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
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