A Licensee must establish target representation to ensure diversity on the Board.
8.2
A Licensee must undertake an assessment of the Collective Suitability when proposing appointees to its Board. The results of this assessment must be submitted to the Central Bank as part of the package for approval of the appointment of an Applicant.
8.3
In assessing and determining the Collective Suitability of its Board, a Licensee must consider the nature, size and scope of its business operations; the business model, objectives and strategy, and the risk appetite, risk tolerance and risk profile.
8.4
Licensees must establish and implement a policy for the induction and training of members of the Board which should be tailored and aligned with the entity’s goals related to achieving Collective Suitability. The resources allocated by the Licensee for induction and training must be sufficient to achieve the objectives of Collective Suitability and to ensure members’ ongoing fitness and propriety and suitability. Licensees must have a process in place to identify the areas in which training is required, both for the Board as a collective body and for individual directors.
8.5
A Licensee’s assessment of Collective Suitability must take into consideration the Board members’ collective knowledge and understanding of the following, at a minimum:
a.
Financial institution governance and management;
b.
Islamic finance and Shari’ah requirements, where applicable.
c.
The business of the Licensee, including, inter alia, products, services and markets;
d.
Risk management, compliance and internal and external audit;
e.
Main business risks including financial, information technology, information and cyber security, climate, environmental and other industry specific risks and their management;
f.
Money laundering and terrorist financing risks;
g.
Strategic planning, operational resilience and digital transformation;
h.
The legal and regulatory environment and related prudential and other compliance requirements;
i.
Relevant international and other sectoral standards;
j.
The financial sector and business environment;
k.
Outsourcing arrangements;
l.
Financial and management accounting and reporting; and