Page 37 - QFCRA Annual Report 2014
P. 37
ulatory Policy Initiatives The new BANK Rules 2014 contain money, custody, collateral and
the prudential framework for client mandate provisions was
In 2014 the Policy department of the authorised firms that undertake moved to the new Rules, and the
Regulatory Authority focussed on banking business - accepting Assets Rules were repealed.
updating the regulatory framework deposits, providing credit, dealing
to ensure the QFC continued to in investments as principal, or Individuals Rules (INDI)
meet international standards. undertaking Islamic financial
A major area of work were management. The Regulatory The Regulatory Authority introduced
enhancements to the prudential Authority is working closely with the a number of improvements to its
framework for banks, investment relevant QFC firms on their transition framework for approving individuals
managers and advisory firms. Other into the new prudential regime. to perform certain key positions
key improvements were made to The rules are designed to strengthen in QFC authorised firms. The new
the approved individual framework. significantly the prudential framework is contained in the
framework for banking business Individuals (Assessment, Training and
Sectoral Rulebooks firms and to align with the principles Competency) Rules 2014. The new
established by the 2012 revised rules were issued in December 2014
The Investment and Banking Basel Core Principles for effective following public consultation and
Business Rules 2005 (PIIB) were Banking Supervision and Basel dialogue with QFC authorised firms,
repealed in 2014 and replaced Accord (I, II, 2.5 and III) framework. and came into effect on 1 January
with the new Banking Business The BANK Rules include a framework 2015.
Prudential Rules (BANK) and the that sets out higher and better- The new rules amend the existing
new Investment Management quality capital requirements as approved individual regime by
and Advisory (INMA) Rules. well as an increased focus on the placing clearer accountability
The two new sets of rules were broader issues related to prudential and responsibility on the board
designed to provide a clear risk coverage as prescribed under and senior management for the
differentiation between prudential the Basel Accord framework. appointment of competent and fit
rules for banking business firms and proper staff. The requirement
and prudential rules for investment Investment Management and for the Regulatory Authority to
management and advisory business Advisory Rules (INMA) approve individuals performing
firms. The two new sets of rules the customer facing function was
provide greater clarity for firms in The new INMA Rules 2014 contain removed, and the knowledge
terms of a risk-based prudential the prudential framework for competency requirements were
regime that addresses the risks they authorised firms undertaking enhanced.
face. The new rules came into force investment management and The Regulatory Authority undertook
on 1 January 2015. advisory business. The new a period of public consultation on
framework reflects international the draft proposals, and conducted
Banking Business Prudential standards for firms conducting these active dialogue with QFC firms and
Rules (BANK) types of activities. other stakeholders through a town
The rules contain a new minimum hall meeting in October 2014. The
In 2013 the Regulatory Authority paid-up share capital and feedback and policy responses
began a comprehensive review liquid assets requirement and a were reflected in the final rules
of the QFC prudential framework, requirement to hold appropriate and were published separately in
aiming to align it with the professional indemnity insurance December 2014 in a Summary of
enhancements to best practice cover. They also aim to streamline
supervision, and the prudential existing rulebooks; relevant content
standards for financial institutions in the Assets Rules relating to client
prescribed by the Basel Committee
on Banking Supervision.
ANNUAL REPORT 2014 37
the prudential framework for client mandate provisions was
In 2014 the Policy department of the authorised firms that undertake moved to the new Rules, and the
Regulatory Authority focussed on banking business - accepting Assets Rules were repealed.
updating the regulatory framework deposits, providing credit, dealing
to ensure the QFC continued to in investments as principal, or Individuals Rules (INDI)
meet international standards. undertaking Islamic financial
A major area of work were management. The Regulatory The Regulatory Authority introduced
enhancements to the prudential Authority is working closely with the a number of improvements to its
framework for banks, investment relevant QFC firms on their transition framework for approving individuals
managers and advisory firms. Other into the new prudential regime. to perform certain key positions
key improvements were made to The rules are designed to strengthen in QFC authorised firms. The new
the approved individual framework. significantly the prudential framework is contained in the
framework for banking business Individuals (Assessment, Training and
Sectoral Rulebooks firms and to align with the principles Competency) Rules 2014. The new
established by the 2012 revised rules were issued in December 2014
The Investment and Banking Basel Core Principles for effective following public consultation and
Business Rules 2005 (PIIB) were Banking Supervision and Basel dialogue with QFC authorised firms,
repealed in 2014 and replaced Accord (I, II, 2.5 and III) framework. and came into effect on 1 January
with the new Banking Business The BANK Rules include a framework 2015.
Prudential Rules (BANK) and the that sets out higher and better- The new rules amend the existing
new Investment Management quality capital requirements as approved individual regime by
and Advisory (INMA) Rules. well as an increased focus on the placing clearer accountability
The two new sets of rules were broader issues related to prudential and responsibility on the board
designed to provide a clear risk coverage as prescribed under and senior management for the
differentiation between prudential the Basel Accord framework. appointment of competent and fit
rules for banking business firms and proper staff. The requirement
and prudential rules for investment Investment Management and for the Regulatory Authority to
management and advisory business Advisory Rules (INMA) approve individuals performing
firms. The two new sets of rules the customer facing function was
provide greater clarity for firms in The new INMA Rules 2014 contain removed, and the knowledge
terms of a risk-based prudential the prudential framework for competency requirements were
regime that addresses the risks they authorised firms undertaking enhanced.
face. The new rules came into force investment management and The Regulatory Authority undertook
on 1 January 2015. advisory business. The new a period of public consultation on
framework reflects international the draft proposals, and conducted
Banking Business Prudential standards for firms conducting these active dialogue with QFC firms and
Rules (BANK) types of activities. other stakeholders through a town
The rules contain a new minimum hall meeting in October 2014. The
In 2013 the Regulatory Authority paid-up share capital and feedback and policy responses
began a comprehensive review liquid assets requirement and a were reflected in the final rules
of the QFC prudential framework, requirement to hold appropriate and were published separately in
aiming to align it with the professional indemnity insurance December 2014 in a Summary of
enhancements to best practice cover. They also aim to streamline
supervision, and the prudential existing rulebooks; relevant content
standards for financial institutions in the Assets Rules relating to client
prescribed by the Basel Committee
on Banking Supervision.
ANNUAL REPORT 2014 37
