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  • FP-1.3 Fit and Proper Criteria

    • FP-1.3.1

      Licensees must ensure that their fit and proper criteria cover the following areas:

      (a) Honesty, integrity and reputation;
      (b) Financial soundness; and
      (c) Competency (i.e. knowledge, skills and experience).
      Added: March 2025

    • FP-1.3.2

      Licensees must establish competency standards and consistently apply policies and procedures for fit and proper assessments. Licensees must assess the suitability:

      (a) When individuals are proposed for appointment to relevant positions; and
      (b) During annual assessments of an individual’s ongoing suitability.
      Added: March 2025

    • Honesty, Integrity and Reputation

      • FP-1.3.3

        Licensees must consider the person to have not met the criteria under FP-1.3.1 (a) whenever he displays one or more of the following:

        (a) Has previously been convicted of any felony or crime related to honesty and/or integrity unless subsequently restored to good standing;
        (b) Was the subject of civil or criminal proceedings or enforcement action, in relation to the management of an entity, or commercial or professional activities, which were determined adversely to the person and which reflected adversely on the person’s diligence, judgment, honesty or integrity;
        (c) Has been an officer found liable for an offence committed by a body corporate where the offense was proven to have been committed with the consent, connivance, or neglect attributable to that officer;
        (d) Has been refused the right or had restrictions placed on the individual’s right to carry on any trade, business, or profession requiring a specific license, registration, or other authorisation by law in any jurisdiction;
        (e) Has been disqualified by a court, regulator, or other competent body from acting as a board director, manager or employee of a company in any jurisdiction; or
        (f) Has been reprimanded, or disqualified, or removed by a professional or regulatory body in relation to matters relating to the person’s honesty, integrity or business conduct.
        Added: March 2025

      • FP-1.3.4

        In assessing if the criteria under FP-1.3.1(a) have been satisfied, the licensee shall also consider previous professional and personal conduct (in the Kingdom of Bahrain or elsewhere) including, but not limited to, the following:

        (a) The propriety of a person’s conduct, whether or not such conduct resulted in a criminal offence being committed, the contravention of a law or regulation, or the institution of legal or disciplinary proceedings;
        (b) A conviction or finding of guilt in respect of any offence, other than a minor traffic offence, by any court or competent jurisdiction;
        (c) Any adverse finding in a civil action by any court or competent jurisdiction, relating to misfeasance or other misconduct in connection with the formation or management of a corporation or partnership;
        (d) Whether the person, or any body corporate, partnership or unincorporated institution to which the applicant has, or has been associated with as a board director, controller, manager or company secretary been the subject of any disciplinary proceeding, investigation or fines by any government authority, regulatory agency or professional body or association;
        (e) Whether the person is in breach of any financial services legislation;
        (f) Whether the person has ever been refused a license, authorisation, registration or other authority;
        (g) Is or has been subject to disciplinary proceedings by his current or former employer(s), whether in Bahrain or elsewhere;
        (h) Dismissal or a request to resign from any office or employment;
        (i) Whether the person has been a board member, partner or manager of a corporation or partnership which has gone into liquidation or administration or where one or more partners have been declared bankrupt whilst the person was connected with that partnership;
        (j) Whether he has been censured, disciplined, suspended or refused membership or registration by regulators, an operator of a market, trade repository or clearing facility, any professional body or government agency, whether in Bahrain or elsewhere;
        (k) A finding of guilt in respect of a complaint relating to activities that are regulated by the CBB or under any law in any jurisdiction;
        (l) Whether he has accepted civil liability for fraud or misrepresentation under any law in any jurisdiction; or
        (m) Whether there is evidence that the individual has not been transparent, open, and cooperative in his or her dealings with supervisory or regulatory authorities.
        Added: March 2025

    • Financial Soundness

      • FP-1.3.5

        FP-1.3.5 In determining if a person is financially sound as required under FP-1.3.1 (b) the following factors may be relevant and would require careful consideration as regards the circumstances and the reasons for such occurrence:

        (a) Such person was adjudged bankrupt by a court, unless a period of 5 years has passed, during which the person has been able to meet all his obligations;
        (b) Such person has failed to satisfy a judgement debt under a court order resulting from a business relationship; or
        (c) Such person has seriously or persistently failed to manage personal debts or financial affairs satisfactorily, in circumstances where such failure caused loss to others.
        Added: March 2025

    • Competency

      • FP-1.3.6

        Licensees must consider a person’s level of knowledge, skills and experience to assess competency. A person is deemed not competent, as required under the criteria in FP-1.3.1 (c), if he does not meet the qualifications, experience, skills or other competency standards set by the licensee. The criteria must consider the following:

        (a) Suitable academic and/or professional qualifications and/or other certifications;
        (b) Expertise or past experience having regard to the nature of the role; and
        (c) The ability to manage and supervise the operations that fall under his responsibilities.
        Added: March 2025

      • FP-1.3.7

        Licensees should ensure that the competency standards for all management positions whether senior or otherwise consider the following:

        (a) The necessary academic, professional or industry qualifications and certifications;
        (b) Knowledge about the industry /business segment/ financial products or the operations or control activity as may be relevant to the job role;
        (c) Sufficiency of industry and management experience (where applicable);
        (d) Understanding of the regulatory framework, including the laws, regulations and associated codes governing the industry sectors; and
        (e) Knowledge and expertise for the tasks relevant to the job role.
        Added: March 2025

      • FP-1.3.8

        The licensees’ competency standards for the CEO and senior management functions must consider:

        (a) Suitable academic and/or professional qualifications and/or other certifications;
        (b) Experience of working in financial services and other occupations including sufficient experience in a managerial capacity (taking into account the functions performed in previous employment and the nature, scale and complexity of the businesses in which the individual was employed);

        (c) Sufficiency of the level of knowledge, for example, of:

        i. Financial markets
        ii. Strategic and business planning
        iii. Risk management
        iv. Governance, compliance oversight and controls
        v. Financial reporting
        vi. Regulatory framework and requirements;

        (d) Skillsets:

        i. Technical/analytical/business skills etc.
        ii. Leadership/management skills.
        Added: March 2025

      • FP-1.3.9

        Persons appointed as directors must have:

        (a) Suitable academic and/or professional qualifications and/or other certifications;
        (b) Sufficient knowledge and experience to demonstrate sound business decision-making ability to challenge senior management;
        (c) A good understanding of the industry and the regulatory environment;
        (d) Experience in governance and oversight; and
        (e) The ability to commit sufficient time to the role, given other commitments.
        Added: March 2025

      • FP-1.3.10

        Licensees must conduct comprehensive due diligence to satisfy themselves that persons being considered for appointment meet their fit and proper criteria and the CBB requirements in this Module.

        Added: March 2025

      • FP-1.3.11

        Licensees must maintain adequate documentation of due diligence and checks.

        Added: March 2025

      • FP-1.3.12

        Due diligence and screening checks should consider reference checks, discussions with past employers, review of CVs, interview process, certificates and proof of credentials, reputation, brand and profile of past employers, police verifications where appropriate, credit scores or credit registry checks, LinkedIn profile checks, etc. and self-declarations.

        Added: March 2025