A RISK-BASED APPROACH TO REGULATION

The QFC Regulatory Authority adopts a risk-based approach to regulation and focuses on those areas which present the greatest risk to its Regulatory Objectives. Accordingly, the QFC Regulatory Authority:

  • maintains close relationships with the firms, including directors and senior management, who bear the primary responsibility for meeting the prudential and compliance responsibilities of the firms concerned;

  • engages with other regulators to ensure that international efforts at supervision and regulation were coordinated and coherent and to avoid undue duplication;

  • focuses on monitoring enhancements to the international supervisory standards laid down by the Basel Committee; the International Association of Insurance Supervisors; and the International Organisation of Securities Commissions;

  • engages in periodic risk assessments of firms using methodology drawn from our extensive international supervisory experience; and

  • initiates a number of thematic reviews covering areas such as AML, in addition to ongoing supervisory coverage of individual firms.