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  • HC-5.2 HC-5.2 Titles, Authorities, Duties and Reporting Responsibilities

    • HC-5.2.1

      Licensees must maintain clearly documented and communicated staff responsibilities and reporting lines.

      April 2016

    • HC-5.2.2

      For the purposes of Rule HC-5.2.1, licensees should maintain and document their delegated authority structure as well as written terms of reference for staff positions.

      April 2016

    • HC-5.2.3

      The Board must adopt by-laws prescribing each senior manager's title, authorities, duties and internal reporting responsibilities. This must be done in consultation with the CEO or general manager, to whom the other senior managers should normally report.

      April 2016

    • HC-5.2.4

      These provisions must include but should not be limited to the following:

      (a) The CEO or general manager must have authority to act generally in the licensee's name, representing the licensee's interests in concluding transactions on the licensee's behalf and giving instructions to other senior managers and licensee employees;
      (b) The chief financial officer must be responsible and accountable for:
      (i) The complete, timely, reliable and accurate preparation of the licensee's financial statements, in accordance with the accounting standards and policies of the licensee (see HC-3.1.2); and
      (ii) Presenting the Board with a balanced and understandable assessment of the licensee's financial situation;
      (c) The internal auditor's (see HC-5.4) duties must include providing an independent and objective review of the efficiency of the licensee's operations. This would include a review of the accuracy and reliability of the licensee's accounting records and financial reports as well as a review of the adequacy and effectiveness of the licensee's risk management, control, and governance processes; and
      (d) The compliance officer's (see HC-5.5) duties include maintaining 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 they are subject.
      April 2016

    • HC-5.2.5

      The Board should also specify any limits which it wishes to set on the authority of the CEO or general manager or other senior managers, such as monetary maximums for transactions which they may authorize without separate Board approval.

      April 2016

    • HC-5.2.6

      At least annually the Board shall review and concur in a succession plan addressing the policies and principles for selecting a successor to the CEO or general manager, both in emergencies and in the normal course of business. The succession plan should include an assessment of the experience, performance, skills and planned career paths for possible successors to the CEO or general manager.

      April 2016