TC-A.1 TC-A.1 Purpose
Executive Summary
TC-A.1.1
This Module presents requirements that have to be met by
Islamic bank licensees with respect to training and competency of individuals undertakingcontrolled functions (as defined in Paragraph LR-1A.1.2)October 2013TC-A.1.2
Module TC provides Rules and Guidance to
Islamic bank licensees to ensure satisfactory levels of competence, in terms of an individual's knowledge, skills, experience and professional qualifications.Islamic bank licensees , are required to demonstrate that individuals undertakingcontrolled functions are sufficiently competent, and are able to undertake their respective roles and responsibilities.October 2013TC-A.1.3
The Rules build upon Principles 3 and 9 of the Principles of Business (see Module PB (Principles of Business)). Principle 3 (Due Skill, Care and Diligence) requires
Islamic bank licensees andapproved persons to observe high standards of integrity and fair dealing, and to be honest and straightforward in its dealings with clients. Principle 9 (Adequate Resources) requiresIslamic bank licensees to maintain adequate human, financial and other resources sufficient to run its business in an orderly manner.October 2013TC-A.1.4
Condition 4 of the Central Bank of Bahrain's ('CBB') Licensing Conditions (Chapter LR-2.4) and Chapter LR-1A (Approved Persons) of Module LR impose further requirements. To satisfy Condition 4 of the CBB's Licensing Conditions, an
Islamic bank licensee's staff, taken together, must collectively provide a sufficient range of skills and experience to manage the affairs of thelicensee in a sound and prudent manner (LR-2.4). This condition specifies thatIslamic bank licensees must ensure their employees meet any training and competency requirements specified by the CBB. Chapter LR-1A (Approved Persons) of Module LR sets forth the 'fit and proper' requirements in relation to competence, experience and expertise required byapproved persons ; this Chapter specifies various factors that the CBB takes into account when reaching such a decision.October 2013Legal Basis
TC-A.1.5
This Module contains the CBB's Directive (as amended from time to time) relating to training and competency and is issued under the powers available to the CBB under Articles 38 and 65(b) of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all
Islamic bank licensees (including theirapproved persons ).October 2013TC-A.1.6
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
October 2013
