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  • HC-2.2 HC-2.2 'Fit and proper' requirement

    • HC-2.2.1

      Licensees seeking an approved person authorisation for an individual, must satisfy the CBB that the individual concerned is 'fit and proper' to undertake the controlled function in question.

      October 07

    • HC-2.2.2

      To be considered 'fit and proper', those nominated must demonstrate:

      (a) Personal integrity, honesty and good reputation;
      (b) Professional competence, experience and expertise, sufficient for the controlled function for which authorisation is being applied for, and given the scale, complexity and nature of the conventional bank licensee concerned; and
      (c) Financial soundness.
      October 07

    • HC-2.2.3

      In assessing the conditions prescribed in Rule HC-2.2.2, the CBB will take into account the criteria contained in Section HC-2.3. The CBB reviews each application on a case-by-case basis, taking into account all relevant circumstances. A person may be considered 'fit and proper' to undertake one type of controlled function but not another, depending on the function's job size and required levels of experience and expertise. Similarly, a person approved to undertake a controlled function in one conventional bank licensee may not be considered to have sufficient expertise and experience to undertake nominally the same controlled function but in a much bigger licensee.

      October 07

    • HC-2.2.4

      Approved persons undertaking a controlled function must act prudently, and with honesty, integrity, care, skill and due diligence in the performance of their duties. They must avoid conflicts of interest arising whilst undertaking a controlled function.

      October 07

    • HC-2.2.5

      In determining whether a conflict of interest may arise, factors that may be considered include whether:

      (a) A person has breached any fiduciary obligations to the company or terms of employment;
      (b) A person has undertaken actions that would be difficult to defend, when looked at objectively, as being in the interest of the licensee; and
      (c) A person has failed to declare a personal interest that has a material impact in terms of the person's relationship with the licensee.
      October 07