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  • EN-8.2 EN-8.2 CBB Policy

    • EN-8.2.1

      Chapter AU-3 of Module AU (Authorisation), specifies that approved persons must be assessed by the CBB as 'fit and proper' to hold such a position. The Chapter specifies various factors that the CBB takes into account when reaching such a decision.

      Amended: January 2007

    • EN-8.2.2

      The CBB is conscious of the impact that assessing someone as not 'fit and proper' may have on an individual approved person. Such assessments are carefully reviewed in the light of all relevant facts. The criteria used in reaching a decision include the following:

      (a) The extent to which the factors set out in Chapter AU-3 have not been met;
      (b) The extent to which the person has deliberately or recklessly breached requirements of the CBB law or Volume 4 (Investment Business);
      (c) The person's past compliance record and conduct following any such breaches;
      (d) The length of time since factors indicating a lack of fitness or propriety occurred; and
      (e) The risk the person poses to licensees and their customers.
      Amended: January 2007

    • EN-8.2.3

      Amongst other matters, the CBB will normally consider as grounds for the revocation of approved person status the following events affecting the approved person:

      (a) The conviction by a court, whether in Bahrain or elsewhere, for a crime affecting honesty;
      (b) A declaration of bankruptcy by a court of law;
      (c) A court ruling that the approved person's legal capacity is totally or partially impaired; or
      (d) The sanction by a professional body of a fine, suspension, expulsion or censure.
      Amended: January 2007

    • EN-8.2.4

      Investment firm licensees must inform the CBB immediately when they become aware of any of the events listed in Paragraph EN-8.2.3, affecting one of their approved persons.

      Amended: October 2009
      Amended: January 2007

    • EN-8.2.5

      If the CBB has grounds for considering that an individual is no longer fit and proper to continue to hold their existing controlled function(s), it will revoke the approved person status granted to that individual. The individual will then be required to resign from each of the controlled functions to which this revocation applies. This revocation does not automatically preclude them from applying to hold other controlled functions in the future, but will be taken into account in considering new requests from investment firm licensees that pertain to that individual.

      Amended: January 2007

    • EN-8.2.6

      Depending on the seriousness of the situation, the CBB may impose further measures, which may include disqualification from:

      (a) Holding any controlled function;
      (b) Performing any function in relation to any regulated activity carried out by a licensed firm; or
      (c) Being a controller of any licensed firm.
      Amended: January 2007

    • EN-8.2.7

      In assessing evidence, the CBB applies a lower threshold than is applied in a criminal court of law, reflecting the administrative nature of the sanction. The CBB may also take into account the cumulative effect of factors which, when considered individually, may not in themselves be sufficient to justify an adverse 'fit and proper' finding.

      Amended: January 2007

    • EN-8.2.8

      The CBB may also take into account the particular function being undertaken in the licensee by the individual concerned, and the size and nature of the licensee itself, particularly when assessing the suitability of a person's experience or qualifications. Thus, the fact that a person was deemed 'fit and proper' for a particular position in a particular firm does not necessarily mean he would be suitable in a different position or in a different firm.

      Amended: January 2007