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  • AU-1 AU-1 Authorisation Requirements

    • AU-1.1 AU-1.1 Licensing

      • AU-1.1.1

        No person may:

        (a) Operate as a representative office within or from the Kingdom of Bahrain unless duly licensed by the CBB;
        (b) Hold themselves out to be licensed by the CBB unless they have as a matter of fact been so licensed; or
        (c) Market any financial services in the Kingdom of Bahrain unless:
        (i) Allowed to do by the terms of a license issued by the CBB;
        (ii) The activities come within the terms of an exemption granted by the CBB by way of a Directive; or
        (iii) Has obtained the express written permission of the CBB to offer financial services.
        Amended: January 2013
        December 2010

      • AU-1.1.2

        For the purposes of Rule AU-1.1.1(a), please refer to Section AU-1.3 for the definition of 'regulated representative office services'. Such activities will be deemed to be undertaken within or from the Kingdom of Bahrain if, for example, the person concerned:

        (a) Uses an address situated in the Kingdom of Bahrain for its correspondence; or
        (b) Directly contacts clients, who are resident within the Kingdom of Bahrain.
        December 2010

      • AU-1.1.2A

        In accordance with Resolution No.(16) for the year 2012 and for the purpose of Subparagraph AU-1.1.1(c), the word 'market' refers to any promotion, offering, announcement, advertising, broadcast or any other means of communication made for the purpose of inducing recipients to purchase or otherwise acquire financial services in return for monetary payment or some other form of valuable consideration.

        Added: January 2013

      • AU-1.1.2B

        Persons in breach of Subparagraph AU-1.1.1(c) are considered in breach of Resolution No.(16) for the year 2012 and are subject to penalties under Articles 129 and 161 of the CBB Law (see also Section EN-9.3).

        Added: January 2013

      • AU-1.1.3

        Financial institutions wishing to be licensed as a representative office to undertake regulated representative office services within or from the Kingdom of Bahrain must apply in writing to the CBB.

        December 2010

      • AU-1.1.4

        An application for a license must be in the form prescribed by the CBB and must contain, inter alia:

        (a) Form 1 Application for a representative office license must be filled online. The Form is available on the CBB website under Eservices/online Forms; and
        (b) Form 3 Application for Approved Person Status for the controlled function.
        Amended: July 2019
        December 2010

      • AU-1.1.5

        The CBB will review the application and duly advise the applicant in writing when it has:

        (a) Granted the application without conditions;
        (b) Granted the application subject to conditions specified by the CBB; or
        (c) Refused the application, stating the grounds on which the application has been refused and the process for appealing against that decision.
        December 2010

      • AU-1.1.6

        Detailed rules and guidance regarding information requirements and processes for licenses can be found in Section AU-4.1. As specified in Paragraph AU-4.1.12, the CBB will provide a formal decision on a license application within 60 calendar days of all required documentation having been submitted in a form acceptable to the CBB.

        December 2010

      • AU-1.1.7

        All applicants seeking a representative office license must satisfy the CBB that they meet, by the date of authorisation, the minimum criteria for licensing, as contained in Chapter AU-2. Once licensed, licensees must maintain these criteria on an on-going basis.

        December 2010

      • Vetting of a Name

        • AU-1.1.8

          Representative offices must seek prior written approval from the CBB for their corporate name or changes then; the name of the foreign financial institution (Head Office) must only be used by the representative office in conjunction with the description "representative office". This may include the office sign, letterheads, advertising material and business cards (See also GR-2.1).

          December 2010

      • Suitability

        • AU-1.1.9

          Those seeking authorisation must satisfy the CBB as to their suitability to carry out the regulated representative office services for which they are seeking authorisation.

          December 2010

        • AU-1.1.10

          In assessing applications for a license, the CBB will assess whether an applicant satisfies the licensing conditions (as specified in Chapter AU-2) with respect to the regulated representative office services that the applicant proposes undertaking.

          December 2010

        • AU-1.1.11

          In addition to the licensing conditions specified in Chapter AU-2 the CBB, in considering an application shall also take into consideration the following:

          (a) The reputation and financial standing (including financial standing on a consolidated basis) of the applicant,
          (b) The consolidated supervisory arrangements, if any, for the applicant in any other jurisdiction and the opinion of the relevant supervisory authority therefore,
          (c) The previous 3 years track-record, as a minimum, of the applicant, its owners and management, both as regards probity and in relation to the activities to be undertaken, and
          (d) The suitability of the proposal and the effect on the financial sector in Bahrain of the applicant being granted a license.
          December 2010

    • AU-1.2 AU-1.2 Approved Person

      • General Requirement

        • AU-1.2.1

          Representative office licensees must appoint a person to undertake the function of representative office manager "Rep Manager". As mentioned in Paragraph AU-A.1.2, a person wishing to undertake a controlled function in a representative office licensee must be approved by the CBB prior to his/her appointment. Controlled function means in this case the Rep Manager. In the case of representative office licensees, the Rep Manager is considered the approved person.

          December 2010

      • Basis for Approval

        • AU-1.2.2

          Approval under Paragraph AU-1.2.1 is only granted by the CBB, if it is satisfied that the person is fit and proper to hold the particular position in the licensee concerned. 'Fit and proper' is determined by the CBB on a case-by-case basis. The definition of 'fit and proper' and associated guidance is provided in Sections AU-3.1 and AU-3.2 respectively.

          December 2010

      • Definitions

        • AU-1.2.3

          The representative office manager (or "Rep Manager") means a person who is responsible for the conduct of the licensee (regardless of actual title). The Rep Manager must be resident in Bahrain.

          December 2010

    • AU-1.3 AU-1.3 Definition of Regulated Representative Office Services

      • AU-1.3.1

        Representative office licensees may undertake the following regulated representative office services:

        (a) Conducting research and surveys for its parent company/head office on local Bahrain economy and international market;
        (b) Liaising with customers on behalf of the head office, parent company or wholly owned subsidiary as approved by the CBB;
        (c) Providing factual information, data and promotional material relating to the head office's products and services to customers; and
        (d) Responding to general inquiries related to the head office.
        December 2010

      • AU-1.3.2

        General Prohibitions:

        (a) Representative office licensees may only undertake the regulated representative office services defined in AU-1.3.1 above. Representative office licensees must not undertake any other regulated financial services as set out in Regulation 1 of 2007;
        (b) The representative office must not engage directly or on behalf of the head office in any financial transactions or business activities for profit inside Bahrain, except transactions which are necessary for and incidental to the maintenance of the representative office in Bahrain; and
        (c) Any staff of the representative office must not also be an employee or director with day-to-day responsibilities of any financial institution operating in Bahrain. The representative office must not represent any institution other than its head office or parent company.
        December 2010