Members of the board and senior management of financial institutions (FIs) provide strategic leadership that influences the financial position and future direction of an FI. As such, persons in these positions must have the necessary qualities, competencies and experience that will allow them to perform the duties and carry out the responsibilities required of the position in the most effective manner.
The performance of the board is in turn substantially influenced by the effectiveness of the company secretary in facilitating the efficient conduct of board processes and meaningful interaction of the board with senior management. As such, it is important that the board is assisted by a qualified and competent company secretary.
The expectations on the suitability of key responsible persons and the company secretary are an extension of the corporate governance framework and are aimed at ensuring that these persons have the integrity and competence required to perform their roles.
This policy document specifies:
(i) the definition of key responsible persons within an FI;
(ii) the conditions to be observed in the assessment and appointment of key responsible persons and the company secretary;
(iii) the responsibilities of the board, Nominating Committee (NC) and FIs in establishing and applying fit and proper policies and procedures; and
(iv) the minimum factors that need to be considered in assessing whether or not the fit and proper criteria for key responsible persons and the company secretary have been met.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
