Business Standards
CA CA Administrators Capital Adequacy and Liquidity Module
CA-A CA-A Introduction
CA-A.1 CA-A.1 Purpose
Executive Summary
CA-A.1.1
This Module lays down requirements that apply to all
administrators licensees , with respect to the minimum level of capital and liquidity they must maintain.May 2011CA-A.1.2
Principle 9 of the Principles of Business requires that
licensees maintain adequate human, financial and other resources, sufficient to run their business in an orderly manner (see Section PB-1.1.9).May 2011Legal Basis
CA-A.1.3
This Module contains the Central Bank of Bahrain ('CBB') Directive (as amended from time to time) relating to the capital adequacy and liquidity requirements of
administrators licensees , 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').May 2011CA-A.1.4
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
May 2011CA-A.2 CA-A.2 Module History
Evolution of Module
CA-A.2.1
This Module was first issued in May 2011 by the CBB. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.
May 2011CA-A.2.2
A list of recent changes made to this Module is provided below:
Module Ref. Change Date Description of Changes CA-1.2.5 01/2023 Amended Paragraph on liquidity requirements. CA-1.2.6 01/2023 Deleted Paragraph. CA-1.2.7 01/2023 Deleted Paragraph. CA-1.2.8 01/2023 Deleted Paragraph. CA-B CA-B Scope of Application
CA-B.1 CA-B.1 Scope of Application
CA-B.1.1
The content of this Module applies to all
administrators licensees authorised in the Kingdom of Bahrain, thereafter referred to in this Module aslicensees .May 2011CA-1 CA-1 Capital Adequacy and Liquidity Requirements
CA-1.1 CA-1.1 General Requirements
Obligation to Maintain Adequate Capital and Liquidity
CA-1.1.1
In accordance with Principle of Business 9 (Section PB-1.1.9),
licensees must maintain adequate human, financial and other resources sufficient to run their business in an orderly manner.May 2011CA-1.1.2
In addition to the minimum capital and liquidity requirements specified in Section CA-1.2, the CBB may, at its discretion, require
licensees to hold additional capital and/or liquidity, should this be necessary in the CBB's view.May 2011CA-1.1.3
Licensees are required to maintain, at all times, the minimum capital and liquidity requirements specified in Section CA-1.2.May 2011CA-1.1.4
No funds may be withdrawn by shareholders from the
licensee without the necessary prior written approval of the CBB.May 2011CA-1.1.5
In the event that a
licensee fails to meet any of the requirements specified in this Module, it must, on becoming aware that it has breached these requirements, immediately notify the CBB in writing. Unless otherwise directed, thelicensee must in addition submit to the CBB, within 30 calendar days of its notification, a plan demonstrating how it will achieve compliance with these requirements.May 2011CA-1.1.6
Should a
licensee fail to comply with the requirements of this Module, the CBB may impose enforcement measures, as described in Module EN.May 2011CA-1.2 CA-1.2 Minimum Capital and Liquidity Requirements
Key Requirements
CA-1.2.1
Licensees must ensure that, at all times, their minimum capital and liquidity meet the requirements stipulated in this Section.May 2011Capital Requirements
CA-1.2.2
For those
licensees whoseregulated administration services are those outlined forfund administrators in Paragraph AU-1.1.11, the minimum paid up capital is BD 40,000.May 2011CA-1.2.3
For those
licensees whoseregulated administration services are those outlined forregistrars in Paragraph AU-1.1.12, the minimum paid up capital is BD 20,000.May 2011CA-1.2.4
A
licensee's liabilities should not exceed threefold the total of:(a) Paid up capital;(b) Statutory reserve;(c) General reserves; and(d) Retained Earnings.May 2011Liquidity Requirements
CA-1.2.5
Licensees whoseregulated administration services are those outlined forfund administrators andregistrars in Paragraphs AU-1.1.11 and AU-1.1.12 respectively, must maintain adequate liquid funds representing 25% of operating expenses incurred in the preceding financial year at all times in the form of cash or liquid assets that can be converted to cash in the short-term to cover its operating expenses.Amended: January 2023
May 2011CA-1.2.6
[This Paragraph was deleted on January 2023].
Deleted: January 2023
May 2011CA-1.2.7
[This Paragraph was deleted on January 2023].
Deleted: January 2023
May 2011CA-1.2.8
[This Paragraph was deleted on January 2023].
Deleted: January 2023
May 2011