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  • Client Money

    • MIR-4.7.10

      The member must hold client money in a separate client bank account designated for the purpose of settlement of the client's transaction.

      Adopted January 2010

    • MIR-4.7.11

      A client bank account is an account maintained by the Settlement Bank or other designated licensed bank holding client money of one or more clients in a bank account designated as such, in accordance with the terms of agreement with the client/clients.

      Adopted January 2010

    • MIR-4.7.12

      Client bank accounts may only be opened with banks licensed by the CBB to do business in the Kingdom of Bahrain, after being subject to due diligence by the member.

      Adopted January 2010

    • MIR-4.7.13

      For the purpose of rule MIR-4.7.12 when undertaking due diligence, the member should take reasonable steps to establish that the bank is appropriate considering, among other factors, the following:

      (a) Whether it is acceptable to the SRO;
      (b) Whether it is a duly licensed bank in good regulatory standing;
      (c) The capital adequacy of the bank;
      (d) The amount of client money to be placed, as a proportion of the bank's capital and deposits; and
      (e) The credit rating of the bank, if available.
      Adopted January 2010

    • MIR-4.7.14

      If a member holds or controls client assets which are not subject to the client asset provisions in an arrangement with a market counterparty, it must disclose to that market counterparty in writing that:

      (a) The protections conferred by the client asset protection rules do not apply to such client money;
      (b) As a consequence of (a), such client assets may be mixed with money belonging to the member, and may be used by the member in the course of the clearing and settling of the clients' securities transaction; and
      (c) In the event of insolvency, winding up of the member or other distribution event stipulated by the laws, rules and regulations, the clients assets shall not be considered as a part of the member's assets.
      Adopted January 2010