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  • BC-1 BC-1 Promotion of Financial Products and Services

    • BC-1.1 BC-1.1 Promotion of Financial Products and Services Offered in/from Bahrain by Means of Incentives

      • Introduction

        • BC-1.1.1

          The purpose of this Section is to set out requirements pertaining to the promotion of financial products offered in/from Bahrain by licensees by means of incentives (herein referred to as 'promotional schemes').

          January 2014

        • BC-1.1.2

          The CBB has no objection to the use of promotional schemes in general and, unless it otherwise specifically directs in any particular case, the CBB does not expect to be actively consulted/have its approval sought about the idea and/or substance of any promotional schemes. Any advertising of promotional schemes are subject to the requirements of Section BC-1.2.

          Amended: April 2022
          January 2014

        • BC-1.1.3

          The CBB will monitor promotional schemes and, if thought appropriate in the interests of a licensee and its customers in particular and/or the financial sector in general, may issue specific guidance in certain cases. Licensees should feel free to consult the CBB at any time regarding any matters referred to in this Section.

          January 2014

      • General Requirements

        • BC-1.1.4

          Licensees must take care to ensure that promotional schemes do not involve a breach of Bahrain law or any other relevant applicable law and regulation. In addition, promotional schemes should not in any way be detrimental to the public good or public morals.

          January 2014

        • BC-1.1.5

          While there is to be no formal restriction on the types of incentive which may be used by institutions, care must be taken to ensure that promotional schemes do not negatively affect the integrity, reputation, good image and standing of Bahrain and/or its financial sector, and do not detrimentally affect Bahrain's economy.

          January 2014

        • BC-1.1.6

          Bearing in mind the reputation of, and the requirement to develop, the financial sector in Bahrain, as well as the need to act at all times in the best interests of the customer, licensees need to take adequate care to ensure that promotional schemes do not unreasonably divert the attention of the public from other important considerations in choosing a financing company or a financial product.

          January 2014

        • BC-1.1.7

          All documentation and other media communication (including websites, voice messaging, SMS, etc.) concerning promotional schemes must be in Arabic and English and, if relevant, any other language necessary for customers to fully understand and appreciate their terms and conditions. Such terms and conditions, including any related advertising, are required to be clear, concise, truthful, unambiguous and complete so as to enable customers to make a fully informed decision.

          January 2014

        • BC-1.1.8

          Customers to whom promotional schemes are directed must enjoy equal opportunity in terms of access to, and treatment within, such schemes.

          January 2014

        • BC-1.1.9

          All costs (including funding costs), charges or levies associated with promotional schemes must be disclosed to prospective customers.

          January 2014

        • BC-1.1.10

          All material related to promotional schemes, particularly where raffles are concerned, must be maintained for a minimum period of 5 years (see Paragraph GR-1.3.4).

          January 2014

        • BC-1.1.11

          Any raffles held as part of promotional schemes must be independently monitored (e.g. by the licensee's external auditor) and adequate systems put in place to ensure fair play and impartiality.

          January 2014

        • BC-1.1.12

          An appropriate system must also exist for informing participants of the results of a raffle without delay. Licensees must note that raffles may be subject to rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry and Commerce.

          January 2014

        • BC-1.1.13

          Licensees may use small 'gifts' as an inducement to members of the public to use its services, provided such gifts are offered on a general basis and have a low monetary value.

          January 2014

        • BC-1.1.14

          Due note must be taken of the overriding provisions of Bahrain (and any other relevant) law in relation to licensees' duties to customers to the extent (if any) that promotional schemes might impact on such duties.

          January 2014

    • BC-1.2 BC-1.2 Advertisements for Financial Products and Services

      • BC-1.2.1

        [This Paragraph was deleted in July 2021].

        Deleted: July 2021
        January 2014

      • BC-1.2.2

        [This Paragraph was deleted in July 2021].

        Deleted: July 2021
        January 2014