Regulated entities, including those licensed under the Investment Business Act 2003, the Investment Funds Act 2006 and the Insurance Act 1978, must meet certain minimum criteria. Such entities must make an annual filing with the BMA, certifying that the entity has met these minimum criteria. Consequently, entities should evaluate the minimum criteria regularly, at least annually, and create a plan and timeline for any deficiencies found by their internal review or audit.

The minimum criteria includes, but is not limited to:

Fit and proper person test;

Corporate governance; and

Whether business is conducted in a prudent manner.

Regulated entities are required to evaluate each of their officers, directors, employees and consultants to confirm their fitness and propriety to perform the duties assigned to them. This must be carried out prior to their appointment and at least annually.

The fitness and propriety of an individual encompasses the experience, skills and knowledge relative to the duties and responsibilities that they will fulfil as well as experience, qualifications, and the person’s previous conduct, reputation and character including whether that person has a criminal record, a record of past misconduct, or a record of non-compliance with codes of conduct.

This is probably an area that is best co-ordinated with the human resources department of the regulated entity.

Regulated entities are required to implement corporate governance policies and processes as the BMA considers appropriate given the nature, size, complexity and risk profile of the regulated entity. This requires that the business of the regulated entity be effectively directed by at least two individuals and under the oversight of such number of non-executive directors as the BMA considers appropriate.

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