Proposed Changes to CBB Prior Approval Requirements for New or Expanded Financing Company Products

Central Bank of Bahrain
Rulebook
Volumes 5:
Specialised Licensees
CENTRAL BANK OF BAHRAIN
Appendix BC-2
Information Requirements for New or
Expanded Customer Products Offered by
Financing Companies

Central Bank of Bahrain
Rulebook
Volumes 5:
Specialised Licensees
Appendix BC-2: Requirements for New or Expanded Customer Products 2016
Appendix BC-2
Information Requirements for New or Expanded Customer Products Offered by Financing Companies (as required under BC-3.2 for Vol 5 (Specialised Licensees) Financing Companies) When seeking the CBB’s prior approval for new or expanded customer products, the following information must be provided to the CBB with the prior approval request:

1. A detailed product/facility description, including its features, structure, target
   market or customers, terms and conditions and distribution channels. Product illustrations should also be included where appropriate.
2. Sample product term sheet.
3. Details of any proposed outsourcing arrangements if any.
4. Description of the product’s key risks from the financing company’s and
   customer’s perspectives.
5. For new electronic/internet or mobile based products and services, financing
   companies must also submit an independent assessment of the IT-related risks1 and security measures put in place to mitigate the risks.
6. A list of all fees and charges of the new or expanded product and their
   justification.
7. For new products involving the use of IT, internet or other technology, the
   CBB may ask the financing company to conduct a demonstration/presentation.
8. A copy of the proposed contract and promotional material.
9. For Shari’a compliant products and services, the Shari’a Supervisory Board
   pronouncement must be submitted.

1 Examples of IT-related risks include (but not limited to) strategic, compliance, system support, operational, security, business resumption and reputation.