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CL-1.1.4

Past version: Effective from 01 Jul 2007 to 31 Dec 2011
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If an investment firm licensee 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 investment firm licensee, and may be used by the investment firm licensee in the course of the investment firm licensee's business; and
(c) In the event of insolvency, winding up of the investment firm licensee or other distribution event stipulated by the CBB:
(i) In the case of a Bahrain investment firm licensee, such client assets will be subject to and distributed in accordance with the CBB client money distribution rules; and
(ii) In the case of overseas investment firm licensees, such client assets will be subject to a regime which may differ from the regime applicable by the CBB.
Amended: January 2007