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GR-5.3.4

In assessing the suitability of controllersG who are unregulated legal persons, the CBB will consider the following:

(a) Whether their approval or refusal of a controllerG is or could be detrimental to the licenseeG , Bahrain's financial sector and the national interest of the Kingdom of Bahrain;
(b) The legitimate interests of investors, creditors, non-controlling interests and all other stakeholders of the licenseeG
(c) The financial strength of the controllerG , its parent(s) and its subsidiaries, its implications for the insurance licenseeG and the likely stability of the controller'sG shareholding in the insurance licenseeG ;
(d) Whether the unregulated legal person or any of its subsidiaries or any of its shareholders have ever been adjudged bankrupt, or failed to satisfy a judgement debt under a court order, or have defaulted on any debts, or entered into any arrangement with creditors in relation to the inability to pay due debts;
(e) The controller'sG jurisdiction of incorporation, location of Head Office, group structure and close linksG , and the implications for the insurance licenseeG as regards effective supervision of the insurance licenseeG and potential conflicts of interest;
(f) The controller'sG (and other subsidiaries') propriety and general standards of business conduct, including the contravention of any laws or regulations related to financial services, or the institution of disciplinary proceedings by a government authority, regulatory agency or professional body;
(g) Any conviction related to fraud, misfeasance or other misconduct;
(h) Whether the unregulated legal person or any of its subsidiaries has been subject to any disciplinary proceeding whether by court order any proceeding by a specialised body, and whether the unregulated legal person is sued in any court;
(i) The extent to which the controllerG or its subsidiaries have been truthful and open with regulators and supervisors;
(j) Whether the unregulated legal person has ever been refused an authorisation as controllerG , a license to undertake regulated activities by the CBB or any other regulator in another jurisdiction;
(k) The track record as a controllerG or investor in financial institutions;
(l) The ability of the unregulated legal person to deal with existing shareholdersG and the Board in a constructive and co-operative manner;
(m) Directorships in the Kingdom of Bahrain or elsewhere or ownership of more than 20% of the capital or voting rights of any financial institution, and the potential for conflicts of interest that such directorships or ownership may imply; and
(n) Whether the unregulated legal person or any of its subsidiaries have ever entered into any arrangement with creditors in relation to the inability to pay due debts.
Amended: October 2015
Amended: July 2007
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