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In 2023, the Policy, Legal and Enforcement Division focused on delivering the QFCRA’s policy work programme,
strengthening its relationships with peer regulators and international standard-setting bodies, and raising
public awareness of the importance of investor education and protection. In addition, the Policy, Legal and
Enforcement Division commenced work on a range of Action Items under the Third Financial Sector Strategy.
Policy and Legislative
Counsel
A key focus of work for the Policy and Legislative Derivatives market Insurance business rules Banking business prudential rules
Counsel departments in 2023 was to bring into force the regulatory framework prudential banking framework
derivatives market regulatory rules framework, update The QFCRA published a series of public consultations
Following an extensive three-month public consultation Following public consultation in early 2023 on in June 2021 and December 2021 to amend the
the insurance business prudential rules, introduce
in 2022 on proposals to introduce a Derivatives Markets proposals to update the insurance business prudential Banking Business Prudential Rules (BANK) in respect
significant updates to the banking business prudential
and Exchange Regulatory Rules Framework in the rules, in August 2023, the QFCRA issued the of credit risk, counterparty credit risk and exposures
rules and provide for rules to allow for the outsourcing of
QFC, in April 2023, the QFCRA issued the Derivatives Insurance Business (Amendment) Rules 2023. to central counterparties, and again in September
certain controlled functions to a suitably qualified third
Markets and Exchanges Rules 2023 (DMEX). 2022, to amend BANK to take account of regulatory
party. The departments also developed and published
The amendments update the Insurance Business
for consultation proposed new rules on a digital adjustments to capital. Following these extensive
The launch of DMEX puts in place the regulatory Prudential Rules 2006 (PINS) to more closely align with
assets legal and regulatory framework and significant consultations and accompanying quantitative impact
framework to allow for the establishment of the Insurance Core Principles issued by the International
updates to the Islamic banking prudential rules. studies with QFC banks, in December 2023, the
a derivatives exchange and a Central Clearing Association of Insurance Supervisors (IAIS) and to take
Banking Business Prudential (Amendment) Rules 2023,
Counterparty (CCP) to ensure efficient settlement of account of the introduction of International Financial
were issued with a commencement date of July 2024.
trades and management of settlement risk. DMEX Reporting Standard 17 (IFRS 17) published by the
was developed and benchmarked against best International Accounting Standards Board (IASB). The significant upgrade to BANK is designed to
practice regulatory jurisdictions and to align with materially align with the Basel Accords framework
key regulatory standards including the Committee as set out in the standards published by the Basel
on Payments and Market Infrastructures (CPMI) Committee on Banking Supervision (BCBS). In
and the International Organization of Securities that connection, BANK has been updated in key
Commissions’ (IOSCO) Principles for Financial Market prudential areas, including changes to the credit
Infrastructures (PFMIs); the Qualifying CCP criteria risk management framework, the capital charge
in the Basel Committee on Banking Supervision’s framework for counterparty credit risk, guidance
Capital requirements for banks exposures to central to categorise problem assets and provisioning,
counterparties and the European Union (EU) framework equity investments in investment funds, the
for non-EU CCPs regulations, as recognised through the large exposures framework and the allocation of
European Securities and Markets Authority (ESMA). instruments to the banking book and trading book.
