Prior Approval Requirements and Process
Contents:
MAE-5.3.1
Licensees must obtain the CBB's prior written approval for any person wishing to undertake acontrolled function in alicensee . The approval from the CBB must be obtained prior to their appointment.Amended: April 2016
Amended: April 2013MAE-5.3.2
Controlled functions are those functions occupied by board members and persons in executive positions and include:(a) Board members;(b)Chief Executive orGeneral Manager ;(c)Head of function ;(d) Compliance Officer; and(e) Money Laundering Reporting Officer (MLRO).Amended: April 2016
Amended: April 2013MAE-5.3.2A
For the purpose of this Module, the following positions are considered as
head of function :(a) Head of listing;(b) Head of trading;(c) Head of market control;(d) Head of member affairs;(e) Head of risk management; and(g) Head of other functions.Added: April 2016MAE-5.3.2B
Whether a person is
head of function will depend on the nature, scale and complexity of the function and is not determined by the presence or absence of the word in their job title.Added: April 2016MAE-5.3.2C
Licensees must maintain adequate segregation of responsibilities in their staffing arrangements, to protect against the misuse of systems or errors. The segregation of responsibilities must ensure avoidance of any conflict of interest and maintain a Chinese Wall such criticalcontrolled functions .Added: April 2016MAE-5.3.3
The Chief Executive Officer or General Manager, Compliance Officer and Money Laundering Reporting Officer must be resident in Bahrain.
Amended: April 2013MAE-5.3.4
All
persons wishing to undertake any of the controlled functions shall be subject to the fit and proper requirements in this Section.Amended: April 2016
Amended: April 2013MAE-5.3.5
In accordance with Subparagraph MAE-5.3.2(d), every
licensed exchange must appoint a compliance officer. The compliance officer is responsible for discharging the obligations of the licensee.Amended: April 2013MAE-5.3.6
In accordance with Paragraph MAE-5.3.5:
(a) The Compliance Officer should be competent and knowledgeable regarding the CBB Law, rules and regulations, as well as the various applicable Volume 6 Modules;(b) The Compliance Officer shall: ;(i) Monitor the transactions undertaken by themember , its representatives, orparticipants ;(ii) Identify disorderly transactions or conduct that may involve market abuse or disruption;(iii) Identify and monitor transactions undertaken by insiders dealing through or with themember ;(iv) Identify any breach of CBB Law, rules and regulations; and(v) Identify any breach of the rules of theSRO .Added: April 2013MAE-5.3.7
The Compliance Officer shall on the identification of any breach referred to in Paragraph MAE-5.3.6(b), report such breach to the CBB without delay for the investigation and prosecution of
market abuse and shall provide full assistance to the latter in investigating and prosecuting market abuse occurring on or through thelicensed exchange .Amended: April 2013MAE-5.3.7A
The request for CBB approval must be made by submitting to the CBB a duly completed Form 3 (Application for Approved Person status) and Curriculum Vitae after verifying that all the information contained in the Form 3, including previous experience, is accurate. Form 3 is available under Volume 6 Part B Authorisation Forms MAE Forms of the CBB Rulebook.
Added: April 2016MAE-5.3.7B
When the request for
approved person status forms part of a license application, the Form 3 must be marked for the attention of the Director, Licensing Directorate. When the submission to undertake acontrolled function is in relation to an existinglicensee , the Form 3 must be marked for the attention of the Director, Capital Markets Supervision. In the case of the MLRO, Form 3 should be marked for the attention of the Director, Compliance Directorate.Amended: April 2018
Added: April 2016MAE-5.3.7C
When submitting Form 3,
licensees must ensure that the Form 3 is:(a) Submitted to the CBB with a covering letter signed by an authorised representative of thelicensee , seeking approval for the proposedcontrolled function ;(b) Submitted in original form;(c) Submitted with a certified copy of the applicant's passport, original or certified copies of educational and professional qualification certificates (and translation if not in Arabic or English) and the Curriculum Vitae; and(d) Signed by an authorised representative of thelicensee and all pages stamped on with thelicensee's seal.Added: April 2016MAE-5.3.7D
For existing
licensees applying for the appointment of a BoardDirector or theChief Executive /General Manager , the authorised representative should be the Chairman of the Board or aDirector signing on behalf of the Board. For all othercontrolled functions , the authorised representative should be theChief Executive /General Manager .Added: April 2016