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  • AU-1.2 AU-1.2 Approved Persons

    • General Requirement

      • AU-1.2.1

        Insurance licensees must obtain the CBB's prior written approval for any person wishing to undertake a controlled function in an insurance licensee. The approval from the CBB must be obtained prior to their appointment, subject to the variations contained in Paragraph AU-1.2.3.

        Amended: January 2016
        Amended: July 2007

      • AU-1.2.2

        Controlled functions are those functions occupied by board members and persons in executive positions and include:

        (a) Board Member/ Director (for Bahraini insurance licensee only);
        (b) Chief Executive or General Manager and their Deputies;
        (c) Heads of other functions including (IT and HR functions);
        (d) Head of risk management;
        (e) Compliance officer;
        (f) Money Laundering Reporting Officer;
        (g) [This sub-Paragraph was deleted in October 2020];
        (h) Internal Shari'a reviewer (where applicable);
        (i) Unit-linked investment adviser (where applicable);
        (j) Signing Actuary (where the function is undertaken by a Director or an employee of the insurance firm);
        (k) Chief Financial Officer and/ or Head of Finance;
        (l) Head of Internal Audit;
        (m) Head of Underwriting;
        (n) Head of Claims; and
        (o) Head of Sales and Marketing/ Head of Business Development.
        Amended: October 2020
        Amended: January 2016
        Amended: April 2014
        Amended: October 2007
        Amended: July 2007

      • AU-1.2.3

        Controlled functions may be combined with any other functions, subject to the CBB's prior written approval and such combination must not result in any possible conflict of interest.

        Amended: April 2014
        Amended: October 2007
        Amended: July 2007

      • AU-1.2.4

        [This Paragraph was deleted in April 2014.]

        Deleted: April 2014
        Amended: October 2007
        Amended: July 2007

      • AU-1.2.5

        [This Paragraph was deleted in April 2014.]

        Deleted: April 2014

    • Basis for Approval

      • AU-1.2.6

        Approval under Paragraph AU-1.2.1 is only granted by the CBB, if it is satisfied that the person is fit and proper to hold the particular position in the licensee concerned. 'Fit and proper' is determined by the CBB on a case-by-case basis. The definition of 'fit and proper' and associated guidance is provided in Sections AU-3.1 and AU-3.2 respectively.

        Amended: July 2007

    • Definitions

      • Board Member/ Director

        • AU-1.2.7

          Director is any person who occupies the position of a Director, as defined in Article 173 of the Commercial Companies Law (Legislative Decree No. 21 of 2001).

          Amended: July 2007

        • AU-1.2.8

          The fact that a person may have 'Director' in their job title does not of itself make them a Director within the meaning of the definition noted in Paragraph AU-1.2.7. For example, a 'Director of Marketing', is not necessarily a member of the Board of Directors and therefore may not fall under the definition of Paragraph AU-1.2.7.

          Amended: July 2007

      • Chief Executive Officer or General Manager and their Deputies

        • AU-1.2.9

          The Chief Executive or General Manager means a person who is responsible for the conduct of the licensee (regardless of actual title). The Chief Executive or General Manager must be resident in Bahrain. This person is responsible, alone or jointly, for the conduct of the whole of the firm, or, in the case of an overseas insurance licensee, for all of the activities of the branch.

        • AU-1.2.9A

          The Chairman of the Board may not act as the Chief Executive or General Manager. However, in the case of appointing a Director on the Board as the Managing Director of the insurance licensee, such person:

          (a) Should be fully responsible for the executive management and performance of the insurance licensee, within the framework of delegated authorities set by the Board;
          (b) Must devote full-time working hours to the insurance licensee; and
          (c) Must not be employed at any other firm.
          Added: April 2011

      • Heads of other functions

        • AU-1.2.10

          Head of function means a person who exercises major managerial responsibilities, is responsible for a significant business or operating unit, or has senior managerial responsibility for maintaining accounts or other records of the licensee.

      • Chief Risk Officer/ Head of Risk Management

        • AU-1.2.10A

          Chief risk officer/ Head of risk management is responsible for the management of all risk exposures arising from the activities of the insurance firm.

          Amended: October 2020
          Added: April 2014

        • AU-1.2.11

          Whether a person is a head of function will depend on the facts in each case and is not determined by the presence or absence of the word in their job title. Examples of head of function might include, depending on the scale, nature and complexity of the business, a deputy Chief Executive; heads of departments such as Underwriting, Claims, Risk Management, Compliance or Internal Audit; the Chief Financial Officer; or a Signing Actuary (where that person is a Director or employee of the insurance firm concerned).

          Amended: July 2007

      • Compliance Officer

        • AU-1.2.11A

          All insurance licensees must designate an employee, of appropriate standing and resident in Bahrain, as Compliance Officer. The duties of the Compliance Officer include:

          (a) Having responsibility for oversight of the licensee's compliance with the requirements of the CBB; and
          (b) Reporting to the licensee's Board in respect of that responsibility.
          Added: April 2011

      • Money Laundering Reporting Officer (MLRO)

        • AU-1.2.11BB

          The attributes and responsibilities of the MLRO are described more fully in Paragraphs FC-3.1.9 and FC-3.2.1.

          Added: October 2020

      • Internal Shari’a Reviewer

        • AU-1.2.11B

          The internal Shari'a reviewer in a Takaful firm is responsible for the examination and evaluation of the adequacy and effectiveness of the Takaful firm's system of internal Shari'a control. The internal Shari'a review function must comply with AAOIFI Governance standard for Islamic Financial Institutions No. 3. (See also Module TC Paragraph TC-1.1.10).

          Amended: October 2020
          Added: April 2014

      • Unit-Linked Investment Adviser

        • AU-1.2.11C

          A Unit-Linked Investment Adviser refers to the function of advising clients on contracts that are, by their nature, investment products, including, but not limited to pension and retirement products.

          Added: October 2020

      • Signing Actuary

        • AU-1.2.11D

          A Signing Actuary is appointed to provide professional opinion and report on an insurance firm's actuarial evaluation; level of reserves that should be held in order to meet potential insurance liabilities. The signing actuary may be a Director or employee of the licensee and are accredited by an internationally recognised organisation.

          Added: October 2020

      • Chief Financial Officer/ Head of Finance

        • AU-1.2.11E

          The Chief Financial Officer/Head of Finance is responsible for directing the insurance licensee’s financial function, including ensuring that the relevant accounting treatment is applied to all of the activities of the insurance licensee in a timely manner. The scope of authority of the CFO/ Head of Finance is outlined in more detail in Subparagraph HC-6.3.2 (b).

          Added: October 2020

      • Head of Internal Audit

        • AU-1.2.11F

          The Head of Internal Audit is responsible for providing independent and objective review on the adequacy and effectiveness of the holistic internal control environment within the insurance licensee. The duties of the head of internal audit are outlined in more detail in Subparagraph HC-6.3.2 (d).

          Added: October 2020

      • Head of Underwriting

        • AU-1.2.11G

          The Head of Underwriting function is involved in portfolio analysis and to manage the underwriting process such as risk assessment, pricing and negotiation with the broker or clients. The Head of Underwriting should ensure effective oversight and guidance of underwriting risk in line with the insurance licensee’s risk appetite and policies and procedures.

          Added: October 2020

      • Head of Claims

        • AU-1.2.11H

          The Head of Claims function is responsible for directing and overseeing the operations of an insurance claims function to meet operational, financial and service requirements. The Head of Claims should ensure effective oversight and control of settlements in line with the insurance licensee’s risk appetite and policies and procedures. Moreover, the Head of Claims are involved in strategic processing and payment of claims and are often involved in sets policies on insurance claims.

          Added: October 2020

      • Head of Sales and Marketing/Head of Business Development

        • AU-1.2.11I

          The Head of Sales and Marketing/Head of Business Development is responsible for implementing the corporate strategy; marketing, sales and public relations. He/ she is responsible for developing and overseeing the marketing campaigns, social media accounts, digital marketing channels and other marketing plans. He/ she ensures innovation in product design and developments and conduct behavioural and trend analysis. He/ she engages directly with customers and ensures services provided to customers are in line with insurance licensee’s policies and procedures and with industry best practices.

          Added: October 2020

      • AU-1.2.12

        Where a firm is in doubt as to whether a function should be considered a controlled function it must discuss the case with the CBB.

        Amended: July 2007

      • AU-1.2.13

        [This Paragraph was moved to AU-1.2.11C in October 2020].

        Amended: October 2020
        Amended: July 2007