Featured Product

    CBB Addresses Crowdfunding & Outsourcing Rules, Issues Other Updates

    May 09, 2022

    The Central Bank of Bahrain (CBB) issued regulations applicable to crowdfunding platform operators, proposed revisions to outsourcing requirements, and published a circular on resolving discrepancies in the Bahrain Credit Reference Bureau, BCRB, reporting. CBB also informed all listed companies and CBB licensees that disclosure of financial impact of COVID-19 in their interim and annual financial statements is no longer mandatory.

    Below are the key highlights of these recent developments:

    • The regulations for crowdfunding platform operators address equity-based and financing-based crowdfunding and are covered under the Crowdfunding Platform Operators Module (Module CFP) of the CBB Rulebook. The regulations cover principles governing the conduct of operations by the platform, rules on platform offers and disclosures, avoiding conflicts of interest, due diligence of borrowers/issuers through Know Your Customer (KYC), segregation of client money from platform operators, and other measures to ensure safe operation of the activity. The regulations also require crowdfunding platform operators to ensure suitability of the products being offered on the platform to retail clients.
    • The outsourcing requirements consultation, which ended on May 11, 2022, specifies, among others, that a licensee must not outsource the certain functions. These functions include compliance, anti-money laundering/combating the financing of terrorism (AML/CFT), financial control, risk management, and business line functions offering regulated services directly to the customers. However, certain support activities, processes and systems under these functions may be outsourced (for example call centers, data processing, credit recoveries, e-KYC solutions). The proposed requirements also specify the requirements that licensees must comply with prior to signing any outsourcing agreement. The proposed revisions to outsourcing requirements will replace the existing outsourcing requirements, as applicable. Examples of services that are typically outsourced include data processing, cloud services, customer call centers, and back-office-related activities
    • Furthermore, to reduce the discrepancies and data inconsistencies in the Bahrain Credit Reference Bureau, all licensees are required to immediately conduct a full data cleansing exercise to ensure that all client data (consumer and corporate), regardless of the sector or type of exposure, is accurately reported. The licensees are also required to compare and verify core system data with the Bahrain Credit Reference Bureau data on a quarterly basis, to resolve any discrepancies on a real time basis.

     

    Related Links

     

    Keywords: Middle East And Africa, Bahrain, Banking, Covid-19, Crowdfunding Service Providers, Outsourcing Arrangements, Disclosures, Reporting, AML CFT, CBB Rulebook, Regtech, Cloud Computing, Lending, Credit Risk, Credit Bureau Data Reporting, CBB

    Featured Experts
    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    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.

    July 29, 2022 WebPage Regulatory News
    News

    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.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423