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  • HC-3.4 HC-3.4 Compliance[versions up to January 2011]

    • HC-3.4.1 [versions up to January 2011]

      Insurance licensees must take reasonable care to establish and maintain effective systems and controls for compliance with applicable requirements in the Kingdom's legislation and those set by the CBB, and those established under any other statute or regulator to which the insurance licensee is subject.

      Amended: January 2007

    • HC-3.4.2 [versions up to January 2011]

      Depending on the nature, scale and complexity of its business, an insurance licensee should consider having a separate compliance function. A compliance function should:

      (a) Document its organisation and responsibilities;
      (b) Be appropriately staffed with competent individuals;
      (c) Have unrestricted access to the licensee's relevant records; and
      (d) Have ultimate recourse to the Board.
      Amended: January 2007

    • HC-3.4.3 [versions up to January 2011]

      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.
      Amended: January 2007

    • HC-3.4.4 [versions up to January 2011]

      The Compliance Officer is a controlled function and the requirements relating to approved persons must be met (see Chapter AU-1.2). If the scale and nature of the licensee's operations are limited, then the individual who performs the function of Compliance Officer may also take on other responsibilities, providing this does not create a potential conflict of interest. The compliance function may not be combined with the internal audit function or any operational function as they are incompatible and may create a conflict of interest.

      Amended: April 2010

    • HC-3.4.5 [versions up to January 2011]

      In the case of a captive insurance firm, where the captive insurer is managed by an insurance manager, the insurance manager must designate a Compliance Officer for the managed firms. A self-managed captive insurer must also appoint a Compliance Officer, although this role may be combined with other functions.

      Amended: January 2007