• MIR-4.2 MIR-4.2 Notification Requirements

    • MIR-4.2.1

      A licensed member shall, as soon as practicable after the occurrence of any of the following circumstances, notify the CBB of the circumstance:

      (a) Any material change to the information in its application under rule MIR-2.2.10;
      (b) The carrying on of any business other than:
      1. The business of undertaking a regulated activity;
      2. A business incidental to undertaking a regulated activity;
      (c) The acquisition of a substantial shareholding in a corporation which does not carry on:
      1. The business of undertaking a regulated activity, whether in Bahrain or elsewhere;
      2. A business incidental to undertaking a regulated activity, whether in Bahrain or elsewhere;
      3. Such business or class of businesses as the CBB may allow;
      (d) It becoming aware of a financial irregularity or other matter which in its opinion:
      1. May affect its ability to discharge its financial obligations towards its clients; or
      2. May affect the ability to meet its financial obligations to an SRO, as the case may be;
      3. May affect its ability to meet the minimum working capital requirement;
      (e) Where it reprimands, suspends, dismisses or otherwise takes disciplinary action against any persons performing controlled functions or where such persons are subject to an order or petition of bankruptcy or criminal prosecution;
      (f) Any civil or criminal legal proceeding taken against the member or any person performing a controlled function, whether in Bahrain or elsewhere;
      (g) Any disciplinary action against the member or any person performing a controlled function taken by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;
      (h) Any significant change to the regulatory requirements imposed by any regulatory body other than the CBB, whether in Bahrain or elsewhere;
      (i) Any arrangements or involvement related to take-overs, mergers or acquisitions;
      (j) Involvement or possible involvement of any of its clients in insider transactions or dealings;
      (k) Failure of any of its clients to comply with the disclosure standards requirements and adhering to the ownership rules in particular;
      (l) A failure to adhere to the trading days, hours or sessions and settlement period of an SRO, as the case may be;
      (m) Any other matter that is required to be notified, that the CBB or SRO may specify by notice in writing.
      Amended: April 2013
      Adopted January 2010

    • MIR-4.2.2

      The CBB may, at any time after receiving a notification referred to in rule MIR-4.2.1 and after providing the licensed member with an opportunity to be heard, issue directions to the relevant SRO, and/or such member:

      (a) Where the notification relates to a matter referred to in rule MIR-4.2.1 (b):
      1. To cease carrying on the first-mentioned business referred to in rule MIR-4.2.1 (b); or
      2. To carry on such business referred to in rule MIR-4.2.1 (b) subject to such conditions or restrictions as the CBB may impose; or
      (b) Where the notification relates to a matter referred to in rule MIR-4.2.1 (c):
      1. To dispose of the shareholding referred to in rule MIR-4.2.1 (c); or
      2. To exercise its rights relating to such shareholding subject to such conditions or restrictions as the CBB may impose;

      and the member shall comply with such directions.

      Amended: April 2013
      Adopted January 2010

    • MIR-4.2.3

      Where a circumstance referred to in rule MIR-4.2.1 has occurred, the member shall, in addition to the notification required under rule MIR-4.2.1, within 5 calendar days of the occurrence of the circumstance, submit a report to the CBB of the circumstances relating to the occurrence, the remedial actions taken or required to be taken at the time of the occurrence, and the subsequent follow-up actions that the member has taken or intends to take, whether as per CBB or SRO requirements.

      Amended: July 2016
      Adopted January 2010

    • MIR-4.2.4

      A member shall, within a reasonable period of time prior to entering into negotiations to provide trading, or clearing arrangement with the person establishing or operating an overseas market or clearing facility, notify the CBB of such intent to enter into negotiations.

      Adopted January 2010