Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees

Number: 3209 - Thursday, 14 May 2015
Central Bank of Bahrain
Decision No. (23) of 2015
Regarding the Conditions and Procedures for Obtaining Approval from the Central Bank for Candidates for Membership of the Board of Directors of a Licensee or to Hold Any of its Executive Functions

Governor of the Central Bank of Bahrain:
Having reviewed the Central Bank of Bahrain and Financial Institutions Law issued by Law No. (64) of 2006, particularly Article (65) thereof, and based on the proposal of the Head of the Regulatory Policies Committee at the Bank, has decided as follows:

Article (1) Definitions
For the purposes of this Decision, the following words and expressions shall have the meanings set out alongside them, unless the context otherwise requires:
The Bank: Central Bank of Bahrain.
The Law: Central Bank of Bahrain and Financial Institutions Law issued by Law No. (64) of 2006.
Controlled Function: Functions of any member of the Board of Directors of a Licensee, and persons holding executive functions at a Licensee, as specified by the Central Bank in its Guidance Manual.

Article (2) Application for Approval
A Licensee must, prior to commencing the process of filling any Controlled Function, first obtain written approval from the Bank for the candidate appointed to the required function.

Article (3) Qualifications and Experience
Any person holding or seeking to hold any Controlled Function must possess the practical experience, qualifications, and all other conditions required for that function, as specified in the Guidance Manual issued by the Bank.

Article (4) Procedure for Application for Approval
(a) The application for approval to hold a Controlled Function shall be submitted using the required form available on the Bank’s website.
(b) The form details the completion of the application for approval to hold a Controlled Function, including contact numbers for inquiries and the address to which the application must be sent.

Article (5) Evaluation of Applications
(a) The Bank shall evaluate the application referred to in Article (4) of this Decision based on practical experience, qualifications, and all required conditions, and shall notify the Licensee of its decision regarding such application within fifteen working days from the date all Bank requirements and procedures are completed. (b) The Bank has the right to reject the application referred to in Article (4) due to non-compliance with any of the conditions stipulated in Article (3) of this Decision, as applicable. The rejection decision must be reasoned and communicated to the concerned Licensee via a registered letter with acknowledgment of receipt from the Bank.

Article (6) Appeal
A Licensee or concerned party, as applicable, may appeal the Bank’s decision rejecting an application within thirty days of being notified thereof. They may also appeal if no response is received within the period specified in the preceding article, provided that the appeal is reasoned and accompanied by supporting documents, and submitted to the relevant Executive Director of the Bank. The appeal shall be adjudicated and the appellant notified of the decision regarding their appeal within thirty days from its submission.

Article (7) Implementation
The relevant departments at the Central Bank of Bahrain shall implement this Decision, which shall take effect from the day following its publication in the Official Gazette.

Governor of the Central Bank of Bahrain
Rashid Mohammed Al Maraj
Issued on: 18 Rajab 1436 AH
Corresponding to: 7 May 2015 AD