It is important that all CAIR member states agree on the same definition on who is performing a senior officer or Key individual role, so that the F&P guide is consistently applied against individuals applying for approval for such roles. For the purpose of this Policy, the words ‘individual’ and ‘person’ refer to an individual that is not a legal person or a legal person that is not necessarily an individual such as a corporate; and have been used interchangeably. The phrases ‘controlled function’, ‘key individuals’, ‘key function’ and ‘senior officer roles’ have also been used interchangeably to mean any one whose role is significant enough to require regulatory approval; including shareholders.
The CAIR F&P Technical Working Group recommends the following roles are agreed upon as individuals constituting an officer, senior officer, key individual and controlled function role:
- Shareholders and ultimate beneficial owners – both controlling and non-controlling.
- Executive Governance Function (executive board directors including any other titles/officer roles pursuant to the executive directorship such as vice-chairman, president etc.)
- Non-Executive Governance Function (non-executive board directors including any other titles/officer roles pursuant to the non-executive directorship such as chairman etc.)
- Senior Executive Function (CEO or MD, or person ultimately responsible for the daily direction of the regulated entity)
- Finance Function (whoever is responsible for Finance such as CFO, Finance Officer, Finance Controller etc.)
- MLRO/MLCO Function (MLRO/MLCO or individual responsible for AML/TF)
- Risk Management Function (Head of Risk Management or individual responsible for Risk Management)
- Compliance Oversight Function (Head of Compliance or individual responsible for Compliance)
- Internal Audit Function (Head of Internal Audit or individual responsible for Internal Audit)
- Actuarial Function (usually Company Actuary or Chief Actuary – most life companies are mandated to have one).
- Senior Management Function (this would normally be head of a key function within the regulated entity such as Head of Claims, Head of Underwriting, Head of Investments, Chief Operating Officer, Corporate Secretary etc. or any function where a fit and proper assessment is required pursuant to a regulatory law or the Money Laundering Regulations.)