General (Controllers and misscellaneosu) Amendments Rules …



2131695190817500 REF Citation \*charformat General (Controllers and Miscellaneous) Amendments Rules?2018QFCRA Rules 2018-4The Board of the Qatar Financial Centre Regulatory Authority makes the following rules under the Financial Services Regulations.Dated 28 June 2018.Abdulla Bin Saoud Al-ThaniChairman2131695190817500General (Controllers and Miscellaneous) Amendments Rules?2018QFCRA Rules 2018-4made under theFinancial Services Regulations ContentsPage TOC \t "A H1 Chapter,1,A H2 Part,2,A H3 Div,3,A H4 SubDiv,4,A H5 Sec,5,Sched-heading,6,Sched-Part,7,Dict-Heading,1,Sch cl,6" 1Name of rules PAGEREF _Toc517603889 \h 12Commencement PAGEREF _Toc517603890 \h 13Amendments PAGEREF _Toc517603891 \h 14Explanatory notes PAGEREF _Toc517603892 \h 1Schedule 1General Rules 2005 PAGEREF _Toc517603893 \h 2Part 1.1Amendments relating to control and close links PAGEREF _Toc517603894 \h 2Part 1.2Other amendments PAGEREF _Toc517603895 \h 6Schedule 2Interpretation and Application Rules 2005 PAGEREF _Toc517603896 \h 8Name of rulesThese rules are the REF citation \*charformat \* MERGEFORMAT General (Controllers and Miscellaneous) Amendments Rules?mencementThese rules commence on 1 August 2018.AmendmentsThese rules amend the Rules in Schedules 1 and 2.Explanatory notesAn explanatory note in these rules is not part of these rules.General Rules 2005(see r 3)Amendments relating to control and close linksChapter 8, headingsubstituteChapter 8Controllers and close linksRules 8.1.1 and 8.1.2substitute8.1.1IntroductionThis Chapter is about:(a)the controllers of applicants for authorisation and authorised firms, and the entities with which such applicants and firms have close links;(b)the obligations and procedures relating to first becoming such a controller, and to increasing, decreasing and ceasing control; and(c)the systems and controls that a firm must have, and the reports it must make, relating to its controllers and the entities with which it has close links.NoteUnder rule 2.3.1, the connection of an applicant or authorised firm with its controllers, and the persons with which an applicant or firm has close links, are matters to be considered in determining an applicant’s or firm’s fitness and propriety.8.1.2Application of Part 8.1This Part applies to all authorised firms.Explanatory noteThis amendment includes references to the operation of the Chapter in relation to firms’ close links, and clarifies the operation of the Part in relation to firms that are branches by removing the reference to a condition of authorisation.Rule 8.3.1substitute8.3.1Application of Part 8.3This Part applies only to authorised firms that are branches.Explanatory noteThis amendment clarifies the operation of the Part in relation to firms that are branches by removing the reference to a condition of authorisation.Part 8.4, headingsubstitutePart 8.4Giving notice about controllersRule 8.4.1substitute8.4.1Application of Part 8.4This Part applies to all authorised firms.Explanatory noteThis amendment clarifies the operation of the Part in relation to firms that are branches by removing the reference to a condition of authorisation.Rule 8.5.1substitute8.5.1Application of Part 8.5This Part applies to all authorised firms.8.5.1AMeaning of close links for Part 8.5(1)For this Part, an authorised firm has close links with any undertaking:(a)that is its direct holding company;(b)that is its direct subsidiary;(c)that is another direct holding company of a subsidiary of the firm; or(d)that is another direct subsidiary of the firm’s holding company.(2)For this Part, an authorised firm has close links:(a)with any undertaking of which the firm owns or controls 10% or more of the voting rights or shares; or(b)with any undertaking that, or individual who, owns or controls 10% or more of the firm’s voting rights or shares.(3)For this rule, an undertaking is an entity that is carrying on a trade or business with or without a view to profit.Explanatory noteThis amendment clarifies the operation of the Part and inserts a new definition for this Part only, to extend the meaning of close links.Rule 8.5.2?(a) and (b)substitute(a)any change or proposed change of its controllers;(aa)any change or proposed change in the persons with which it has close links;(b)any significant change in the conduct or circumstances of its controllers, or the persons with which it has close links, that might reasonably be considered to diminish the fitness and propriety of the firm or its ability to conduct its business soundly and prudently; andExplanatory noteThis amendment extends the operation of the Part in relation to person with which firms have close links.Rule 8.5.3omitTheinsert(1)TheExplanatory noteThis amendment provides a basis for the number of a new subrule clarifying the meaning of certain references to places.Rule 8.5.3?(b)substitute(b)the type of control (that is, whether by way of shareholding or of voting rights) held by each controller;Explanatory noteThis amendment clarifies the meaning of the reference to “type of control”.After rule 8.5.3insert(2)In subrule (1):(a)a reference to an individual’s place of birth is a reference to the country, and the city or town, in which that birth happened; and(b)a reference to a body corporate’s place of incorporation is a reference to the jurisdiction of its incorporation and the city or town in which its principal office is located.Explanatory noteThis amendment clarifies the meaning of certain references to places.8.5.4Annual report about close links(1)With the report on controllers referred to in rule 8.5.3, an authorised firm must give the Regulatory Authority a report setting out the following:(a)the name of each person with which the firm had close links at any time during the financial year;(b)for each such person who is an individual—his or her date and place of birth;(c)for each such person that is a body corporate—its place of incorporation, address and registered number;(d)the firm’s relationship with each such person;(e)for each such person, if applicable, the level of control (expressed as a percentage of shareholding or voting power or both, as the case may be) that the person held over the firm; and(f)for each such person, if applicable, the level of control (expressed as a percentage) that the firm held over the person.(2)In subrule (1), references to an individual’s place of birth, or to a body corporate’s place of incorporation, have the same respective meanings as in rule 8.5.3?(1).Explanatory noteThis amendment introduces a new requirement for firms to report annually about their close links.Other amendmentsExplanatory noteAmendments in this Part (other than REF _Ref510518935 \r \h [1.13] and REF _Ref505086754 \r \h [1.14]) are formal only.Rule 1.1.2substitute1.1.2Effect of definitions, notes and examples(1)A definition in the glossary to these rules also applies to any instructions or document made under these rules.(2)A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.(3)An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.NoteUnder FSR, art 17?(4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.Rule 10.7.1?(2)?(c)omitCOLL,insertthe Collective Investment Schemes Rules 2010,Rules 10.7.1?(2)?(f), (g) and (h)substitute(f)BANK, rule 2.1.4 (Preparing returns) and rule 2.1.5 (Giving information);(g)IBANK, rule 2.1.4 (Preparing returns) and rule 2.1.5 (Giving information);(h)INMA, rule 2.1.2 (Preparing returns) and rule 2.1.3 (Giving information);(i)PINS, rule 1.4.2 (Time limit for annual prudential returns of insurers), rule 1.4.3 (Time limit for biannual prudential returns of insurers), and rule 1.4.4 (Time limit for quarterly prudential returns of insurers);(j)the Private Placement Schemes Rules 2010, rule 5.5.3 (Reports and accounts generally) and rule?7.2.6 (Accounting and reports during winding-up).Explanatory noteThis amendment inserts references to certain reporting provisions of IBANK and clarifies the structure of the references to other rules.Schedules 2 and 3omitExplanatory noteThis amendment omits 2 Schedules that are no longer considered necessary.Part A4.4, headingsubstitutePart A4.4Other feesGlossaryinsertCAPI means the Captive Insurance Business Rules 2011.PINS means the Insurance Business Rules 2006.Further amendments in accordance with the following tableProvisionomitinsertrule 9.5.1?(1)?(c)?(viii) (3 occurrences)CAPICAPIrule 9.5.1?(1)?(c)?(ix) (3?occurrences)PINSPINSrule 10.7.1?(2)?(b)CAPICAPIrule 11.1.2, guidancePINSPINSrule A4.1.1, tableCAPICAPIrule A4.2.1?(2)CAPICAPIInterpretation and Application Rules 2005(rule 3)Glossary, definition of close links, paragraph (A)?(v)omitowns and controlsinsertowns or controlsGlossary, definition of close links, paragraph (B)omitowns and controlsinsertowns or controlsExplanatory noteThis amendment amends the general definition of close links in INAP to bring it into conformity with the definition in the Financial Services Regulations.Glossary, definition of Public Sector EntitiesomitExplanatory noteThis amendment omits a definition of a term that is no longer used in the Rules. ................
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