UG-A.1 UG-A.1 Purpose
Executive Summary
UG-A.1.1
The Central Bank of Bahrain ('the CBB'), in its capacity as the regulatory and supervisory authority for all financial institutions in Bahrain, issues regulatory instruments that licensees and other specified persons are legally obliged to comply with. These regulatory instruments are contained in the CBB Rulebook. Much of the Rulebook's substantive content was previously issued by the Bahrain Monetary Agency ('the BMA'), and was carried forward when the CBB replaced the BMA in September 2006.
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The Rulebook is divided into 7 Volumes, covering different areas of financial services activity. These Volumes are being progressively issued. Volumes 1 and 2, covering
conventional bank licensees andIslamic bank licensees respectively, were issued in July 2004 and January 2005; Volume 3, coveringinsurance licensees , was issued in April 2005; Volume 4, coveringinvestment firm licensees was issued in April 2006. This Volume, Volume 5specialised licensees is issued in 2010. Volume 6 (capital markets) is gradually being issued. Volume 7 on collective investment undertakings (CIUs) was issued in May 2012.Amended: October 2012
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This User's Guide provides guidance on (i) the status and application of the Rulebook, with specific reference to Volume 5 (Specialised licensees); (ii) the structure and design of the Rulebook; and (iii) its maintenance and version control.
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Volume 5 (Specialised Licensees) covers
specialised licensees , i.e. those CBB licensees that undertakeregulated specialised activities that do not fall under any other Volume (1-4,6, 7) of the CBB Rulebook. It contains prudential requirements (such as rules on minimum capital and risk management); and conduct of business requirements (such as rules on the giving of advice and the treatment of customer money). Collectively, these requirements are aimed at ensuring the safety and soundness of CBB-licensed companies, and providing an appropriate level of protection to the customers of such companies.Amended: October 2012
October 2010Legal Basis
UG-A.1.6
This Module contains the CBB's Directive (as amended from time to time) regarding the User's Guide for Volume 5 of the CBB Rulebook, and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all
specialised licensees (including theirapproved persons ).Amended: January 2011
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For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
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