2.4.1. Designation of roles as Controlled Functions

The following functions are prescribed as Controlled Functions within the meaning of section 20 of the FSFR:

• (a) Risk Officer;
• (b) Internal Auditor; and
• (c) Approved Actuary

Guidance: relationship with GEN

Rules in this section supplement, and should be read in conjunction with, the Rules in GEN 2.2 (Controlled and Designated Functions). In particular a Takaful Operator should note the following requirements of general application to Controlled Functions and the Approved Individuals performing them:

• GEN 2.2.6. Application for Approved Individual status

• GEN 2.2.7. AFSA discretion to waive requirements

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

• GEN 2.2.9. Dismissal or resignation of an Approved Individual

2.4.2. Mandatory appointments

(1) A Takaful Operator must make the following appointments and ensure that they are held by one or more Approved Individuals at all times:

• (a) Risk Officer; and
• (b) Internal Auditor.

(2) A Takaful Operator must also appoint an Approved Actuary and ensure that such role is held at all times by an Approved Individual if:

• (a) it conducts Family Takaful Business; or
• (b) it conducts General Takaful Business and;
• (i) more than 15% of its gross outstanding liabilities are attributable to Takaful Contracts for General Takaful Business in General Insurance 1 (Accident) or 2 (Sickness); or
• (ii) more than 20% of its gross outstanding liabilities are attributable to Takaful Contracts for General Takaful Business in General Insurance Categories 10 (Motor vehicle liability), 11 (Aircraft liability), 12 (Liability of ships), 13 (General liability), 14 (Credit) or 15 (Suretyship).

2.4.3. Risk Officer

The Risk Officer is an individual who has responsibility for the Takaful Operator’s risk management function.

2.4.4. Internal Auditor

The Internal Auditor is an individual who has responsibility:

(a) for the Takaful Operator’s internal audit policies, procedures and controls; and

(b) for taking appropriate steps to ensure the implementation of and compliance with those policies, procedures and controls.

2.4.5. Approved Actuary

(1) The Approved Actuary is an individual who has responsibility:

(a) for the Takaful Operator’s actuarial policies, procedures and controls; and

(b) for taking appropriate steps to ensure the implementation of and compliance with those policies, procedures and controls.

(2) The Approved Actuary must not be an individual who:

(a) exercises the Senior Executive Function for the Takaful Operator or a related body corporate (except a related body corporate that is a subsidiary of the Takaful Operator); or

(b) is an Employee or Director of an auditor for the Takaful Operator.