Regulatory Alerts2016-10-27 | Direction No. 6 of 2016Assessment of Fitness and Propriety of Directors and Chief Executive Officer/General Manager
The Central Bank of Sri Lanka issued Direction No. 06 of 2016 under the Microfinance Act to establish strict criteria for the fitness and propriety of directors and chief executive officers of Licensed Microfinance Companies. The regulation mandates that LMFCs submit detailed affidavits, declarations, and performance letters to the Department of Supervision of Microfinance Institutions to verify qualifications, criminal history, and financial standing before appointment or annually for continuing directors. The Director retains the authority to approve or refuse appointments and requires immediate notification of any subsequent events that may render a director ineligible to hold office.
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