CBB Volume 6: Contents

Central Bank of Bahrain Volume 6—Capital Markets
Part A
Institutions
MAE — Markets and Exchanges
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Location: Central Bank of Bahrain Volume 6—Capital Markets > Part A > Institutions > MAE — Markets and Exchanges > MAE-5 Matters Requiring Approval of CBB > MAE-5.3 Authorisation of Approved Persons > Prior Approval Requirements and Process > MAE-5.3.7B
  • Prior Approval Requirements and Process

    • MAE-5.3.1

      LicenseesG must obtain the CBB's prior written approval for any person wishing to undertake a controlled functionG in a licenseeG . The approval from the CBB must be obtained prior to their appointment.

      Amended: April 2016
      Amended: April 2013

    • MAE-5.3.2

      Controlled functionsG are those functions occupied by board members and persons in executive positions and include:

      (a) Board members;
      (b) Chief ExecutiveG or General ManagerG ;
      (c) Head of functionG ;
      (d) Compliance Officer; and
      (e) Money Laundering Reporting Officer (MLRO).
      Amended: April 2016
      Amended: April 2013

    • MAE-5.3.2A

      For the purpose of this Module, the following positions are considered as head of functionG :

      (a) Head of listing;
      (b) Head of trading;
      (c) Head of market control;
      (d) Head of member affairs;
      (e) Head of risk management; and
      (g) Head of other functions.
      Added: April 2016

    • MAE-5.3.2B

      Whether a person is head of functionG will depend on the nature, scale and complexity of the function and is not determined by the presence or absence of the word in their job title.

      Added: April 2016

    • MAE-5.3.2C

      LicenseesG must maintain adequate segregation of responsibilities in their staffing arrangements, to protect against the misuse of systems or errors. The segregation of responsibilities must ensure avoidance of any conflict of interest and maintain a Chinese Wall such critical controlled functionsG .

      Added: April 2016

    • MAE-5.3.3

      The Chief Executive Officer or General Manager, Compliance Officer and Money Laundering Reporting Officer must be resident in Bahrain.

      Amended: April 2013

    • MAE-5.3.4

      All personsG wishing to undertake any of the controlled functions shall be subject to the fit and proper requirements in this Section.

      Amended: April 2016
      Amended: April 2013

    • MAE-5.3.5

      In accordance with Subparagraph MAE-5.3.2(d), every licensed exchangeG must appoint a compliance officer. The compliance officer is responsible for discharging the obligations of the licensee.

      Amended: April 2013

    • MAE-5.3.6

      In accordance with Paragraph MAE-5.3.5:

      (a) The Compliance Officer should be competent and knowledgeable regarding the CBB Law, rules and regulations, as well as the various applicable Volume 6 Modules;
      (b) The Compliance Officer shall: ;
      (i) Monitor the transactions undertaken by the memberG , its representatives, or participantsG ;
      (ii) Identify disorderly transactions or conduct that may involve market abuse or disruption;
      (iii) Identify and monitor transactions undertaken by insiders dealing through or with the memberG ;
      (iv) Identify any breach of CBB Law, rules and regulations; and
      (v) Identify any breach of the rules of the SROG .
      Added: April 2013

    • MAE-5.3.7

      The Compliance Officer shall on the identification of any breach referred to in Paragraph MAE-5.3.6(b), report such breach to the CBB without delay for the investigation and prosecution of marketG abuse and shall provide full assistance to the latter in investigating and prosecuting market abuse occurring on or through the licensed exchangeG .

      Amended: April 2013

    • MAE-5.3.7A

      The request for CBB approval must be made by submitting to the CBB a duly completed Form 3 (Application for Approved Person status) and Curriculum Vitae after verifying that all the information contained in the Form 3, including previous experience, is accurate. Form 3 is available under Volume 6 Part B Authorisation Forms MAE Forms of the CBB Rulebook.

      Added: April 2016

    • MAE-5.3.7B

      When the request for approved personG status forms part of a license application, the Form 3 must be marked for the attention of the Director, Licensing Directorate. When the submission to undertake a controlled functionG is in relation to an existing licenseeG , the Form 3 must be marked for the attention of the Director, Capital Markets Supervision. In the case of the MLRO, Form 3 should be marked for the attention of the Director, Compliance Directorate.

      Amended: April 2018
      Added: April 2016

    • MAE-5.3.7C

      When submitting Form 3, licenseesG must ensure that the Form 3 is:

      (a) Submitted to the CBB with a covering letter signed by an authorised representative of the licenseeG , seeking approval for the proposed controlled functionG ;
      (b) Submitted in original form;
      (c) Submitted with a certified copy of the applicant's passport, original or certified copies of educational and professional qualification certificates (and translation if not in Arabic or English) and the Curriculum Vitae; and
      (d) Signed by an authorised representative of the licenseeG and all pages stamped on with the licensee'sG seal.
      Added: April 2016

    • MAE-5.3.7D

      For existing licenseesG applying for the appointment of a Board DirectorG or the Chief ExecutiveG /General ManagerG , the authorised representative should be the Chairman of the Board or a DirectorG signing on behalf of the Board. For all other controlled functionsG , the authorised representative should be the Chief ExecutiveG /General ManagerG .

      Added: April 2016

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