Back Custom print Link Text Only Rich Text Print

  • TA-2.3 TA-2.3 High-Level Controls

    • TA-2.3.1

      In accordance with Principle of Business 10, insurance licensees 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 and apply to all takaful and retakaful firms.

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

    • TA-2.3.2

      Some of these Rules govern the establishment, composition, functions and responsibilities of Boards of Directors. All incorporated insurance licensees must have a Board, composed of a minimum of five Directors, which is ultimately accountable and responsible for the management and performance of the firm.

      Rulebook Reference HC-1
      HC-1.3.3
      Amended: April 2011
      Amended: January 2007
      Amended: October 2007

    • TA-2.3.3

      In addition to a Board of Directors, takaful and retakaful firms must also have in place a Shari'a Supervisory Board.

      Rulebook Reference HC-9.2.1
      Amended: April 2011
      Amended: January 2007

    • TA-2.3.4

      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. This must include:

      (a) The majority of Board meetings taking place in Bahrain;
      (b) Appointing a locally-resident Chief Executive or General Manager; and
      (c) Premises and records being located in the Kingdom of Bahrain.

      Rulebook Reference AU-2.2.1 and
      GR-1
      Amended: April 2011
      Amended: January 2007

    • TA-2.3.5

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

      Rulebook Reference HC-6.5.1
      Amended: April 2011
      Amended: January 2007

    • TA-2.3.6

      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.

      Rulebook Reference AU-1.2.11A
      Amended: April 2011
      Amended: January 2007
      Amended: October 2007

    • TA-2.3.7

      The Board must establish a remuneration committee of at least three directors which must:

      (a) Review the insurance licensee's remuneration policies for the approved persons, which must be approved by the shareholders;
      (b) Make recommendations regarding remuneration policies and amounts for approved persons to the whole Board, taking account of total remuneration including salaries, fees, expenses and employee benefits; and
      (c) Recommend Board member remuneration based on their attendance and performance.

      Rulebook Reference HC-5
      Amended: April 2011
      Amended: January 2007
      Amended: October 2007

    • TA-2.3.8

      An insurance licensee's Board must establish and disseminate to all employees and appointed representatives of the licensee a corporate code of conduct.

      Rulebook Reference HC-2.2.4
      Amended: April 2011
      Amended: October 2007

    • TA-2.3.9

      The Board must oversee the process of disclosure to all stakeholders. The Board must ensure that the licensee's communications are fair, transparent, comprehensive and timely.

      Rulebook Reference HC-8.2.2
      Amended: April 2011

    • TA-2.3.10

      The Board must assess, document and provide a written certification to the CBB each year detailing whether the internal corporate governance processes that it has implemented have successfully achieved their objectives, and consequently whether the Board has fulfilled its responsibilities for directing and monitoring the overall conduct of the licensee's affairs.

      Rulebook Reference HC-1.1.11
      Amended: April 2011
      Amended: January 2007