HC-B.2 HC-B.2 Branches, Subsidiaries and Affiliates
HC-B.2.1
Bahraini investment firm licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to theirbranches , whether located inside or outside the Kingdom of Bahrain, such that these are also subject to effective high-level controls. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.January 2011HC-B.2.2
Bahraini investment firm licensees must satisfy the CBB thatregulated investment services conducted insubsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.Amended: January 2012
January 2011HC-B.2.3
Where an
investment firm licensee is unable to satisfy the CBB that itssubsidiaries and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — to the licensee arising from inadequate high-level controls in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between the licensee and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of the licensee, then its authorisation may be called into question.January 2011
