BR-2.2 BR-2.2 Notification Requirements
Matters Having a Serious Supervisory Impact
BR-2.2.1
A
licensee must notify the CBB if any of the following has occurred, may have occurred or may occur in the near future:(a) Thelicensee failing to satisfy one or more of the Principles of Business referred to in Module PB;(b) Any matter which could have a significant adverse impact on thelicensee's reputation;(c) Any matter which could affect thelicensee's ability to continue to provide adequate services to its customers and which could result in serious detriment to a customer of thelicensee ;(d) Any matter in respect of thelicensee that could result in material financial consequences to the financial system or to other licensees;(e) A breach of any requirement imposed by law, regulation, directive or any other instruction issued by the CBB;(f) If alicensee becomes aware, or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way; or(g) If thelicensee intends to suspend any or all the licensed regulated services or ceases business, setting out how it proposes to do so and, in particular, how it will treat any of its liabilities (ref GR-9.1.2).April 2016BR-2.2.2
The circumstances that may give rise to any of the events in Paragraph BR-2.2.1 are wide-ranging and the probability of any matter resulting in such an outcome, and the severity of the outcome, may be difficult to determine. However, the CBB expects
licensees to properly consider all potential events and consequences that may arise from them.April 2016BR-2.2.3
In determining whether an event that may occur in the near future should be notified to the CBB, a
licensee should consider both the probability of the event happening and the severity of the outcome should it happen. Matters having a supervisory impact could also include matters relating to acontroller that may directly or indirectly have an effect on thelicensee .April 2016Legal, Professional, Administrative or other Proceedings against a Licensee
BR-2.2.4
A
licensee must notify the CBB immediately of any legal, professional or administrative or other proceedings instituted against thelicensee ,controller of thelicensee that is known to thelicensee and is significant in relation to thelicensee's financial resources or its reputation.April 2016BR-2.2.5
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licensee must notify the CBB of the bringing of a prosecution for, or conviction of, any offence under any relevant law against thelicensee or any of itsapproved persons .April 2016Fraud, Errors and other Irregularities
BR-2.2.6
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licensee must notify the CBB immediately if one of the following events arises:(a) It becomes aware that a person, whether or not employed by it may have committed, or is acting with intent to commit fraud against its customers or itself;(b) A major operational or security incident where the incident has or may have a major negative impact on the financial interests of its customers or other licensees, or itself;(c) It identifies irregularities in its accounting or other records, whether or not there is evidence of fraud;(d) It suspects that one of its employees may be guilty of serious misconduct concerning his honesty or integrity and which is connected with thelicensee's regulated activities; or(e) Conflicts of interest that may affect the operation of thelicensee .Amended: December 2018
April 2016BR-2.2.7
If the
licensee may have suffered material financial losses as a result of the incident, or may suffer reputational loss, the CBB will wish to consider this and whether the incident is indicative of weaknesses in thelicensee's internal controls.April 2016Insolvency, Bankruptcy and Winding Up
BR-2.2.8
Except in instances where the CBB has initiated the following actions, a
licensee must notify the CBB immediately of any of the following events:(a) The calling of a meeting to consider a resolution for winding up thelicensee or acontroller of thelicensee ;(b) An application to dissolve acontroller of thelicensee; (c) The presentation of a petition for the winding up of acontroller of thelicensee ;(d) The making of any proposals, or the making of, a composition or arrangement with any one or more of thelicensee's creditors, for material amounts of debt;(e) An application for the appointment of an administrator or trustee in bankruptcy to acontroller of thelicensee ;(f) The appointment of a receiver to thelicensee or to acontroller of thelicensee (whether an administrative receiver or a receiver appointed over particular property); or(g) An application against thelicensee , acontroller of thelicensee under Part 10 of the CBB Law or the Bankruptcy and Composition Law of 1987 or similar legislation in another jurisdiction.April 2016External Auditor
BR-2.2.9
A
licensee must notify the CBB of the following:(a) Removal or resignation of its external auditor (ref. AA-1.2.1); or(b) A change in the partner in charge of conducting the external audit. (Ref. AA-1.3.3).April 2016Approved Persons
BR-2.2.10
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licensee must notify the CBB of the termination of employment of anyapproved persons , including reasons for their termination and arrangements for replacing them (ref. AU-4.4.9).April 2016Authorised Signatories
BR-2.2.11
At the time of authorisation (when the license is granted) or whenever a change occurs, in order to maintain an up-to-date record of authorised signatories of respective ancillary service providers, the CBB requires all
licensees to submit to thelicensee's CBB supervisory point of contact a list of specimen signatures of the officials authorised to sign on behalf of the concernedlicensee , together with, where appropriate, details of what they are authorised to sign for.April 2016Capital Adequacy Requirements
BR-2.2.12
In the event that a
licensee fails to meet any of the requirements specified in Section AU-2.5 it must, on becoming aware that it has breached the requirements, immediately notify the CBB in writing.April 2016BR-2.2.13
As specified in Article 58 of the CBB Law, a
licensee must notify the CBB immediately of any matter that may affect its financial position, currently or in the future, or limit its ability to meet its obligations.April 2016Outsourcing Arrangements
BR-2.2.14
Licensees must immediately inform their normal supervisory contact at the CBB of any material problems or changes encountered with an outsourcing provider.April 2016Controllers
BR-2.2.15
If, as a result of circumstances outside the
licensee's knowledge and/or control, a change incontrollers is triggered prior to CBB approval being sought or obtained, thelicensee must notify the CBB on the earlier of:(a) The moment the change takes effect; or(b) The moment thelicensee becomes aware of the proposed change (ref. GR-7.1.6).April 2016BR-2.2.16
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licensee must notify the CBB of any event as specified under Article 52 of the CBB Law.April 2016Introduction of New or Expanded Customer Products and Facilities
BR-2.2.17
All
licensees are required to notify the CBB before the introduction of any new products or services or any changes in existing product/service that will have an additional financial cost to the customers. The CBB will respond to the concernedlicensee within one week of receipt of the notification if it has any observations on the new application.Amended: July 2023
April 2016