Page 68 - Annual Report 2019

65 ANNUAL REPORT 2019 POLICY AND ENFORCEMENT

Policy and Legislative Counsel
Regulatory policy initiatives New customer and investor protection rules Prudential banking framework

A key focus of work for the Policy and Legislative Counsel The new Customer and Investor Protection Rules 2018 The Regulatory Authority has in recent years focused much
departments of the Regulatory Authority in 2019 was to (CIPR) establish a set of governing principles dealing with of its policy programme on the implementation of the
finalise two sets of rules to strengthen its framework for treating customers fairly. Fair treatment for customers is Basel III framework as set out in the standards published
protecting customers and investors of QFC authorised firms. a central theme in the CIPR and this is underpinned by by the Basel Committee on Banking Supervision (BCBS)
a principles-based framework, supported by rules which and the Islamic Financial Services Board (IFSB). The Basel
The departments also finalised rules for a prudential require firms to put in place policies and procedures that framework includes a range of prudential banking reforms,
leverage ratio requirement for QFC banks, updated Anti- ensure that they deliver fair outcomes for their customers. which aim to strengthen bank capital requirements by
Money Laundering and Combatting the Financing of increasing bank liquidity and decreasing bank leverage.
Terrorism Rules following the enactment of a new State of Under the CIPR, the same level of protection is offered
Qatar Law, Law No. 20 of 2019 on Anti-Money Laundering to customers regardless of the type of QFC authorised Leverage ratio framework
and Combatting the Financing of Terrorism, and a package firm they choose to deal with. The rules cover all aspects
of miscellaneous amendments to various rulebooks. of a firm’s interaction with customers. At the outset of Following an extensive review and consultation, the
a relationship with a customer, the firm must find out Regulatory Authority introduced the leverage ratio
Other policy areas of focus concerned public consultation as much about that customer as it needs to know in rules in June 2019. The leverage ratio is designed to
proposals on draft rules for a revised corporate governance order to provide the most suitable product or service. be a simple and transparent mechanism to act as
framework for all QFC authorised firms and proposals a supplementary prudential measure to the risk-
for an updated prudential operational risk framework for Updated customer dispute based capital requirements under the Basel Accords
QFC banks. resolution scheme rules framework. The new rules were introduced in the
updated Banking Business Prudential Rules 2014 and
Customer and investor protection An internal complaints-handling framework has always the Islamic Banking Business Prudential Rules 2015.
been a requirement for authorised firms in the QFC.
Customer and investor protection has been a pillar of Where customer complaints are not satisfactorily resolved
the QFC Regulatory Authority’s regulatory framework by a firm’s internal framework, customers can seek
since the establishment of the QFC in 2005. redress through an external independent adjudication
process which has been in operation since 2014.
To ensure the QFC regulatory framework keeps pace
with best international practices and standards, In support of the Regulatory Authority’s aim to update
the Regulatory Authority introduced new rules to the customer and investor protection framework, a new
update and strengthen its framework for protecting and separate rulebook was introduced, the Customer
customers and investors of QFC authorised firms and Dispute Resolution Scheme Rules 2018 (CDRS).
updated customer dispute resolution scheme rules.