In assessing the suitability of controllers who are legal persons, CBB has regard to their financial standing, judicial and regulatory record, and standards of business practice and reputation, including, but not limited to, the following:

(a) The financial strength of the controller, its parent(s) and other members of its group, its implications for the licensee and the likely stability of the controller's shareholding;
(b) Whether the controller or members of its group has ever entered into any arrangement with creditors in relation to the inability to pay due debts;
(c) The controller's jurisdiction of incorporation, location of Head Office, group structure and close links, and the implications for the licensee as regards effective supervision of the licensee and potential conflicts of interest;
(d) The controller's (and other group members') propriety and general standards of business conduct, including the contravention of any laws or regulations, or the institution of disciplinary proceedings by a government authority, regulatory agency or professional body;
(e) Any adverse finding in a civil action by any court or competent jurisdiction, relating to fraud, misfeasance or other misconduct;
(f) Any criminal actions instigated against the controller or other members of its group, whether or not this resulted in an adverse finding;
(g) The extent to which the controller or other members of its group have been truthful and open with regulators and supervisors;
(h) Whether the person has ever been refused a license, authorisation, registration or other authority;
(i) The person's track record as a controller or investor in financial institutions;
(j) The legitimate interests of investors, creditors and shareholders of the licensee;
(k) Whether their approval as a controller is or could be detrimental to Bahrain's financial sector; and
(l) Whether the person is able to deal with existing shareholders and the Board in a constructive manner.
May 2011