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proper policy in assessing directors and officers.

Notification to Central Bank of appointment of officers and directors 101. (1) A licensed financial institution or licensed financial holding company shall give written notice to the Central Bank of the appointment or election of a director or officer within thirty days of the election or appointment of the director or officer.

(2)

(a) Where the Central Bank receives a notice under subsection (1) and is not satisfied that a director or officer is a fit and proper person in accordance with the criteria in section 97, it shall direct the removal of the director or officer.

(b) The Central Bank may notify in writing the person whose removal is required with a copy of the direction.

Responsibility of board for corporate governance 102. (1)

The board of a licensed financial institution or a licensed financial holding company shall establish policies over the entire operations of the licensed financial institution and the licensed financial holding company, including without limitation: (a) adequate policies and procedures for risk management; (b) corporate governance; (c) internal controls; (d) internal audit and compliance; (e) external audit; and (f) executive compensation.

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