in the form of individual directives issued by the CBB's Capital Markets Supervision Directorate and the licensed exchange (ref. UG-A.1.5).

          Amended: January 2011
          Adopted: July 2010

        • BR-1.4.6A

          Bahraini investment firm licensees must submit to the CBB audited financial statements of their subsidiaries within 3 months of the year end of the subsidiary (ref. GR-10.1.8B).

          Added: October 2016

        • BR-1.4.7

          Investment firm licensees must submit the reports referred to in Paragraph FC-4.2.1 promptly to the Financial Intelligence Unit at the Ministry of the Interior, and submit a copy of the reports to the CBB's Compliance Directorate (FC-4.2.3).

          Amended: January 2022
          Amended: July 2010
          Adopted: October 2009

        • BR-1.4.8

          Investment firm licensees must report any actual or attempted fraud incident (however small) to the CBB and appropriate authorities immediately (ref. FC-10.1.4). This requirement is applicable to Category 1 and Category 2 investment firm licensees only.

          Amended: January 2022
          Amended: July 2010
          Adopted: October 2009

        • BR-1.4.9

          Investment firm licensees must submit a Professional Indemnity Insurance Return (Form PIIR) within 30 calendar days of each quarter (ref. GR-9.1.1). This requirement is applicable to Category 2 and Category 3 investment firm licensees only.

          Amended: January 2022
          Amended: July 2010
          Adopted: October 2009

        • BR-1.4.9A

          Investment firm licensees must submit to the Complaints Unit at the CBB a report summarising the outcome of their complaint handling procedures in accordance with the requirements of Paragraph BC-3.7.1 within 30 calendar days of each quarter end.

          Amended: January 2022
          Adopted: October 2011

      • Reports Prepared by External Auditors

        • BR-1.4.10

          [This Paragraph was deleted in July 2012].

          Deleted: July 2012

        • BR-1.4.11

          Investment firm licensees that hold or control client assets (including where it pools financial instruments held for more than one client) must arrange for their external auditor to report on the licensees' compliance with the requirements contained in Module CL (Client Assets), and submit the report to the CBB within three months of the licensee's financial year end (ref. AA-3.2.1 and CL-1.5.1). This requirement is applicable to Category 1 investment firm and Category 2 investment firm licensees only. Investment firm licensees which do not hold or control Client Assets are obligated to confirm the same annually.

          Amended: April 2018
          Amended: October 2017
          Amended: October 2013
          Amended: July 2010
          Adopted: October 2009

      • IIS Reporting Requirements

        • BR-1.4.12

          Investment firm licensees are required to complete online non-financial information related to their institution by accessing the CBB's institutional information system (IIS). Investment firm licensees must update the required information at least on a quarterly basis or when a significant change occurs in the non-financial information included in the IIS. If no information has changed during the quarter, the investment firm licensees must still access the IIS quarterly and confirm the information contained in the IIS. Licensees must ensure that they access the IIS within 20 calendar days from the end of the related quarter and either confirm or update the information contained in the IIS.

          Amended: January 2013
          Adopted: January 2011

        • BR-1.4.13

          Investment firm licensees failing to comply with the requirements of Paragraph BR-1.4.12 or reporting inaccurate information are subject to financial penalties or other enforcement actions as outlined in Module (EN) Enforcement.

          Amended: April 2011
          Adopted: January 2011

        • BR-1.4.14

          Investment firm licensees must submit to the CBB at least three weeks prior to the prudential meeting date, all compliance reports issued since the last prudential meeting along with status updates on resolved and pending issues.

          Added: July 2023

    • BR-1A.4 BR-1A.4 Onsite Inspection Reporting

      • BR-1A.4.1

        For the purpose of onsite inspection by the CBB, Investment firm licensees must submit requested documents and completed questionnaires to the Inspection Directorate at the CBB three working days ahead of inspection team entry date.

        Added: April 2017

      • BR-1A.4.2

        Investment firm licensees must review the contents of the draft Inspection Report and submit to the Inspection Directorate at the CBB a written assessment of the observations/issues raised within fifteen working days of receipt of such report. Evidentiary documents supporting management's comments must also be included in the response package.

        Amended: January 2022
        Added: April 2017

      • BR-1A.4.3

        Investment firm licensees' board are required to review the contents of the Inspection Report and submit within one month, of the report issue date, a final response to such report along with an action plan addressing the issues raised within the stipulated timeline.

        Added: April 2017

      • BR-1A.4.4

        Investment firm licensees failing to comply with the requirements of Paragraphs BR-1A.4.1 and BR-1A.4.2 are subject to date sensitive requirements and other enforcement actions as outlined in Module (EN) Enforcement.

        Added: April 2017

    • BR-1B.4 BR-1B.4 Report on Private Placements

      • BR-1B.4.1

        When acting as an issuer, promoter or manager of a private placement of securities (excluding CIUs), Investment firm licensees must provide on a semi-annual basis to investors and the CBB a progress report on the private placement. The semi-annual reports are to be provided as of 30th June and 31st December and must be submitted to the investors and the CBB within three months of the reporting period. This requirement is applicable to Category 1 investment firm licensees and Category 2 investment firm licensees only.

        Amended: January 2022
        Amended: January 2020
        Added: October 2018

      • BR-1B.4.2

        The reports referred to in Paragraph BR-1B.4.1 are to be issued for all PPMs issued or distributed for the purpose of solicitation of funds from investors.

        Amended: January 2020
        Added: October 2018

      • BR-1B.4.3

        The requirements for the report on private placements are in addition to any requirements outlined in Module OFS (Offering of Securities) under Volume 6 (Capital Markets).

        Added: October 2018

      • BR-1B.4.4

        Investment firm licensees may opt to issue the required report on a more frequent basis.

        Added: October 2018

      • BR-1B.4.5

        The report required under Paragraph BR-1B.4.1 must be issued for private equity purchases of existing companies, as well as for real estate and other projects under development (in coordination with the real estate developer), and must follow the requirements of Appendix BR-2 under Part B of Volume 4.

        Added: October 2018

      • BR-1B.4.6

        Investment firm licensees which do not act as issuers, promoters or managers for PPMs, and therefore are not subject to the reporting requirement under Rule BR-1B.4.1, are obligated to confirm the same to the CBB on a semi-annual basis, within the deadline stipulated in Rule BR-1B.4.1.

        Added: January 2020