Page 28 - QFCRA Annual Report 2014
P. 28
ervision and
Authorisation
The Supervision and Authorisation obtain – and retain – authorisation of which was conducted in 2014,
department’s activities in 2014 to conduct regulated activities span to ensure that the Regulatory
were closely aligned with the the following: Authority’s criteria and internal
joint Strategic Plan for Financial • Controllers, owners and other approach remain updated and
Sector Regulation launched aligned with these principles as they
on 8 December 2013. The interests; continue to evolve.
department’s strategic goals • Close links and other An often pivotal component
were to expand macro-prudential of the authorisation process
oversight by building a macro- connections; is the determination that the
prudential framework in line with • Regulated activities – i.e. what Regulatory Authority’s regulation
international best practice; to of authorised firms will not be
enhance regulation by developing the applicant proposes to do in impeded. The Regulatory Authority
a consistent risk-based micro- or from the QFC and the manner must determine that an applicant
prudential framework in line with in which this, and its related firm’s group structure, or any
global regulatory developments risks together with relevant legal restrictions imposed by the
and by improving disclosure risk mitigation, are set out in a legislation of the home state
practices; to promote regulatory comprehensive business plan; jurisdiction of the parent or other
cooperation among the three • Prudence – the applicant should group entity, will not prejudice
regulatory authorities and to be able to demonstrate that QFC depositors or policyholders,
strengthen local and international its affairs would be conducted or otherwise inhibit a firm’s ability
cooperation; and to build human and managed in a sound and to comply with ongoing regulatory
capital through training and prudent manner; requirements.
professional development initiatives • Location of offices – the In this respect, a published policy
in the three regulatory authorities location and jurisdiction of statement provides a summary of
and the financial sector. the applicant’s head office or the Regulatory Authority’s approach
parent entity; when determining whether to allow
Authorisation • Legal form – special a prospective applicant to apply
considerations are required to establish a branch entity rather
The primary purpose of the in relation to certain types of than a subsidiary, so the applicant
Authorisation department is to act regulated activities, and also may conduct its proposed regulated
as an effective “gatekeeper” to prospective branch applications; activities in or from the QFC. Integral
the Qatar Financial Centre (QFC) and to this is the establishment of formal
in respect of firms seeking to carry • Other matters, such as lines of communication and co-
on regulated activities in or from background and history, operation with the respective
the QFC. Authorisation achieves resources, systems and controls Home State Supervisor, to provide a
this by ensuring that all applications and collective suitability of framework for effective cross-border
are consistently processed by the individuals. supervision once the applicant is
team against agreed domestic The fitness and propriety criteria authorised. The policy statement, The
and international standards in are drawn from guiding principles QFC Approach to the Authorisation
accordance with documented set out by the global standard of Branches, is available on the QFC
procedures. setting bodies, namely the Basel Regulatory Authority website at
These standards, mandated in Committee on Banking Supervision’s www.qfcra.com.
the Financial Services Regulations Core Principles for Effective Banking Following receipt of the final
(FSR) and further defined in the Supervision and the International application, a risk assessment of the
General Rules (GENE) set out the Association of Insurance Supervisors’ applicant firm also forms part of the
fitness and propriety criteria against Insurance Core Principles. Periodic authorisation process. Integral to this
which applications are assessed reviews are undertaken, the latest risk assessment is the consideration
and to which authorised firms must of an applicant firm’s regulatory
adhere at all times. These criteria,
which represent what is needed to
28 ANNUAL REPORT 2014
Authorisation
The Supervision and Authorisation obtain – and retain – authorisation of which was conducted in 2014,
department’s activities in 2014 to conduct regulated activities span to ensure that the Regulatory
were closely aligned with the the following: Authority’s criteria and internal
joint Strategic Plan for Financial • Controllers, owners and other approach remain updated and
Sector Regulation launched aligned with these principles as they
on 8 December 2013. The interests; continue to evolve.
department’s strategic goals • Close links and other An often pivotal component
were to expand macro-prudential of the authorisation process
oversight by building a macro- connections; is the determination that the
prudential framework in line with • Regulated activities – i.e. what Regulatory Authority’s regulation
international best practice; to of authorised firms will not be
enhance regulation by developing the applicant proposes to do in impeded. The Regulatory Authority
a consistent risk-based micro- or from the QFC and the manner must determine that an applicant
prudential framework in line with in which this, and its related firm’s group structure, or any
global regulatory developments risks together with relevant legal restrictions imposed by the
and by improving disclosure risk mitigation, are set out in a legislation of the home state
practices; to promote regulatory comprehensive business plan; jurisdiction of the parent or other
cooperation among the three • Prudence – the applicant should group entity, will not prejudice
regulatory authorities and to be able to demonstrate that QFC depositors or policyholders,
strengthen local and international its affairs would be conducted or otherwise inhibit a firm’s ability
cooperation; and to build human and managed in a sound and to comply with ongoing regulatory
capital through training and prudent manner; requirements.
professional development initiatives • Location of offices – the In this respect, a published policy
in the three regulatory authorities location and jurisdiction of statement provides a summary of
and the financial sector. the applicant’s head office or the Regulatory Authority’s approach
parent entity; when determining whether to allow
Authorisation • Legal form – special a prospective applicant to apply
considerations are required to establish a branch entity rather
The primary purpose of the in relation to certain types of than a subsidiary, so the applicant
Authorisation department is to act regulated activities, and also may conduct its proposed regulated
as an effective “gatekeeper” to prospective branch applications; activities in or from the QFC. Integral
the Qatar Financial Centre (QFC) and to this is the establishment of formal
in respect of firms seeking to carry • Other matters, such as lines of communication and co-
on regulated activities in or from background and history, operation with the respective
the QFC. Authorisation achieves resources, systems and controls Home State Supervisor, to provide a
this by ensuring that all applications and collective suitability of framework for effective cross-border
are consistently processed by the individuals. supervision once the applicant is
team against agreed domestic The fitness and propriety criteria authorised. The policy statement, The
and international standards in are drawn from guiding principles QFC Approach to the Authorisation
accordance with documented set out by the global standard of Branches, is available on the QFC
procedures. setting bodies, namely the Basel Regulatory Authority website at
These standards, mandated in Committee on Banking Supervision’s www.qfcra.com.
the Financial Services Regulations Core Principles for Effective Banking Following receipt of the final
(FSR) and further defined in the Supervision and the International application, a risk assessment of the
General Rules (GENE) set out the Association of Insurance Supervisors’ applicant firm also forms part of the
fitness and propriety criteria against Insurance Core Principles. Periodic authorisation process. Integral to this
which applications are assessed reviews are undertaken, the latest risk assessment is the consideration
and to which authorised firms must of an applicant firm’s regulatory
adhere at all times. These criteria,
which represent what is needed to
28 ANNUAL REPORT 2014
