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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > High Level Standards > AU Authorisation > AU-1 Authorisation Requirements > AU-1.2 Approved Persons > Definitions > AU-1.2.7
  • Definitions

    • AU-1.2.7

      DirectorG is any person who is a member of the licensee's Board of Directors, and is individually, and collectively with other Directors responsible for directing the affairs and overseeing the activities of the licensee, as detailed in section HC-1.2.

      Amended: July 2019
      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

      Investment firm licenseesG must appoint a person to undertake the function of Chief ExecutiveG , General ManagerG or Managing DirectorG . 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 for the conduct of the whole of the firm, or, in the case of an overseas investment firm licenseeG , for all of the activities of the branch (ref. HC-6.3.4).

      Amended: January 2011
      Amended: July 2010

    • AU-1.2.9A

      A licensee may appoint a DirectorG on the Board to undertake the responsibility of the Chief ExecutiveG or General ManagerG , i.e a Managing DirectorG , in which case the appointment of a Chief ExecutiveG or General ManagerG in addition to the Managing DirectorG will not be permitted.

      Amended: April 2011
      Adopted: January 2011

    • AU-1.2.9B

      The Chief ExecutiveG , General ManagerG or Managing DirectorG of the licenseeG :

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

    • AU-1.2.9C

      The Chairman of the Board may not undertake any executive role, including that of Chief ExecutiveG , General ManagerG or Managing DirectorG .

      Adopted: January 2011

    • AU-1.2.9D

      The Chief Executive OfficerG or Managing DirectorG are not permitted, at any time to assume Chairmanship or Deputy Chairmanship of the Board.

      Adopted: January 2011

    • AU-1.2.9E

      Residency requirements apply to Chief ExecutivesG , General ManagersG or Managing DirectorsG : see Section AU-2.2.

      Adopted: January 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-1.2.11

      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 ExecutiveG ; heads of departments such as Risk Management, Compliance or Internal Audit; or the Chief Financial Officer.

    • AU-1.2.12

      Financial Instruments TraderG means a person who is engaged in buying or selling financial instrumentsG .

      Amended: July 2007

    • AU-1.2.13

      An investment consultantG or investment adviserG refers to the function of advising a client or potential client with respect to buying, selling, subscribing for or underwritingG a particular financial instrumentG or exercising any right conferred by such a financial instrumentG .

      Amended: October 2012
      Amended: July 2012
      Amended: July 2007

    • AU-1.2.13A

      If a person is merely responsible for maintaining a client relationship and providing administrative support without giving advice, such person is not considered an investment consultantG nor an investment adviserG and need not be approved by the CBB, as such a function would not be considered a controlled functionG .

      Added: July 2012

    • AU-1.2.13B

      Any other staff of an investment firm licenseeG must not provide advice to a client or potential client, as defined in Paragraph AU-1.2.13. Other approved personsG , must not provide advice to a client or potential client, as defined in Paragraph AU-1.2.13, unless such approved personG has been specifically approved by the CBB as an investment consultantG or investment adviserG , in addition to their initial controlled functionG .

      Added: July 2012

    • AU-1.2.14

      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-1.2.15

      The controlled functionG of compliance officer is defined in accordance with the compliance function under Section HC-6.5. The controlled functionsG of Money Laundering Reporting Officer/Deputy Money Laundering Reporting Officer are defined under Chapter FC-3.

      Amended: January 2011
      Amended: October 2009

    • AU-1.2.16

      All investment firm licenseesG must designate an employee, 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.
      Amended: July 2012
      Adopted: April 2011

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