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  • GR-7.1 GR-7.1 Key Provisions

    • GR-7.1.1

      Licensees must obtain prior written approval from the CBB for any changes to their controllers (as defined in Section GR-7.2):

      April 2016

    • GR-7.1.2

      Condition 3 of the CBB's licensing conditions specifies, among other things, that licensees must satisfy the CBB that their controllers are suitable and pose no undue risks to the licensee (See Paragraph AU-2.3.1). There are also certain procedures which are set out in Articles 52 to 56 of the CBB Law on controllers.

      April 2016

    • GR-7.1.3

      Applicants for a license must provide details of their controllers, by submitting a duly completed Form 2 (Application for Authorisation of Controller). (See sub-Paragraph AU-4.1.4(a)).

      April 2016

    • GR-7.1.4

      Where a controller is a legal person, the controller must notify the CBB of any change in its shareholding at the earlier of:

      (a) When the change takes effect; and
      (b) When the controller becomes aware of the proposed change.
      April 2016

    • GR-7.1.5

      For approval under Paragraph GR-7.1.1 to be granted, the CBB must be satisfied that the proposed controller or increase in control poses no undue risks to the licensee or the financial system. The CBB may impose any restrictions that it considers necessary to be observed where approval is given for a new or a change in controller. A duly completed Form 2 (Controllers) must be submitted as part of the request for a change in controllers. An approval of controller will specify the applicable period for effecting the proposed acquisition of shares.

      April 2016

    • GR-7.1.6

      If, as a result of circumstances outside the licensee's knowledge and/or control, a change in controller is triggered prior to CBB approval being sought or obtained, the licensee must notify the CBB no later than 15 calendar days on which those changes have occurred.

      Amended: January 2017
      April 2016

    • GR-7.1.7

      The approval provisions outlined above do not apply to existing holdings or existing voting control by controllers already approved by the CBB. The approval provisions apply to new/prospective controllers or to increases in existing holdings/voting control.

      April 2016

    • GR-7.1.8

      Licensees are required to notify the CBB as soon as they become aware of events that are likely to lead to changes in their controllers.

      April 2016

    • GR-7.1.9

      The criteria by which the CBB assesses the suitability of controllers are set out in Section GR-7.3. The CBB aims to respond to requests for approval within 30 calendar days and is obliged to reply within 3 months to a request for approval. The CBB may contact references and supervisory bodies in connection with any information provided to support an application for controller. The CBB may also ask for further information, in addition to that provided in Form 2, if required to satisfy itself as to the suitability of the applicant.

      April 2016

    • GR-7.1.10

      Licensees must submit, within 3 months of their financial year-end, a report on their controllers (See Subparagraph BR-1.1.3(d)). This report must identify all controllers of the licensee, as defined in Section GR-7.2, the extent of their shareholding interests and any change in their legal status or any adverse information on the controllers.

      April 2016

    • GR-7.1.1A

      Licensees must not incur or otherwise have an exposure (either directly or indirectly) to their controllers, including subsidiaries and associated companies of such controllers.

      Added: April 2019

    • GR-7.1.1B

      For the purpose of Paragraph GR-7.1.1A, licensees that already have an exposure to controllers must have an action plan agreed with the CBB's supervisory point of contact to address such exposures within a timeline agreed with the CBB.

      Added: April 2019