Regulatory Alerts2016-03-15
Consultation on Modules for Ancillary Service Providers (Volume 5)
The Central Bank of Bahrain issued this consultation paper to finalize the regulatory framework for Ancillary Service Providers under Rulebook Volume 5, clarifying definitions and operational requirements for third-party administrators, card processors, credit reference bureaus, and payment service providers. Industry feedback prompted amendments that expand TPA services beyond healthcare to include motor and self-insured schemes, introduce grandfathering provisions for existing licensees, and refine payment service provider activities to prohibit deposit-taking while mandating separate escrow accounts. The updated rules establish a unified licensing title for all ancillary entities, delineate resident versus non-resident service scopes, and standardize commission deductions and contractual obligations to reduce operational conflicts.