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 aregulated activity ;2. A business incidental to undertaking aregulated activity ;(c) The acquisition of a substantial shareholding in a corporation which does not carry on:1. The business of undertaking aregulated activity, whether in Bahrain or elsewhere;2. A business incidental to undertaking aregulated 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 itsclients ; or2. May affect the ability to meet its financial obligations to anSRO , 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 anypersons performing controlled functions or where suchpersons are subject to an order or petition of bankruptcy or criminal prosecution;(f) Any civil or criminal legal proceeding taken against themember or anyperson performing a controlled function, whether in Bahrain or elsewhere;(g) Any disciplinary action against themember or anyperson 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 itsclients in insider transactions or dealings;(k) Failure of any of itsclients 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 anSRO , as the case may be;(m) Any other matter that is required to be notified, that the CBB orSRO may specify by notice in writing.Amended: April 2013
Adopted January 2010MIR-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 relevantSRO , and/or suchmember :(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); or2. 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); or2. 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 2010MIR-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 themember has taken or intends to take, whether as per CBB orSRO requirements.Amended: July 2016
Adopted January 2010MIR-4.2.4
A
member shall, within a reasonable period of time prior to entering into negotiations to provide trading, or clearing arrangement with theperson establishing or operating an overseasmarket or clearing facility, notify the CBB of such intent to enter into negotiations.Adopted January 2010