• MAE-8 MAE-8 General Powers of the CBB

    • MAE-8.1 MAE-8.1 Power of CBB to Remove Officers

      • MAE-8.1.1

        Where the CBB is satisfied that an officer of a licensed exchange or licensed market operator:

        (a) Has wilfully contravened or wilfully caused that licensed exchange or licensed market operator to contravene:
        (i) The CBB Law or Module MAE;
        (ii) Where applicable, its business rules; or
        (iii) Where applicable, its listing rules;
        (b) Has without reasonable excuse, failed to ensure compliance by that licensed exchange or licensed market operator, a member of that licensed exchange or licensed market operator, or a person associated with that member with:
        (i) The CBB Law or Module MAE;
        (ii) Where applicable the business rules of that licensed exchange or licensed market operator; or
        (iii) Where applicable, the listing rules of that licensed exchange or licensed market operator;
        (c) Has failed to discharge the duties or functions of his office or employment;
        (d) Is an undischarged bankrupt, whether in Bahrain or elsewhere;
        (e) Has had execution against him in respect of a judgement debt returned unsatisfied in whole or in part;
        (f) Has whether in Bahrain or elsewhere, made a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation; or
        (g) Has been convicted whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly;

        the CBB may if it thinks it is necessary in the interests of the public or a section of the public, or for the protection of investors, by notice in writing direct that a licensed exchange or licensed market operator remove the officer from his office or employment, and that licensed exchange or licensed market operator shall comply with such notice.

        Amended: April 2016
        Amended: April 2013

      • MAE-8.1.2

        Without prejudice to any other matter that the CBB may consider relevant, the CBB may in determining whether an officer of a licensed exchange or licensed market operator has failed to discharge the duties or functions of his office or employment for the purposes of Paragraph MAE-8.1.1 (c), have regard to such criteria as the CBB may prescribe or specify in directions issued by notice in writing.

      • MAE-8.1.3

        Subject to Paragraph MAE-8.1.4, the CBB shall not direct a licensed exchange or licensed market operator to remove an officer from his office or employment without giving the licensed exchange or licensed market operator an opportunity to be heard.

      • MAE-8.1.4

        The CBB may direct a licensed exchange or licensed market operator to remove an officer from his office or employment under Paragraph MAE-8.1.1 on any of the following grounds without giving the licensed exchange or licensed market operator an opportunity to be heard:

        (a) The officer is an undischarged bankrupt whether in Bahrain or elsewhere; or
        (b) The officer has been convicted whether in Bahrain or elsewhere, of an offence:
        (i) Involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly; and
        (ii) Punishable with imprisonment for a term of 3 months or more.
        Amended: April 2016
        Amended: April 2013

      • MAE-8.1.5

        Where the CBB directs a licensed exchange or licensed market operator to remove an officer from his office or employment under Paragraph MAE-8.1.4, the CBB need not give that officer an opportunity to be heard.

    • MAE-8.2 MAE-8.2 Criteria to Determine Failure to Discharge Duties or Functions by Officers

      • MAE-8.2.1

        The CBB may, in determining whether the Chief Executive Officer, directors and officers of a licensed exchange or licensed market operator, as the case may be, has taken reasonable steps to discharge their duties, have regard to the following:

        (a) Ensure the proper functioning of the licensed exchange or licensed market operator, as the case may be;
        (b) Ensure the compliance of the licensed exchange or licensed market operator, as the case may be, with any relevant laws or regulations of any jurisdiction in which it is incorporated or in which it operates;
        (c) Set out and ensure compliance with written policies on all operational areas of the licensed exchange or licensed market operator, as the case may be, including its financial policies, accounting and internal controls, internal auditing and compliance with all laws and rules governing the operations of the licensed exchange or licensed market operator;
        (d) Identify, monitor and address the risks associated with the business activities of the licensed exchange or licensed market operator, as the case may be;
        (e) Ensure that the business activities of the licensed exchange or licensed market operator, as the case may be, are subject to adequate internal audit;
        (f) Oversee the financial undertakings or exposure of the licensed exchange or licensed market operator, as the case may be, to risks of any nature by setting out proper delegation limits and risk management controls; and
        (g) Ensure:
        (i) That the licensed exchange or licensed market operator, as the case may be, maintains written records of the steps taken by it to monitor compliance with its policies, the limits on discretionary powers and its accounting and operating procedures; and
        (ii) That every report, return or statement submitted by the licensed exchange or the licensed market operator as the case may be, to the CBB is complete and accurate.
        Amended: April 2013