2.1.1. Appointments to be filled by Approved Individuals

(1) Subject to (2) an Authorised Person, must make the following appointments and ensure that they are held by one or more Approved Individuals at all times:

(a) Senior Executive Officer;

(b) Finance Officer; 

(c) Compliance Officer; and

(d) Money Laundering Reporting Officer

(2) For an Authorised Person Operating a Representative Office the mandatory appointments in (1) may be carried on by its Principal Representative.

2.1.2. Appointments to be filled by Approved Individuals or Designated Individuals

[intentionally omitted]

2.2.1. Designation of roles as Controlled Functions

The functions specified in GEN 2.2.2 to 2.2.5 are Controlled Functions.

2.2.2. Senior Executive Officer

The Senior Executive Officer function is carried out by an individual who:

• (a) has, either alone or jointly with other Approved Individuals, ultimate responsibility for the day‐to‐day management, supervision and control of one or more (or all) parts of an Authorised Person's Regulated Activities; and
• (b) is a Director, Partner or Senior Manager of the Authorised Person

2.2.3. Director

The Director function is carried out by an individual who is a director of an Authorised Person which is a Body Corporate.

2.2.4. Finance Officer

The Finance Officer function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person who has responsibility for monitoring the Authorised Person's compliance with the applicable Rules in the Prudential Rulebook.

2.2.5. Compliance Officer

The Compliance Officer function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person who has responsibility for compliance matters in relation to the Authorised Person's Regulated Activities.

2.2.5-1. Money Laundering Reporting Officer

The Money Laundering Reporting Officer function must be carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for the implementation of an Authorised Person's anti‐money laundering policies, procedures, systems and controls and day to day oversight of its compliance with the Rules in AML and any relevant anti‐money laundering Rules.

2.2.6. Application for Approved Individual status

An Authorised Person may apply for its officer or Employee or future officer or Employee to be granted Approved Individual status by:

1. (a) completing the form prescribed in Schedule 3 and filing the form with the AFSA accompanied by such documents as are specified in the form;
2. (b) providing such further information as the AFSA may require; and
3. (c) paying the Fee prescribed in the Fees Rules to the AFSA.

Guidance: criteria for approval of Approved Individual Section 43 of the Framework Regulations provides

(1) The AFSA may only authorise an individual to carry on a Controlled Function if it is satisfied that the individual is fit and proper to be an Approved Individual.

(2) In making this assessment, the AFSA must have regard to:

1. (a) the individual's integrity; and
2. (b) the individual's competence and capability; and
3. (c) the individual's financial soundness; and
4. (d) the individual's proposed role within the Authorised Person; and
5. (e) any other matters that the AFSA considers to be relevant to the application.

(3) The AFSA will not regard an individual as fit and proper if the individual:

1. (a) is bankrupt; or
2. (b) has been convicted of a serious criminal offence; or
3. (c) is the subject of an administrative or civil finding; or
4. (d) is incapable, through mental or physical incapacity, of managing his affairs.

2.2.7. AFSA discretion to waive requirements

An Authorised Person may apply to the AFSA to waive the requirements made pursuant to Section 43(1) of the Framework Regulations in the light of any registration, authorisation or approval the relevant officer or Employee may have in a jurisdiction outside the AIFC.

2.2.8. Modification or withdrawal of an Approved Individual’s registration

An Authorised Person or an Approved Individual may apply to the AFSA to modify or withdraw the Approved Individual’s status by:

• (a) completing the form prescribed in Schedule 3 and filing the form with the AFSA accompanied by such documents as are specified in the form;
• (b) providing such further information as the AFSA may require; and
• (c) paying the fee prescribed in the Fees Rules to the AFSA.

2.2.9. Dismissal or resignation of an Approved Individual

In the event of an Approved Individual ceasing to be employed by an Authoised Person to perform a Controlled Function, the Authoised Person must:

• (a) request the withdrawal of the Approved Individual status within seven days of the Approved Individual ceasing to be employed;
• (b) inform the AFSA of any circumstances which lead the Authoised Person to consider that the individual is no longer fit and proper; and
• (c) if the Approved Individual was dismissed or requested to resign, provide the AFSA with a statement of the reason, or reasons, for the dismissal or resignation.

2.3.1. Designation of roles as Designated Functions

The functions specified in GEN 2.3.2 to 2.3.6 are Designated Functions.

2.3.2. Senior Manager

The Senior Manager function is carried out by an individual who is responsible either alone or jointly with other individuals for the management, supervision or control of one or more parts of an Authorised Person's Regulated Activities who is:

• (a) an Employee of the Authorised Person; and
• (b) not a Director or Partner of the Authorised Person.

2.3.3. Responsible Officer

The Responsible Officer function is carried out by an individual who:

• (a) has significant responsibility for the management of one or more aspects of an Authorised Person’s affairs; and
• (b) exercises a significant influence on the Authorised Person as a result of (a); but
• (c) is not an Employee of the Authorised Person

2.3.4. Money Laundering Reporting Officer

[intentionally omitted]

2.3.5. Risk Manager

The Risk Manager function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for all aspects of the risk management function in relation to the Authorised Person's Regulated Activities.

2.3.6. Internal Audit Manager

The Internal Audit Manager function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for all aspects of the internal audit function in relation to the Authorised Person's Regulated Activities.

Guidance: criteria for appointment of Designated Individual

Section 46 of Framework Regulations provides:

(1) Before appointing an individual to carry on a Designated Function, an Authorised Person must take reasonable steps to satisfy itself that the individual is fit and proper to be a Designated Individual.

(2) In making this assessment the Authorised Person must have regard to:

1. (a) the individual's integrity; and
2. (b) the individual's competence and capability; and
3. (c) the individual's financial soundness; and
4. (d) the individual's proposed role within the Authorised Person; and
5. (e) any other matters that the AFSA may prescribe by Rules.

(3) An Authorised Person may not regard an individual as fit and proper if the individual:

1. (a) is bankrupt; or
2. (b) has been convicted of a serious criminal offence; or
3. (c) is the subject of an administrative or civil finding; or
4. (d) is incapable, through mental or physical incapacity, of managing his affairs

2.3.7. Appointment of Designated Individual

In respect of each Designated Individual that it appoints, an Authorised Person must keep records of the assessment process that it has undertaken in accordance with section 46 of the Framework Regulations to satisfy itself that the relevant individual is a fit and proper Person. Such records must be kept for a minimum of six years from the date of the assessment