Page 129 - Annual Report 2020

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Note (ii) 13. General and administration expenses

In March 2019, the Regulatory Authority issued a Decision
Notice to Horizon Crescent Wealth Management (“HCW”) 2020 | USD’000 2019 | USD’000

imposing a financial penalty of USD 8,230 thousands
Equipment rental 1,134 1,134
(equivalent to QAR 30,000,000) as a result of serious
regulatory breaches. The Regulatory Authority also required
Consultancy and professional fees 1,322 1,322
HCW to pay the costs and expenses of the Regulatory

Authority’s investigation of USD 228 thousands (equivalent
Amortisation of intangible assets (Note 5) 115 115
to QAR 830,024). The Decision Notice required the HCW

Financial Penalty plus costs to be paid by 10 May 2019.
Adjustment for intangible assets (Note 5) (148) (148)

In May 2019, HCW appealed the Decision Notice to the Tribunal
Depreciation of right-of-use asset (Note 6) 792 792
pursuant to Article 66 of the FSR and Article 8 of Schedule
5 to the QFC Law No (7) of 2005. The Tribunal hearing took
Depreciation of furniture and equipment (Note 4) 25 25
place in January 2020 and the Tribunal issued its judgment

in March 2020 finding in favour of the Regulatory Authority.
Other expenses 1,141 1,141
The Tribunal’s decision also required HCW to pay the HCW

Investigation costs and 50% of its costs relating to the appeal.
4,381 4,381

The matter was appealed by HCW but Regulatory Tribunal ruled in

favour of the Regulatory Authority and dismissed HCW’s appeal.

14. Commitments

Note (iii)

In July 2020, the Regulatory Authority imposed a financial penalty
Non-cancellable rental commitments 2020 | USD 2019 | USD
of USD 200 thousands (equivalent to QAR 728,000) on Takaful
International Company (TIC) as TIC contravening the Regulatory
Within one year 81 1,142
Authority’s rules. The Regulatory Authority also required TIC

to pay the costs and expenses of the Regulatory Authority’s
After one year but not more than five years 44 4
investigation of USD 26 thousands (equivalent to QAR 94,044).

The Decision Notice required TIC to pay the TIC Financial Penalty
125 1,146
plus the TIC investigation costs by 10 September 2020.

Non-cancellable service commitments
In October 2020, the Regulatory Authority filed a debt
application in the Court because of TIC’s failure to pay the Within one year 2,886 986

Financial Penalty. On 8 February 2021, the Court issued the

debt judgement and awarded payment of interest at 5% per After one year but not more than five years 2,132 78
annum from 10 September 2020 when the payment was due.

5,018 1,064

T ABLE OF C ONTENT S