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 orlicensed market operator :(a) Has wilfully contravened or wilfully caused thatlicensed exchange orlicensed market operator to contravene:(i) The CBB Law or Module MAE;(ii) Where applicable, itsbusiness rules ; or(iii) Where applicable, itslisting rules ;(b) Has without reasonable excuse, failed to ensure compliance by thatlicensed exchange orlicensed market operator , amember of thatlicensed exchange orlicensed market operator , or aperson associated with thatmember with:(i) The CBB Law or Module MAE;(ii) Where applicable thebusiness rules of thatlicensed exchange orlicensed market operator ; or(iii) Where applicable, thelisting rules of thatlicensed exchange orlicensed 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 orlicensed market operator remove the officer from his office or employment, and thatlicensed exchange orlicensed market operator shall comply with such notice.Amended: April 2016
Amended: April 2013MAE-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 orlicensed 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 orlicensed market operator to remove an officer from his office or employment without giving thelicensed exchange orlicensed market operator an opportunity to be heard.MAE-8.1.4
The CBB may direct a
licensed exchange orlicensed 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 thelicensed exchange orlicensed 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 2013MAE-8.1.5
Where the CBB directs a
licensed exchange orlicensed 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 orlicensed 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 thelicensed exchange orlicensed market operator , as the case may be;(b) Ensure the compliance of thelicensed exchange orlicensed 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 thelicensed exchange orlicensed 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 thelicensed exchange orlicensed market operator ;(d) Identify, monitor and address the risks associated with the business activities of thelicensed exchange orlicensed market operator , as the case may be;(e) Ensure that the business activities of thelicensed exchange orlicensed market operator , as the case may be, are subject to adequate internal audit;(f) Oversee the financial undertakings or exposure of thelicensed exchange orlicensed 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 thelicensed exchange orlicensed 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 thelicensed exchange or thelicensed market operator as the case may be, to the CBB is complete and accurate.Amended: April 2013