Page 31 - QFCRA Annual Report 2014
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er stakeholders. This included Supervision teams, in supervising evaluations of the organisation
the submission of the new revised and regulating financial institutions, and functioning of the governing
returns by insurance firms to the is to ensure that institutions body, risk management
Regulatory Authority in parallel to operating in the QFC conduct framework, internal audit,
the existing returns to help ensure their activities in a safe, sound, and information systems and business
robust field testing and to provide competitive manner. continuity;
greater opportunities for feedback. Supervisors assess the safety and • assessment of risks to capital
For QFC insurance Limited Liability soundness of the firms in their and the adequacy of capital to
Companies, the submission of the respective portfolios through mitigate risks;
new revised returns, which reflected quantitative and qualitative • assessment of risks to liquidity
enhancements made to the Risk- analyses undertaken during offsite and the adequacy of liquidity to
Based Capital model effective 1 financial analysis and surveillance cover risks; and
January 2015, allowed these firms as well as during periodic onsite • evaluation of the firm’s
to proactively monitor their capital evaluations. Also taken into compliance with the Regulatory
requirements under this new regime. account are macro-economic Authority’s Rules, including
The Regulatory Authority also issues and other international those related to Anti-Money
developed an XBRL platform developments including the Laundering and Combating
for insurance firms to submit the identification of emerging Terrorism Financing.
revised insurance prudential returns supervisory risks and the provision of
electronically. This XBRL platform relevant input in the advancement In addition to assessing risk
was launched during a town hall of supervisory policy. exposures and risk management
meeting with all insurance firms in Supervisors are supported by frameworks, supervisors conduct
November 2014 and since then, specialist functions such as cross-firm assessments to gain
as part of field testing, the XBRL the Risk Function and the Anti- insights into consistencies and
platform has been used by firms Money Laundering teams, who differences among firms’ strategies,
to submit the revised prudential partner in the development and revenues and risks. These types of
returns. These revised returns collect implementation of bespoke assessments also assist in developing
enhanced risk-based data and supervisory programmes for sound practice guidelines and
through the XBRL database, internal individual institutions. refining supervisory procedures in
management information will be The bespoke supervisory response to changing risks in the
improved allowing the Regulatory programmes, which include business environment.
Authority to more effectively assessments of both financial and
supervise insurance firms. The non-financial risks, are principally During 2014, further progress was
revised prudential returns were comprised of: achieved in enhancing regulatory
implemented for insurance firms • qualitative and quantitative objectives by developing a
from 1 January 2015. consistent risk-based micro-
analyses of the firm’s business prudential framework in line with
Supervision – Banking, Asset model, with focussed global regulatory developments.
Management and Insurance assessments of the key
vulnerabilities to which the firm The redesign of the prudential returns
Institutions in the QFC are often may be exposed; has begun to deliver rich dividends
internationally active, with activities • assessments of governance and has contributed to substantial
spanning numerous markets and and firm-wide internal control improvements in the efficiency
jurisdictions. Therefore, the primary arrangements, including and effectiveness of day-to-day
objective of the Banking, Asset monitoring of regulated firms.
Management and Insurance
ANNUAL REPORT 2014 31
the submission of the new revised and regulating financial institutions, and functioning of the governing
returns by insurance firms to the is to ensure that institutions body, risk management
Regulatory Authority in parallel to operating in the QFC conduct framework, internal audit,
the existing returns to help ensure their activities in a safe, sound, and information systems and business
robust field testing and to provide competitive manner. continuity;
greater opportunities for feedback. Supervisors assess the safety and • assessment of risks to capital
For QFC insurance Limited Liability soundness of the firms in their and the adequacy of capital to
Companies, the submission of the respective portfolios through mitigate risks;
new revised returns, which reflected quantitative and qualitative • assessment of risks to liquidity
enhancements made to the Risk- analyses undertaken during offsite and the adequacy of liquidity to
Based Capital model effective 1 financial analysis and surveillance cover risks; and
January 2015, allowed these firms as well as during periodic onsite • evaluation of the firm’s
to proactively monitor their capital evaluations. Also taken into compliance with the Regulatory
requirements under this new regime. account are macro-economic Authority’s Rules, including
The Regulatory Authority also issues and other international those related to Anti-Money
developed an XBRL platform developments including the Laundering and Combating
for insurance firms to submit the identification of emerging Terrorism Financing.
revised insurance prudential returns supervisory risks and the provision of
electronically. This XBRL platform relevant input in the advancement In addition to assessing risk
was launched during a town hall of supervisory policy. exposures and risk management
meeting with all insurance firms in Supervisors are supported by frameworks, supervisors conduct
November 2014 and since then, specialist functions such as cross-firm assessments to gain
as part of field testing, the XBRL the Risk Function and the Anti- insights into consistencies and
platform has been used by firms Money Laundering teams, who differences among firms’ strategies,
to submit the revised prudential partner in the development and revenues and risks. These types of
returns. These revised returns collect implementation of bespoke assessments also assist in developing
enhanced risk-based data and supervisory programmes for sound practice guidelines and
through the XBRL database, internal individual institutions. refining supervisory procedures in
management information will be The bespoke supervisory response to changing risks in the
improved allowing the Regulatory programmes, which include business environment.
Authority to more effectively assessments of both financial and
supervise insurance firms. The non-financial risks, are principally During 2014, further progress was
revised prudential returns were comprised of: achieved in enhancing regulatory
implemented for insurance firms • qualitative and quantitative objectives by developing a
from 1 January 2015. consistent risk-based micro-
analyses of the firm’s business prudential framework in line with
Supervision – Banking, Asset model, with focussed global regulatory developments.
Management and Insurance assessments of the key
vulnerabilities to which the firm The redesign of the prudential returns
Institutions in the QFC are often may be exposed; has begun to deliver rich dividends
internationally active, with activities • assessments of governance and has contributed to substantial
spanning numerous markets and and firm-wide internal control improvements in the efficiency
jurisdictions. Therefore, the primary arrangements, including and effectiveness of day-to-day
objective of the Banking, Asset monitoring of regulated firms.
Management and Insurance
ANNUAL REPORT 2014 31
