HC-A.1 HC-A.1 Purpose
Executive Summary
HC-A.1.1
This Module contains requirements that have to be met by
licencees with respect to:(a) The role and composition of their Boards and Board committees; and(b) Related high-level controls and policies.October 2010HC-A.1.2
These requirements specify minimum good practice standards, with regards to the function and responsibilities of Boards, their composition and size, and required standards of attendance and frequency of meetings. It also specifies basic requirements with respect to establishing policies and procedures that address the segregation of duties, internal audit and compliance arrangements, and the
licensee's approach to remuneration and corporate ethics.October 2010HC-A.1.3
This Module supplements various provisions relating to corporate governance contained in Legislative Decree No. 21 of 2001, with respect to promulgating the Commercial Companies Law ('Commercial Companies Law 2001'). In case of conflict, the Commercial Companies Law shall prevail. Compliance with this Module does not guarantee compliance with the Commercial Companies Law.
October 2010Legal Basis
HC-A.1.4
This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) regarding High-level Control requirements applicable to
licensees , and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). Requirements regardingMoney Changer licensees are also included in the Regulation Organising Money Changing Business, issued in 1994 and included in this Module.Amended: January 2011
October 2010HC-A.1.5
For an explanation of the CBB's rule-making powers and different regulatory instruments, see section UG-1.1.
October 2010
