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  • AU-A AU-A Introduction

    • AU-A.1 AU-A.1 Purpose

      • Executive Summary

        • AU-A.1.1

          The executive summary only provides an overview. For detailed rules, reference must be made to the individual Rules outlined in the remainder of this Module.

          January 2013

        • AU-A.1.2

          Module AU (Authorisation) sets out the Central Bank of Bahrain's ('CBB's) approach to licensing providers of regulated financing company services in the Kingdom of Bahrain. It also sets out CBB requirements for approving persons undertaking key functions in those providers.

          January 2013

        • AU-A.1.3

          Persons undertaking certain functions in relation to licensees require prior CBB approval. These functions (called controlled functions ) include Directors and members of senior management. The controlled functions regime supplements the licensing regime by ensuring that key persons involved in the running of licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

          January 2013

      • Retaining Authorised Status

        • AU-A.1.4

          The requirements set out in Chapters AU-2 and AU-3 represent the minimum conditions that have to be met in each case, both at the point of authorisation and on an on-going basis thereafter, in order for authorised status to be retained.

          January 2013

      • Legal Basis

        • AU-A.1.5

          This Module contains the CBB's Directive, Regulations and Resolutions (as amended from time to time) regarding authorisation under Volume 5 of the CBB Rulebook. It is applicable to all licensees (as well as to approved persons), and is issued under the powers available to the CBB under Articles 37 to 42, 44 to 48 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). It also includes the requirements contained in Resolution No (1) of 2007 with respect to determining fees categories due for licenses and services provided by the CBB. It contains requirements under Regulation No (1) of 2007 pertaining to the CBB's regulated services issued under Article 39 of the CBB Law and those conditions of granting a license for the provision of regulated services as prescribed under Resolution No (43) of 2011 and is issued under the powers available to the CBB under Article 44(c). The Module contains requirements under Resolution No.(16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law. This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015. The Directive, Resolutions and Regulations in this Module are applicable to all financing company licensees (including their approved persons).

          Amended: July 2015
          January 2013

        • AU-A.1.6

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          January 2013

        • AU-A.1.7

          Persons wishing to undertake regulated financing company services are required to be licensed by the CBB as a financing company licensee.

          January 2013

      • Licensing Conditions

        • AU-A.1.8

          Financing company licensees are subject to 8 licensing conditions, mostly specified at a high-level in Module AU, and further expanded in underlying subject Modules (such as Module CA). These licensing conditions are broadly equivalent to the standards applied in other Volumes of the CBB Rulebook, to other license categories, and are consistent with international good practice.

          January 2013

      • Information Requirements and Processes

        • AU-A.1.9

          Chapter AU-3 specifies the processes and information requirements that have to be followed for applicants seeking a financing company license, as well as existing licensees seeking to vary the scope of their license, by adding new regulated activities. It also covers the voluntary surrender of a license, or its cancellation by the CBB.

          January 2013

    • AU-A.2 AU-A.2 Module History

      • Evolution of Module

        • AU-A.2.1

          This Module was first issued in January 2013. All subsequent changes to this Module are annotated with the end-calendar quarter date in which the change was made. UG-3 provides further details on Rulebook maintenance and version control.

          January 2013

        • AU-A.2.2

          A list of recent changes made to this Module is provided below:

          Module Ref. Change Date Description of Changes
          AU-5.2 07/2013 Amended due date and collection process for annual license fee.
          AU-2.8.1 01/2014 Corrected reference to proper accounting standards.
          AU-5.2.7B and AU-5.2.7C 01/2014 Added requirements for payment of annual fees for SPVs.
          AU-1.2.2 04/2014 Updated controlled functions.
          AU-A.1.5 07/2015 Legal basis updated to reflect Resolution No (23) of 2015.
          AU-3.2.1 07/2015 Added cross reference to Module TC.
          AU-4.3 07/2015 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-1.2 01/2016 Clarified general requirements for Approved Persons.
          AU-3 01/2016 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-4.3 01/2016 Minor amendments to be aligned with other Volumes of the Rulebook.
          AU-4.6 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License.
          AU-1.1.9 07/2019 Amended Paragraph to reflect online submission of Form 1.
          AU-4.1.22 10/2019 Changed from Rule to Guidance.
          AU-4.1.24 10/2019 Changed from Rule to Guidance.
          AU-4.6.1 10/2019 Changed from Rule to Guidance.
          AU-1.3.1A 10/2020 Added a new Paragraph on compliance with AAOIFI Shari’a Standards.
          AU-4.3.10A 01/2021 Added a new Paragraph on compliance of approved persons with the fit and proper requirement.
          AU-1.3.1(d) 07/2022 Amended Subparagraph on means of payment.
          AU-1.3.1B 07/2022 Added a new Paragraph on offering a limited range of financing activity.
          AU-1.3.14 07/2022 Deleted Paragraph.
          AU-2.5.2 07/2022 Amended Paragraph on financial resources.

      • Superseded Requirements

        • AU-A.2.3

          This Module supersedes the following provisions contained in circulars or other regulatory instruments:

          Circular/other reference Provision Subject
          Standard Conditions and Licensing criteria for financing companies (conventional) All articles Scope of license and licensing conditions.
          Standard Conditions and Licensing criteria for Islamic financing companies All articles Scope of license and licensing conditions.
               
               
               
          January 2013