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  • TC-2.1 TC-2.1 Recruitment and Assessing Competency

    • Recruitment and Appointment

      • TC-2.1.1

        If a capital market licensee recruits or promotes an individual to undertake a controlled function, it must satisfy itself, where appropriate, of such individual’s relevant qualifications and experience.

        Added: January 2022

      • TC-2.1.2

        For purposes of Paragraph TC-2.1.1, capital market licensees must file Form 3 (Approved Persons) with the CBB and obtain the express written approval of the CBB for that person to occupy the desired position. In its application, the capital market licensee must demonstrate to the CBB that full consideration has been given to the qualifications and core competencies for controlled functions as per Appendix TC-1 (See Article 65(b) of the CBB Law).

        Added: January 2022

      • TC-2.1.3

        While assessing the competency for the position of Board of Director, a capital market licensee should give due weightage to relevant experience and expertise of the applicant. The applicant should demonstrate clear understanding of the licensee’s business and his/her ability to exercise strategic oversight over the business operations. In case where an applicant does not fulfil the educational qualification and minimum experience requirement stipulated in Appendix TC-1 (Board member/Director), the capital market licensee may still consider the applicant for appointment provided the applicant demonstrates:

        (a) clear understanding of the licensee’s business operations;
        (b) ability to provide objective views to the Board on issues of strategy, business performance, risk management, financial control and other matters which has a bearing on the licensee’s performance;
        (c) leadership ability or has previously operated in a leadership position.
        Added: January 2022

      • TC-2.1.4

        For the purposes of Paragraph TC-2.1.3 above, where an applicant does not fulfil the educational and minimum experience requirements, the CBB may, at its sole discretion, waive some or all the educational and minimum experience requirements, should it determine that the applicant (board member) demonstrates qualitative attributes which fulfils the core competency requirements as stipulated in Appendix TC-1 and his/her appointment shall contribute effectively to the decision making and governance process of the licensee.

        Added: January 2022

      • TC-2.1.5

        Capital market licensees should refer to their respective Module (MAE, CSD, MIR and CRA) providing detailed requirements on the appointment of individuals occupying controlled functions (approved persons).

        Added: January 2022

      • TC-2.1.6

        A capital market licensee proposing to recruit an individual has to satisfy itself of his/her relevant qualifications and experience. The capital market licensee should:

        (a) Take into account the knowledge and skills required for the role, in addition to the nature and the level of complexity of the controlled function; and
        (b) Take reasonable steps to obtain sufficient information about the individual’s background, experience, training and qualifications.
        Added: January 2022

    • Assessing Competency

      • TC-2.1.7

        Capital market licensees must not allow an individual to undertake or supervise a controlled function unless that individual has been assessed by the capital market licensee as competent in accordance with this Section.

        Added: January 2022

      • TC-2.1.8

        In determining an individual’s competency, capital market licensees may assess if the person is fit and proper in accordance with the requirements stipulated for authorisation of approved persons in MAE, CSD, MIR and CRA Modules.

        Added: January 2022

      • TC-2.1.9

        Capital market licensees must assess individuals as competent when they have demonstrated the ability to apply the knowledge and skills required to perform a specific controlled function.

        Added: January 2022

      • TC-2.1.10

        The assessment of competence shall depend on the nature and the level of complexity of the controlled function. Such assessment of competence of new personnel may take into account the fact that an individual has been previously assessed as competent in a similar controlled function.

        Added: January 2022

      • TC-2.1.11

        If a capital market licensee assesses an individual as competent in accordance with TC-2.1.9 to perform a specific controlled function, it does not necessarily mean that the individual is competent to undertake other controlled functions.

        Added: January 2022

      • TC-2.1.12

        A capital market licensee should use methods of assessment that are appropriate to the controlled function and to the individual’s role.

        Added: January 2022