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  • TC-1.1 TC-1.1 Controlled Functions

    • TC-1.1.1

      Individuals occupying controlled functions in a capital market licensee must be qualified and suitably experienced for their specific roles and responsibilities. The approved persons are:

      (a) Board Member/Director;
      (b) Chief Executive or General Manager and their Deputies;
      (c) Chief Financial Officer and/or Head of Finance;
      (d) Chief Risk Officer/ Head of Risk Management;
      (e) Compliance Officer;
      (f) Chief Information Officer/Chief Technology Officer or Head of Information Technology;
      (g) Heads of Other Functions (as specified in respective Modules);
      (h) Money Laundering Reporting Officer (MLRO);
      (i) Registered Representative; and
      (j) Chief Information Security Officer (CISO).
      Added: January 2022

    • TC-1.1.2

      Paragraph TC-1.1.1 specifies the controlled functions that are common to all categories of capital market licensees under Volume 6. Controlled functions specific to each category of capital market licensee is specified in MAE, CSD, MIR, and CRA Modules. It is the responsibility of the capital market licensee to refer to the respective Module to ascertain whether a particular position is considered a controlled function or not.

      Added: January 2022

    • TC-1.1.3

      A capital market licensee must take reasonable steps to ensure that individuals holding controlled functions are sufficiently knowledgeable about their respective fields of work to be able to guide and supervise operations that fall under their responsibilities. Competence must be assessed on the basis of experience and relevant qualifications described in Appendix TC-1 as a minimum. However, the CBB reserves the right to impose a higher level of competence as it deems necessary.

      Added: January 2022

    • TC-1.1.4

      The CBB may, at its sole discretion, grant exemption to an individual from the requirements relevant to experience and/or qualifications stipulated in Appendix TC-1, on the basis of an application made to it, provided that the licensee is able to demonstrate, to the satisfaction of the CBB, that the individual under consideration possesses qualification and/or experience comparable to those prescribed in Appendix TC-1. The CBB shall review and consider all relevant facts and circumstances in granting the exemption.

      Added: January 2022

    • TC-1.1.5

      While granting the exemption referred to in Paragraph TC-1.1.4, the CBB may impose other conditions as deemed appropriate. Conditional exemptions so granted are specific to the facts and circumstances set forth in the application and in the context of the individual’s engagement with the capital market licensee, and therefore, non-transferable. The individual may be required to meet the qualification and experience requirements if there are changes to his/her role.

      Added: January 2022

    • Board Member/Director

      • TC-1.1.6

        Board members/Directors collectively are responsible for the business performance and strategy of the capital market licensee, as outlined in more details in Section HC-10.1

        Added: January 2022

      • TC-1.1.7

        When taken as a whole, the board of directors of a capital market licensee must be able to demonstrate that it has the necessary skills and expertise, as outlined in Paragraph HC-10.1.

        Added: January 2022

    • Chief Executive or General Manager and their Deputies

      • TC-1.1.8

        The chief executive officer or general manager and their deputies (as appropriate) are responsible for the executive management and performance of the licensee within the framework or delegated authorities set by the Board. This is outlined in more details in Paragraph HC-10.6.

        Added: January 2022

    • Chief Financial Officer/Head of Finance

      • TC-1.1.9

        The Chief Financial Officer/Head of Finance is responsible for directing the capital market licensee’s finance function, including ensuring that the relevant accounting treatment is applied to all of the activities of the capital market licensee in a timely manner.

        Added: January 2022

    • Chief Risk Officer/ Head of Risk Management

      • TC-1.1.10

        The Chief Risk Officer/ Head of Risk Management is responsible for the management and control of all risk exposures arising from the activities of the capital market licensee.

        Added: January 2022

    • Compliance Officer

      • TC-1.1.11

        An employee of appropriate standing must be designated by the capital market licensee for the position of compliance officer. The duties of the compliance officer, who must have Bahraini residency, include:

        (a) Having responsibility for oversight of the capital market licensee’s compliance with the requirements of the CBB and other applicable laws and regulations;
        (b) Raising awareness and providing training for the capital market licensee’s staff on compliance issues; and
        (c) Reporting to the capital market licensee’s Board in respect of that responsibility.
        Added: January 2022

    • Chief Information Officer/Chief Technology Officer or Head of Information Technology

      • TC-1.1.12

        The Chief Information Officer/Chief Technology Officer/ or Head of Information Technology is responsible for establishing and implementing the overall information technology strategy, overseeing the day-to-day information technology operations, and managing the information technology risks of the financial institution.

        Added: January 2022

    • Heads of Other Functions

      • TC-1.1.13

        Heads of other functions are responsible for tracking specific functional performance goals in addition to identifying, managing and reporting critical organisational issues upstream. Certain functions require dealing directly with clients while others do not. Both categories of functions, however, require specific qualifications and experience to meet the objectives as well as compliance requirements of the capital market licensee.

        Added: January 2022

      • TC-1.1.14

        For purposes of Paragraph TC-1.1.13, capital market licensees should contact the CBB if they require further clarification on whether a specific position falls under the definition of “Heads of other Functions”.

        Added: January 2022

    • Money Laundering Reporting Officer (MLRO)

      • TC-1.1.15

        The attributes and responsibilities of the MLRO are described more fully in Sections AML 3.1 and AML-3.2.

        Added: January 2022

    • Registered Representative

      • TC-1.1.16

        The registered representative is responsible for solicitation or handling of accounts or orders for the purchase or sale of securities, or other similar instruments for the accounts of customers of his employer.

        Added: January 2022

    • Chief Information Security Officer

      • TC-1.1.17

        The Chief Information Security Officer (“CISO”) is responsible and accountable for the effective management of cyber security risks. A CISO is responsible for overseeing and implementing the capital market licensees cyber security program and enforce its cyber security policy.

        Added: January 2022