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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > Business Standards > TC Training and Competency
  • TC Training and Competency

    • TC-A Introduction

      • TC-A.1 Purpose

        • Executive Summary

          • TC-A.1.1

            This Module presents requirements that have to be met by investment firm licenseesG with respect to training and competency of individuals undertaking controlled functionsG (i.e. approved personsG ).

            Amended: October 2013
            Adopted: July 2010

          • TC-A.1.2

            Module TC provides Rules and Guidance to Investment firm licenseesG to ensure satisfactory levels of competence, in terms of an individual's knowledge, skills, experience, and professional qualifications. Investment firm licenseesG , are required to demonstrate that individuals undertaking controlled functionsG are sufficiently competent, and are able to undertake their respective roles and responsibilities.

            Amended: October 2013
            Adopted: July 2010

          • TC-A.1.3

            The Rules build upon Principles 3 and 9 of the Principles of Business (see Module PB (Principles of Business)). Principle 3 (Due Skill, Care and Diligence) requires an investment firm licenseeG to observe high standards of integrity and fair dealing, and to be honest and straightforward in its dealings with clients. Principle 9 (Adequate Resources) requires an investment firm licenseeG to maintain adequate human, financial and other resources sufficient to run its business in an orderly manner.

            Adopted: July 2010

          • TC-A.1.4

            Condition 4 of the Central Bank of Bahrain's ('CBB') Licensing Conditions (Chapter AU-2.4) and Condition 1 of the Approved Persons regime (Chapter AU-3.1) impose further requirements. To satisfy Condition 4 of the CBB's Licensing Conditions, an investment firm licensee'sG staff, taken together, must collectively provide a sufficient range of skills and experience to manage the affairs of the licenseeG in a sound and prudent manner (AU-2.4). This condition specifies that investment firm licenseesG must ensure their employees meet any training and competency requirements specified by the CBB. Condition 1 of the Approved Persons Conditions (AU-3.1) sets forth the 'fit and proper' requirements in relation to competence, experience and expertise required by approved personsG .

            Amended: January 2011
            Adopted: July 2010

        • Legal Basis

          • TC-A.1.5

            This Module contains the CBB's Directive (as amended from time to time) relating to Training and Competency and is issued under the powers available to the CBB under Articles 38 and 65 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all investment firm licenseesG (including their approved personsG ).

            Amended: January 2011
            Adopted: July 2010

          • TC-A.1.6

            Chapter AU-3 of Module AU (Authorisation), specifies that approved personsG must be assessed by the CBB as 'fit and proper' to hold such a position. The Chapter specifies various factors that the CBB takes into account when reaching such a decision.

            Adopted: July 2010

          • TC-A.1.7

            For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

            Adopted: July 2010

      • TC-A.2 Module History

        • Evolution of the Module

          • TC-A.2.1

            This Module was first issued in July 2010. Any material changes that are subsequently made to this Module are annotated with the calendar quarter date in which the change is made; Chapter UG-3 provides further details on Rulebook maintenance and version control.

            Adopted: July 2010

          • TC-A.2.2

            A list of recent changes made to this Module is provided below:

            Module Ref. Change Date Description of Changes
            TC-A.1.5 01/2011 Clarified legal basis.
            TC-1.1.6, 1.1.9, 1.1.11, 1.1.13, 1.1.15, 1.1.18, 1.1.20 and 1.1.22 01/2011 Paragraphs deleted as considered duplicate and found in other parts of Volume 4.
            TC-1.1.16 01/2011 Amended requirements for position of MLRO.
            Appendix TC-1 01/2011 Clarified how competence can be demonstrated for the position of Director.
            TC-1.1.7, TC-1.1.8, TC-1.1.10, TC-1.1.14 04/2011 Corrected cross references.
            Appendix TC-1 01/2012 Added core competencies for compliance officer.
            Module TC 10/2013 Removed references to Deputy Money Laundering Officer (DMLRO) to be in line with changes made to Module AU in January 2011.
            Module TC 10/2013 Removed references to appointed representatives.
            TC-B.1.4 07/2014 Clarified scope of application to include board members.
            Appendix TC-1 10/2015 Added additional example of certification for financial instruments trader.
            TC-1.1.17 01/2016 Corrected typo.

          • TC-A.2.3

            Guidance on the implementation and transition to Volume 4 (Investment Business) is given in Module ES (Executive Summary).

            Adopted: July 2010

    • TC-B Scope of Application

      • TC-B.1 Scope

        • TC-B.1.1

          This Module applies to all CBB investment firm licenseesG authorised in the Kingdom.

          Adopted: July 2010

        • TC-B.1.2

          Module TC, unless otherwise stated, applies in full to all three categories of investment firm licenseesG authorised in Bahrain. In the case of an overseas investment firm licenseeG , the applicability of this Module is restricted to its Bahrain operations.

          Adopted: July 2010

        • TC-B.1.3

          Persons authorised by the CBB as approved personsG prior to the issuance of Module TC need not reapply for authorisation.

          Adopted: July 2010

        • TC-B.1.4

          The requirements of this Module apply to approved personsG , including board members, holding controlled functionsG :

          (a) Who are employed by the investment firm licenseeG in connection with the investment firm licensee'sG regulated investment servicesG , whether under a contract of service or for services or otherwise;
          (b) Whose services, under an arrangement between the investment firm licenseeG and a third party, are placed at the disposal and under the control of the investment firm licenseeG ; or
          (c) Employed by the investment firm licenseeG , whether under a contract of service or for services or otherwise, for which that investment firm licenseeG has accepted responsibility.
          Amended: July 2014
          Amended: October 2013
          Adopted: July 2010

        • TC-B.1.5

          Investment firm licenseesG must satisfy the CBB that individuals performing a controlled functionG for it or on its behalf are suitable and competent to carry on that controlled functionG .

          Adopted: July 2010

        • TC-B.1.6

          In implementing this Module, investment firm licenseesG must ensure that:

          (a) Individuals recruited by the investment firm licenseeG to perform a controlled functionG hold suitable qualifications and experience appropriate to the nature of the business;
          (b) Individuals performing a controlled functionG remain competent for the work they do; and
          (c) Individuals performing a controlled functionG are appropriately supervised.
          Amended: October 2013
          Adopted: July 2010

    • TC-1 Recruitment and Assessing Competence

      • TC-1.1 Recruitment and Appointments

        • TC-1.1.1

          If an investment firm licenseeG recruits an individual to undertake a controlled functionG , it must satisfy itself, where appropriate, of such individual's relevant qualifications and experience.

          Amended: October 2013
          Adopted: July 2010

        • TC-1.1.2

          An investment firm licenseeG proposing to recruit an individual has to satisfy itself, of his/her relevant qualifications and experience. The investment firm licenseeG should:

          (a) Take into account the knowledge and skills required for the role, in addition to the nature and the level of complexity of the controlled functionG ; and
          (b) Take reasonable steps to obtain sufficient information about the individual's background, experience, training and qualifications.
          Adopted: July 2010

        • TC-1.1.3

          In accordance with AU-1.1.24, a firm which is an Islamic investment firm licenseeG must maintain a Shari'a Supervisory Board to verify that its operations are Shari'a compliant, and must comply with relevant AAOIFI standards.

          Adopted: July 2010

        • TC-1.1.4

          Individuals occupying controlled functionsG (refer to Paragraphs AU-1.2.7 to AU-1.2.15) in an investment firm licenseeG must be qualified and suitably experienced for their specific roles and responsibilities. The controlled functionsG are those of:

          (a) DirectorG ;
          (b) Chief ExecutiveG or General ManagerG ;
          (c) Head of functionG ;
          (d) Compliance officerG ;
          (e) Money Laundering Reporting Officer ('MLRO');
          (f) [This Subparagraph was deleted in October 2013];
          (g) Member of Shari'a Supervisory Board (where applicable);
          (h) Financial instruments traderG ; and
          (i) Investment consultantG or investment adviserG .
          Amended: October 2013
          Adopted: July 2010

        • TC-1.1.5

          An investment firm licenseeG must take reasonable steps to ensure that individuals holding controlled functionsG are sufficiently knowledgeable about their respective fields of work to be able to guide and supervise operations that fall under their responsibilities. Competence must be assessed on the basis of experience and relevant qualifications described in Appendix TC-1 as a minimum. However, the CBB reserves the right to impose a higher level of qualifications as it deems necessary.

          Amended: October 2013
          Adopted: July 2010

        • Director

          • TC-1.1.6 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.7

            The role of the directorG is to be accountable and responsible for the management and performance of the licenseeG , and is outlined in more details in Section HC-1.2.

            Amended: April 2011
            Adopted: July 2010

          • TC-1.1.8

            When taken as a whole, the board of directorsG of an investment firm licenseeG must be able to demonstrate that it has the necessary expertise, as outlined in Paragraph HC-1.2.4.

            Amended: April 2011
            Adopted: July 2010

        • Chief Executive or General Manager

          • TC-1.1.9 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.10

            The chief executive officerG or general managerG (as appropriate) is responsible for the executive management and performance of the licenseeG within the framework or delegated authorities set by the Board, and is outlined in more details in Paragraph HC-6.3.4.

            Amended: April 2011
            Adopted: July 2010

        • Head of Function

          • TC-1.1.11 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.12

            Heads of functionsG are responsible for tracking specific functional performance goals in addition to identifying, managing, and reporting critical organisational issues upstream. Certain functions require dealing directly with clientsG while others do not. Both categories of functions, however, require specific qualifications and experience to meet the objectives as well as compliance requirements of the investment firm licenseeG .

            Adopted: July 2010

        • Compliance Officer

          • TC-1.1.13 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.14

            In accordance with Paragraph AU-1.2.16, an employee of appropriate standing must be designated by investment firm licenseesG for the position of compliance officerG . The duties of the compliance officerG , who must have Bahraini residency, are outlined in more details in Section HC-6.5 and include:

            (a) Having responsibility for oversight of the licensee'sG compliance with the requirements of the CBB; and
            (b) Reporting to the licensee'sG Board in respect of that responsibility.
            Amended: April 2011
            Adopted: July 2010

        • Money Laundering Reporting Officer (MLRO)

          • TC-1.1.15 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.16

            In order to carry out the function of MLRO effectively, investment firm licenseesG must ensure that their MLRO:

            (a) Is a member of senior management of the licenseeG and has a sufficient level of seniority within the licenseeG , has the authority to act without interference from business line management and has direct access to the Board and senior management (where necessary);
            (b) [Subparagraph (b) combined with (a) in January 2011];
            (c) Has sufficient resources, including sufficient time and (if necessary) support staff, and has designated a replacement to carry out the function should the MLRO be unable to perform his duties;
            (d) Has unrestricted access to all transactional information relating to any financial services provided by the licenseeG to that customer, or any transactions conducted by the licenseeG on behalf of a customer;
            (e) Is provided with timely information needed to identify, analyse and effectively monitor customer accounts;
            (f) Has access to all customer due diligence information obtained by the licenseeG ; and
            (g) Is resident in Bahrain.
            Amended: October 2013
            Amended: January 2011
            Adopted: July 2010

          • TC-1.1.17

            As outlined in Paragraph FC-3.2.1, the role and responsibilities of the MLRO involve, but are not limited to, the following:

            (a) Establishing and maintaining the investment firm licensee'sG Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) policies and procedures;
            (b) Ensuring compliance with the AML Law, any other applicable AML/CFT legislation as well as rules and guidance pertaining to Module FC;
            (c) Ensuring day-to-day compliance with the licensee'sG own internal AML/CFT policies and procedures;
            (d) Acting as the licensee'sG main point of contact for internal suspicious transaction reports from the licensee'sG staff, (refer to Section FC-4.1), and as the main contact for the Financial Intelligence Unit, the CBB and other concerned bodies regarding AML/CFT;
            (e) Making external suspicious transaction reports to the Financial Intelligence Unit and Compliance Directorate (refer to Section FC-4.2);
            (f) Taking reasonable steps to establish and maintain adequate arrangements for staff awareness and training on AML/CFT matters (whether internal or external), as per Section FC-5;
            (g) Producing annual reports on the effectiveness of the licensee'sG AML/CFT controls, for consideration by senior management, as per Paragraph FC-3.3.1;
            (h) On-going monitoring of what may, in his opinion, constitute high-risk customer accounts; and
            (i) Maintaining all necessary customer due diligence (CDD), transactions, suspicious transaction reports (STR) and staff training records for the required periods (see Section FC-6.1).
            Amended: January 2016
            Amended: October 2013
            Adopted: July 2010

        • Member of the Shari'a Supervisory Board

          • TC-1.1.18 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.19

            As outlined in AAOIFI's governance standard No.1, the Shari'a Supervisory Board is entrusted with the duty of directing, reviewing and supervising the activities of the Islamic financial institutions in order to ensure that it is in compliance with Islamic Shari'a Rules and Principles.

            Adopted: July 2010

        • Financial Instruments Trader

          • TC-1.1.20 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.21

            In accordance with Rule AU-1.2.12, the role of financial instruments tradersG , who must be knowledgeable of various areas within the financial industry and any significant market developments, involves:

            (a) Buying financial instrumentsG ; or
            (b) Selling financial instrumentsG .
            Adopted: July 2010

        • Investment Consultant or Investment Adviser

          • TC-1.1.22 [deleted]

            [Paragraph deleted in January 2011].

            Deleted: January 2011

          • TC-1.1.23

            In accordance with Rule AU-1.2.13, investment consultantsG or investment advisersG are responsible for:

            (a) Arranging deals in financial instrumentsG ; and/or
            (b) Providing advice to clients with regards to financial instrumentsG .
            Amended: October 2013
            Adopted: July 2010

          • TC-1.1.24

            Individuals holding the position of investment consultantG or investment adviserG must comply with the rules and guidance set forth in Module BC, particularly the Investment Business Code of Practice ('the Code')G

            Amended: October 2013
            Adopted: July 2010

        • Record Keeping

          • TC-1.1.25

            An investment firm licenseeG must make and retain records of its recruitment procedures. Such procedures should be designed to adequately take into account proof of the candidates' knowledge and skills and their previous activities and training.

            Adopted: July 2010

          • TC-1.1.26

            The recruitment record keeping procedure should include, but is not limited to, the following:

            (a) Results of the initial screening;
            (b) Results of any employment tests;
            (c) Results and details of any interviews conducted;
            (d) Background and references checks; and
            (e) Details of any professional qualifications.
            Adopted: July 2010

      • TC-1.2 Assessing Competence

        • TC-1.2.1

          Investment firm licenseesG must not allow an individual to undertake or supervise controlled functionsG unless that individual has been assessed by the investment firm licenseeG as competent in accordance with this Section.

          Adopted: July 2010

        • TC-1.2.2

          In the case of new personnel, the investment firm licenseeG should ensure that they work under proper supervision. Where a person is working towards attaining a level of competence, they should be supervised by a competent person until they can demonstrate the appropriate level of competence. It is the investment firm licensee'sG responsibility to ensure that such arrangements are in place and working successfully.

          Adopted: July 2010

        • TC-1.2.3

          In determining an individual's competence, licenseesG may assess if the person is fit and proper in accordance with Chapter AU-3.

          Adopted: July 2010

        • TC-1.2.4

          Investment firm licenseesG will assess individuals as competent when they have demonstrated the ability to apply the knowledge and skills required to perform a specific controlled functionG without supervision.

          Adopted: July 2010

        • TC-1.2.5

          The assessment of competence will be dependent on the nature and the level of complexity of the controlled functionG . Such assessment of competence of new personnel may take into account the fact that an individual has been previously assessed as competent in a similar controlled functionG with another investment firm licenseeG .

          Adopted: July 2010

        • TC-1.2.6

          If an investment firm licenseeG assesses an individual as competent in accordance with TC-1.2.4 to perform a specific controlled function,G it does not necessarily mean that the individual is competent to undertake other controlled functionsG .

          Adopted: July 2010

        • TC-1.2.7

          A firm should use methods of assessment that are appropriate to the controlled functionG and to the individual's role.

          Adopted: July 2010

        • Record Keeping

          • TC-1.2.8

            An investment firm licenseeG should make and retain updated records of:

            (a) The criteria applied in assessing the ongoing and continuing competence; and
            (b) How and when the competence decision was arrived at.
            Adopted: July 2010

    • TC-2 Training and Maintaining Competence

      • TC-2.1 Training and Supervision

        • TC-2.1.1

          An investment firm licenseeG must annually determine the training needs of individuals undertaking controlled functionsG . It must develop a training plan to address these needs and ensure that training is planned, appropriately structured and evaluated.

          Amended: October 2013
          Adopted: July 2010

        • TC-2.1.2

          The assessment and training plan described in Paragraph TC-2.1.1 should be aimed at ensuring that the relevant approved personG maintains competence in the controlled functionG . Training does not necessarily just simply attendance of courses. An individual can develop skills and gain experience in a variety of ways. These could include on-the-job learning, individual study, and other methods. In almost every situation, and for most individuals, it is likely that competence will be developed most effectively by a mixture of training methods.

          Amended: October 2013
          Adopted: July 2010

        • TC-2.1.3

          The training plan of investment firm licenseesG must include a programme for continuous professional development training ("CPD") for their staff.

          Amended: October 2013
          Adopted: July 2010

        • TC-2.1.4

          Approved personsG may choose to fulfil their CPD requirements by attending courses and seminars at local or foreign training institutions, some of which are set out in Appendix TC-2.

          Amended: October 2013
          Adopted: July 2010

        • TC-2.1.5

          The annual training needs assessment required under Paragraph TC-2.1.1 must also consider quarterly updates, if any, to the CBB Volume 4 (Investment Business) Rulebook, in areas relevant to each controlled functionG .

          Adopted: July 2010

        • Continuous Professional Development (CPD)

          • TC-2.1.6

            Individuals holding the controlled functionsG of compliance officer and MLRO in an investment firm licenseeG must undergo a minimum of 15 hours of CPD, in their area, per annum.

            Amended: October 2013
            Adopted: July 2010

          • TC-2.1.7

            An investment firm licenseeG should ensure that an approved personG undertaking a controlled functionG undergo appropriate review and assessment of performance.

            Amended: October 2013
            Adopted: July 2010

          • TC-2.1.8

            The level of review and assessment should be proportionate to the level of competence demonstrated by the approved personG . Review and assessment should take place on a regular basis and include coaching and assessing performance against the competencies necessary for the role.

            Amended: October 2013
            Adopted: July 2010

          • TC-2.1.9

            Assessors of approved personsG should have technical knowledge and relevant skills, e.g. coaching and assessment skills.

            Amended: October 2013
            Adopted: July 2010

        • Record Keeping

          • TC-2.1.10

            An investment firm licenseeG should make and retain records of:

            (a) The annual training plan for each controlled functionG ;
            (b) Materials used to conduct in-house training courses;
            (c) List of participants attending such in-house training courses; and
            (d) Results of evaluations conducted at the end of such training courses.
            Amended: October 2013
            Adopted: July 2010

          • TC-2.1.11

            Investment firm licenseesG should maintain appropriate training records for each individual. LicenseesG should note how the relevant training relates to and supports the individual's role. Training records may be reviewed during supervisory visits to assess the investment firm licensee'sG systems and to review how the licenseeG ensures that its staff are competent and remain competent for their roles.

            Amended: October 2013
            Adopted: July 2010

      • TC-2.2 Maintaining Competence

        • TC-2.2.1

          An investment firm licenseeG must make appropriate arrangements to ensure that approved personsG maintain competence.

          Amended: October 2013
          Adopted: July 2010

        • TC-2.2.2

          An investment firm licenseeG should ensure that maintaining competence for an approved personG takes into account:

          (a) Application of technical knowledge;
          (b) Application and development of skills; and
          (c) Any market changes and changes to products, legislation and regulation.
          Amended: October 2013
          Adopted: July 2010

        • TC-2.2.3

          An investment firm licenseeG may utilise the CPD schemes of relevant professional bodies to demonstrate compliance with TC-2.2.1. See Appendix TC-2 for a list of professional bodies in Bahrain. In-house training, seminars, conferences, further qualifications, product presentations, computer-based training and one-to-one tuition may also be considered to demonstrate compliance with TC-2.2.1.

          Amended: October 2013
          Adopted: July 2010

        • Record Keeping

          • TC-2.2.4

            An investment firm licenseeG should make and retain records of:

            (a) The criteria applied in assessing continuing competence;
            (b) The annual assessment of competence; and
            (c) Record of CPD hours undertaken by each approved personG .
            Amended: October 2013
            Adopted: July 2010

    • TC-3 Transitional Provisions

      • TC-3.1 Transitional Period

        • TC-3.1.1

          The requirements of Module TC for investment firm licenseesG are effective from 1st July 2010.

          Adopted: July 2010

        • TC-3.1.2

          Where approved personsG holding controlled functionsG are occupying positions within the investment firm licenseeG , do not meet the qualifications and core competencies outlined in Appendix TC-1 at the time of the issuance of Module TC, the investment firm licenseeG must ensure that such individuals will meet the requirements of Module TC by 31st December 2011 at the latest.

          Amended: October 2013
          Adopted: July 2010

    • Appendix TC-1 Qualifications and Core Competencies of Controlled Functions

      Role Core Competencies How can competence be demonstrated?
      Director Directors should have:
      (a) Experience to demonstrate sound business decision-making; and
      (b) A good understanding of the industry and its regulatory environment.
      This person should be experienced in the industry. Competence could be demonstrated by:
      (a) Holding a relevant professional qualification; or
      (b) A minimum length of service (at least 5 years at director or senior management level) in the industry or another industry.
      Chief Executive or General Manager These roles require:
      (a) A clear understanding of the role and responsibilities associated with this position;
      (b) A good understanding of the licensee's business, the broader industry and its regulatory environment; and
      (c) The relevant experience and qualifications associated with any executive responsibilities.
      This person should be experienced as a senior manager in the financial services industry for a minimum of 5 years. Ways of demonstrating competence could include holding or working towards a relevant qualification.

      Relevant qualifications should involve an examination of topics such as the general economic background, financial markets, legal issues, clients' financial needs and objectives, relevant social issues, regulatory codes and legislation, roles of financial advisers, in addition to risks, costs and benefits of financial products.
      Head of Function This role requires:
      (a) A clear understanding of the role and responsibilities associated with the relevant function;
      (b) A good understanding of the licensee's business, the broader industry and its regulatory environment; and
      (c) The relevant experience and qualifications to fulfill their responsibilities.
      A senior manager responsible for a specialist function should demonstrate the competencies required for that role.

      The person must have area specific experience/qualifications as required for head of function. These include accounting qualifications for financial managers, Bachelors degree in Banking or Finance, MBA, etc.

      Certain roles may require qualifications such as the CISI/ESA Islamic Finance Qualification, or other relevant certifications. The benchmark qualifications include certifications issued by a recognized institute such as any:
      (a) Certificate in Securities;
      (b) Certificate in Securities and Financial Derivatives;
      (c) Certificate in Investment Management;
      (d) Professional Certification in Accounting; and/or
      (e) Equivalent certificates or degrees.
      The head of function should have at least 5 years of experience in the industry and will typically hold, or be working towards, a relevant professional qualification in the field of banking and finance, or as appropriate to the controlled function.
      Head of Treasury In addition to the requirements outlined for individuals holding positions of head of function, this role requires:
      (a) A clear understanding of banking and treasury related products;
      (b) A clear understanding of the Asset Liability Management and Risk Management; and
      (c) A good understanding of the Financial Markets, Capital Markets, Latest Product Offering, hands-on working knowledge of the various treasury systems and risk management functions.
      The treasury function is highly specialised, and as such, the head of this function needs to satisfy further qualifications in comparison to other function heads.

      In addition to holding a minimum of 5 years of experience, the Head of Treasury must also hold certifications required for a head of function.

      Additional qualifications for the Head of Treasury may include the following certifications issued by a recognized institute:
      (a) MBA (Finance and Marketing);
      (b) ACI Diploma;
      (c) CFA;
      (d) ACI Dealing Certificate, ACI Operations Certificate;
      (e) General Securities Representative Qualification (Series 7); and/or
      (f) PRM.
      Compliance Officer A Compliance Officer should:
      (a) Have the ability and experience to take responsibility for implementing and maintaining compliance policies;
      (b) Have the appropriate level of experience to demonstrate independence from other functions within the licensee;
      (c) Have a thorough understanding of the industry and the applicable regulatory framework;
      (d) Have knowledge of different types of investment structures and the structural and operational arrangements of investment firm licenseesG ;
      (e) Have knowledge of the financial instruments dealt by the licensee; and
      (f) Have knowledge of the requirements for providing services in other jurisdictions.
      The level of required competence varies based on the scope, magnitude and complexity of the licensee.
      The person should have a minimum of 2 years of relevant experience in a compliance function of a financial institution.

      Additional relevant certifications may include:
      (a) Diploma in International Compliance offered by the International Compliance Association; and/or
      (b) Other relevant professional qualification.
      Money
      Laundering
      Reporting
      Officer
      (MLRO)
      The MLRO should:
      (a) Understand the business and how the Anti Money Laundering framework applies thereto; and
      (b) Have the appropriate level of experience to demonstrate independence from staff of the licensee dealing directly with customers.
      An MLRO will typically hold a relevant professional qualification and/or a qualification related to the financial activities. These may include:
      (a) Certified Anti-Money Laundering Specialist Examination (ACAMS);
      (b) Other relevant MLRO programs; and/or
      (c) Diploma in International Compliance offered by the International Compliance Association.
      Additionally, he must have undergone training in anti money laundering, in a recognized institute. The initial training must be for a period of 35 hours or more.

      MLROs should have thorough knowledge of the financial institutions industry and be familiar with relevant international standards and applicable domestic regulatory requirements.
      Members of Shari'a Supervisory Board This role requires:
      (a) An appropriate level of knowledge of Islamic Finance and related rules and their application to the industry; and
      (b) A good understanding of the industry.
      Members of a Shari'a Supervisory Board should be:
      (a) Highly experienced in their field; and
      (b) Specialized jurists in Fiqh Al-Mua'malat (Islamic commercial jurisprudence) and familiar with Islamic finance.
      Financial
      Instruments
      Trader
      This role requires:
      (a) A thorough understanding of Financial Markets, Capital Markets, Latest product offering, working knowledge of the various treasury systems, Asset Liability Management (ALM) and risk management functions; and
      (b) Understanding of the industry and its regulatory environment.
      The benchmark qualifications include certifications issued by a recognized institute such as:
      (a) Any professional qualification/degree in accounting, finance, banking, and/or investment management;
      (b) ACI Dealing Diploma/Certificate (The Financial Markets Association);
      (c) CFA;
      (d) General Securities Representative Qualification (Series 7);
      (e) Any certificate in Securities;
      (f) Any certificate in Securities and Financial Derivatives;
      (g) Any certificate in Investment Management;
      (h) Certified Islamic Professional Accountant; and/or
      (i) Securities Market Regulation Certification Programme; and/or
      (j) Equivalent certificates or degrees.
      Investment Consultant / Investment Adviser This role requires:
      (a) A thorough understanding of Financial products, Financial Markets, Capital Markets, latest product offering, Asset Liability Management and risk management functions;
      (b) An awareness of tax issues associated with investment activities (where applicable); and
      (c) An understanding of the Investment Code of Practice ('the Code').
      It is expected that any person who is involved in advising customers on investment products has attained an appropriate qualification such as:
      (a) Any professional qualification/degree in accounting, finance, banking, and/or investment management;
      (b) ACI Dealing Diploma/Certificate (The Financial Markets Association);
      (c) CFA;
      (d) General Securities Representative Qualification (Series 7);
      (e) Certificate in Financial Planning papers 1-3 (The Chartered Insurance Institute);
      (f) IFA Certificate for Financial Advisers;
      (g) Any Securities Investment Institute/Financial Adviser qualification; and/or
      (h) Any equivalent or higher level qualification.

      Amended: October 2015
      Amended: October 2013
      Amended: January 2012
      Amended: January 2011
      Adopted: July 2010

    • Appendix TC-2 Professional Bodies and Qualifications

      Relevant Professional Bodies

      (a) Any accredited university
      (b) Institute of Chartered Secretaries and Administrators (ICSA)
      (c) Certified Financial Analyst (CFA) Institute
      (d) American Institute of Certified Public Accountants (AICPA)
      (e) Institute of Management Accountants (IMA)
      (f) Chartered Alternative Investment Analyst Association (CAIA)
      (g) Association of Chartered Certified Accountants (ACCA)
      (h) Chartered Institute for Securities & Investment (CISI)
      (i) Association Cambiste Internationale, Paris (ACI)
      (j) Professional Risk Managers' International Association (PRIMA)
      (k) Financial Industry Regulatory Authority (FINRA), formerly National Association of Securities Dealers (NASD)
      (l) International Compliance Association

      Courses for CPD in Bahrain

      (a) Courses and certifications in the following areas:
      •  Banking
      •  Investment Management
      •  Islamic Finance
      •  Insurance
      •  Leadership and Management
      •  Accounting
      •  Information Technology
      •  Anti Money Laundering
      (b) Other training courses and diplomas in areas of banking and finance
      Adopted: July 2010

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