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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Common Modules (Applicable to all Specialised Licensees) > Part A > Enforcement & Redress > EN Enforcement > EN-8 Cancellation of 'Fit and Proper' Approval > EN-8.2 CBB Policy > EN-8.2.3
  • EN-8.2 CBB Policy

    • EN-8.2.1

      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.

      October 2010

    • EN-8.2.2

      The CBB is conscious of the impact that assessing someone as not 'fit and proper' may have on an individual approved personG . Such assessments are carefully reviewed in the light of all relevant facts. The criteria used in reaching a decision include the following:

      (a) The extent to which the factors set out in Chapter AU-3 have not been met;
      (b) The extent to which the person has deliberately or recklessly breached requirements of the CBB Law or Volume 5 (Specialised Licensees);
      (c) The person's past compliance record and conduct following any such breaches;
      (d) The length of time since factors indicating a lack of fitness or propriety occurred; and
      (e) The risk the person poses to licenseesG and their customersG .
      October 2010

    • EN-8.2.3

      Amongst other matters, the CBB will normally consider as grounds for the revocation of approved personG status the following events affecting the approved personG :

      (a) The conviction by a court, whether in Bahrain or elsewhere, for a crime affecting honesty;
      (b) A declaration of bankruptcy by a court of law;
      (c) A court ruling that the approved person'sG legal capacity is totally or partially impaired; or
      (d) The sanction by a professional body of a fine, suspension, expulsion or censure.
      October 2010

    • EN-8.2.4

      Specialised licenseesG must inform the CBB immediately when they become aware of any of the events listed in Paragraph EN-8.2.3, affecting one of their approved personsG .

      Amended: October 2012
      October 2010

    • EN-8.2.5

      If the CBB has grounds for considering that an individual is no longer fit and proper to continue to hold their existing controlled function(s)G , it will revoke the approved personG status granted to that individual. The individual will then be required to resign from each of the controlled functionsG to which this revocation applies. This revocation does not automatically preclude them from applying to hold other controlled functionsG in the future, but will be taken into account in considering new requests from specialised licenseesG that pertain to that individual.

      October 2010

    • EN-8.2.6

      Depending on the seriousness of the situation, the CBB may impose further measures, which may include disqualification from:

      (a) Holding any controlled functionG ;
      (b) Performing any function in relation to any regulated activity carried out by a licensed firm; or
      (c) Being a controllerG of any licensed firm.
      October 2010

    • EN-8.2.7

      In assessing evidence, the CBB applies a lower threshold than is applied in a criminal court of law, reflecting the administrative nature of the sanction. The CBB may also take into account the cumulative effect of factors which, when considered individually, may not in themselves be sufficient to justify an adverse 'fit and proper' finding.

      October 2010

    • EN-8.2.8

      The CBB may also take into account the particular function being undertaken in the licenseeG by the individual concerned, and the size and nature of the licenseeG itself, particularly when assessing the suitability of a person's experience or qualifications. Thus, the fact that a person was deemed 'fit and proper' for a particular position in a particular firm does not necessarily mean he would be suitable in a different position or in a different firm.

      October 2010

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