The Central Bank of Bahrain (CBB) has issued new regulations that would expand the scope of family offices in the kingdom.
“The new category is permitted to provide regulated investment and wealth management services to family offices that are subject to the CBB’s supervision,” the central bank said in a statement.
The regulations were developed to suit the business models of family offices that provide services to multiple wealthy families while maintaining regulatory requirements related to governance and internal controls.
The category of licence will be able to provide wealth management advice, investment management, custody services, trust services, fund management and insurance advice.
“The introduction of Family Office licence and related regulations will allow these licensees to provide services that cater to family office business models,” said Abeer Al Saad, the Executive Director of Financial Institutions Supervision.
“This new license allows the provision of multiple investment services by family offices that wish to provide specialised wealth management services to other parties while also meeting the governance and regulatory requirements in addition to customer financial needs and interests.”
CBB said the new regulations do not apply to existing family offices unless they expand the scope of their activities by providing investment services to other parties which requires obtaining a license under the new regime.
Dalal Buhejji, the Executive Director for Business Development – Financial Services at the Bahrain Economic Development Board said the new category licence, is a step in the right direction and it will enhance the country’s value-proposition as an ideal investment destination.