• MIR 2.5 MIR 2.5 Criteria for Granting License

    • MIR-2.5.1

      The CBB may license a person as a member if:

      (a) The CBB is satisfied that the undertaking of regulated activities by the person will;
      1. Develop the capital market and enhance confidence therein;
      2. Develop the securities businesses or services and enhance the market liquidity; and
      3. Protect the interests of investors or users of the SRO (licensed exchange and/or licensed clearing house) and enhance the Kingdom's credibility as an international financial centre; and
      (b) The CBB is satisfied that the person, having applied to be a member under this Module, is able to comply with the obligations and requirements imposed on such member.
      Adopted January 2010

    • MIR-2.5.2

      The CBB may have regard to the following matters in determining whether a member has satisfied the criteria referred to in paragraph MIR-2.5.1 (a) or (b):

      (a) The size and structure, or proposed size and structure, of the regulated activities to be undertaken by the applicant;
      (b) The nature of the regulated activities undertaking, or to be undertaken, by the applicant;
      (c) The nature of the securities, futures contracts, products or instruments that the applicant will be involved in;
      (d) The nature of the investors, clients or participants, or proposed investors, clients or participants, who may use regulated activities or services undertaken by the applicant;
      (e) Whether the applicant has been licensed by the CBB or any other regulator;
      (f) That the rules and by-laws of an applicant are in conformity with such conditions as may be prescribed with a view to ensure fair conduct of business and to protect investors;
      (g) That the applicant is willing to comply with any other conditions which the CBB, having regard to the nature of the securities, futures contracts, products or instruments dealt with by it, may impose;
      (h) The proposed securities businesses or services comply with up-to-date securities industry standards;
      (i) The persons who may be affected in the event that the applicant runs into difficulties;
      (j) Where the head office or principal place of business of the applicant is outside Bahrain, whether the applicant in the country or territory in which the head office or principal place of business of the applicant is situated, is subject to requirements and supervision comparable to those in the Kingdom of Bahrain;
      (k) The interests of the public;
      (l) Any other circumstances that the CBB may consider relevant;
      (m) Whether the applicant is satisfied or will satisfy the SRO's (licensed exchange and/or clearing house) business rules and related requirements.
      Adopted January 2010

    • MIR-2.5.3

      The applicant must additionally be able to demonstrate to the CBB and the CBB must be satisfied that it has:

      (a) The financial resources, the management and human resources with appropriate experience necessary for undertaking regulated activities;
      (b) Made arrangements for the proper supervision of all transactions effected through the SRO, so as to ensure compliance with the rules of the SRO;
      (c) Taken sufficient steps to maintain security and back-up procedures to ensure the integrity of the records of transactions effected through the SRO;
      (d) Insurance, a guarantee, or compensation fund, or other warranty plans placed by the SRO in respect of providing compensation, subject to the business rules of the SRO, to its clients; and
      (e) Made provisions, to the satisfaction of the CBB, for the clearing and settlement of transactions effected through a licensed clearing house and for the management of trade and settlement risk.
      Adopted January 2010

    • MIR-2.5.4

      [This Paragraph was deleted in July 2014.]

      Deleted: July 2014
      Adopted January 2010

    • MIR-2.5.5

      [This Paragraph was deleted in July 2014.]

      Deleted: July 2014
      Adopted January 2010