Manama, Bahrain – 21st January 2019 – The Central Bank of Bahrain (“CBB”) has today issued for consultation, draft directives on “Digital Financial Advice” (also known as “Robo-advice”) enabling its licensees to use technology to offer financial advice to their clients. The proposed directives cover the key requirements applicable to licensees who wish to use a digital financial advice tool as well as the prudential and conduct requirements associated with such digital advice in order to safeguard the interests of clients. The draft directives will also allow FinTech firms that are purely focused on robo-advice to seek a license from the CBB.
Mr. Khalid Hamad, Executive Director of Banking Supervision, said: “We are pleased to announce the CBB’s roll out of the digital financial advice rules in line with its hard push to develop the sector and help set best regulatory standards for new and innovative services in financial services thus creating a sound ecosystem to maintain Bahrain’s strong position as a leading financial hub in the region.”
The CBB is seeking feedback on the consultation by 20th February 2019, the consultation paper shall be available on the CBB website (www.cbb.gov.bh) under the “open consultations” section.