Introduction

C 4/2024 Effective from 31/10/2024

The Central Bank is seeking to establish the framework for assessing fitness and propriety of Applicants, Authorized Individuals and Material Risk Takers and other Persons designated by the Central Bank. The Fitness and Propriety Regulation (this Regulation), and the accompanying Fitness and Propriety Standards (the Standards) set out the Central Bank’s minimum requirements for fitness and propriety to ensure that Persons who hold Designated Functions and other key positions within Licensees meet established criteria which support good governance and thereby the protection of depositors, policy holders, other customers and key stakeholders. This Regulation and accompanying Standards must be read in conjunction with the Central Bank Laws and Regulations, including the following, at a minimum:
-	Central Bank Circular No. 83/2019 - Corporate Governance Regulation for Banks and accompanying Standards;
-	Central Bank Circular No. 24/2022 - Corporate Governance Regulation for Insurance Companies and accompanying Standards;
-	Central Bank Circular No. 3/2023 – Finance Companies Regulation;
-	Central Bank Circular No. 15/2021 – Retail Payment Services and Card Schemes Regulation;
-	Central Bank Circular No. 6/2020 – Stored Value Facilities Regulation;
-	Central Bank Notice No. CBUAE/BSD/N/2020/2123 - Standard Re. Shari’ah Governance for Islamic Financial Institutions;
-	Central Bank Notice No. CBUAE/BIS/2023/4496 Standard re Shari’ah Governance for Takaful Insurance Companies;
-	Central Bank Notice No. 35/2018 - The Standards for the Regulations Regarding Licensing and Monitoring of Exchange Business;
-	Central Bank of the UAE’s Board of Directors’ Resolution published in the Official Gazette issue No. (740) on 30 November 2022 - Regulation Regarding Takaful Insurance;
-	Insurance Authority Board of Directors Resolution No. 15 of 2013 Concerning Insurance Brokerage Regulations;
-	Insurance Authority Board of Directors Resolution No. 6 of 2010 Concerning Surveyors and Loss Adjusters’ Regulations;
-	Insurance Authority Board Resolution No. 08 of 2011 - Instructions Concerning the Regulation of Insurance Agents Business;
-	Insurance Authority Board Resolution No. 9 of 2011 Concerning the Instructions for Licensing Health Insurance Third Party Administrators and Regulation and Control of their Business;
-	Insurance Authority Board of Directors’ Resolution No. (27) of 2020 Concerning the Instructions for Licensing Insurance Producers;
-	Insurance Authority Board of Directors Decision No. (9) of 2017 Concerning the Regulations on Licensing and Registration of Actuaries and Regulation of their Operations;
-	Board of Directors' Decision No. (12) of 2018 Concerning the Regulation on Licensing and Registration of Insurance Consultants and Organization of their Operations; and
-	Insurance Authority Board of Directors Decision No. (13) of 2018 Instructions Concerning Marketing Insurance Policies through Banks.
In the event of any conflicts between requirements in this Regulation and the aforementioned Regulations or any other Regulations, the requirements herein take precedence.
The Central Bank will use this Regulation and its accompanying Standards as the benchmark for its evaluation of Authorized Individuals, to ensure that their appointment facilitates the sound and prudent management of Licensees. Licensees hold primary responsibility for assuring themselves and the Central Bank, that Authorized Individuals and Material Risk Takers are fit and proper and suitable by, at a minimum, meeting the criteria established herein on the following (where applicable):
-	Honesty, integrity and reputation;
-	Competence and capability;
-	Financial conduct;
-	Independence of mind; and
-	Time commitment.
This Regulation and the accompanying Standards are issued pursuant to the powers vested in the Central Bank under the Central Bank Laws and set the minimum principles of fitness and propriety, as far as common elements apply across regulated sectors. The Central Bank may issue additional Regulations in respect of ensuring the suitability of Authorized Individuals, Material Risk Takers and other Persons, as may be required within specific Licensees.
Where this Regulation, or its accompanying Standards, include a requirement to provide information or to take certain measures, or to address certain items listed, the Central Bank may impose requirements, which are additional to those provided for in the relevant Article.