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  • IM-2.3 IM-2.3 High Level Controls

    • IM-2.3.1

      In accordance with Principle of Business 10, insurance intermediaries and insurance managers must put in place effective management, systems and controls for their business. The High-Level Controls Module sets out the Directives that put this principle into practice.

      Rulebook Reference PB-1.10
      Amended: January 2007
      Amended: October 2007

    • IM-2.3.2

      Insurance brokers and insurance consultants operating as a Bahraini single person company are exempt from the requirements of Module HC.

      Rulebook Reference HC-B.1.1
      Amended: April 2011

    • IM-2.3.3

      Some of these Rules govern the establishment, composition, functions and responsibilities of Boards of Directors. Except for Bahraini single person companies, all incorporated insurance intermediaries and insurance managers must have a Board, composed of a minimum of three Directors, which is ultimately accountable and responsible for the management and performance of the firm, in line with the Commercial Companies Law of 2001.

      Amended: April 2011
      Amended: January 2007
      Amended: October 2007

    • IM-2.3.4

      Responsibility for the day-to-day management of an insurance intermediary and insurance manager is vested in the Chief Executive Officer, which is a controlled function. For insurance brokers, they should consider having in place an audit committee, but are not required to have in place Nominating and Remuneration Committees. Insurance consultants and insurance managers are not required to consider the need to operate Committees.

      Rulebook Reference AU-1.2.9, HC-B.1.2, HC-3.2 and HC-3.3
      Amended: April 2011
      Amended: January 2007
      Amended: October 2007

    • IM-2.3.5

      The CBB expects, for Bahraini insurance licensees, for Bahrain to be the principal place of business and for Bahrain to be the centre of its governance and management.

      Rulebook Reference HC-1.3.5
      AU-2.2.1 and
      GR-1
      Amended: January 2007

    • IM-2.3.6

      The CBB requires all insurance brokers to establish an internal audit function to monitor the adequacy of their systems and controls.

      Rulebook Reference HC-6.5
      Amended: April 2011
      Amended: January 2007

    • IM-2.3.7

      Insurance intermediaries and insurance managers must nominate a Compliance Officer. In the case of insurance managers, they must also be designated as the Compliance Officer for the managed firms.

      Rulebook Reference HC-3.4
      Amended: October 2007

    • IM-2.3.8

      Chapter HC-10 contains guidance applicable to insurance consultants and insurance managers in respect of financial statement certification, appointment, training and evaluation of the Board, remuneration of approved persons, management structure, corporate ethics, communication between the Board and shareholders and corporate governance disclosure.

      Rulebook Reference HC-10
      Amended: April 2011