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  • Executive Summary

    • AU-A.1.1

      The Authorisation Module sets out the Central Bank of Bahrain's (CBB) approach to licensing providers of regulated investment services in the Kingdom of Bahrain. It also sets out CBB requirements for approving persons in those providers.

      Amended: January 2011
      Amended: July 2007

    • AU-A.1.2

      Persons who provide any of the following regulated investment services within or from the Kingdom of Bahrain, and are not otherwise licensed by CBB as a bank, are required to be licensed by CBB as an investment firm licensee:

      a) Dealing in financial instruments as principal;
      b) Dealing in financial instruments as agent;
      c) Arranging deals in financial instruments;
      d) Managing financial instruments;
      e) Safeguarding financial instruments (i.e. a custodian);
      f) Advising on financial instruments; and
      g) Operating a collective investment undertaking (i.e. an operator)
      Amended: July 2007

    • AU-A.1.3

      Four categories of investment firm license are provided for under the CBB Rulebook, depending on the type of regulated investment services undertaken. The requirements in Volume 4 (Investment Business) are tailored in certain respects, according to the license category concerned, in order to address the specific features and risks associated with each type of regulated investment service.

      Amended: January 2022
      Amended: July 2007

    • AU-A.1.4

      Collectively, licensed providers of regulated investment services are called investment firm licensees. Bahrain-incorporated investment firm licensees are called Bahraini investment firm licensees. Investment firm licensees that are incorporated in an overseas jurisdiction and operate via a branch presence in the Kingdom of Bahrain are called overseas investment firm licensees. The same naming convention applies to the various sub-categories of investment firms (e.g. Bahraini Category 1 investment firm, overseas Category 1 investment firm etc).

      Amended: July 2007

    • AU-A.1.5

      Regulated investment services are defined in Section AU-1.4. Their definition excludes operating a recognised exchange (such as the Bahrain Bourse) and related infrastructure (such as central clearing and depository systems). These activities are separately addressed, in the form of individual regulations issued by the CBB's Capital Markets Supervision Directorate, and the Bahrain Bourse.

      Amended: January 2022
      Amended: July 2007

    • AU-A.1.6

      Persons undertaking certain functions in relation to investment firm licensees require prior CBB approval. These functions (called 'controlled functions') include Directors and members of senior management. The controlled functions regime supplements the licensing regime by ensuring that key persons involved in the running of investment firm licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

      Amended: July 2007