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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > AU Authorisation > AU-1 Authorisation Requirements > AU-1.2 Approved Persons > Definitions
  • Definitions

    • AU-1.2.7

      DirectorG is any person who occupies the position of a DirectorG , as defined in Article 173 of the Commercial Companies Law (Legislative Decree No. 21 of 2001).

      Amended: July 2007

    • AU-1.2.8

      The fact that a person may have 'DirectorG ' in their job title does not of itself make them a DirectorG within the meaning of the definition noted in Paragraph AU-1.2.7. For example, a 'Director of Marketing', is not necessarily a member of the Board of DirectorsG and therefore may not fall under the definition of Paragraph AU-1.2.7.

      Amended: July 2007

    • AU-1.2.9

      The Chief ExecutiveG or General ManagerG means a person who is responsible for the conduct of the licensee (regardless of actual title). The Chief ExecutiveG or General ManagerG must be resident in Bahrain. This person is responsible, alone or jointly, for the conduct of the whole of the firm, or, in the case of an overseas insurance licenseeG , for all of the activities of the branch.

    • AU-1.2.9A

      The Chairman of the Board may not act as the Chief ExecutiveG or General ManagerG . However, in the case of appointing a DirectorG on the Board as the Managing DirectorG of the insurance licenseeG , such person:

      (a) Should be fully responsible for the executive management and performance of the insurance licenseeG , within the framework of delegated authorities set by the Board;
      (b) Must devote full-time working hours to the insurance licenseeG ; and
      (c) Must not be employed at any other firm.
      Added: April 2011

    • AU-1.2.10

      Head of functionG means a person who exercises major managerial responsibilities, is responsible for a significant business or operating unit, or has senior managerial responsibility for maintaining accounts or other records of the licensee.

    • AU-1.2.10A

      The head of risk management is responsible for the management of all risk exposures arising from the activities of the insurance firmG .

      Added: April 2014

    • AU-1.2.11

      Whether a person is a head of functionG will depend on the facts in each case and is not determined by the presence or absence of the word in their job title. Examples of head of functionG might include, depending on the scale, nature and complexity of the business, a deputy Chief Executive; heads of departments such as Underwriting, Claims, Risk Management, Compliance or Internal Audit; the Chief Financial Officer; or a Signing ActuaryG (where that person is a DirectorG or employeeG of the insurance firm concerned).

      Amended: July 2007

    • AU-1.2.11A

      All insurance licenseesG must designate an employeeG , of appropriate standing and resident in Bahrain, as Compliance Officer. The duties of the Compliance Officer include:

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

    • AU-1.2.11B

      The internal Shari'a reviewer in a Takaful firmG is responsible for the examination and evaluation of the adequacy and effectiveness of the Takaful firmG 's system of internal Shari'a control. The internal Shari'a review function must comply with AAOIFI Governance standard for Islamic Financial Institutions No. 3.

      Added: April 2014

    • AU-1.2.12

      Where a firm is in doubt as to whether a function should be considered a controlled functionG it must discuss the case with the CBB.

      Amended: July 2007

    • AU-1.2.13

      A unit-linked investment adviserG refers to the function of advising clientsG on contracts that are, by their nature, investment products, including, but not limited to pension and retirement products. The unit-linked investment adviserG function is a controlled functionG .

      Amended: July 2007

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