TC-A.1 TC-A.1 Purpose
Executive Summary
TC-A.1.1
This Module provides Rules and Guidance to
insurance licensees to ensure satisfactory levels of competence, in terms of an individual’s knowledge, skills, experience and professional qualifications.Insurance licensees are required to demonstrate thatapproved persons including individuals undertakingcontrolled functions are sufficiently competent and are able to undertake their respective roles and responsibilities.Insurance licensees must maintain the competence to provideregulated insurance services as outlined in Section AU-1.4. Individuals occupyingcontrolled functions as outlined in Paragraph AU-1.2.2, must therefore meet minimum levels of training and experience related to their functions.Added: October 2020TC-A.1.2
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
insurance 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) requiresinsurance licensees to maintain adequate human, financial and other resources sufficient to run its business in an orderly manner.Added: October 2020TC-A.1.3
Condition 4 of the Central Bank of Bahrain’s (‘CBB’) Licensing Conditions (Chapter AU-2.4) and Chapter AU-3 (Approved Persons Conditions) of Module AU impose further requirements. To satisfy Condition 4 of the CBB’s Licensing Conditions, an
insurance licensees staff, taken together, must collectively provide a sufficient range of skills and experience to manage the affairs of the licensee in a sound and prudent manner (AU-2.4). This condition specifies thatinsurance licensees must ensure their employees meet any training and competency requirements specified by the CBB. Chapter AU-3 (Approved Persons Conditions) of Module AU 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.Added: October 2020Legal Basis
TC-A.1.4
This Module contains the Central Bank of Bahrain’s (‘CBB’) 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
insurance licensees .Added: October 2020TC-A.1.5
For an explanation of the CBB’s rule-making powers and different regulatory instruments, see Section UG-1.1.
Added: October 2020
