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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > HC High-Level Controls > HC-2 Approved Persons Loyalty > HC-2.2 Personal Accountability > HC-2.2.4
  • HC-2.2 Personal Accountability

    • HC-2.2.1

      The Board and its members must act with honesty, integrity, due skill and care, and in the best interests of the licensee, its shareholdersG and policyholdersG .

      January 2011

    • HC-2.2.2

      In assessing compliance with Paragraph HC-2.2.1, the CBB will take into account all actions of the Board and its members. The interest of the licensee includes the licensee's continued compliance with all relevant Rules and Regulations, and the interests of employeesG , customersG and other stakeholdersG . The interest of shareholdersG includes the current and future value of the licensee, its status as a going concern, transparency and disclosure of information to the market. The interest of policyholdersG includes ensuring that the licensee fulfils its obligations under its policiesG and treats all policyholdersG fairly and pays equal regard to the interests of all policyholdersG and groups of policyholdersG .

      January 2011

    • HC-2.2.3

      Each member of the board must understand that under the Company Law he is personally accountable to the insurance licenseeG and the shareholders if he violates his legal duty of loyalty to the insurance licenseeG , and that he can be personally sued by the insurance licenseeG or the shareholders for such violations.

      Amended: January 2013
      January 2011

    • HC-2.2.4

      An insurance licensee'sG Board must establish and disseminate to all employeesG and appointed representativesG of the licensee a corporate code of conduct.

      January 2011

    • HC-2.2.5

      The requirements of Paragraph HC-2.2.4 do not apply to captive insurance firmsG , but should be considered as guidance.

      Amended: October 2014
      January 2011

    • HC-2.2.6

      The code of conduct must establish standards by giving examples or expectations of:

      (a) Honesty;
      (b) Integrity;
      (c) Leadership;
      (d) Reliability; and
      (e) Professionalism.
      January 2011

    • HC-2.2.7

      The Board must establish and disseminate to employeesG and appointed representativesG policies and processes for the identification, reporting and prevention or management of potential conflicts of interest, including matters such as:

      (a) Related party transactionsG ;
      (b) The misuse of the licensee's assets; and
      (c) The use of privileged information for personal advantage ('insider trading').
      January 2011

    • HC-2.2.8

      Any transaction in which Board members or any member of management have potential conflicts of interest should either be proscribed or require formal documented approval by the Board, with measures taken to manage those conflicts (See also Paragraph HC-2.4.1).

      January 2011

    • HC-2.2.9

      The Board must ensure that policies and procedures are in place to ensure that necessary customerG confidentiality is maintained.

      January 2011

    • HC-2.2.10

      The duty of loyalty includes a duty not to use property of the insurance licenseeG for his personal needs as though it was his own property, not to disclose confidential information of the insurance licenseeG or use it for his personal profit, not to take business opportunities of the insurance licenseeG for himself, not to compete in business with the insurance licenseeG , and to serve the insurance licensee'sG interest in any transactions with a company in which he has a personal interest, such as in related party transactionsG .

      January 2011

    • HC-2.2.11

      For purposes of Paragraph HC-2.2.10, an approved personG should be considered to have a "personal interest" in a transaction with a company if:

      (a) He himself; or
      (b) A member of his family (i.e. spouse, father, mother, sons, daughters, brothers or sisters); or
      (c) Another company of which he is a director or controllerG ,

      is a party to the transaction or has a material financial interest in the transaction. (Transactions and interests which are de minimis in value should not be included.)

      January 2011

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