| 4.1 | Branches of foreign Licensees must establish local governance structures, such as a Senior Management committee or equivalent, that fulfil the responsibilities of a Board required by this Regulation and the accompanying Standards. The local management structure of the branch must take steps as are necessary to help the branch meet its own fitness and propriety responsibilities in line with this Regulation and its accompanying Standards. It is the responsibility of the local management structures to ensure that local legal and regulatory requirements are implemented and, where appropriate, make adjustments where the Group requirements conflict with a provision of this Regulation or the accompanying Standards. |
| 4.2 | Licensees must ensure that all Staff are suitable for the positions that they occupy, including Staff who provide advice and/or make recommendations to customers, who must be suitably qualified and competent in undertaking their roles. The Central Bank may issue additional Regulations on suitability, in this regard. |
| 4.3 | Licensees must take responsibility for assessing the fitness and propriety of Persons who hold positions which are subject to these assessments. Licensees must inform the Central Bank of the outcome of all assessments related to fitness and propriety of Authorized Individuals, including the assessment of Collective Suitability of the Board and collective skills, competence and experience of the Senior Management team and other decision-making bodies necessary to operate the business in a prudent and effective manner. |
| 4.4 | Licensees must ensure that the Senior Management team is collectively competent, giving due regard to the risk profile, business strategy and internal control framework. Collective competence refers to the need for a range of educational qualifications and experience. Licensees that conduct all or part of their activities and businesses in Compliance with Islamic Shari’ah Provisions, must take into consideration the collective competence of the ISSC members particularly in terms of relevant experience and skills related to the business and activities of the Licensee, including inter alia, the legal and regulatory framework and risk management and technological requirements. |
| 4.5 | No applications for the appointment of Authorized Individuals should be submitted for the Central Bank’s Authorisation until the Licensee is assured that the Person has been assessed as fit and proper and has been found suitable for the proposed function. |
| 4.6 | The Licensee must submit the results of the Fit and Proper Process of Applicants along with all supporting documentation to the Central Bank for Authorisation no later than sixty (60) business days prior to the planned appointment date of the Applicant. |
| 4.7 | Licensees must ensure that information submitted to the Central Bank in support of an application for Authorisation, including responses in the prescribed forms, is complete, accurate, not misleading or erroneous and is presented in Arabic and/or English (as stipulated), free of errors and signed off on by a Person, authorised to do so by the Board, where applicable. The Person/s signing the form on behalf of the Licensee must have the appropriate authority to do so and must not be the Person for whom Authorisation is being sought, or the Person who will be the direct manager of that Person. |
| 4.8 | In all cases, Licensees must obtain the Central Bank’s Authorisation prior to reappointing or renewing the contract of any Authorized Individual. In cases where a contract or appointment instrument of an Authorized Individual is being amended, at a minimum, Authorisation must be sought from the Central Bank where the amendment relates to the tenure of the contract or period of appointment. |
| 4.9 | Licensees and Applicants must not make external, public announcements about proposed appointments prior to obtaining the Central Bank’s Authorisation. |
| 4.10 | If an Authorized Individual is deemed to be not fit and proper following the completion of an assessment by either the Licensee or the Central Bank, the Authorized Individual must be removed from the Designated Function. The Person must be replaced within the period specified by applicable law or Regulations; and where not specified, within ninety (90) days, subject to the fit and proper and suitability requirements. The Licensee may apply for an extension to the ninety (90) days and provide the Central Bank with adequate justification for the request. |
| 4.11 | In all cases, a Licensee must obtain the non-objection of the Central Bank prior to the termination, dismissal or removal of an Authorized Individual. The request for non-objection to the Central Bank must include all pertinent details, including the planned termination date, reasons for the planned termination, dismissal/ or removal and relevant signed decisions. In the case of ISSC members and heads of internal Shari’ah control and internal Shari’ah audit departments, the Licensee must also obtain a non-objection from the Higher Shari’ah Authority, before the termination, dismissal or removal of the Person. |
| 4.12 | In cases where termination, dismissal or removal of an Authorized Individual is required for actions which can severely impact the safety or soundness of the Licensee or where the Person’s actions could amount to criminal misconduct, including fraud, significant legal or regulatory breaches, or gross negligence, the Licensee must immediately notify the Central Bank prior to pursuing the termination, dismissal or removal action. In such cases, the Central Bank may waive the requirement for seeking prior-non-objection.
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