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  • CRA-4.10 CRA-4.10 Matters Requiring Approval of CBB

    • CRA-4.10.1

      A licensee must comply with the following Rules of relating to a change of shareholding held by substantial shareholders, or a transfer of business or substantially all its assets or liabilities in the same manner set out in:

      (a) Section MIR-5 (Substantial Shareholding in a Licensed Member);
      (b) Section MIR-6 (Control of a Licensed Member); and
      (c) Section MIR-7 (Business Transfer).
      Amended: April 2023
      Added: April 2019

    • Dividends

      • CRA-4.10.2

        Licensees must obtain the CBB's prior written approval to any dividend proposed to be distributed to the shareholders, before announcing the proposed dividend by way of press announcement or any other means of communication and prior to submitting a proposal for a distribution of profits to a shareholder vote.

        Added: April 2019

      • CRA-4.10.3

        One of the factors that the CBB will consider while determining whether to grant an approval is when it is satisfied that the level of dividend proposed is unlikely to leave the licensee vulnerable to breaching the CBB's financial resources requirements, taking into account, as appropriate, the trends in the licensee's business volumes, profitability, expenses and performance.

        Added: April 2019

      • CRA-4.10.4

        To facilitate the prior approval required under Paragraph CRA-4.10.2, licensees must provide the CBB with:

        (a) The licensee's intended percentage and amount of proposed dividends for the coming year;
        (b) A letter of no objection from the licensee's external auditor on such profit distribution; and
        (c) A detailed analysis of the impact of the proposed dividend on the capital adequacy requirements outlined in Chapter CRA-3 (Minimum Capital Requirements) and the liquidity position of the licensee.
        Amended: April 2023
        Added: April 2019