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  • Management Structure

    • C4-2.1.9

      The Board must appoint senior management whose authority must include management and operation of current activities of the category 4 investment firm, reporting to and under the direction of the Board. The Board must make adequate arrangements, at a minimum for the below functions/positions:

      (a) A CEO, General Manager (or CO-CEO, Managing Partner etc.);
      (b) Financial control;
      (c) Compliance;
      (d) Risk management;
      (e) Asset management;
      (f) Internal audit; and
      (g) Anti-Money Laundering (AML).
      Added: January 2022

    • C4-2.1.10

      For the purposes of Paragraph C4-2.1.9 and as per Paragraph C4-1.1.4, the Board is required to appoint at least two senior executives that are resident in Bahrain, one of who is the CEO, but the category 4 investment firm, with the approval of the CBB, may outsource other functions provided the following conditions are met:

      (a) The Board and senior management take responsibility for the outsourced activities and maintain oversight and control over the operations of the outsourced service provider;
      (b) The licensee satisfies the CBB that adequate arrangements are in place to fulfill the role’s responsibilities;
      (c) The core business of asset management is carried out internally although the firm may utilise third-parties for managing the related processes; and
      (d) Compliance and AML functions (which may be combined) must have on-site presence (either in-house or on a secondment basis).
      Added: January 2022

    • C4-2.1.11

      The Board and CEO should prescribe each senior manager’s title, authorities, duties and internal reporting responsibilities. The Board may also specify any limits on the authority of the CEO or other senior managers, such as monetary maximums for transactions which they may authorise without separate Board approval.

      Added: January 2022

    • C4-2.1.12

      At least annually, the Board should review and concur in a succession plan addressing the policies and principles for selecting a successor to the CEO, both in emergencies and in the normal course of business. The succession plan should include an assessment of the experience, performance, skills and planned career paths for possible successors to the CEO.

      Added: January 2022