Corporate Governance Directive for Banks, Savings and Loans Companies, Finance Houses and Financial Holding Companies – Dec 2018

Corporate Governance Directive 2018, For Banks, Savings and Loans,

Finance Houses and Financial Holding Companies in Ghana (Bank of Ghana)

1. a) Purpose
2. b) Duration
3. c) Why take this course?
4. d) Who should take this course?
5. e) Certification
6. f) Interactive Demo
7. g) Course Content
8. h) Aims of the Course
9. i) Assessment
10. j) Who Benefits
11. k) Approval and Accreditation
12. l) Useful Links
13. a) Purpose

The Corporate Governance Directive 2018 applies to all Banks, Savings and Loans,

Finance Houses and Financial Holding Companies in Ghana. Compliance with these

Corporate Governance Directives are regulatory requirements for all these Banks,

Savings and Loans Companies, Finance Houses and Financial Holding Companies

licensed by the Bank of Ghana. This Directive requires that within 90 (ninety) days

after the beginning of each financial year, the Board provide a certification in the

annual report of the compliance of its regulated financial institution with the

content of this Directive.

The BOBE product and value proposition makes it easy and convenient for all

Banks, Savings and Loans, Finance Houses and Financial Holding Companies to meet

this regulatory requirement. BOBE provides benchmarked, approved, best practice

Corporate Governance training in a standardized training environment accessible

on-line through an e-learning system. The BOBE online Corporate Governance

training course is designed to help management and staff in the regulated financial

institutions put in place procedures and processes that promote a highly effective

and efficient corporate governance culture in their institutions. The BOBE

elearning training is dynamic with the flexibility to evolve and adapt to changes

regulators may impose.

b) Duration

There’s six (6) months access for individuals and one (1) year time limit for

institutions, in which you must complete the course. The limit for completion

depends on your subscription. Access period is negotiable.

c) Why this course?

The Directive states that, it is the Board of Directors’ responsibility for approving,

and overseeing the implementation of the strategic objectives, risk strategy, corporate governance and corporate values in their institution. These

responsibilities shall be set out in a formal charter.

Directors are also required to obtain certification from the National Banking

College or any other institution recognised by the Bank of Ghana to the effect that

they have participated in a corporate governance programme and have completed

a programme on directors’ responsibilities.

This Directive requires that within 90 (ninety) days after the beginning of each

financial year, the Board provide a certification in the annual report of the

compliance of its regulated financial institution with the content of this Directive.

The Directive requires senior management under the direction of the Board, should

engage skilled and competent staff and provide training and development

opportunities to sustain the delivery of short and longterm business objectives, the

risk management framework and protect the reputation of the Regulated Financial

Institution.

Board members shall be and remain qualified, including through training, for their

positions. They shall have a clear understanding of their role in corporate

governance and be able to exercise sound and objective judgement about the

affairs of the Regulated Financial Institution.

d) Who should take this course?

The object of the Corporate Governance Directive is to require regulated financial

institutions to adopt sound corporate governance principles and best practices to

enable them manage their institutions in a sustainable manner. It also seeks to

promote the interest of depositors and other stakeholders by enhancing corporate

performance and accountability of their institutions which should eventually bring

public confidence in their institutions and the financial sector.

Directors are also required to obtain certification from the National Banking

College or any other institution recognised by the Bank of Ghana to the effect that

they have participated in a corporate governance programme and have completed

a programme on directors’ responsibilities.

The Directive requires senior management under the direction of the Board, to

engage skilled and competent staff and provide training and development

opportunities to sustain the delivery of short and longterm business objectives, the

risk management framework and protect the reputation of the Regulated Financial

Institution.

Board members shall be and remain qualified, including through training, for their

positions. They shall have a clear understanding of their role in corporate

governance and be able to exercise sound and objective judgement about the

affairs of the Regulated Financial Institution.The BOBE online Corporate Governance training course is designed to help the

board, management and staff of the regulated financial institutions put in place

procedures and processes to comply with the requirements of this Directive and

also to help the Board and key management personnel to satisfy the “certification

and training” requirements of the Directive. This Directive will be good for all that

are involved in the management of financial and non-financial institutions. The

provision on “General Sound Corporate Standards” are applicable to all in

management of any institution in any sector.

The following institutions and professionals should take this course:

▪ Banks (Board members, key management personnel, middle management

personnel and staff)

▪ Savings and Loans Companies (Board members, key management

personnel, middle management personnel and staff)

▪ Finance Houses (Board members, key management personnel, middle

management personnel and staff)

▪ Financial Holding Companies (Board members, key management

personnel, middle management personnel and staff)

▪ The Board of other financial and non-bank financial institutions

▪ Management consultants

▪ Lawyers

▪ Judges

▪ Bankers

▪ Accountants

▪ Board Secretaries

▪ Chief Executives

▪ Partners

▪ Banking Consultants

▪ Stakeholders of Banks

▪ Clergy

▪ Academicians

▪ Civil Society

e) Certification

Certification is instant & online. Learners can print off a high quality, personalized

certificate as record of training on successful completion of the course. There is

also the option of directing all of the certificates to a pre-determined individual

e.g. the Compliance or Human Resource manager to be used to provide evidence

for compliance with this Directive or / and audit. Regulated Financial Institutions

are required to show evidence of their compliance with the Board management and

staff training program to the BOG when they come for examination.

Again, the Directive requires that an in-house performance evaluation of the Board

shall be conducted annually and a copy of the results shall be submitted to the

Bank of Ghana not later than 30th June of each year.

f) Interactive Demo

If you wish to try this course then register for a demo by clicking the 'interactive

demo' button. You will be given the option to purchase and continue with your

course at the end of your demo!

g) Course Content

▪ Objectives of the Directive

▪ Board’s overall responsibility

▪ Annual Certification

▪ Business Strategy

▪ Duty of care and Loyalty

▪ Corporate Culture and values

▪ Related Party Transactions

▪ Plan for succession

▪ Key management oversight

▪ Separation of powers

▪ Board qualification and composition

▪ Board size and structure

▪ Appointment of management personnel

▪ Board chairperson

▪ Role of Board secretary

▪ Board meetings

▪ Other engagement of Directors

▪ Board performance evaluation

▪ Report of Board evaluation

▪ Board sub-committees

▪ Conflict of Interest

▪ Group structures

▪ Senior management duties

▪ Risk management and internal controls

▪ Risk management function

▪ Compensation systems

▪ Know your structure

▪ Disclosure and transparency

▪ Ethics and professionalism

▪ Cooling-of period

▪ Remedial measures

▪ Sanctions

h) Aims of the Course

By the end of the course you will be able to explain the concepts of corporate

governance and the provisions in the Directive. To provide a “Best in Class”, best

practice approach which will ensure that Regulated Financial Institutions and other

users meet the regulatory requirement set out in this Directive. The BOBE online

Corporate Governance training course is designed to help management and staff in

the regulated financial institutions put in place procedures and processes that promote a highly effective and efficient corporate governance culture in their

institutions.

i) Assessment

The online assessment is taken on completion of the training material. Learners

will be asked 30 multiple choice questions with a pass mark of 80%. The answers

are marked automatically so learners will instantly know whether they have

passed. Learners can take the test as many times as they need to pass within the 1-

week time limit at no extra charge.

j) Who benefits?

The advantages and benefits of this approach of delivery of the Corporate

Governance Directive, 2018 over the current approach are significant for all

stakeholders including the Supervisory authorities, Financial institutions, Board

members, Key management, staff and learning public, etc

1. k) Approval and Accreditation

All of our courses are accredited by the CPD Certification Service as conforming to

universally accepted Continuing Professional Development (CPD) guidelines.

In addition, this course is accredited by the Institute of Directors, Ghana.

l) Useful links

https://iodghana.org/

https://www.iod.com/

https://www.bog.gov.gh/

https://www.bog.gov.gh/wp-content/uploads/2019/09/CGD-Corporate

Governance-Directive-2018-Final-For-PublicationV1.1.pdf