To improve the standards of governance in the financial industry, people who have been involved in financial irregularities would no longer be able to hold executive positions like CEO or Managing Director in Non-Bank Financial Institutes (NBFIs).

The Department of Financial Institutions and Markets at Bangladesh Bank unveiled comprehensive guidelines regarding the appointment of MDs/CEOs for NBFIs on Monday. This initiative comes as part of broader reforms initiated by the central bank to promote transparency and integrity within the financial landscape.

The directive, dispatched to top executives of NBFIs, underscores the urgency of immediate compliance with the outlined guidelines.

As per the notification, individuals found to be involved in any form of financial misconduct during their tenure at banks or financial institutions are ineligible for appointment as MD or CEO of an NBFI. Furthermore, those implicated in financial irregularities while serving as MD/CEO are barred from reappointment to the position.

The circular also stipulates that individuals convicted by a criminal court or implicated in forgery or financial crimes cannot assume the role of managing director in an NBFI.

Moreover, the guidelines outline specific qualifications for candidates aspiring to serve as MD or CEO. Prospective appointees must hold at least a master's degree from a recognized university, with additional preference given to those with higher institutional or professional education in disciplines such as economics, accountancy, finance, banking, management, or business administration.

Importantly, individuals with a third division or class at any stage of their education are deemed ineligible for the MD and CEO positions, emphasizing the importance of academic excellence and integrity in leadership roles within the financial sector.