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HC-2.3.2

Past version: Effective from 01 Oct 2010 to 31 Dec 2010
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The Board must establish and disseminate to its members and management, policies and procedures for the identification, reporting, disclosure, prevention, or strict limitation of potential conflicts of interest. It is senior management's (see HC-10.2 for definition) responsibility to implement these policies. Rules concerning connected party transactions and potential conflicts of interest may be dealt with in the Code of Conduct (see HC-2.2.4). In particular, the Central Bank requires that any decisions to enter into transactions, under which approved persons would have conflicts of interest that are material, should be formally and unanimously approved by the full Board. Best practice would dictate that an approved person must:

a) Not enter into competition with the bank;
b) Not demand or accept substantial gifts from the bank for himself or his associates;
c) Not misuse the bank's' assets;
d) Not use the Islamic bank licensee's privileged information or take advantage of business opportunities to which the Islamic bank licensee is entitled, for himself or his associates; and
e) Absent themselves from any discussions or decision-making that involves a subject where they are incapable of providing objective advice, or which involves a subject or (proposed) transaction where a conflict of interest exists.
October 2010