Regulatory Alerts2012-04-01
Module CL (Client Money) Volume 3 (Insurance)
The Central Bank of Bahrain issued proposed regulations under Module CL to mandate strict segregation and timely handling of client premiums by insurance brokers and appointed representatives. The rules require funds to be deposited into designated accounts within one business day, prohibit brokers from deducting commissions directly from client balances, and clarify that retail banks merely hold funds while brokers retain compliance responsibility. Industry feedback prompted CBB to confirm a three-month transition period, validate the use of single client accounts with per-client record-keeping, and reinforce existing enforcement mechanisms to ensure market stability.
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