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  • CRA-11.5 CRA-11.5 The Role of the Appointed Expert

    • Introduction

      • CRA-11.5.1

        The content of this Section is applicable to all licensees and appointed experts.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.2

        The purpose of the contents of this Section is to highlight the roles and responsibilities of appointed experts when appointed pursuant to Article 114 or 121 of the CBB Law.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.3

        The CBB uses its own inspectors to undertake on-site examinations of licensees as an integral part of its regular supervisory role. In addition, the CBB may commission reports on matters relating to the business of licensees in order to assist it in assessing their compliance with CBB requirements.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.4

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-11.5.5

        Appointed experts must not be the same firm appointed as external auditor of the licensee.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.6

        The CBB will decide on the range, scope and frequency of work to be carried out by appointed experts.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.7

        The appointment will be made in writing, and made directly with the appointed experts concerned. A separate letter is sent to the licensee, notifying them of the appointment. At the CBB’s discretion, a trilateral meeting may be held at any point, involving the CBB and representatives of the licensee and the appointed experts, to discuss any aspect of the of the inspection or investigation or the report produced by the appointed expert.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.8

        Following the completion of the investigation, the CBB will normally provide feedback on the findings of the investigation to the licensee.

        Added: April 2019

      • CRA-11.5.9

        Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to the licensee’s group structure). The report produced by the appointed experts is the property of the CBB

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.10

        Compliance by appointed experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a particular licensee (i.e. create a conflict of interest).

        Added: April 2019

      • CRA-11.5.11

        The CBB may appoint one or more of its officials to work on the appointed experts' team for a particular licensee.

        Added: April 2019

    • The Required Report

      • CRA-11.5.12

        The scope of the required report will be determined and detailed by the CBB in the appointment letter. Appointed experts would normally be required to report on one or more of the following aspects of a licensee’s business:

        (a) Accounting and other records;
        (b) Internal control systems;
        (c) Returns of information provided to the CBB;
        (d) Operations of certain departments; and/or
        (e) Other matters specified by the CBB.
        Amended: April 2023
        Added: April 2019

      • CRA-11.5.13

        Appointed experts will be required to form an opinion on whether, during the period examined, the licensee is in compliance with the relevant provisions of the CBB Law and the CBB’s relevant requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.

        Amended: April 2023
        Added: April 2019

      • CRA-11.5.14

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-11.5.15

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-11.5.16

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-11.5.17

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

    • Other Notifications to the CBB

      • CRA-11.5.18

        Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, including the licensing conditions are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concerned licensee, or that the interests of customers are at risk because of adverse changes in the financial position or in the management or other resources of the licensee. Notwithstanding the above, it is primarily the licensee's responsibility to report such matters to the CBB.

        Added: April 2019

      • CRA-11.5.19

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

      • CRA-11.5.20

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019

    • Permitted Disclosure by the CBB

      • CRA-11.5.21

        Appointed experts must keep all information relating to the licensee confidential and not divulge it to a third party except with the CBB’s written permission or unless required by applicable laws in the Kingdom of Bahrain.

        Amended: April 2023
        Added: April 2019

    • Trilateral Meeting

      • CRA-11.5.22

        [This Paragraph was deleted in April 2023].

        Deleted: April 2023
        Added: April 2019