Appointed Experts
C4-5.3.7
The CBB uses its own inspectors to undertake on-site examinations of
licensees as an integral part of its regular supervisory efforts. In addition, the CBB may commission reports on matters relating to the business oflicensees in order to help it assess their compliance with CBB requirements. Inspections may be carried out either by the CBB’s own officials, by duly qualifiedappointed experts appointed for the purpose by the CBB, or a combination of the two.Added: January 2022C4-5.3.8
Appointed experts will be appointed in writing, through an appointment letter, by the CBB. In each case, the CBB will decide on the range, scope and frequency of work to be carried out byappointed experts .Added: January 2022C4-5.3.9
Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to thelicensee’s group structure). The report produced by theappointed experts is the property of the CBB (but is usually shared by the CBB with thelicensee concerned).Added: January 2022C4-5.3.10
The
appointed experts ’ report should follow the format set out in Appendix BR-1, in part B of the CBB Rulebook.Added: January 2022C4-5.3.11
Where the report is
qualified by exception , the report must clearly set out the risks which thelicensee runs by not correcting the weakness, with an indication of the severity of the weakness should it not be corrected.Appointed experts will be expected to report on the type, nature and extent of any weaknesses found during their work, as well as the implications of a failure to address and resolve such weaknesses.Added: January 2022C4-5.3.12
If the
appointed experts conclude, after discussing the matter with thelicensee , that they will give a negative opinion (as opposed to onequalified by exception ) or that the issue of the report will be delayed, they must immediately inform the CBB in writing giving an explanation in this regard.Added: January 2022C4-5.3.13
The report must be completed, dated and submitted, together with any comments by directors or management (including any proposed timeframe within which the
licensee has committed to resolving any issues highlighted by the report), to the CBB within the timeframe applicable.Added: January 2022C4-5.3.14
Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concernedlicensee , or that the interests of customers are at risk because of adverse changes in the financial position or in the management or other resources of alicensee . Notwithstanding the above, it is primarily thelicensee’s responsibility to report such matters to the CBB.Added: January 2022C4-5.3.15
Appointed experts must keep information obtained during their arrangement confidential and not divulge it to a third party except with the CBB’s permission and/or unless required by Bahrain Law.Added: January 2022C4-5.3.16
The CBB may, at its discretion, call for a
trilateral meeting (s) to be held between the CBB and representatives of the relevantcategory 4 investment firm licensee and theappointed experts . This meeting will provide an opportunity to discuss theappointed experts ’ examination of and report on thelicensee .Added: January 2022
