Regulatory Alerts2011-06-21 | FPR/DIR/CIR/GEN/01/016Circular to all Banks,Discount Houses and Other Financial Institutions (OFIs)on Approved Persons' Regime
Here is a concise summary based on the content provided above. 1. The Central Bank of Nigeria (CBN) sets standards for appointments into boards and top management positions in financial institutions, including commercial banks, discount houses, non-interest banks, primary mortgage institutions, finance companies, microfinance banks, and other financial institutions. 2. Appointment requirements differ based on the nature of the position, but generally, candidates must possess a minimum of first degree or its equivalent in any discipline. Additional qualifications and years of experience in relevant fields are also required. 3. For non-executive directors, they must undergo directors' training at the institution's expense to acquire knowledge about their responsibilities and duties. They must provide reference letters from individuals of reputable standing in the country and meet all other conditions stipulated in the propriety principles. The CBN may also consider special circumstances for appointments. 4. Significant shareholders with a 5% or more stake in any financial institution must possess good character, financial resources to meet obligations, and ensure adequate control of financial risks. They cannot have been involved in the failure or mismanagement of any financial institution. A reference letter from individuals of reputable standing is also required. 5. The CBN may use additional information to assess the fitness or propriety of a person for such appointments.