Regulatory Alerts2015-06-22
Regulation Governing Control in Investment Business Firm and Insurance Licensees
The Central Bank of Bahrain issued Decision No. 27 of 2015, establishing a comprehensive regulatory framework governing control thresholds and approval procedures for investment companies and insurance licensees. The regulation mandates that applicants seeking direct or indirect ownership of 10% to over 40% of issued capital obtain prior supervisory approval, with specific caps and exemptions tailored to natural persons, unregulated legal entities, and regulated financial institutions. It further requires continuous reporting of controller ownership, establishes detailed eligibility criteria regarding financial soundness, conflict of interest, and regulatory compliance, and grants the Bank authority to impose conditions, reject applications, or enforce share transfers for non-compliance.