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  • Establishment of a Subsidiary

    • GR-10.1.6

      The purpose and objectives of a subsidiary undertaking referred to in Rule GR-10.1.1 must be limited to the permissible activities within the scope of the investment business license as defined under regulated investment services in Section AU-1.4.

      Added: April 2011

    • GR-10.1.7

      Bahraini investment firm licensees wishing to establish or acquire a subsidiary undertaking must submit the following information to the CBB as part of the approval process referred to in Paragraph GR-10.1.1:

      (a) Proposed name of subsidiary;
      (b) Country of incorporation;
      (c) Legal structure;
      (d) Proposed paid-up capital;
      (e) Proposed shareholding structure;
      (f) Purpose of establishing or acquiring the subsidiary;
      (g) Draft incorporation documents of the subsidiary;
      (h) Board Resolution approving the establishment or acquisition of the subsidiary;
      (i) Names of the board members of the proposed subsidiary and the relationship of the board member to the investment firm licensee;
      (j) Names of the authorised signatories of the proposed subsidiary;
      (k) An undertaking from the board of the investment firm licensee that the board will be held ultimately responsible for any misconduct or action committed by the proposed subsidiary; and
      (l) Any other information or documentation as required by the CBB.
      Amended: July 2013
      Added: April 2011

    • GR-10.1.7A

      Any change in the criteria listed under Rule GR-10.1.7, including any changes to the incorporation documents, are subject to the CBB prior written approval, prior to the change taking place.

      Added: July 2013

    • GR-10.1.8

      Bahraini investment firm licensees referred to in Paragraph GR-10.1.7 must comply with Paragraphs GR-6.1.3 (reporting requirements for close links), RM-B.2.2 (risk management of subsidiaries), CA-1.2.9 and CA-2.1.13 (impact of investment in subsidiaries on capital adequacy).

      Amended: July 2013
      Added: April 2011

    • GR-10.1.8A

      Bahraini investment firm licensees must ensure that the scope of their internal audit extends to the activities of their subsidiaries, to satisfy themselves of the compliance of the subsidiaries with all relevant internal and regulatory rules and regulations.

      Added: July 2013

    • GR-10.1.8B

      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. BR 1.4.6A).

      Amended: October 2016
      Added: July 2013