The Central Bank of Bahrain (CBB) has revised requirements for licensed financial institutions relating to the appointment of board members and senior management. 

 

The new rules are issued under one common module of the CBB Rulebook, replacing the “fit and proper” requirements which were previously included in the “Licensing Requirements”, “Authorisation” and “Training and Competency” modules found across all volumes of the CBB Rulebook, it said. 

 

The new Fit and Proper Module reduces the number of senior managers that require CBB’s prior approval, removes the prescriptive ‘one size fits all’ qualifications and core competency requirements for senior management positions, and requires the licensees to develop their own standards. 

 

By reducing the number of prior approvals, CBB will no longer co-manage senior management appointments holding the board and CEO accountable for suitability of senior managers, thus making the board and CEO accountable for ensuring suitability of persons holding senior management positions, it said.

 

Shireen Al Sayed, Director of Regulatory Policy Unit, said: “The revised requirements, which were developed following extensive discussions with the industry and benchmarking the practices in reputable financial centres, reflect the CBB’s ongoing efforts to reduce compliance and administrative burden for our licensees while maintaining the highest standards of integrity and competence in the financial services sector. By streamlining the approval process, we aim to empower the industry to take greater ownership in selecting the right talent for senior management roles. This rationalization is essential to supporting our licensees’ growth in an increasingly competitive environment.”

 

The new CBB’s prior approval requirements for board of directors and senior managers will take effect from April 1, while the remaining requirements are effective October 1. The module applies to all CBB licensees and can be accessed under the Common Volume of the CBB Rulebook available on CBB’s website, it said.  -TradeArabia News Service