The Central Bank of Bahrain (CBB) has issued directives on digital financial advice following a consultation with the industry.
The bank’s executive director of banking supervision, Khalid Hamad, said that the new rules will enable fintech firms as well banks and investment managers to obtain a licence to offer robo-advice services to investors.
Hamad also said that the rules will focus on providing safeguards and controls governing the use of algorithms or artificial intelligence embedded in the software.
Back in February the CBB issued new rules on cryptocurrency designed to aid the development of the crypto market and the latest directive is in keeping with this ambition, said Hamad.
“The CBB continues to make steady progress in expanding the scope of role of digital financial services with a view to ensuring customers have access to smart services from banks and financial institutions,” he said
“These rules are in line with regulatory standards in leading financial centres and will help Bahrain maintain its position as a leading financial hub in the region.”
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