• GR-5 GR-5 Close Links

    • GR-5.1 GR-5.1 Key Provisions

      • GR-5.1.1

        Condition 3 of the CBB's licensing conditions specifies, amongst other things, that licensees must satisfy the CBB that their close links do not prevent the effective supervision of the licensee and otherwise pose no undue risks to the licensee. (See Paragraph AU-2.3.1).

        January 2014

      • GR-5.1.2

        Applicants for a license must provide details of their close links, as provided for under Form 1 (Application for a License). (See Paragraphs AU-4.1.1 and AU-4.1.4 (f)).

        January 2014

      • GR-5.1.3

        Licensees must submit to the CBB, within 3 months of their financial year-end, a report on their close links (See Subparagraph BR-1.1.3(g)). The report must identify all undertakings closely linked to the licensee, as defined in Section GR-5.2.

        January 2014

      • GR-5.1.4

        Licensees may satisfy the requirement in Paragraph GR-5.1.3 by submitting a corporate structure chart, identifying all undertakings closely linked to the licensee.

        January 2014

      • GR-5.1.5

        Licensees must provide information on undertakings with which they are closely linked, as requested by the CBB.

        January 2014

    • GR-5.2 GR-5.2 Definition of Close Links

      • GR-5.2.1

        A licensee ('L') has close links with another undertaking ('U'), if:

        (a) U is a parent undertaking of L;
        (b) U is a subsidiary undertaking of L;
        (c) U is a subsidiary undertaking of a parent undertaking of L;
        (d) U, or any other subsidiary undertaking of its parent, owns or controls 20% or more of the voting rights or capital of L; or
        (e) L, any of its parent or subsidiary undertakings, or any of the subsidiary undertakings of its parent, owns or controls 20% or more of the voting rights or capital of U.
        January 2014

    • GR-5.3 GR-5.3 Assessment Criteria

      • GR-5.3.1

        In assessing whether a licensee's close links may prevent the effective supervision of the firm, or otherwise poses no undue risks to the licensee, the CBB takes into account the following:

        (a) Whether the CBB will receive adequate information from the licensee, and those with whom the licensee has close links, to enable it to determine whether the licensee is complying with CBB requirements;
        (b) The structure and geographical spread of the licensee, its group and other undertakings with which it has close links, and whether this might hinder the provision of adequate and reliable flows of information to the CBB, for instance because of operations in territories which restrict the free flow of information for supervisory purposes; and
        (c) Whether it is possible to assess with confidence the overall financial position of the group at any particular time, and whether there are factors that might hinder this, such as group members having different financial year ends or auditors, or the corporate structure being unnecessarily complex and opaque.
        January 2014