MANAMA: In the wake of rapidly changing financial climate of the banking and financial industry due to technology, the Central Bank of Bahrain’s senior official assured that the stringent supervision and protection of investors interests will remain top priority.
Abdul Rahman Al Baker, Executive Director of Financial Institutions Supervision at Central Bank of Bahrain (CBB) told the participants of the 4th Middle East Assets Management Forum 2019 held on Monday at Gulf Hotel Kingdom of Bahrain.
As a regulator, Al Baker said, CBB ensure that its regulatory framework accommodates the use of new technologies which can help to make the delivery of financial services more robust, efficient and inclusive. Therefore, the CBB has issued directives to address the financial technologies in various financial services. With respect to asset management services, the CBB has issued in March 2019, the directives on “Digital Financial Advice”, also known as Robo-advice, following the industry consultation process. The new rules enabling specialized Fintech firms planning to offer digital financial advice obtain a license to offer such services to investors. In addition, banks and investment firms are able to introduce such services after taking the approvals of the CBB. The new rules focus on providing safeguards and controls governing the use of algorithms or Artificial Intelligence which are embedded in the software programmes used in the digital advisory tools.
However, in this age of change and new technologies, we as a regulator can assure you that there are core values that don’t change – namely, our commitment to supervise our financial institutions and the protection of the interest of the investing public.
the CBB intends to remain at the forefront of regulating the asset management industry and we look forward to work closely with market players to further develop this key industry.
