• ICO — Cooperation & Exchange of Information with Overseas Authorities

    • ICO-A ICO-A Introduction

      • ICO-A.1 ICO-A.1 Purpose

        • Executive Summary

          • ICO-A.1.1

            Module ICO sets out the regulatory framework for providing and securing mutual assistance and exchange of information with overseas authorities and exchanges for the purpose of enforcing and ensuring compliance with the respective laws and regulations of the CBB and the respective jurisdictions of the overseas authorities.

            Adopted February 2009

          • ICO-A.1.2

            This Module imposes an obligation on capital market participants and intermediaries to provide information to the CBB as and when required by it in relation to overseas authorities covered under section ICO-B.1.

            Adopted February 2009

        • Legal Basis

          • ICO-A.1.3

            Article 122 of the CBB Law provides the CBB with the power to provide assistance upon request by an overseas authority and to investigate and obtain information and documents for this purpose.

            Adopted February 2009

          • ICO-A.1.4

            Article 111 of the CBB Law provides the CBB with the power to obtain information from licensees.

            Adopted February 2009

          • ICO-A.1.5

            Article 112 of the CBB Law provides the CBB with the power to obtain information from others, including companies listed on a licensed exchange.

            Adopted February 2009

          • ICO-A.1.6

            Article 123 of the CBB Law provides the CBB with the power to obtain information or documents in the possession of a third party and to compel such person to produce such information or dcuments and to take a copy or extract thereof.

            Adopted February 2009

          • ICO-A.1.7

            This Module contains the CBB's Directives relating to the provision of information and documents pursuant to a request made by the CBB for providing and securing mutual assistance and exchange of information with overseas authorities and is issued under the powers available to the CBB under Articles 38 and 122 of the CBB Law. The Directive in this Module is applicable to all market participants and any persons who are in possession of information or documents, or who has information about the whereabouts of documents that are covered by the scope of this Module.

            Adopted February 2009

      • ICO-A.2 Module History

        This Module was first issued in November 2008. Any material changes that are subsequently made to this Module are annotated with the calendar quarter date in which the change is made; Chapter UG-3 provides further details on Rulebook maintenance and version control.

        Adopted February 2009

      • ICO-A.3 Interaction with Other Modules

        The obligations of CBB licensees with respect to the maintenance of books, records and information shall be governed by the respective licensing framework provided under the relevant CBB Rulebook.

        Adopted February 2009

    • ICO-B ICO-B Scope of Application

      • ICO-B.1 Scope

        This Module shall apply to:

        (a) Mutual assistance and exchange of information with signatories of the International Organization of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMOU);
        (b) Mutual assistance and exchange of information pursuant to other multilateral or bilateral arrangements;
        (c) Mutual assistance and exchange of information with any overseas authority on a reciprocal basis based on a bilateral agreement or otherwise; and
        (d) Unsolicited assistance.
        Adopted February 2009

      • ICO-B.2 ICO-B.2 Definitions

        • ICO-B.2.1

          For the purpose of this Module, the following terms shall, unless the context determines otherwise, have the meanings assigned hereunder:

          Adopted February 2009

        • ICO-B.2.2

          "Foreign or Overseas Authority" means:

          (a) The authority involved in the regulation of the financial service markets in another country; or
          (b) Any foreign central bank or body with the authority of issuing money or responsible for supervising payment systems, clearances, or cheques and financial papers settlement.
          Adopted February 2009

        • ICO-B.2.4

          "IOSCO MMOU" means the International Organization of Securities Commissions Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information.

          Adopted February 2009

        • ICO-B.2.5

          "Laws and Regulations" means the provisions of the laws of the jurisdictions of the overseas authorities, the regulations promulgated thereunder, and the other regulatory requirements that fall within the competence of the overseas authorities, concerning the following:

          (a) Insider dealing, market manipulation, misrepresentation of material information and other fraudulent or manipulative practices relating to securities and derivatives, including solicitation practices, handling of investor funds and customer orders;
          (b) The registration, issuance, offer, or sale of securities and derivatives, and reporting requirements related thereto;
          (c) Market intermediaries, including investment and trading advisers who are required to be licenced or registered, collective investment schemes, brokers, dealers, and transfer agents; and
          (d) Markets, exchanges, and clearing and settlement entities.
          Adopted February 2009

        • ICO-B.2.7

          "Persons" means a natural or legal person, or unincorporated entity or association, including corporations and partnerships.

          Adopted February 2009

    • ICO-1 ICO-1 General Principles

      • ICO-1.1 ICO-1.1 General Principles

        • ICO-1.1.1

          Mutual assistance and exchange of information and documents with an overseas authority, who is also a signatory to the IOSCO MMOU, shall be governed by the provisions of the IOSCO MMOU.

          Adopted February 2009

        • ICO-1.1.2

          Mutual assistance and exchange of information and documents with an overseas authority, pursuant to a multilateral or bilateral arrangement to which the CBB and the overseas authority are parties, shall be governed by the respective multilateral or bilateral arrangements.

          Adopted February 2009

        • ICO-1.1.3

          In respect of mutual assistance and the exchange of information and documents with an overseas authority who is not a party to the IOSCO MMOU, or any other multilateral or bilateral arrangement, the CBB may consider the following while deciding on the request received from an overseas authority for assistance:

          (a) Whether the country or territory of the overseas authority is adopting the basis of reciprocity in its relation with the Kingdom;
          (b) The seriousness of the case and its importance to persons in the Kingdom;
          (c) Whether it is otherwise appropriate in the public interest to give the assistance requested.
          Adopted February 2009

        • ICO-1.1.4

          The CBB may decide to reject the request stated in paragraph ICO-1.1.3, unless the overseas authority undertakes to make contributions towards the cost of exercising such powers as the CBB considers appropriate.

          Adopted February 2009

        • Other Measures to Obtain Information

          • ICO-1.1.5

            This Module does not prohibit the CBB from taking measures other than those identified herein to obtain information necessary to ensure enforcement of, or compliance with the laws and regulations applicable in the Kingdom of Bahrain.

            Adopted February 2009

          • ICO-1.1.6

            This Module does not confer upon any person other than an overseas authority, the right or ability, directly or indirectly to obtain, suppress or exclude any information, or to challenge the execution of a request for assistance under this Module.

            Adopted February 2009

        • Complaints Regarding Violations

          • ICO-1.1.7

            This Module does not restrict the ability of any person to provide unsolicited assistance to the CBB by way of provision of information, questions, complaints, or enforcement tips related to institutions or products operating or offered in Bahrain.

            Adopted February 2009

    • ICO-2 ICO-2 Scope of and Requests for Assistance

      • ICO-2.1 ICO-2.1 Scope and Basis of Assistance

        • ICO-2.1.1

          The scope and basis of assistance in respect of mutual assistance and the exchange of information and documents with any overseas authority, who is a signatory to the IOSCO MMOU, shall be governed by the provisions of the IOSCO MMOU.

          Adopted February 2009

        • ICO-2.1.2

          In respect of mutual assistance and the exchange of information and documents with any overseas authority, pursuant to a multilateral or bilateral arrangement to which the CBB and the overseas authority are parties, the scope and basis of assistance shall be governed by such arrangements, and in cases where such arrangements do not specify the scope or basis of assistance, the scope or basis of assistance shall be as set determined by the CBB.

          Adopted February 2009

      • ICO-2.2 ICO-2.2 Requests for Assistance

        • ICO-2.2.1

          The procedures for the requests for assistance and execution of requests for assistance in respect of requests received from signatories to the IOSCO MMOU shall be as set out in the IOSCO MMOU.

          Adopted February 2009

        • ICO-2.2.2

          The procedures for the requests for assistance and execution of requests for assistance in respect of requests received from an overseas authority, pursuant to a multilateral or bilateral arrangement to which the CBB and the overseas authority are parties, will be governed by the respective multilateral or bilateral arrangements.

          Adopted February 2009

        • ICO-2.2.3

          Unless otherwise provided in the IOSCO MMOU or other multilateral or bilateral arrangements to which the CBB and overseas authority are a party, the CBB may determine the procedures for the execution of requests for assistance.

          Adopted February 2009

        • ICO-2.2.4

          Upon request by the requesting overseas authority, the CBB may require the production of documents from any designated person or any other person who may possess the requested information or documents. Upon request, the CBB may obtain other information relevant to the request.

          Adopted February 2009

        • ICO-2.2.5

          Upon request, the CBB may seek responses to questions and/or a statement (or where permissible, testimony under oath) from any person involved, directly or indirectly, in the activities that are the subject matter of the request for assistance or who is, or purported to be in possession of information that may assist in the execution of the request.

          Adopted February 2009

        • ICO-2.2.6

          Information and documents requested will be gathered in accordance with the procedures applicable in the Kingdom of Bahrain and by persons designated by the CBB.

          Adopted February 2009

      • ICO-2.3 Information Provided by Licensees Directly to Overseas Authorities

        When information has been provided by a CBB licensee directly to an overseas authority, the details of the request and the information provided must be sent to the CBB simultaneous to the provision of information to the overseas authority.

        Adopted February 2009

    • ICO-3 ICO-3 Confidentiality, Unsolicited Assistance and Penalties

      • ICO-3.1 Confidentiality

        The CBB shall, unless otherwise required by law, keep confidential requests made, the contents of such requests and any matters arising under this Module, including correspondence between or among the CBB and overseas authorities.

        Adopted February 2009

      • ICO-3.2 ICO-3.2 Unsolicited Assistance

        • ICO-3.2.1

          The CBB may provide, without prior request, overseas authorities with any information that it considers is likely to be of assistance to those overseas authorities.

          Adopted February 2009

        • ICO-3.2.2

          Reciprocity requirements should not be a strict precondition for the exchange of information.

          Adopted February 2009

      • ICO-3.3 Penalties

        Any person who fails to provide information or documents, or any material pursuant to a request made by the CBB, or by a CBB appointed investigator or inspector shall be liable to penalties prescribed under Part 11 of the CBB Law.

        Adopted February 2009