| 4.1 | The Board must ensure the fitness and propriety of Persons holding Designated Functions in accordance with Central Bank Regulations and the Licensee’s policies, procedures and requirements. The Board must therefore establish a Fit and Proper Process for the selection, continued assessment and monitoring of the Board, Senior Management, Material Risk Takers and other Persons. |
| 4.2 | The Fit and Proper Process must be inextricably linked to the Licensee’s determination of a Person’s suitability for a particular function. Therefore, Applicants and proposed Material Risk Takers must be assessed as fit and proper and suitable for the proposed function by a Licensee prior to their appointment. In the case of an Applicant, the appointment of that Person must not take place prior to the Licensee receiving formal Central Bank Authorisation. |
| 4.3 | A Licensee must satisfy itself that the information and documentation provided by a Person in the course of the Fit and Proper Process is truthful, complete, fair, accurate and not misleading. |
| 4.4 | The Board must ensure that processes are implemented, maintained and monitored to ensure that members of the Board and Senior Management meet the fit and proper requirements on an ongoing basis and are under constant review. |
| 4.5 | Licensees must adopt and implement comprehensive fit and proper and suitability assessment frameworks which establish the Fit and Proper Process and clearly identify the procedures to be followed in the selection and assessment of Authorized Individuals, Material Risk Takers and other Persons; and include, at a minimum, clear and detailed policies and adequate resources to ensure that fit and proper and suitability assessments are conducted in a comprehensive and regulatory compliant manner. |
| 4.6 | A Licensee’s policies and procedures must, at a minimum:
| a. | Establish the minimum fit and proper criteria for all Persons subject to fit and proper/suitability requirements; | | b. | Detail the Licensee’s Fit and Proper Process including timing, regularity, processes and accountabilities; | | c. | Document criteria which will trigger a fit and proper reassessment, including, inter alia, negative press, changes in the Licensee’s risk profile, enforcement orsupervisory action or performance deficiencies; | | d. | Establish and define the steps to be taken if a Person is found to be not fit and proper, including options for remedial action and communication with the Central Bank; | | e. | Include the list of documents, information, and/or data required to conduct the Fit and Proper Process and reassessments; | | f. | Identify who holds responsibility for establishing and reviewing the fit andproper/suitability assessment framework and for conducting the Fit and Proper Process; | | g. | Designate appropriate responsibilities with timeframes for the submission of reports, applications for Authorisation, and any other communication with the Central Bank related to the Fit and Proper Process; | | h. | The ongoing training requirements and resources for Persons conducting assessments; | | i. | Set the steps and activities involved in the Fit and Proper Process; | | j. | Establish how the information, records and documents related to the Fit and Proper Process are verified, authenticated and stored securely; | | k. | Set the procedures for managing Conflicts of Interest in the Fit and Proper Process; and | | l. | Document the role of internal audit in the Fit and Proper Process, including reviews to ensure effectiveness.
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| 4.7 | Policies and procedures related to the Fit and Proper Process must be reviewed regularly and revised in line with inter alia, updates to the legal and regulatory framework and industry best practice. |
| 4.8 | Where a Person being assessed has been subject to authorisation or approval by a financial services regulator(s) in another jurisdiction(s), the Central Bank may require that the Licensee contacts the relevant regulator/s to ascertain the status of the authorisation or approval and share all relevant information, to the extent legally permissible, with the Central Bank. |
| 4.9 | Following the formal Authorisation by the Central Bank for the appointment of an Authorized Individual, a Licensee must officially notify the Central Bank of the appointment of the Person within seven (7) business days, providing confirmation of the appointment date, tenure of the contract and any additional pertinent details not previously provided to the Central Bank. |
| 4.10 | Unless otherwise specified by applicable law or Regulations, where a Designated Function becomes vacant, for whatever reason, a Licensee must ensure that it appoints a Person to the position within thirty (30) days of the vacancy date, either on an interim or permanent basis, and subject to the Authorisation requirements in the Regulation and the Standards. |
| 4.11 | With the exception of criteria relevant to the assessment of honesty, integrity and reputation, if a Licensee’s assessment or re-assessment identifies easily remediable shortcomings in a Person’s knowledge, skills or experience, the Licensee should take appropriate corrective measures to overcome those shortcomings in a timely manner. The Licensee must prepare a training plan for the Person which must be submitted to the Central Bank as part of the application for Authorisation.
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