Qatar Financial Centre Regulatory Authority



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Form Q02

Application for regulated activities authorisation

|Firm name | |      |

| | | |

|Date application made | | |

|Please submit this form to: | | |

|QFC Regulatory Authority | | |

|Regulatory Services | | |

|Level 14, QFC Tower | | |

|PO Box 22989 | | |

|Doha, Qatar | | |

|Tel: +974 4956 888 | | |

|Fax: +974 4835 031 | | |

|Email: rs@ | | |

| | |For Regulatory Authority Use |

| |Reference No: | |

| |Date received: | |

| |Received by: | |

Background

The Qatar Financial Centre (QFC) is a financial and business centre established by the Government of Qatar as a leading location for international finance and business, designed to attract international banking; financial services; insurance businesses; fund management; corporate head office functions; as well as other business. You should consider the extent to which your proposed activities contribute to these overall objectives.

Where can I find guidance on the application process?

We recommend that you read the document ‘A Guide to the Application Process’, which is available from the Qatar Financial Centre Regulatory Authority (the Regulatory Authority) website, , before completing this form.

It is important that you also read the Notes for completing form Q02, which will assist you in answering some questions. The availability of notes for a particular question will be indicated in the question itself by the words ‘(see notes)’.

Who should complete this form?

Form Q02, ‘Application for regulated activities authorisation’ should be completed by all firms seeking authorisation by the Regulatory Authority to conduct regulated activities.

If you are applying to carry on the regulated activity of operating a collective investment fund to register funds in the QFC you must also complete and submit Form Q18 in respect of each collective investment fund to be established in the QFC.

From the 1st of July 2007, the Regulatory Authority has extended its regulatory regime to allow firms to apply to carry on retail business in relation to contracts of insurance.

If you are applying to carry on retail business in relation to contracts of insurance (including insurance mediation) you must read and address the points raised in Question 5.1 of ‘Notes for completing form Q02’.

Defined terms used in this form

This application uses certain terms that are defined in the Glossary of the Interpretation and Application Rulebook (INAP) available through the Regulatory Authority website. Defined terms are identified throughout this form by the italicisation of the term. For example, applicant is defined as, ‘A body corporate, partnership or unincorporated association which is the subject of an application for an Authorisation made under Article 26 of the QFC Financial Services Regulations (FSR).’ and refers to the entity to be established in the QFC.

What are regulated activities?

Firms carrying on the following permitted activities in or from the QFC by way of business are likely to be carrying on regulated activities:

l financial business, banking business of whatever nature, and investment business, including (without limit) all business activities that are customarily provided by investment, corporate and wholesale financing banks, as well as Islamic and electronic banking business;

l insurance and reinsurance business of all categories;

l money market, stock exchange and commodity market business of all categories, including trading in and dealing in precious metals, stocks, bonds, securities, and other financial activities derived there from, or associated therewith;

l money and asset management business, investment fund business, the provision of project finance and corporate finance in all business fields and Islamic banking and financing business;

l funds administration, fund advisory and fiduciary business of all kinds;

l pension fund business and the business of credit companies;

l the business of insurance broking, stock broking, and all other financial brokerage business;

l financial agency business and the business of provision of corporate finance and other financial advice, investment advice and investment services of all kinds; and

l the provision of financial custodian services and the business of acting as legal trustees.

A more detailed description of the scope of regulated activities that may be conducted is contained in the FSR, which sets out the framework for the regulation of the financial services sector operating in or from the QFC. A firm must not carry on a regulated activity in or from the QFC without authorisation from the Regulatory Authority.

A firm may only conduct the regulated activities that it has been granted specific authorisation by the Regulatory Authority to conduct.

Completing this form

• Firms that wish to conduct only permitted activities that are not regulated activities should instead complete form Q01, ’Application for a Licence to Conduct Non-regulated Activities’.

• We recommend that you look at the notes at the back of this form.

• All questions must be answered in full and abbreviations avoided.

• Dates must be provided in the following format: dd/mm/yyyy.

• Answers and all supporting documents must be in English or accompanied by a translation into English. (It is the applicant’s responsibility to ensure the accuracy of any translation and you may consider certification by a professional translator.)

• Answers must be typewritten and any additional pages attached if necessary. Please make sure that attachments are clearly labelled and securely attached.

• Every section of the form should be completed. If any question is not relevant, please state not applicable, and, if appropriate, give brief reasons. If this is not done, the application may be treated as incomplete.

• Except where otherwise stated in this form, answers must relate to the applicant, not to a group entity, and to the permitted activities to be carried on in or from the QFC.

• The completed form should be signed by 2 authorised signatories, i.e. individuals authorised by the applicant or parent entity to complete and submit the form for the applicant.

Submitting this form

The completed form Q02 should be submitted to the Regulatory Authority. We will invoice you for the relevant application fee, details of which can be found in the document ‘A Guide to the Application Process’ and Appendix 4.2 of the Regulatory Authority’s General Rulebook (GENE), available from its website.

Personal data

The personal data provided in this form will be processed by the Regulatory Authority in accordance with the QFC’s Data Protection Regulations 2005.

Registration with Companies Registration Office

To be granted authorisation by the Regulatory Authority to conduct regulated activities, the applicant must either be incorporated or registered in the QFC by the Companies Registration Office (CRO) to establish a legal presence within the QFC. The information submitted in the CRO forms, which should accompany this application, will be used by the CRO to incorporate the applicant either as a limited liability company (LLC), or a limited liability partnership (LLP), or to register the applicant as a branch office or any other legal structure as approved by the board of the QFCA. The applicant does not need to apply separately to the CRO.

QFCA Licence

In accordance with the QFC Law No. 7 of 2005, all persons carrying on permitted activities in or from the QFC require a licence. The information contained in this form will allow licensing to be dealt with as an adjunct to the authorisation process. An applicant seeking authorisation does not need to apply separately for a licence from the Qatar Financial Centre Authority (QFCA) to operate in the QFC.

What is covered by this form?

In summary, the completion of the application pack covers the following:

l incorporation or registration of the applicant with the CRO;

l licensing of the applicant to operate in the QFC; and

l authorisation by the Regulatory Authority of the applicant to conduct regulated activities.

How will information supplied in this form be used?

Information provided in or with forms submitted to the Regulatory Authority will be used to establish and update registers and databases kept by the Regulatory Authority, the QFCA and the CRO, for ongoing supervisory purposes and for the purposes of the Regulatory Authority performing its functions.

Information provided in or with forms submitted to the Regulatory Authority may be shared between the Regulatory Authority, the QFCA and the CRO under arrangements between them.

Table of Contents

Title Page

Section 1 - Core details

1 Declaration and consent 7

2 General questions 8

3 Business details and legal status 9

4 History of applicant 16

5 Proposed activities 17

Section 2 - Business risks and controls section

6 Financial soundness 20

7 Risk management strategy 29

8 Clients 30

9 Conflicts management 36

10 Management and control 38

11 Financial crime 46

12 Human and technical resources 49

Checklist for attachments 52

| |

|Section 1 |

|Core details |

Declaration and consent

1.1 Declaration of authorised persons

I declare that:

• I have the authority to make this application for the applicant.

• all the information given in this application form (including any attachments) is, to the best of my knowledge and belief and after having made all reasonable inquiries, true and complete.

• if, at any time after making this declaration, I become aware of a material change in any information given in this application form (including any attachment) that is reasonably likely to be relevant to the Regulatory Authority’s assessment of this application, I will inform the Regulatory Authority in writing about the change without delay.

1.2 Consent of authorised persons

I acknowledge that it may be necessary for the Regulatory Authority to obtain information from other regulators, law enforcement agencies or other persons (whether in Qatar or elsewhere) to properly consider and decide this application. Accordingly, I consent to the Regulatory Authority obtaining any information from third parties that the Regulatory Authority considers is necessary for the purpose of considering and deciding this application.

IMPORTANT

It is a contravention of the QFC Financial Services Regulations to knowingly or recklessly give false or misleading information to the Regulatory Authority. All personal data provided to the Regulatory Authority will be processed in accordance with the QFC’s Data Protection Regulations 2005.

Name and position of authorised signatory 1

     

Signature

     

Date

     

Name and position of authorised signatory 2

     

Signature

     

Date

     

Please attach board minutes or similar evidence authorising each of the signatories to make this application for the applicant.

1. General questions

Applicant identification

3 Name of applicant (see notes)

     

4 Name of main contact in the applicant for this application (this is the person the Regulatory Authority will contact about the application)

     

6 Job title of main contact

     

8 Office address of main contact

     

10 Telephone and fax number of main contact

     

12 Email address of main contact

     

14 Preferred method of contact for main contact

     

If the applicant has used a professional adviser to assist with the completion of this application, please provide contact details

17 Name of professional adviser’s firm and main contact

     

19 Telephone and fax number of principal contact

     

20 Email address of principal contact

22 Check box if the applicant wants the Regulatory Authority to copy correspondence to the professional adviser

2. Business details and legal status

General

23 Proposed legal status within the QFC (LLC, LLP or branch – see notes)

     

25 Place and date of incorporation / formation

     

26 Registered number (if applicable - see notes)

     

28 Address of registered office

     

30 Address of head office (if different from registered office)

     

32 If the applicant has used any other trading name during the last 10 years, please provide details of each trading name used during the period and the period it was used

|Trading name(s) |Period used |

|      |      |

33 Proposed date of commencement of regulated activities

     

35 Applicant’s proposed trading name in the QFC

     

37 Full Qatar postal address, if known

     

38 Main telephone and fax number, if known

     

39 Email address, if known

     

40 Website address, if applicable

     

Premises and strategic fit

41 How will the applicant’s business plan for the QFC further the QFC’s objectives (see notes)?

     

Applicants must attach a separate business plan with this form (see notes)

42 Have there been meetings or discussions with the QFCA to discuss intentions regarding the proposed QFC operation? If yes, please provide details. If no, please state why

Yes

No

     

43 Will the applicant be taking premises already designated for the QFC (see notes)?

Yes (please go to question 3.17)

No

45 If the applicant will not be taking up premises already designated for the QFC, has it commenced arrangements to have its intended premises designated (see notes)?

Yes

No

46 Will the applicant be carrying on business from or at any other address in Qatar (either inside the QFC or outside)? If yes, please provide details below (see notes).

Yes

No

|Trading name(s) |Address |Main activities |

|      |      |      |

Group structure and controllers (see notes)

47 Is the applicant a member of a group?

Yes (please attach a group structure chart)

No

48 Please detail all corporate controllers, including name, percentage holding, address, country of incorporation, registered number, principal activities and overseas regulator (if applicable)

     

The latest audited financial statements of the applicant’s parent entity and corporate controller must also be attached to this form.

49 Has the applicant provided the latest audited statements for its parent entity or corporate controller with this application?

Yes

No

(If no please state why and when they will be submitted)

     

50 Please detail all individual controllers, including name, address, place of birth, date of birth and percentage holding

     

51 Please submit certified copies of the relevant pages of any individual controller’s passport (see notes)

(If copies are not submitted with this form, please state why and when they will be submitted)

     

52 Is the applicant or its group subject to consolidated supervision (see notes)?

Yes

No

53 Please state the applicant’s overseas regulator in its home state, its address and details of the main contact there (this question relates to branches only)

(see notes)

     

54 Name of the parent entity of the applicant

     

55 Full postal address of the parent entity

     

56 Main telephone and fax number of the parent entity

     

57 Email address of the parent entity

     

58 Website address of the parent entity

     

59 Legal status of the parent entity (LLC or LLP)

     

61 Place and date of incorporation / formation of the parent entity

     

62 Registered number of the parent entity (if applicable)

     

64 Please list all individuals who are members of the governing body of the parent entity and detail any significant business interests they have

(see notes)

     

66 Is the applicant’s parent entity listed on a recognised or approved stock exchange? If yes, please state the exchange(s) on which it is listed

Yes

No

     

67 If applicable, please state the applicant’s parent entity’s overseas regulator in its home state, including the name, address, reference number and contact details for the main contact

     

Approved individuals

69 List all persons who will be seeking approved individual status and the controlled function(s) they will carry out (see notes)

(Form Q03, ‘Application for approval of individuals’ must be submitted)

Individual Controlled function (required)

|      |Senior executive function |

|      |Compliance oversight function |

|      |Money laundering reporting function |

|      |Finance function |

Individual Controlled function (other)

|      |Executive governance function |

|      |Non-executive governance function |

|      |Risk management function |

|      |Senior management function |

|      |Actuarial function |

|      |Customer facing function |

70 Please list all individuals who are or will be the members of the applicant’s governing body and detail any significant business interests they have

(see notes)

     

Auditor

72 Name of audit firm (see notes)

     

74 Address of audit firm

     

76 Name of the partner responsible for the audit relationship with the applicant

     

77 Telephone and fax number of audit partner

     

79 Email address of audit partner

     

81 Date of appointment of auditor

     

83 Name of any professional body of which the auditor is a member

     

85 Is the auditor an approved QFC auditor (see notes)?

Yes

No

86 Is the auditor the applicant will use also the auditor for the group?

Yes (please go to question 3.48)

No

87 If the auditor the applicant will use is not the same as the group’s, how will consolidated accounts be produced?

     

88 Has the applicant provided a copy of the letter of engagement?

Yes (please go to question 3.50)

No

90 If a copy of the letter of engagement is not yet available, please confirm whether the applicant (QFC entity) will be included in the external audit scope and when it will be audited, including ongoing frequency

     

91 Has the applicant changed auditors during the last 5 years? If yes, please provide details of the previous auditor, duration of appointment and reasons for the ending of the appointment

Yes

No

     

3. History of applicant

(see notes)

93 Is the applicant or any of its officers, or any related entity or any of its officers, currently or ever been, the subject of any government, regulatory, civil or criminal investigation, or been involved in disciplinary proceedings?

Yes

No

94 Is the applicant or any of its officers, or any related entity or any of its officers, currently or ever been the subject of any penalty, sanctions, regulatory fine or disciplinary orders by any government department or agency?

Yes

No

95 Has the applicant, or any related entity in any country or jurisdiction, ever been wound up, put into liquidation, ceased trading, placed in receivership or administration or negotiated a settlement with its creditors?

Yes

No

96 Does the applicant, or any related entity, have any outstanding debts (i.e. due but unpaid), awards or judgements against it?

Yes

No

97 Has the applicant, or any related entity, ever had a licence revoked, or been refused a licence, by an overseas regulator, or voluntarily withdrawn an application to an overseas regulator for such a licence?

Yes

No

98 Are there any other matters that the Regulatory Authority might reasonably expect to be made aware of by the applicant in its consideration of this application?

Yes

No

4.7 If the applicant has answered yes to any of the questions in this section, please provide a full explanation of the circumstances and the outcome and attach relevant documents to this form

     

4. Proposed activities

100 Please complete the matrix below indicating the proposed regulated activities and associated specified products of the applicant (see notes).

If the applicant’s regulated activities fall within the areas of investment business, insurance mediation and banking, please refer to the Regulatory Authority’s Interim Prudential Investment, Insurance Mediation & Banking Business Rulebook (PIIB), and complete matrix 5.1(a).

If the applicant’s regulated activities relate to insurance business, refer to the ‘Prudential – Insurance Rulebook’ (PINS) and complete matrix 5.1(b).

Regulated activities and specified products matrix

|. |

|Deposit taking |

6 Financial soundness

General information

104 Please provide the applicant’s accounting reference date (see notes)

     

If the applicant is a partnership, please go to question 6.7

Share capital

105 Please provide details of the applicant’s authorised share capital

|Value |Class |

|      |      |

106 Please provide details of the applicant’s issued share capital, excluding preference shares

|Value |Class |Fully/Partly Paid |

|      |      |      |

107 Please provide details of the applicant’s preference shares

|Amount issued |Redemption date |Cumulative (Y/N) |Convertible (Y/N) |Fixed dividend |

|      |      |      |      |      |

108 Please provide details of the applicant’s audited reserve and share premium accounts

     

109 If applicable, please provide details of the applicant’s subordinated loans. Include only those loans which are subordinated to all other creditors

(see notes)

|Amount |Date of agreement |Approved lender |Duration |

|      |      |      |      |

If the applicant is not a partnership, please go to question 6.10

Partnership capital

111 Please provide details of the applicant’s partnership capital, attaching additional pages if required

|Name |Capital (US $) |Other (US $) |

|      |      |      |

112 Is the applicant satisfied that none of the partners is insolvent or financially over committed to an extent that could adversely affect the partnership and that, if partners have contributed their capital from borrowed funds, the funds cannot be withdrawn without reasonable notice?

Yes

No (please provide details below)

     

113 All partners who own 10% or more of the partnership capital in the applicant firm must attach an individual statement of personal assets and liabilities

     

Insurance and indemnity cover

114 Please provide details of any insurance cover held by the applicant including start/expiry dates, insured persons and entities, sums insured, specific events or activities covered, whether the insurance covers activities carried out in or from the QFC, specific exclusions, amount of any excess, and the maximum claim payable

     

116 If the applicant does not have existing professional indemnity insurance (PII), please state the amount of proposed cover and excess

     

118 Has the applicant made any claims under PII policies in the 3 years before this application is made? If yes, please detail the date, type and amount of the claim(s)

Yes

No

     

119 Is any part of the above cover under a group policy (i.e. a policy written for a firm which is in the same group as the applicant)? If yes, please provide the name of the firm writing the policy, details of other regulated firms that are covered under the policy and the regulatory regime under which each firm is regulated

Yes

No

     

Financial forecasts and additional information

When answering questions 6.14 or 6.15, please use the pro forma provided below for the opening balance sheet, forecast profit and loss statements, and end of year balance sheets. Please see the summary of interim capital requirements in the notes for completing form Q02 (see notes).

121 Please attach the following supporting documents relating to the applicant. Please use the pro forma below for balance sheets and profit and loss forecasts

l an opening balance sheet

l a profit and loss forecast, including a forecast of gross income, for the first 3 years after authorisation and monthly profit and loss forecasts for the first 12 months

l a forecast balance sheet for each of the first 3 years after authorisation and monthly forecast balance sheets for the first 12 months

l a forecast cash flow statement for each of the first 3 years after authorisation and monthly forecast cash flow statements for the first 12 months

l a forecast capital requirement for each of the first 3 years after authorisation, including a sensitivity analysis and monthly capital requirement forecasts for the first 12 months

l if the applicant’s regulated activities include effecting a contract of insurance or carrying out a contract of insurance Please split all premium income into primary insurance and inwards reinsurance, to provide the Regulatory Authority with an understanding of how much reinsurance business is being written by the applicant

If the applicant’s regulated activities include Islamic financial business

124 Please confirm the applicant has read and understood the requirements relating to disclosure in financial statements, as detailed in AAOIFI FAS 12 and AAOIFI FAS 13 and describe the processes in place for compliance

(see notes)

     

Opening balance sheet pro forma

As at       (anticipated date of authorisation) US$ 000

Fixed assets

Intangible assets (specify)      

Tangible assets      

Investments in own shares      

Other investments (specify)      

Total fixed assets       (1)

Current assets

Investments (specify)      

Debtors – trade      

Debtors – non-trade (specify)      

Other (specify)      

Cash in hand and at bank      

Total current assets       (2)

Creditors: amounts (specify)

falling due within one year       (3)

Net current assets/(liabilities) [(2)-(3)]       (4)

Total assets less current liabilities [(1)+(4)]       (5)

Creditors: amounts falling (specify)

due after more than one year       (6)

Provisions for liabilities (specify)

and charges       (7)

Total assets less total liabilities [(5)-(6)-(7)]       (8)

Capital and reserves

Share capital (excluding preference shares)       (9)

Cumulative preference shares       (10)

Non-cumulative preference shares       (11)

Share premium account       (12)

Other reserves (specify)       (13)

Profit and Loss account       (14)

Total capital and reserves [Sum of (9) to (14)]      

End of year 1 forecast profit and loss statement

For period from to US$ 000

Income

Interest income      

Income from trading securities      

Income from fees and commissions      

Other operating income (specify)      

Total income       (1)

Expenses

Interest paid and payable      

Fees and commissions paid and payable      

Staff expenses      

Depreciation and amortisation      

Other operating expenses (specify)      

Provisions (specify)      

Total expenses       (2)

Profit/(loss) before taxation [(1)-(2)}       (3)

Taxation       (4)

Profit/(loss) after taxation [(3)-(4)]       (5)

Extraordinary items net of tax (specify)       (6)

Appropriations       (7)

Net profit/(loss) for period [(5)-(6)-(7)]      

End of year 1 forecast balance sheet pro forma

As at       (relevant end of year date) US$ 000

Fixed assets

Intangible assets (specify)      

Tangible assets      

Investments in own shares      

Other investments (specify)      

Total fixed assets       (1)

Current assets

Investments (specify)      

Debtors – trade      

Debtors – non-trade (specify)      

Other (specify)      

Cash in hand and at bank      

Total current assets       (2)

Creditors: amounts (specify)

falling due within one year       (3)

Net current assets/(liabilities) [(2)-(3)]       (4)

Total assets less current liabilities [(1)+(4)]       (5)

Creditors: amounts falling (specify)

due after more than one year       (6)

Provisions for liabilities (specify)

and charges       (7)

Total assets less total liabilities [(5)-(6)-(7)]       (8)

Capital and reserves

Share capital (excluding preference shares)       (9)

Cumulative preference shares       (10)

Non-cumulative preference shares       (11)

Share premium account       (12)

Other reserves (specify)       (13)

Profit and loss account       (14)

Total capital and reserves [Sum of (9) to (14)]      

Financial resources statement

128 Please complete the following pro forma using the figures provided in the opening balance sheet and forecast balance sheets for the first 12 months after authorisation (see notes)

Opening position

(A) Tier one capital US$ 000

• Permanent share capital / Partnership capital      

• Audited reserves      

• Share premium account      

• Externally verified interim net profits      

(B) Deductions from tier one capital:

• Investments in own shares      

• Intangible assets      

• Interim net losses      

• Excess of drawing over profits (for partnerships)      

(C) Total tier one capital (after deductions) = (A-B)      

(D) Upper tier two capital US$ 000

• Perpetual qualifying hybrid capital instruments      

• Fixed dividend ordinary shares      

• Revaluation reserves      

• General provisions      

• Profit equalisation reserve      

• Investment risk reserve      

(E) Lower tier two capital

• Subordinated debt      

• Fixed term preference shares      

(F) Total tier one capital plus tier two capital = (C+D+E)      

Deductions from total of Tier One and Two Capital:

• Investments in subsidiaries and associates      

• Connected lending of a capital nature      

• Material holdings of capital instruments

issued by regulated financial institutions      

• Qualifying holdings

• Illiquid assets      

(G) Total deductions from total of tier one and two capital:      

(H) Capital Resources = (F-G)      

Financial resources requirement*      

Surplus/(deficit)      

* Financial resources requirement

The financial resources requirement applicable to the applicant will depend on the regulated activities it intends to conduct. For details of the financial resources requirement applicable to applicants see PIIB (banking business, investment business and insurance mediation business) or PINS (insurance business).

End of year 1 forecast position US$ 000

(A) Tier one capital

• Permanent share capital / Partnership capital      

• Audited reserves      

• Share premium account      

• Externally verified interim net profits      

(B) Deductions from tier one capital:

• Investments in own shares      

• Intangible assets      

• Interim net losses      

• Excess of drawing over profits (for partnerships)      

(C) Total tier one capital (after deductions) = (A-B)      

(D) Upper tier two capital

• Perpetual qualifying hybrid capital instruments      

• Fixed dividend ordinary shares      

• Revaluation reserves      

• General provisions      

• Profit equalisation reserve      

• Investment risk reserve      

(E) Lower tier two capital

• Subordinated debt      

• Fixed term preference shares      

(F) Total tier one capital plus tier two capital = (C+D+E)      

Deductions from total of Tier One and Two Capital:

• Investments in subsidiaries and associates      

• Connected lending of a capital nature      

• Material holdings of capital instruments

issued by regulated financial institutions      

• Qualifying holdings

• Illiquid assets      

(G) Total deductions from total of tier one and two capital:      

(H) Capital Resources = (F-G)      

Financial resources requirement      

Surplus/(deficit)      

129 Please detail any material assets, liabilities or contingencies not set out in the financial statements above

     

130 Please provide the applicant’s audited annual report and accounts for the last 2 years. If no audited financial statements are available, please provide management accounts plus bank statements.

Auditor’s report on financial resources

(see notes)

We have reviewed the information provided by the applicant in the financial soundness section of form Q02 and carried out such additional procedures as we considered necessary for the purpose of our review. We have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our review, in our opinion, subject to any comments below, the financial results and forecasts provided in the financial soundness section have been prepared in accordance with the interim capital requirements detailed in the notes to this form and the forecasts have been properly prepared on the basis of the assumptions made by the directors or partners. Nothing has come to our attention that causes us to believe that the information in the financial soundness section is not presented fairly in all material aspects.

We set out below information which we consider relevant to our review

     

Name of applicant

     

Name of auditor

     

Address of auditor

     

Signature of auditor

     

Date

     

7 Risk management strategy

General information

131 Please confirm the applicant has read, understood, and describe processes for compliance with, the requirement to establish and regularly review its risk management strategy as detailed in the Regulatory Authority’s Controls Rulebook (CTRL) 4.4 and PINS 2 for insurers

(see notes)

     

133 Who is the individual responsible for the risk management strategy of the applicant, and what is that person’s role within the organisation?

(see notes)

     

136 Please provide details of the staffing levels, responsibilities and reporting lines of the risk function

     

137 Please provide details of what risk monitoring and risk reporting the applicant will undertake once authorised

     

An insurer must appoint a member of its senior management to the risk management function, and apply for approval to the Regulatory Authority for this individual, using the QFC Q03 form.

138 Please detail, or attach to this application, a risk management plan or manual covering how the applicant will evaluate and mitigate key risk areas

(see notes)

     

8 Clients

Client classification

Applicants who are insurers and general insurance brokers should go to question 8.3

140 Please confirm the applicant has read, understood, and describe the processes for compliance with, the client classification requirements as detailed in the Regulatory Authority’s Conduct of Business Rulebook (COND) 2, Part 2.3 (see notes)

     

141 Please provide details of the systems and controls used, or intended to be used, by the applicant to ensure appropriate checks are in place to support each assessment it undertakes to classify a client into a client category

(see notes)

     

Insurers and general insurance brokers only (other applicants please go to question 8.4)

142 Please confirm the applicant has read, understood, and describe the processes for compliance with, the client classification and disclosure requirements as detailed in COND 2, Part 2.3 and COND 5.2.1 – 5.2.5 as applicable

(see notes)

     

Communication with clients (all applicants)

144 Does the applicant intend to communicate any financial promotions to promote or advertise products and services to clients? If yes, please confirm the applicant has read and understood, and describe the procedures for compliance with, the financial promotions requirements in COLL 9 (and 10 if foreign funds) and the financial promotions requirements as detailed in COND 3 (see notes)

Yes

No

     

145 Please provide details of the nature of financial promotions and advertising practices that will be used to promote or advertise specified products or regulated activities, or to invite or induce a sale

     

146 Who is the individual responsible for the content and accuracy of financial promotions? Please describe that individual’s role and the process for sign off

     

148 Please explain the procedures and controls the applicant has to ensure financial communications are clear, fair and not misleading to clients (attach supporting documents where necessary)

     

149 Please indicate whether the applicant will be issuing financial promotions in relation to: (see notes)

Registered retail funds (currently not permitted)

Registered qualified investor funds

Private placement funds

Foreign funds

Applicants conducting Islamic financial business only

151 Please detail the procedures the applicant will have in place to ensure the products and services to which any financial communication relates are reviewed by its Shari’a supervisory board (see notes)

     

Management and dealing

(Applicants intending to conduct investment business only, otherwise please go to question 8.13)

152 Please confirm the applicant has read, understood, and describe the procedures and controls to ensure compliance with, the dealing and managing requirements in COND 5, Division 4.5C (see notes – attach supporting documents where necessary)

     

153 For applicants who will be carrying on the regulated activity of advising on investments, please confirm whether this will involve acting as an investment manager. If yes, please describe how this activity will be carried on. Include arrangements for managing settlements, corporate actions, authorisation of transactions and investment limits. (see notes)

Yes

No

     

155 For applicants managing investments on a discretionary basis, please describe the arrangements for reconciling the proper exercise of discretionary management decisions.

     

Client money (applicants intending to conduct investment business)

156 Does the applicant intend to hold client money? (see notes)

Yes

No (please go to question 8.21)

157 Please confirm the applicant has read, understood, and describe the procedures to ensure compliance with, the client money requirements as detailed in the Regulatory Authority’s Assets Rulebook (ASET) 2 (see notes)

     

158 Please provide details of the applicant’s procedures for holding client money including segregation, notifications, reporting and reconciliations (attach any supporting documents)

     

159 Please provide name and address of the designated bank that will hold client money on behalf of the applicant (see notes)

     

160 In what jurisdiction is the designated bank?

     

161 How has the applicant assessed the suitability of the designated bank (see notes)?

     

162 Please confirm whether the applicant’s assessment of suitability of the designated bank includes a legal opinion on the regulatory and insolvency regime of the state where the bank is located

Yes

No

(If no, please explain why)

     

163 Does the scope of the auditor’s letter of engagement include producing the client money report? (see notes)

Yes

No

(If no, please explain why)

     

Insurance money (applicants conducting insurance mediation business)

164 Does the applicant intend to hold insurance money? (see notes)

Yes

No (please go to question 8.24)

165 Please confirm the applicant has read, understood, and describe the procedures to ensure compliance with, the insurance money requirements relating to insurance money segregation, reporting and record keeping as detailed in ASET 7 (see notes)

     

166 Does the scope of the auditor’s letter of engagement include producing the insurance money report? (see notes)

Yes

No

(If no, please explain why)

     

Client assets

The following questions should only be answered by applicants conducting investment business or deposit taking that intend carrying on the regulated activities of providing custody services or arranging the provision of custody services. Other applicants should go to question 8.35.

167 Tick the box that describes the regulated activity the applicant intends carrying on

Providing custody services

Arranging the provision of custody services (please go to question 8.28)

168 Will the applicant provide custody services to collective investment funds? (see notes)

Yes

No

169 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the systems and controls requirements relating to the identification and safeguarding of custody investments as detailed in ASET 4.3 (see notes)

     

170 Please detail who will hold the custody investments and confirm whether it is an eligible custodian

     

172 If holding investments with, or arranging the provision of custody services through, an eligible custodian, please provide details of the assessment of suitability the applicant has carried out on the eligible custodian including legal opinions on the insolvency and regulatory regime of the location of the eligible custodian (see notes)

     

Providing custody services (if the applicant does not intend providing custody services, please go to question 8.32)

173 In whose name will the custody investments will be held?

     

174 Will the applicant stock lend?

Yes

No (please go to question 8.32)

175 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the requirements relating to the use of custody investments; client notifications; client reporting; reconciliation; auditor’s reports and record keeping as detailed in ASET 4.6 to 4.11 and, if applicable, COLL 4.2.5 to 4.2.7 and 6.1.8 (see notes)

     

Applicants conducting deposit taking business (if the applicant does not intend to take deposits, please go to question 8.35)

176 Please provide details of the applicant’s policies and procedures for dealing with deposit taking, including details of security arrangements to hold cash and valuables (see notes)

     

177 Please provide details of the applicant’s policies and procedures for dealing with money transfers, powers of attorney and dormant accounts.

     

178 Please provide details of the applicant’s policies and procedures for dealing with letters of credit in relation to trade finance.

     

Disclosure and reporting

179 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the requirements relating to the issuing of, content and record keeping of terms of business as detailed in COND 4.2.5 – 4.2.9 and Schedule 1 of COND.

(see notes)

     

182 Has the applicant provided a copy or draft copy of its terms of business with this application? (see notes)

Yes

No

(If no, please confirm when a copy of the terms of business will be provided)

     

183 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the requirements relating to the issuing of, content and record keeping of confirmation notes and periodic statements as detailed in COND 4, Part 4.4 (see notes)

     

Applicants conducting Islamic financial business (if the applicant does not intend to conduct Islamic financial business, please go to question 8.40)

184 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the requirements relating to disclosure of the Shari’a Supervisory Board membership and the manner and frequency of Shari’a reviews as detailed in the Regulatory Authority’s Islamic Finance Rulebook (ISFI) chapter 3 (see notes)

     

185 Has the applicant performed a reconciliation of its Shari’a products to the specified products set out in the FSR? If yes, please provide a copy the results. If no, please indicate when such reconciliation will be undertaken (see notes)

Yes

No

     

Applicants conducting insurance mediation business (if the applicant does not intend conduct insurance mediation business, please go to the next question)

186 Please confirm the applicant has read, understood, and describe the procedures for compliance with, the requirements relating to disclosure, the assessment of suitability, and claims management as detailed in COND 4, 5 and 6 (see notes)

     

Collective investment funds

The following questions should only be answered by applicants applying to carry on the regulated activity of operating a collective investment fund, other applicants should go to part 9 (Conflicts management).

• Applicants that will be acting in the capacity of an operator of a fund should answer questions 8.41 to 8.44.

• Applicants that will be acting in the capacity of independent entity of a fund and/or responsible for the safekeeping of all of the fund property, i.e. providing custody services (other than by way of delegation), should answer questions 8.45 to 8.47.

• Applicants that will be providing fund administration on behalf of an operator should answer questions 8.48 to 8.52.

Applicants acting as operator

188 Please tick all the boxes that describe the types of fund you propose to establish and/or operate in the QFC:

Securities fund Hedge fund

Money market fund Islamic fund

Futures and options fund Fund of funds

Geared futures and options fund Feeder fund

Warrant fund Umbrella fund

Venture capital fund Listed fund

Property fund

Single property fund

Private equity fund

Other (provide details)

     

189 Please indicate whether you will be establishing:

Registered retail funds (currently not permitted);

Registered qualified investor funds;

Private placement funds (see notes)

191 Please indicate whether you have submitted Form Q18 (application to register a collective investment fund) with this Form Q02.

Yes

No (if no, please indicate when you will be submitting Form Q18)

     

192 Will the applicant appoint an investment advisor? (see notes)

Yes (if yes, please provide details)

No

     

193 Please provide details of any fund administrator(s) that will be used in connection with the collective investment fund (see notes)

     

195 Please provide the details of any independent entity that will be used in connection with the collective investment fund, and submit a copy of the assessment carried out by the applicant on the suitability of the independent entity (see notes)

     

Systems and Controls

196 Describe the operator’s systems, controls and procedures to ensure that in respect of the collective investment fund, the provisions and requirements of COLL are complied with (see notes).

     

197 Describe the systems, controls and procedures the operator has in place to ensure that decisions about investments and borrowings by the fund are made in accordance with the fund’s objectives.

     

198 Where will the register of unitholders be maintained?

     

201 Describe how the operator will make the unitholder register, or a copy of the register, available for inspection in the QFC as required by COLL 7.2.1(4).

     

204 Advise which, if any, international better practice industry standards the operator will follow in relation to the collective investment fund.

     

Applicants acting as independent entity

205 If known, please provide the following details in relation to the fund(s) that the applicant will be acting as the independent entity:

a) full name/proposed full name of the fund(s);

b) name of the operator, or proposed operator, of the fund(s)

     

208 Please tick all the boxes that describe the types of fund you propose to act as independent entity in the QFC:

Securities fund Hedge fund

Money market fund Islamic fund

Futures and options fund Fund of funds

Geared futures and options fund Feeder fund

Warrant fund Umbrella fund

Venture capital fund Listed fund

Property fund

Single property fund

Private equity fund

Other (provide details)

     

209 Please confirm the applicant has read and understood, and describe the procedures for compliance with, the requirements relating to the oversight functions and the safe keeping of assets as detailed in COLL 4.2.3 and 4.2.5 (see notes)

     

Applicants providing fund administration

210 If known, please provide the following details in relation to the fund(s) that the applicant will be providing fund administration services.

a) full name/proposed full name of the fund(s);

b) name of the operator, or proposed operator, of the fund(s)

     

212 Please tick all the boxes that describe the types of fund you propose to provide fund administration services:

Securities fund Hedge fund

Money market fund Islamic fund

Futures and options fund Fund of funds

Geared futures and options fund Feeder fund

Warrant fund Umbrella fund

Venture capital fund Listed fund

Property fund

Single property fund

Private equity fund

Other (provide details)

     

213 For applicant’s providing fund administration, please describe the activities to be provided in or from the QFC.

     

214 Please indicate which, if any, of the following specific functions will be carried out by the fund administrator.

Processing dealing instructions including subscriptions, redemptions, stock transfers and arranging settlements;

Valuation of assets and/or performing net asset value calculations;

Performing anti money laundering requirements;

Undertaking transaction monitoring and reconciliation functions;

Performing administrative activities in relation to banking, cash management, treasury and foreign exchange;

Production of financial statements, other than as the fund’s registered auditor;

Communication with participants, the fund, the operator, the independent entity, the investment manager, prime brokers, regulators and any other parties in relation to the administration of the fund; or

Other (please describe)

     

216 Describe in detail the basis on which charges in respect of providing fund administration services will be calculated and received.

     

Hedge Funds

Where the collective investment fund will be a hedge fund the following questions must be answered.

217 Describe how the operator will address the risk inherent in the operation of the hedge fund with due regard to the nature of the strategies and investment process employed by the operator.

     

219 Describe the role, if applicable, of the fund administrator, independent entity or prime broker.

     

221 Where the operator proposes to undertake asset pricing and fund valuation itself in respect of the hedge fund, please describe how the operator will demonstrate that the asset pricing and fund valuation is functionally separate and independent of the investment management process.

     

Islamic Funds

Where the collective investment fund will be an Islamic fund the following question must be answered.

224 Describe the operator’s systems and controls to ensure that its management of the Islamic fund and fund property is Shari’a compliant.

     

9 Conflicts management

Identification and management

226 Does the applicant have, or intend to have, a code of ethics or code of conduct? If yes, please provide a copy with this application. If no, please describe how the applicant and its employees will identify potential conflicts of interest (see notes)

Yes

No

     

227 Does the applicant have, or intend to have, procedures for managing conflicts of interest in dealing or arranging transactions for clients? If yes, please provide a copy with this application. If no, please confirm how the applicant and its employees will identify potential conflicts of interest in dealing or arranging transactions for clients (see notes)

Yes

No

     

228 Will the applicant disseminate or produce investment research for distribution to clients and sales staff? If yes, please detail the procedures that will be in place to ensure research is presented fairly and is not misleading (see notes)

Yes

No

     

229 If the applicant conducts, or intends to conduct, investment business, deposit taking or project finance business, please detail policies and procedures in relation to inducements and soft dollar agreements (see notes). Otherwise, please go to question 9.5

     

Staff remuneration

230 Please detail the applicant’s policy on the remuneration of its sales team

(see notes)

     

232 Please detail the applicant’s policy on the remuneration of staff performing support functions (see notes)

     

Personal account dealing

233 Please describe the policy and procedures for personal account transactions? If available, please provide a copy with this application (see notes)

     

Related party transactions

234 Will the applicant carry out related party transactions in or from the QFC? If yes, please describe the procedures and controls to be put in place to ensure these do not conflict with client interests (see notes)

Yes

No

     

10 Management and control

Allocation of responsibilities

235 Please describe the allocation of responsibilities between the applicant’s governing body and senior management (see notes)

     

236 Please describe the mechanisms for ensuring that responsibilities within the applicant are clearly recorded and understood by senior management (see notes)

     

Management and corporate governance

237 Please name the individual with responsibility for management oversight (see notes)

     

239 Will the individual with responsibility for management oversight be resident in Qatar? If no, please describe where the individual will be located and describe how the oversight responsibilities will be performed on a day-to-day basis

Yes

No

     

240 Please detail mechanisms for reporting to the applicant’s governing body and, if applicable, upwards to the parent entity

     

241 Please detail any governing body committees that are in place or that will be established and describe how they will oversee the applicant’s activities

     

243 Please describe how decisions of the governing body, or any of its committees, will be enacted within the applicant

     

244 If the application is not in respect of a branch, please identify which members of the governing body will be independent non-executive directors (otherwise please go to question 10.9)

     

Reporting lines and segregation

245 Please describe the reporting lines that are, or will be, in place between senior management and the governing body

     

247 Please detail reporting lines and functions within the applicant, or attach a structure chart that clearly demonstrates this information

     

248 Please describe how duties are, or will be, segregated between functions of a risk taking and risk management nature (see notes)

     

Compliance function and arrangements

249 Please name the individual who will perform the compliance oversight function

     

250 Please detail the experience and qualifications of the individual who will perform the compliance oversight function

     

251 Will the individual who will perform the compliance oversight function be resident in Qatar? If no, please describe where the individual will be located and describe how the oversight responsibilities will be performed

Yes

No

     

253 Please detail, or attach with this application, a job description for the individual who will perform the compliance oversight function

     

254 Will the applicant have a compliance committee? Please detail how the applicant’s governing body will be updated on compliance issues

Yes

No

     

255 Please detail, or attach an organisation chart showing the compliance department’s reporting lines, staffing levels, experience and responsibilities (see notes)

     

256 Will any third parties perform compliance functions for the applicant? If yes, please provide details of the name, address, telephone number and main contact of each third party, together with the activities to be performed

Yes

No (if no, please go to question 10.19)

     

258 Please detail the compliance plan to be implemented by the applicant

(see notes)

     

260 Has the applicant performed a gap analysis of its compliance arrangements with conformity to the Regulatory Authority’s rules? If yes, please detail the main findings. If no, please confirm when such an analysis will be carried out

Yes

No

     

261 Does the applicant have a compliance manual and procedures in place? If yes, please attach a copy with this application. If no, please confirm when a compliance manual and procedures will be in place and detail the areas to be covered (see notes)

Yes

No

     

262 Please detail how compliance staff are, or will be, remunerated

     

263 Please detail the procedures that are, or will be, put in place to monitor, capture and implement any legislative or regulatory changes

     

264 Please detail procedures for compliance staff training

     

265 Please describe how compliance breaches will be identified, remedied and followed up

     

266 Will the compliance function be subject to independent review and audit? If yes, please name the individual who will conduct the review or audit, the terms under which it will be conducted and with what frequency. If no, please explain how the compliance department will be reviewed

Yes

No

     

267 Please detail the applicant’s policy for the retention, storage, back-up and format of records

     

268 Please state where records will be kept

     

Applicants who are Islamic financial institutions (other applicants should go to question 10.33)

269 Please explain how the applicant will comply with the requirements of ISFI 5 in relation to ensuring its entire business operations comply with Shari’a

(see notes)

     

271 Does the applicant have an Islamic financial business policy and procedures manual in place? If yes, please attach a copy. If no, please confirm when this will be put in place and the areas it will cover (see notes)

Yes

No

     

272 Please explain how the applicant will comply with the requirements of ISFI 6 in relation to the appointment and operation of a Shari’a supervisory board

(see notes)

     

274 If the applicant intends to operate a profit sharing investment account, please explain how compliance with the requirements of ISFI 7 will be maintained (see notes)

     

Complaints arrangements

275 Does the applicant have complaints procedures in place? If yes, please attach a copy with this application. If no, please confirm when such procedures will be in place and what they will cover (see notes)

Yes

No

     

Business continuity

276 Does the applicant have business continuity and disaster recovery procedures in place? If yes, please attach a copy with this application. If no, please confirm when the procedures will be implemented and describe their main features (see notes)

Yes

No

     

278 Will the applicant’s business continuity and disaster recovery procedures be integrated into wider group procedures? If yes, please describe how this will be achieved and who will be responsible for its implementation, and attach a copy of the group‘s procedures with this application

Yes

No

     

279 Please name the individual responsible for business continuity and disaster recovery

     

280 Will any aspect of the applicant’s business continuity or disaster recovery be subject to outsourcing to third parties? If yes, please provide details of the name, address, main contact and telephone number of the outsourcing service provider and activities to be outsourced

Yes

No

     

Outsourcing

281 Will any aspect of the applicant’s business processes be subject to outsourcing, either to an external third party entity, or to a parent or other group entity? (see notes)

Yes

No (please go to question 10.45)

If yes, please state

• the name of the provider

• the provider’s address

• the name of the main contact at the provider

• the main contact’s telephone number

• the business processes to be outsourced

• who will be responsible within the applicant for the control and supervision of the outsourcing arrangement

     

283 For applicants applying to be an operator of a collective investment fund, please indicate whether any of the following functions will be outsourced:

Managing investments (making day to day investment decisions)

Investment adviser

Dealing in investments (executing transactions)

Processing dealing instructions, including effecting subscriptions, redemptions and stock transfers, and arranging settlements.

Valuing assets and performing net asset value calculations

Unit pricing

Keeping the register of unitholders and unitholder registration details

Performing anti money laundering requirements

Undertaking transaction monitoring and reconciliation functions

Producing financial statements otherwise than as the fund’s auditor

Communicating with participants, the fund, the operator, the independent entity (if any), the Regulatory Authority and other persons in relation to the administration of the fund.

Where the fund is a Private Placement Fund, Providing Custody

Other

Please describe the exact services to be outsourced.

     

284 If the applicant is applying to be an independent entity of a collective investment fund, please indicate which of the following functions will be outsourced:

Oversight function

Providing custody

Other

Please describe the exact services to be outsourced.

     

290 Please detail the procedures that are, or will be, put in place to decide the selection and appointment of outsourcing service providers

     

291 Please explain the rationale behind the decision to outsource business processes

     

292 Please detail the contingency plans that are, or will be, in place to cover instances when outsourcing service providers are unable or unwilling to provide the outsourced processes

     

293 Are terms of business, including any investment management agreements, fund administration agreements, custody agreements, service level agreements or other contractual documentation in place with all outsourcing service providers? If yes, please provide copies with this application. If no, please state when such agreements will be put in place and the matters they will cover.

Yes

No

     

Monitoring and audit

294 Will the applicant have an internal audit function? If yes, please detail its mandate, structure, scope, staffing, reporting lines and the regularity of reporting. If no, please explain how the applicant intends to review its systems, procedures and controls (see notes)

Yes

No

     

295 Please name the individual responsible for internal audit or the review of the applicant’s systems, procedures and controls

     

296 Will the applicant have an internal audit committee? If yes, please detail the mandate, structure, scope, reporting lines and the regularity of reporting. If no, please state why not and how the internal audit or review function will be overseen

Yes

No

     

297 Please detail how internal audit or review findings will be followed up to ensure that recommended improvements have been implemented

     

298 Please state the likely schedule for internal audit review and when it is intended that the first review will take place

     

Employees and training

299 Does the applicant have, or intend to have, a staff handbook? If yes, please provide a copy with this application. If no, please state how the applicant’s employees will be made aware of their obligations

Yes

No

     

300 Please name the individual who is, or will be, responsible for human resources issues and policy in the applicant, and detail the individual’s reporting lines

     

302 Please detail the applicant’s policy on staff training and describe how such needs are identified and addressed and the budget to be allocated

     

Provision of information to management

303 Please provide a schedule of the regular reports that will be provided to senior management and the functions and processes they will cover

(see notes)

     

11 Financial crime

Anti-money laundering procedures

305 Please name the individual who will perform the money laundering reporting function (see notes)

     

306 Please detail the experience and qualifications of the individual who will perform the money laundering reporting function

     

307 Please detail, or attach with this application, a job description for the individual who will perform the money laundering reporting function (see notes)

     

308 Please name the individual who will perform the role of deputy MLRO

     

309 Has the applicant performed a gap analysis of its anti-money laundering processes with conformity to the Regulatory Authority’s rules? If yes, please detail the main findings. If no, please state when the analysis will be carried out (see notes)

Yes

No

     

311 Does the applicant have anti money laundering policies and procedures in place? If yes, please attach a copy with this application. If no, please state when such policies and procedures will be in place and the main areas they will cover (see notes)

Yes

No

     

312 Please detail, or attach an organisation chart showing the reporting lines, staffing levels, experience and responsibilities of anti-money laundering staff

     

313 Please detail procedures for obtaining and keeping sufficient evidence of the identity of clients (see notes)

     

314 Will anti-money laundering policies, procedures, systems and controls be subject to independent review and audit? If yes, please name the individual who will conduct the review or audit, the terms under which it will be conducted and with what frequency. If no, please explain how these functions will be monitored

Yes

No

     

315 Please state what anti-money laundering training will be provided to staff and how employees will be made aware of procedures for the internal reporting of suspicious transactions

     

316 Please detail procedures for monitoring and detecting suspicious transactions

     

317 Will such suspicious transactions monitoring procedures be automated? If yes, please detail the IT resources that will be devoted to the procedures and explain how the system’s effectiveness will be tested

Yes

No

     

318 Please detail the proposed disciplinary procedure for staff who fail to report promptly to the MLRO any suspicious transactions

     

320 Please detail the applicant’s arrangements for ensuring that it obtains and makes proper use of findings issued by

• the Government of Qatar or any government departments in Qatar

• the Central Bank of Qatar or the National Committee for Combating Money Laundering or the Financial Intelligence Unit (FIU)

• the Financial Action Task Force (FATF)

• the QFCA

• the Regulatory Authority

• the Gulf Co-operation Council

     

321 Please state the country in which the applicant’s head office or parent entity is located

     

322 Is that country a member of FATF?

Yes (please go to question 11.18)

No

323 If no, has the applicant assessed that the country is in compliance with the recommendations of FATF? Please detail the assessment process carried out and explain how the applicant has compensated for any deficiencies in that country’s compliance with FATF recommendations

Yes

No

     

Prevention of market abuse and financial crime

324 Please detail what procedures are, or will be, in place to monitor the applicant’s dealing or customer facing functions to prevent market abuse

     

325 If e-commerce will be a significant feature of the applicant’s business, please detail the level of experience of the staff involved (see notes)

     

327 Please detail the IT security that is, or will be, in place to combat cyber fraud

     

1 Human and technical resources

Approved individuals

328 Please state who is, or will be, responsible within the applicant for the recruitment of individuals to perform controlled functions

     

329 Does the applicant have, or intend to have, a dedicated human resources function?

Yes

No

330 Please detail how staffing requirements are assessed and monitored on a continuing basis

     

331 Please detail what background checks are carried out on potential approved individuals and who is responsible for ensuring these are carried out on a consistent basis (see notes)

     

332 Please detail how the competence and capability of potential approved individuals is assessed and who is responsible for making the assessment (see notes)

     

333 Does, or will, the individual performing the compliance oversight function become involved in the assessment of the fitness and propriety of potential approved individuals? If yes, please describe the compliance oversight function’s input to the process. If no, please explain how compliance with the Regulatory Authority’s requirements will be assured (see notes)

Yes

No

     

334 Please detail how the continuing competence of approved individuals will be assured (see notes)

     

335 Please detail how staff training needs are assessed (if available, please attach a training and competence manual)

     

IT systems and technical resources

336 Please detail the information technology (IT) systems the applicant has, or proposes to have, in place and how they will support its activities (see notes)

     

337 Does the applicant have any systems in development or testing? If yes, please name the individuals responsible for managing this project, and state the expected schedule for testing and the dates on which such systems will become operational.

Yes

No

     

339 Please describe, or demonstrate schematically, how the applicant’s IT systems will support the transaction flows detailed in your business plan submitted under question 3.13

     

340 Will the applicant’s IT systems interface with another group or parent entity? If yes, please describe how such access will be defined

Yes

No

     

Accounting system

341 Please detail the accounting system that the applicant uses, or intends to use, the processes for recording business transactions and reporting to both customers and the Regulatory Authority

     

Settlement systems (PIIB Category 4 firms should go to question 12.17)

342 Please detail the systems the applicant uses, or intends to use, for physical settlement or clearing of transactions with third parties

     

343 Please detail the applicant’s settlement and clearing procedures and controls

     

344 Please detail, or provide an organisation chart showing the individuals responsible for overseeing and implementing the back office and accounting operations functions, including staffing levels and reporting lines

     

Information security

345 Does the applicant have an information security policy? If yes, please attach a copy to this application. If no, please detail whether such a policy is to be implemented and how the applicant will address the issue of IT security

Yes

No

     

347 Please detail the individuals responsible for IT security and their reporting lines

     

Checklist for attachments - core section

|Documents |Included |

|Board minutes or similar evidence of authority to establish an entity in the QFC (see declaration in | |

|section 1) | |

|Group structure chart (see question 3.18) | |

|Copy of latest financial statements of any proposed controller (see question 3.20) | |

|Copy of the relevant pages of the passports of any individual controllers (see question 3.22) | |

|Approved individuals form (QFC form Q03) for each individual wishing to become approved to perform a | |

|controlled function (see question 3.36) | |

|Business plan (covering the outlined headings) | |

| | |

|(see question 3.13 and separate notes for completing form Q02 for details of what is expected to be covered| |

|under the headings below) | |

| | |

|background of the applicant | |

|opportunities identified in the QFC | |

|business planning | |

|organisation in Qatar | |

|additional information (applicable only to firms carrying on insurance business) | |

Checklist for attachments – financial soundness

|Documents |Included |

|Partner’s statement of personal assets and liabilities (see question 6.9) | |

|Copies of documents showing how the financial resources requirements are or will be met, including: | |

| | |

|opening balance sheet | |

|monthly forecasts of profit and loss | |

|forecast closing balance sheet | |

|cash flow forecast | |

|(see questions 6.14 to 6.15) | |

|Financial resources statement using the pro forma provided | |

|(see questions 6.16 to 6.17) | |

|Audited financial statements (management accounts plus bank statements if no audited financial statements | |

|are available) | |

|(see question 6.18) | |

|Other documents | |

Checklist for attachments – risk management strategy

|Documents |Included |

|Risk management plan or manual (see question 7.5) | |

|Other documents | |

Checklist for attachments - clients

|Documents |Included |

|Client classification procedures document (see questions 8.1 – 8.3) | |

|Financial communications policies and procedures document (see questions 8.4 – 8.9) | |

|Management and dealing policies and procedures document (see question 8.10) | |

|Procedures for holding client money and client assets document (see questions 8.15, 8.23 and 8.27) | |

|Details of the assessment of suitability the applicant has carried out on any eligible custodians (see | |

|question 8.29) | |

|Copy or draft copy of applicant’s terms of business (see question 8.37) | |

|Copy of applicant’s assessment of the suitability of the independent entity(see question 8.46) | |

| | |

|Independent entity’s procedures for compliance with, the requirements relating to its oversight functions | |

|(see question 8.47) | |

|Other documents | |

Checklist for attachments - conflicts management

|Documents |Included |

|Applicant’s code of ethics or code of conduct document (see question 9.1) | |

|Conflicts of interest policy or procedures document (see question 9.2) | |

|Investment research policy or procedures document (see question 9.3) | |

| | |

|Other documents | |

Checklist for attachments – management and control

|Documents |Included |

|Allocation of responsibilities and reporting lines chart for the applicant as a whole (see question 10.10)| |

|Job description for compliance oversight function (see question 10.15) | |

|Allocation of responsibilities and reporting lines chart for the compliance function (see question 10.17) | |

|Compliance plan or manual (see question 10.21) | |

|Complaints procedures document (see question 10.33) | |

|Business continuity procedures document (see question 10.34) | |

|Copies of service level agreements with outsourcers (see question 10.44) | |

|Copy of staff handbook (see question 10.50) | |

|Other documents | |

Checklist for attachments – financial crime

|Documents |Included |

|Copy of job description of MLRO (see question 11.3) | |

|AML policies and procedures document (see question 11.6) | |

|Copy of organisation chart within AML function (see question 11.7) | |

|Other documents | |

Checklist for attachments – human and technical resources

|Documents |Included |

|Training and competence manual (see question 12.8) | |

|Organisation chart of the back office operations function (see question 12.16) | |

|Information security policy document (see question 12.17) | |

|Other documents | |

Checklist for attachments – CRO forms (all firms must complete and submit one of the following four CRO forms with the Q02 form)

|Documents |Included |

|Application for incorporation of a Limited Liability Company (LLC) in the QFC (CRO 1) | |

|Application for registration of branch by non – QFC Company (CRO 2) | |

|Application for incorporation of a Limited Liability Partnership (LLP) in the QFC (CRO 3) | |

|Application to register a branch of Limited Liability Partnership not incorporated in the QFC (CRO 4) | |

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Please note that the shaded areas are currently deactivated as at present these combinations of regulated activities and specified products are not available.

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