QFC Regulatory Authority introduces updates to the Governance and Controlled Functions Rules 2020 

Doha, Qatar, Sunday, 6 October 2024

The QFC Regulatory Authority (“Regulatory Authority”) has today issued an extensive update to the Governance and Controlled Functions Rules 2020 (“CTRL”) and a range of miscellaneous and consequential amendments. 

The CTRL amendments are being issued following public consultation and feedback received on: 

• Consultation Paper 24/01 – Proposed Operational Risk and Resilience Rules and Other Miscellaneous Amendments; and 
• Consultation Paper 24/02 – Proposed Miscellaneous Amendments to Governance and Controlled Functions Rules.

The amendments to CTRL are set out in the Operational Resilience and Miscellaneous Amendments Rules 2024.  In that connection, the Regulatory Authority is updating CTRL in the following key areas: 

1. new rules in CTRL addressing the growing level and complexity of operational risks facing authorised firms, as well as placing a
   heightened regulatory focus on their operational resilience in the event of disruptions; 
2. clarifying and simplifying certain rules relating to a firm’s risk management framework and centralising these in CTRL; 
3. removing the Sharia Supervisory Board requirements in the Islamic Banking Business Prudential Rules 2015 as these duplicate the
   Sharia Supervisory Board requirements contained in CTRL; 
4. providing the Regulatory Authority with the discretion to require a Category B firm to establish one or more board committees;
5. requiring Category A firms (and other firms at the Regulatory Authority’s discretion) to ensure material outsourcing arrangements
   include the right of the Regulatory Authority to conduct onsite visits of the service provider; and 
6. a small number of minor and technical amendments.

The updated CTRL Rules commence on 1 October 2025 and the following diagram outlines the commencement and transitional timeframes, which aim to provide authorised firms with sufficient time to prepare for and meet the new requirements. 

The Regulatory Authority is also planning to hold a town hall meeting for authorised firms and market practitioners to focus on the operational resilience aspects of the updated CTRL Rules.  The event is planned to be held before the year end and an invite will be sent out under a separate communication. 

Please click here to access the Operational Resilience and Miscellaneous Amendments Rules 2024. 

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