Exemption of Obligation to Maintain Confidentiality
CSD-3.2.2
Rule CSD-3.2.1 shall not apply to:
(a) The disclosure ofuser information for such purposes, or in such circumstances, as the CBB may prescribe;(b) Any disclosure ofuser information which is authorised by the CBB to be disclosed or furnished; or(c) The disclosure ofuser information pursuant to any requirement imposed under any written law or order of court in Bahrain.Amended: April 2016CSD-3.2.3
Rule CSD-3.2.1 shall not apply to the disclosure of
user information by alicensed clearing house orlicensed central depository , or its officers or employees, for the following purposes or in the following circumstances:(a) The disclosure ofuser information is necessary for the making of a complaint or report under any law for an offence alleged or suspected to have been committed under such law;(b) The disclosure ofuser information is permitted for such purpose specified in writing by the user or, where the user is deceased, by his appointed personal representative;(c) Theuser information is disclosed to the approved holding company of thelicensed clearing house orlicensed central depository ;(d) The disclosure ofuser information is necessary for the execution by thelicensed clearing house orlicensed central depository of a transaction in any listedsecurities or futures contracts, or clearing orsettlement of a transaction on alicensed exchange and such disclosure is made only to another user which is:(i) A party to the transaction; or(ii) A member of alicensed exchange or alicensed clearing house through which that transaction is executed, cleared or settled;(e) The disclosure ofuser information is necessary:(i) In any disciplinary proceedings of thelicensed clearing house orlicensed central depository , provided that reasonable steps are taken to ensure thatuser information disclosed to any thirdperson is used strictly for the purpose for which theuser information is disclosed; or(ii) For the publication, in any form or manner, of the disciplinary proceedings and the outcome thereof;(f) Theuser information disclosed is already in the public domain;(g) The disclosure ofuser information is made in connection with an arrangement for protection against a default by a member or participant of thelicensed clearing house orlicensed central depository to another member or participant of thelicensed clearing house orlicensed central depository , who is identified by thelicensed clearing house orlicensed central depository for the purposes of carrying out or undertaking the obligations under the arrangement;(h) The disclosure is required in accordance with international and multilateral arrangements including, but not limited to the IOSCO MMoU;(i) The disclosure ofuser information is made to a member or depository participant of thelicensed clearing house orlicensed central depository in connection with an arrangement for the transfer to that member or depository participant of any contract orposition from another member of thelicensed clearing house orlicensed central depository who is in default;(j) The disclosure ofuser information is made in connection with:(i) The outsourcing or proposed outsourcing of any function of thelicensed clearing house orlicensed central depository to a third party after obtaining the approval of the CBB;(ii) The engagement or potential engagement of a third party by thelicensed clearing house orlicensed central depository to create, install or maintain systems of thelicensed clearing house orlicensed central depository ; or(iii) The appointment or engagement of an auditor, a lawyer, a consultant or other professional by thelicensed clearing house orlicensed central depository under a contract for service;(k) The disclosure ofuser information is necessary in:(i) An application for a grant of probate or letters of administration, or the resealing thereof in relation to the estate of a deceased user; or(ii) The administration of the estate of a deceased user, including such disclosure as may be required by the applicable laws, rules and regulations; or(l) The disclosure ofuser information is made in connection with:(i) In the case where the user is an individual, the bankruptcy of a user; or(ii) In the case where the user is a body corporate, the winding up or receivership of a user.Amended: April 2016CSD-3.2.4
Where
user information is disclosed under Subparagraphs CSD-3.2.3 (g), (h) or (i), thelicensed clearing house orlicensed central depository shall:(a) Maintain arecord of:(i) The circumstances relating to the disclosure ofuser information referred to in that sub-paragraph; and(ii) In the case of disclosure of information, the particulars of:A. The arrangement for protection;B. The arrangement for transfer;C. The outsourcing of the function of thelicensed clearing house orlicensed central depository ;D. The engagement of the third party; andE. The appointment or engagement of an auditor, a lawyer, a consultant or other professional by thelicensed clearing house orlicensed central depository under a contract for service, and make therecord available for inspection by the CBB.(b) Disclose theuser information insofar as this is necessary for the relevant purpose; and(c) Take reasonable steps to ensure thatuser information disclosed is used by theperson to whom the disclosure is made strictly for the relevant purpose, and that theuser information is not disclosed by thatperson to any otherperson except with the consent of thelicensed clearing house orlicensed central depository .Amended: April 2016CSD-3.2.5
Where disclosure of
user information is permitted to be made for any purpose or in any circumstance under Paragraph CSD-3.2.3 to a body corporate, theuser information may be disclosed only to those officers of the body corporate to whom the disclosure is necessary for the relevant purpose.Amended: April 2016CSD-3.2.6
In Paragraphs CSD-3.2.4 and CSD-3.2.5, ''relevant purpose'' means:
(a) In the case of the disclosure of information under Subparagraph CSD-3.2.3(g), the carrying out of the arrangement for protection;(b) In the case of the disclosure of information under Subparagraph CSD-3.2.3(h), the carrying out of the arrangement for transfer;(c) In the case of the disclosure of information under Subparagraphs CSD-3.2.3(j) and (i), facilitating the outsourcing of the function of thelicensed clearing house orlicensed central depository ;(d) In the case of the disclosure of information under Subparagraph CSD-3.2.3(j) (ii), facilitating the engagement of the third party; and(e) In the case of the disclosure of information under Subparagraph CSD-3.2.3(j) (iii), facilitating the appointment or engagement of the auditor, lawyer, consultant or other professional.Amended: April 2016CSD-3.2.7
For the avoidance of doubt, nothing in this Section shall be construed as preventing a
licensed clearing house orlicensed central depository from entering into a written agreement with a user which obliges thelicensed clearing house orlicensed central depository to maintain a higher degree of confidentiality than that specified in this Section.Amended: April 2016