Appendix FP-1 Illustrative Qualifications and Core Competencies
Note: The titles mentioned in this Module or Appendix should be interpreted as referring to individuals fulfilling roles or functions corresponding to the respective title. The below qualifications and core competencies represent illustrative guidance only and are not minimum criteria.
Added: March 2025Board Director
Core Competencies
Board directors should have:
(a) A good understanding of the industry and the regulatory environment;(b) Sufficient experience to demonstrate sound business decision-making ability to challenge of senior management;(c) Experience in governance and oversight;(d) The ability to commit sufficient time to the role, given other commitments;(e) Reputation in the industry, relationships with key stakeholders, regulators, government and clients; and(f) Persons considered for independent director appointments should have industry, role related expertise and sufficient years of experience to complement the collective competency of the board of directors as a whole.Added: March 2025How can competence be demonstrated?
Competence is demonstrated by:
(a) A minimum experience of 5 years in business and/or government/quasi government of which at least 4 years at a senior management level; and(b) Holds a minimum of a bachelor’s degree.Added: March 2025Chief Executive, Deputy CEO or equivalent
Core Competencies
The Chief Executive or General Manager and their Deputies should:
(a) Bring extensive experience in the financial services activity relevant to the licensee, with a track record of success in senior management roles;(b) Have a good understanding of the markets, in which the licensee operates, and products and offerings needed to compete effectively;(c) Demonstrate success in leading an organisation or business unit with significant financial and operational responsibilities;(d) Demonstrate ability to build and maintain relationships with all stakeholders, including regulators, investors and customers;(e) Have the ability to influence others to support the strategic objectives through compelling communication and negotiation;(f) Display ability to communicate and manage shareholders, regulators, customer groups and eco-system players;(g) Demonstrate ability to build strategic alliances and partnerships; and(h) Demonstrate high level awareness of sound corporate governance and risk practices and the regulatory and compliance obligations, in particular capital and liquidity that has an impact on the strategies.Added: March 2025Experience and Qualifications
(a) A minimum experience of 7 to 10 years in the relevant sector (banking, insurance, asset management etc.) of which at least 5 years at a senior management level; and(b) An academic degree from a university at bachelor level, master’s level or other professional qualification(s).Added: March 2025Chief Financial Officer or equivalent
Core Competencies
The Chief Financial Officer/ Head of Financial Control should have:
(a) A clear understanding of the roles and responsibilities associated with the position;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) The relevant experience and qualifications to fulfill his responsibilities;(d) Strong understanding of financial analysis, budgeting, forecasting, and financial reporting;(e) Ability to manage financial operations and drive business growth;(f) A good knowledge and understanding of international accounting standards and how they are applied in a business context, including IFRS, and where appropriate AAOIFI;(g) Good knowledge of valuation practices for different classes of assets; and(h) Good knowledge of impairment provisions and the underlying measurement process.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 to 7 years in a finance function; and(b) Hold a relevant academic/professional qualification which include, but are not limited to:
(i) The Association of Chartered Certified Accountants (ACCA);(ii) Certified Public Accountant (CPA), US, Canada, Philippines or equivalent;(iii) Members of the institutes of chartered accountancy (ACA or FCA qualifications) of UK, Australia, New Zealand, India, Pakistan, Sri Lanka etc(iv) Chartered Financial Analyst (CFA), USA;(v) Certified Islamic Professional Accountant (CIPA) from AAOIFI.Added: March 2025Chief Risk Officer or equivalent
Core Competencies
The Chief Risk Officer/Head of Risk Management should have:
(a) A clear understanding of the role and responsibilities associated with the position;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) The relevant experience and qualifications to fulfill his responsibilities;(d) Strong understanding of risk management practices, prudential risk measures and methodologies, risk analytics, models and reporting;(e) Strong understanding of regulatory standards (e.g., Basel III for banking, Solvency modeling for insurance) and their impact on risk controls;(f) Good knowledge of enterprise-wide risk management process, risk appetite setting, risk limits setting, capital allocation and capital and liquidity management;(g) Experience dealing with risk reporting for the board/committees, prudential and regulatory reporting, risk disclosures in annual reports;(h) Good knowledge of some of key risk management areas – credit, market, operational, capital adequacy management, (underwriting and reinsurance risks for insurance) etc;(i) Good understanding of data flows and financial reporting practices and conventions;(j) Familiar with asset and liability and portfolio management and allocation;(k) Good knowledge of valuation practices for different classes of assets;(l) Good understanding of the stress testing principles and practices; and(m) Deep understanding of the competencies required within the risk function to manage all risk activities.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 to 7 years in risk management function; and(b) Hold a relevant academic/professional qualification which include, but are not limited to:
(i) Financial Risk Manager (FRM);(ii) Professional Risk Manager (PRM);(iii) Chartered Financial Analyst (CFA);(iv) Associate in Risk Management (ARM), The Institutes Knowledge Group;(v) Professional qualification in actuarial sciences.Added: March 2025Chief Internal Auditor or equivalent
Core Competencies
The Chief Internal Auditor /Head of Internal Audit should have:
(a) A clear understanding of the role and responsibilities associated with the position;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) Strong understanding of internal or external audit;(d) Ability to design comprehensive audit plans, including risk assessments, internal control evaluations, and identifying areas of potential financial, operational, or compliance risk;(e) Ability to lead audits across various departments such as credit, operations, IT, and finance;(f) Proficiency in evaluating and improving internal controls and risk management frameworks, ensuring alignment with organisational risk appetite and regulatory requirements;(g) Familiarity with regulatory standards (e.g., Basel III for banking, Solvency modeling for insurance) and their impact on risk controls;(h) Expertise in assessing the effectiveness of internal controls, identifying control deficiencies, and recommending remediation strategies;(i) Understanding the control frameworks like COSO (Committee of Sponsoring Organizations) or COBIT (Control Objectives for Information Technologies);(j) Strong knowledge of IFRS (International Financial Reporting Standards) and other regulatory accounting standards;(k) Ability to assess compliance with key regulations;(l) Competence in forensic auditing techniques, identifying fraudulent activities, and implementing fraud prevention frameworks;(m) Use of data analytics and continuous auditing to spot anomalies or risks that indicate potential fraud;(n) Strong analytical skills to evaluate audit evidence, discern root causes of control deficiencies, and develop practical, risk-based solutions; and(o) Ability to think critically when encountering complex or ambiguous issues and to provide clear, well-justified conclusions.Added: March 2025Experience and Qualifications
(i) A minimum experience of 5 to 7 years experience in internal audit function or external audit; and(ii) Hold a relevant academic/professional qualification which include but are not limited to:(iii) Certified Internal Auditor (CIA), IIA;(iv) Certified Information Systems Auditor, ISACA;(v) Association of Chartered Certified Accountants (ACCA);(vi) Certified Public Accountant (CPA), US, Canada, Philippines or equivalent;(vii) Members of the institutes of chartered accountancy (ACA or FCA qualifications) of UK, Australia, New Zealand, India, Pakistan, Sri Lanka etc(viii) Chartered Financial Analyst (CFA), USA.Added: March 2025Compliance Officer or equivalent
Core Competencies
A Compliance Officer/ Head of Compliance should have:
(a) A clear understanding of the role and responsibilities associated with the position;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) The relevant experience and qualifications to fulfill his responsibilities;(d) Strong understanding of regulatory requirements in Bahrain and other jurisdictions in which the licensee has operations;(a) Very good knowledge of compliance risk universe and compliance risk assessments and compliance risk management;(b) Good knowledge of regulatory frameworks (e.g., GDPR/Bahrain PDPL, AML laws, FATCA, Prudential standards rules etc. relevant to the licensee);(c) Good knowledge of prudential, conduct, legal and other compliance obligations;(d) Ability to independently investigate and act on matters related to compliance breaches;(e) Hands on experience dealing with compliance risk identification, compliance monitoring, maintaining compliance dashboards, compliance testing and reporting;(f) Ability to act as advisor to the CEO and other functions on strategic issues from a compliance perspective; and(g) Experience in conducting compliance training sessions or workshops.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 years in compliance function or internal audit function with compliance experience; and(b) Hold a relevant academic/professional qualification which include but are not limited to International Compliance Association (ICA) Diploma in Governance, Risk and Compliance.Added: March 2025Money Laundering Reporting Officer (MLRO)
Core Competencies
The MLRO should have:
(a) A clear understanding of the role and responsibilities associated with the position;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) The relevant experience and qualifications to fulfill his responsibilities;(d) Strong understanding of FATF guidelines and regulatory requirements in Bahrain;(e) Experience in creating and executing an institution-wide AML strategy that integrates with broader risk management and compliance programs;(f) Proficiency in developing and maintaining AML policies and procedures that align with regulatory requirements and industry best practices;(g) Competence in updating policies in response to changes in the legal landscape, emerging financial crimes, or audit recommendations;(h) Proficiency in developing, managing, and improving KYC and CDD, EDD frameworks to ensure the institution collects appropriate customer data;(i) Expertise in using, configuring and overseeing AML software tools to monitor suspicious transactions, detect unusual activity patterns, and ensure compliance with regulatory reporting obligations;(j) Ability to implement a risk-based approach to AML compliance, where resources are allocated according to the risk levels of different products, clients, or geographies;(k) Expertise in conducting AML risk assessments to evaluate the inherent risks within the organization, and adjusting policies, procedures, and controls accordingly;(l) Strong investigative skills to analyze complex customer transactions, payment flows, and financial patterns that might indicate potential money laundering activities;(m) Knowledge of how to file Suspicious Transaction Reports (STRs) with relevant financial authorities; and(n) Knowledge of international sanctions screening software and ensuring the company is not doing business with blacklisted entities or individuals.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 years in anti-money laundering and terrorist financing role; and(b) Hold a relevant academic/professional qualification which include, but are not limited to:
(i) Certified Anti-Money Laundering Specialist (CAMS)(ii) Diploma in Anti-Money Laundering offered by the International Compliance Association.Added: March 2025Head of Internal Shari’a Audit Function
Core Competencies
The Head of Internal Shari’a Audit Function should have:
(a) The relevant accounting and auditing experience and qualifications to fulfill his responsibilities;(b) Knowledge of Islamic financial regulatory standards like AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) and IFSB (Islamic Financial Services Board) guidelines, which govern Sharia compliance and corporate governance in Islamic financial institutions;(c) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(d) Experience in designing and delivering Sharia compliance training programs for employees at all levels, ensuring they understand Islamic finance principles and how to comply with Sharia requirements in day-to-day operations;(e) Expertise in assessing compliance with Sharia governance frameworks, including the Sharia Supervisory Board (SSB) decisions, policies, and Fatwas (Islamic rulings);(f) Expertise in understanding and applying Fiqh Al-Muamalat (Islamic commercial jurisprudence), which governs the conduct of financial transactions;(g) Familiarity with Islamic contracts such as Murabaha (cost-plus financing), Ijara (leasing), Mudaraba (profit-sharing), Musharaka (partnership), and Tawarruq, Takaful (Islamic insurance) products to ensure compliance with Sharia principles, particularly in profit-sharing (Mudaraba) or cooperative (Waqf) models;(h) Proficiency in designing and executing Sharia-compliant audit plans, focusing on ensuring that all financial products, services, and operations align with Sharia principles;(i) Expertise in identifying and assessing Sharia non-compliance risks in various operational and financial areas; and(j) Ability to conduct thorough audits of financial transactions and documentation to confirm compliance with Sharia rulings issued by the Sharia Supervisory Board.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 years in the Internal Shari’a audit function, internal audit function of a financial institution dealing with Islamic products and services; and(b) Hold a relevant academic/professional qualification which include, but are not limited to:
(i) Relevant bachelor or higher-level university degree;(ii) Certified Islamic Professional Accountant (CIPA);(iii) Chartered Internal Auditor (CIA);(iv) Certified Shari’a Advisor & Auditor (CSAA);(v) Advance Diploma in Islamic Finance (ADIF) or Advanced Diploma in Islamic Commercial Jurisprudence (ADICJ) from BIBF, other Islamic Shari’a studies or by any other means.Added: March 2025Financial Advisor
Core Competencies
The Financial Advisor should have:
(a) A thorough understanding of financial products, financial markets, capital markets, structured products, portfolio and wealth management practices;(b) A good understanding of financial services activity relevant to the licensee and the wider industry and its regulatory environment;(c) In-depth knowledge of financial planning principles and expertise in creating and executing customised financial plans based on the unique needs and goals of clients;(d) Expertise in identifying and managing risks related to clients' portfolios, such as market risk, inflation risk, interest rate risk, and liquidity risk;(e) Ability to assess clients’ risk tolerance, risk capacity, and time horizon, and to recommend appropriate investment strategies based on these factors;(f) Comprehensive understanding of investment products such as stocks, bonds, mutual funds, ETFs (Exchange Traded Funds), REITs (Real Estate Investment Trusts), and alternative investments like private equity and hedge funds;(g) Familiarity with asset allocation, diversification, and portfolio management strategies, as well as understanding risk tolerance and how it influences investment decisions;(h) Strong understanding of deal structuring, investment research, financial planning and financial analysis;(i) Understanding of AML (Anti-Money Laundering) and Know Your Customer (KYC) regulations, ensuring that the advisor performs due diligence on clients and monitors financial activity for suspicious behaviors;(j) Ability to use financial models and software to forecast outcomes and recommend strategic changes; and(k) Knowledge of ethical codes such as those set by professional bodies like Certified Financial Planner Board (CFP Board), Chartered Financial Analyst (CFA Institute), or other relevant regulatory bodies.Added: March 2025Experience and Qualifications
(a) A minimum experience of 3 to 5 years in financial advice or asset management; and(b) Hold a relevant academic/professional qualification which include but are not limited to:
(i) Certified Financial Analyst (CFA);(ii) IFA Certificate for Financial Advisers;(iii) Chartered Alternative Investment Analyst (CAIA);(iv) General Securities Representative Qualification (Series 7);(v) Diploma in Regulated Financial Planning (The Chartered Insurance Institute - CII);(vi) ACI Dealing Diploma/Certificate (The Financial Markets Association);(vii) Any Securities Institute certification.Added: March 2025Head of Insurance/ Reinsurance Underwriting
Core Competencies
The Head of Insurance /Reinsurance underwriting should have:
(a) Deep knowledge of market trends and developments in both the primary insurance and reinsurance markets. Familiarity with pricing cycles, capacity shifts, and industry disruptors (e.g., Insurtech, regulatory changes);(b) A strong understanding of insurance and reinsurance markets, classes of business and products;(c) In-depth knowledge of insurance and reinsurance products, including the ability to collaborate with product development teams to create innovative solutions tailored to client needs;(d) A good understanding of regulatory environment;(e) Comprehensive understanding of underwriting principles for various lines of business, such as life insurance, property and casualty (P&C) insurance, reinsurance, health insurance, and specialty insurance;(f) Proficiency in developing and managing underwriting strategies that balance risk and profitability;(g) Ability to oversee underwriting for complex risks, ensuring decisions align with the organisation’s risk appetite and long-term goals;(h) Expertise in reviewing and enhancing existing products to ensure they are competitive and compliant with current regulations and market trends;(i) Expertise in structuring and negotiating reinsurance treaties, including proportional, non-proportional, facultative, and treaty reinsurance;(j) Familiarity with global reinsurance markets and the ability to assess the creditworthiness and risk profiles of reinsurance partners; and(k) Knowledge of retrocession arrangements and understanding of how to transfer risk across multiple layers.Added: March 2025Experience and Qualifications
(a) A minimum of 5 to 7 years of practical experience in an underwriting or comparable function (underwriting/claims) within the insurance industry; and(b) An academic degree from a university at bachelor level or higher in addition to professional qualification(s) related to underwriting and claims and other relevant certification(s) specific to this role. Such certifications may include but are not limited to:
(i) Advanced Diploma in Insurance (ACII) - The Chartered Insurance Institute (CII);(ii) Insurance Management Diploma, Bahrain Institute for Banking and Finance (BIBF);(iii) BIBF Professional Award for Certified Insurance Practitioner (BPACIP);(iv) BIBF Professional Award for Specialist Insurance Practitioner (BPASIP).Added: March 2025Signing Actuary – Insurance firms
Core Competencies
A Signing Actuary should have:
(a) A clear understanding of the role and responsibilities associated with this position;(b) A thorough understanding of insurance and reinsurance markets, classes of business and products;(c) Advanced knowledge of actuarial science, and expertise in applying actuarial methodologies to areas such as pricing, reserving, underwriting, and capital modelling;(d) Ability to lead complex actuarial analyses, proficiency in pricing various insurance products using actuarial techniques such as loss ratio analysis, experience rating, and frequency-severity modeling;(e) Expertise in calculating technical reserves (e.g., IBNR - Incurred But Not Reported) and other liabilities, ensuring that the organization holds adequate reserves for claims;(f) Proficiency in developing and implementing risk management frameworks that evaluate key risks such as market risk, credit risk, insurance risk, and operational risk;(g) Expertise in capital modeling techniques, such as Economic Capital Models (ECM) and Solvency II Standard Formula/Internal Models, to ensure that the company holds adequate capital to meet regulatory requirements and internal risk appetite;(h) Familiarity with financial reporting standards such as IFRS 17, and Solvency modeling, and their implications on the actuarial function; and(i) Competence in providing actuarial input for financial statements and disclosures, ensuring compliance with applicable accounting standards and regulatory requirements;(j) A good understanding of regulatory environment.Added: March 2025Experience and Qualifications
(a) A minimum experience of 5 years in an actuarial role; and(b) Bachelor’s in actuarial sciences; or(c) A professional qualification(s) related to actuary and other relevant certification(s) specific to this role. Such professional qualifications may include but are not limited to:
(i) Fellow of Institute of Actuaries (FIA) or Fellow of Faculty of Actuaries (FFA), the Institute and Faculty of Actuaries; and(ii) Fellow of Society of Actuaries (FSA), the Society of Actuaries. and(d) An active membership of Institute of the Faculty of Actuaries, UK; Society of Actuaries, USA; or other recognized equivalent actuarial institution.Added: March 2025
