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  • ES-1.4 ES-1.4 Module HC — High-Level Controls

    • ES-1.4.1

      Module HC outlines the requirements that must be met by insurance licensees with respect to:

      (a) Corporate governance principles issued by the Ministry of Industry and Commerce as The Corporate Governance Code; and
      (b) Related high-level controls and policies.
      Amended: April 2011
      Amended: January 2007

    • ES-1.4.1A

      The Principles referred to in this Module are in line with the Principles relating to the Corporate Governance Code issued by the Ministry of Industry and Commerce.

      Added: April 2011

    • ES-1.4.1B

      The requirements distinguish between different types of insurance licensees. For insurance brokers, Sections HC-3.2 Audit Committee and HC-3.3 Audit Committee Charter are to be considered as Guidance and the Comply or Explain Principle (see Paragraph HC-A.1.8) applies. In addition references to the Nominating and Remuneration Committees do not apply for insurance brokers. Because of their limited business activities, and consequent lesser risk to customers, insurance consultants, insurance managers and captive insurance firms are subject to applicable Guidance Paragraphs included in Chapter HC-10.

      Added: April 2011

    • ES-1.4.2

      The high-level controls covered by this Module deal with:

      (a) The function of chief executive officer and general manager;
      (b) The mapping of risks and responsibilities;
      (c) Internal audit;
      (d) Compliance;
      (e) Remuneration policies for approved persons;
      (f) Corporate ethics; and
      (g) Transparency and disclosure.
      (h) Committees of the Board;
      (i) Financial statements certification;
      (j) Appointment, training and evaluation of the Board;
      (k) Management structure;
      (l) Communication between the Board and shareholders; and
      (m) Governance and disclosure per Shari'a principles.
      Amended: April 2011
      Amended: January 2007

    • ES-1.4.3

      Module HC also includes requirements for an annual Board review and certification, on the implementation of internal governance processes and their effectiveness in achieving the Board's objectives, and whether the Board can attest that it has fulfilled its responsibilities for directing and monitoring the overall conduct of the licensee's affairs.