🇪🇹EthiopiaEast Africa
NBE sets six-month deadline for insurers to secure approval for senior executives
via The Reporter Ethiopia8 hours ago7 min read
The National Bank of Ethiopia NBE has issued a directive requiring insurance companies to obtain regulatory approval for individuals in senior executive positions within six months, or face a penalty of Birr 10,000 per unapproved position. The directive, which came into force this week, applies to shareholders holding two percent or more shares, directors, chief executive officers, and senior executive officers. It introduces a "fit and proper" criterion, evaluating knowledge, experience, and age. Directors must be at least 30 years old, hold a minimum first degree, and have five years of relevant experience. The directive also mandates gender diversity on boards, requiring at least two female directors and prohibiting single-gender boards, though incumbent board members are exempt until their terms end. Insurance companies must appoint at least three independent directors without close family or business ties to the company. Foreign nationals can qualify as independent directors with a relevant master’s degree and ten years of sector experience. The directive also emphasizes financial soundness, requiring verification that individuals have not been declared bankrupt, have not initiated bankruptcy proceedings, and do not hold non-performing loans. Share acquisitions are scrutinized to ensure they are not funded by bankrupt parties, and shareholders must demonstrate their net worth exceeds the value of their shares. Insurers must establish a "fit and proper" policy and maintai
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Original source
This summary was AI-generated from a story originally published by The Reporter Ethiopia.
