Page 41 - QFCRA Annual Report 2014
P. 41
enforcement function forms In one case, the firm was given to protect consumers and ensure
an integral part of the Regulatory a public censure and agreed to that they are not put at risk due to
Authority, supporting its objectives undertake various remedial steps to misconduct by authorised firms.
through effective, prompt and address the identified misconduct. If customers are sold unsuitable
proportionate enforcement action The action taken by Enforcement products or services or if a firm
against firms and individuals who also resulted in compensation being fails to handle their complaint
breach rules and regulations. paid to clients. appropriately, there is a risk that
While instances of misconduct In another case, the firm gave the consumers may lose money.
are infrequent in the QFC, when Regulatory Authority an Enforceable All authorised firms are required to
they do occur, the issues are dealt Undertaking, which included a have robust complaints handling
with in a manner designed to instil remedial action plan to ensure processes. The majority of customer
confidence in the QFC regulatory future compliance with its training complaint cases are resolved
framework. Enforcement action also and competency requirements. amicably between the firm and the
informs and educates the wider customer.
regulatory market, motivates good Enforcement Actions against To ensure that there is a quick
behaviour and deters misconduct. Individuals and fair mechanism to respond to
During 2014, the Regulatory complaints which are not resolved
Authority took enforcement action The Enforcement team concluded with the firm, the Regulatory
that resulted in sanctions against three cases against individuals in Authority operates the Customer
a number of firms and individuals. 2014, one of which was appealed Dispute Resolution Scheme (CDRS).
Investigations covered a range to the QFC Regulatory Tribunal. The CDRS covers all financial
of issues including corporate These cases emphasise the services and products sold to retail
governance frameworks, systems consequences for approved customers in the QFC; this service is
and controls, and training individuals whose behaviour free for firms and their customers.
processes, as well as addressing deliberately falls below the high Whenever possible, the CDRS
potential customer losses and standards set by the Regulatory seeks to assist the parties to reach
integrity issues arising from the Authority. The cases against a mutually acceptable solution.
misconduct of senior executive individuals also involved the use of a However, if agreement cannot be
staff. broad range of sanctions, including reached, then it is possible for the
financial penalties, prohibition and complaint to be considered by an
Enforcement Actions against a public censure. independent adjudicator whose
Firms The appeal to the Regulatory role is to review the complaint and
Tribunal concerned enforcement reach a decision as to its outcome.
Two enforcement decisions action against a senior executive There were relatively few complaints
concerning firms were reached for failing to act with integrity. The received by the CDRS in 2014 and
in 2014 and involved negotiated Regulatory Tribunal upheld the they related to the suitability of
settlements. These mutually agreed disciplinary action taken by the the products sold to consumers
outcomes illustrate the broad Regulatory Authority to impose a and the advice they received. The
range of sanctions available to financial penalty of USD 20,000 and independent adjudicator made six
the Regulatory Authority. While prohibition from employment by determinations in 2014, all of which
many Enforcement outcomes result any authorised firm in the QFC. resulted in compensation being
in disciplinary action, these two paid to customers.
matters show that the Enforcement Consumer Protection
department engages with parties to
achieve pragmatic and practical The Regulatory Authority has
outcomes. developed a framework which aims
ANNUAL REPORT 2014 41
an integral part of the Regulatory a public censure and agreed to that they are not put at risk due to
Authority, supporting its objectives undertake various remedial steps to misconduct by authorised firms.
through effective, prompt and address the identified misconduct. If customers are sold unsuitable
proportionate enforcement action The action taken by Enforcement products or services or if a firm
against firms and individuals who also resulted in compensation being fails to handle their complaint
breach rules and regulations. paid to clients. appropriately, there is a risk that
While instances of misconduct In another case, the firm gave the consumers may lose money.
are infrequent in the QFC, when Regulatory Authority an Enforceable All authorised firms are required to
they do occur, the issues are dealt Undertaking, which included a have robust complaints handling
with in a manner designed to instil remedial action plan to ensure processes. The majority of customer
confidence in the QFC regulatory future compliance with its training complaint cases are resolved
framework. Enforcement action also and competency requirements. amicably between the firm and the
informs and educates the wider customer.
regulatory market, motivates good Enforcement Actions against To ensure that there is a quick
behaviour and deters misconduct. Individuals and fair mechanism to respond to
During 2014, the Regulatory complaints which are not resolved
Authority took enforcement action The Enforcement team concluded with the firm, the Regulatory
that resulted in sanctions against three cases against individuals in Authority operates the Customer
a number of firms and individuals. 2014, one of which was appealed Dispute Resolution Scheme (CDRS).
Investigations covered a range to the QFC Regulatory Tribunal. The CDRS covers all financial
of issues including corporate These cases emphasise the services and products sold to retail
governance frameworks, systems consequences for approved customers in the QFC; this service is
and controls, and training individuals whose behaviour free for firms and their customers.
processes, as well as addressing deliberately falls below the high Whenever possible, the CDRS
potential customer losses and standards set by the Regulatory seeks to assist the parties to reach
integrity issues arising from the Authority. The cases against a mutually acceptable solution.
misconduct of senior executive individuals also involved the use of a However, if agreement cannot be
staff. broad range of sanctions, including reached, then it is possible for the
financial penalties, prohibition and complaint to be considered by an
Enforcement Actions against a public censure. independent adjudicator whose
Firms The appeal to the Regulatory role is to review the complaint and
Tribunal concerned enforcement reach a decision as to its outcome.
Two enforcement decisions action against a senior executive There were relatively few complaints
concerning firms were reached for failing to act with integrity. The received by the CDRS in 2014 and
in 2014 and involved negotiated Regulatory Tribunal upheld the they related to the suitability of
settlements. These mutually agreed disciplinary action taken by the the products sold to consumers
outcomes illustrate the broad Regulatory Authority to impose a and the advice they received. The
range of sanctions available to financial penalty of USD 20,000 and independent adjudicator made six
the Regulatory Authority. While prohibition from employment by determinations in 2014, all of which
many Enforcement outcomes result any authorised firm in the QFC. resulted in compensation being
in disciplinary action, these two paid to customers.
matters show that the Enforcement Consumer Protection
department engages with parties to
achieve pragmatic and practical The Regulatory Authority has
outcomes. developed a framework which aims
ANNUAL REPORT 2014 41
