CBB Proposes Rules on Robo-Advice by Banks and Investment Firms
CBB issued draft rules to enable existing or potential investment firm licensees to offer “robo-advice,” which CBB rules define as “digital financial advice.” The proposed rules are incorporated in CBB Rulebook Volumes 1, 2, and 4. The CBB Rulebook Volume 1 applies to conventional banks, Volume 2 applies to Islamic banks, and Volume 4 applies to investment business. For the proposed rules in Volumes 1 and 2, CBB requests all licensees, audit firms, and interested parties to provide their comments by February 20, 2019. For the proposed rules in Volume 4, CBB requests comments by February 21, 2019.
The proposed rules will be incorporated in the following modules in Rulebook Volumes 1 and 2:
- Revision to Licensing Requirements Module (Module LR)
- New Digital Financial Advice Module (Module DA)
- Additions to Glossary for both Volumes
The proposed rules will be incorporated in the following modules in Rulebook Volume 4:
- Revision to Authorization Module (Module AU)
- New Digital Financial Advice Module (Module DA)
- Addition of a section on Cyber Security Risk Measures under Risk Management Module (Module RM). The proposed new section on Module RM will apply to all investment firm licensees.
- Addition to Glossary of Volume 4
Related Links
- Consultation Letter for Proposals in Volume 1 and 2
- Consultation Letter for Proposals in Volume 4
- Consultations Page
Comment Due Date: February 20, 2019 (Volumes 1 and 2); February 21, 2019 (Volume 4)
Keywords: Middle East and Africa, Bahrain, Banking, Securities, Islamic Banking, Regtech, Digital Finance Advice, Robo-advice, CBB
Previous Article
GAO Concludes OCC Could Better Address Risk of Regulatory CaptureRelated Articles
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
APRA Consults on Prudential Standard for Operational Risk
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.
EC Amends Rule on Securitizations; ESRB Updates Reciprocation Measures
The European Commission published a Delegated Regulation 2022/1301 on the information to be provided in accordance with the simple, transparent, and standardized (STS) notification requirements for on-balance-sheet synthetic securitizations.
APRA Announces Revisions to Capital Framework for Banks
The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms.
EBA Examines Remuneration Data and Use of Large Exposure Exemptions
The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).
UK Authorities Publish Discussion Paper on Critical Third Parties
The Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) published a joint discussion paper that sets out potential measures to oversee and strengthen the resilience of services provided by critical third parties to the financial sector in UK.
BoE Issues Update on Ongoing Data Transformation Program
The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.
EBA Issues Draft Methodology and Templates for 2023 Stress Tests
The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.
EBA Issues SREP Guidelines and Standards for Investment Firms
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.
