Upon completion of this course, participants will be able to:

• Design a clear, **risk-tiered licensing framework** with tailored requirements for different categories of non-bank financial entities (e.g., finance, leasing, MSBs).
• Establish and apply rigorous criteria for assessing the **"fit and proper" status** and track record of the applicant's owners, directors, and senior management.
• Scrutinize and critically evaluate an applicant's **business plan, financial projections, and capital adequacy** under stress scenarios.
• Develop a comprehensive checklist for assessing the adequacy of the applicant's proposed **governance, risk management, and internal control frameworks** (including AML/KYC).
• Manage the entire licensing lifecycle, from pre-application engagement and document review to final decision and post-authorization monitoring.
• Understand the legal and procedural requirements for transparency, due process, and the formal communication of licensing decisions.
• Formulate policy on setting initial **minimum capital requirements** and calculating operational risk capital for non-deposit-taking institutions.
• Use the licensing review to establish the initial **risk rating** that will feed into the ongoing supervisory process (RBS).

• Licensing and Authorization Managers and Analysts at Regulatory Authorities.
• Prudential and AML/CFT Supervisors (for input into the review).
• Legal Counsel specializing in Regulatory Applications and Administrative Law.
• Compliance and Strategy Officers at Entities Seeking NBFI Licenses.
• Regulatory Policy Developers and Economists.

• "Fit and Proper" Assessment Case Studies and Role-Playing Exercises
• Workshops on Scrutinizing NBFI Business Plans and Financial Projections under Stress
• Group Activities on Developing a Governance and Control Framework Checklist for a New License Applicant
• Expert Lectures on Administrative Law and Due Process in Licensing Decisions
• Workshops on Calculating Minimum Initial Capital Requirements for NBFIs
• Individual Exercises on Documenting and Justifying a Conditional Licensing Decision

Unit 1: Licensing as the Gateway to Supervision

• The policy objectives of the licensing process: integrity, stability, consumer protection, competition.
• Defining the legal and operational thresholds that trigger the need for a non-bank license.
• Structuring the licensing function within the regulatory authority and coordinating with supervision teams.
• Review of international best practices for licensing non-bank and specialized financial institutions.
• The importance of transparency, timelines, and predictability in the application process.

Unit 2: The Assessment of Fit and Proper Status

• Establishing clear, objective criteria for assessing the **"fit and proper"** status of owners, directors, and senior management.
• Protocols for conducting background checks, due diligence, and verifying the track record of applicants.
• Managing the assessment of ownership structure, beneficial ownership, and potential conflicts of interest.
• The process for conducting competency interviews and evaluating the proposed organizational structure.
• Legal requirements and procedural fairness in communicating adverse findings on fit and proper status.

Unit 3: Financial Projections and Business Plan Scrutiny

• Developing a template for the required **business plan** and key focus areas for regulatory review.
• Critical assessment of financial projections, revenue models, and operational viability over a multi-year horizon.
• Protocols for verifying the source of initial **capital** and its adequacy relative to the proposed business risks.
• Applying stress tests to the financial model to assess resilience under adverse market conditions.
• Analyzing the potential for the business plan to introduce new systemic or illicit finance risks.

Unit 4: Control and Governance Framework Review

• Evaluating the proposed **corporate governance** structure (Board composition, committees, independence) against best practice.
• Assessing the adequacy of the proposed **Risk Management Framework** and the independence of the risk function.
• Detailed review of the applicant's proposed **AML/KYC compliance program** and IT infrastructure controls.
• Protocols for reviewing internal audit arrangements, outsourcing plans, and segregation of duties.
• Ensuring the technology and IT systems are robust, scalable, and secure for the proposed activities.

Unit 5: Decision Making and Post-Authorization

• The formal process for the final licensing decision: committee review, board approval, and legal documentation.
• Protocols for communicating the decision (approval, conditional approval, or rejection) and managing appeals.
• Developing the initial **Risk-Based Supervision (RBS) profile** and risk rating based on the licensing review findings.
• Establishing mandatory post-authorization monitoring requirements (e.g., meeting capital targets, implementing remaining controls).
• The role of the license in facilitating access to market utilities and payment systems.