• EN-7.2 EN-7.2 BMA Policy

    • EN-7.2.1

      The BMA uses its own inspectors to undertake on-site examinations of licensees as an integral part of its regular supervisory efforts. In addition, the BMA may commission special investigations of licensees in order to help it assess their compliance with BMA requirements. Such investigations may be carried out either by the BMA's own officials, by duly qualified experts appointed for the purpose by the BMA ("Appointed Experts"), or a combination of the two.

    • EN-7.2.2

      Failure by licensees to cooperate fully with the BMA's inspectors, or to respond to their examination reports within the time limits specified, will be treated as demonstrating a material lack of cooperation with the Agency which will result in other enforcement measures being considered, as described elsewhere in this module.

    • EN-7.2.3

      The BMA may appoint an individual or a firm as an Appointed Expert. Examples of Appointed Experts are reporting accountants, lawyers and expert witnesses. The appointment of Appointed Experts is not necessarily indicative of a contravention of BMA requirements or suspicion of such a contravention. For instance, an Appointed Expert may be commissioned to provide an expert opinion on a technical matter.

    • EN-7.2.4

      Appointed Experts report in a form and within a scope defined by the BMA, and are solely responsible to the BMA for the work they undertake in relation to the investigation concerned. The report produced by the Appointed Experts is the property of the BMA (but is usually shared by the BMA with the firm concerned). The cost of the Appointed Experts' work must be borne by the licensee concerned.

    • EN-7.2.5

      In selecting an Appointed Expert, the BMA will take into account the level of fees proposed and aim to limit these to the lowest level consistent with an adequate review of the matters at hand, given the qualifications, track record and independence of the persons concerned. Because the cost of such investigations are met by the licensee, the BMA makes only selective use of Appointed Experts, when essential to supplement BMA's other supervisory tools and resources.

    • EN-7.2.6

      The BMA will not, as a matter of general policy, publicise the appointment of Appointed Experts, although it reserves the right to do so where this would help achieve its supervisory objectives. Both the Appointed Experts and the BMA are bound to confidentiality provisions restricting the disclosure of confidential information with regards to any such information obtained in the course of the investigation.

    • EN-7.2.7

      Unless the Agency otherwise permits, Appointed Experts may not be the same firm appointed as external auditors of the bank.

    • EN-7.2.8

      Compliance by Appointed Experts with the contents of this chapter will not, of itself, constitute a breach of any other duty owed by them to a particular bank (i.e. create a conflict of interest).

    • EN-7.2.9

      The Agency may commission reports, which require Appointed Experts to review information from another company within the reporting bank's group even where that other company is not itself subject to any Agency requirements.

    • EN-7.2.10

      Banks must provide all relevant information and assistance to Appointed Experts on demand.

    • EN-7.2.11

      The Agency may appoint one or more of its officials to work on the Appointed Experts' team for a particular bank.