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| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
Financial Services Regulations
Article 41 of FSR provides as follows:
|
Approved Persons performing Controlled Functions
(1) An Authorised Firm must ensure that no individual acting for:
(A) the Authorised Firm; or
(B) a contractor of the Authorised Firm
performs a Controlled Function for that Authorised Firm unless the individual is approved by the Regulatory Authority as an Approved Individual.
(2) Controlled Function means a function which involves:
(A) the exercise of significant influence over the conduct of the firm's affairs in relation to Regulated Activities;
(B) dealing directly with clients or customers in relation to Regulated Activities; or
(C) dealing with the property of clients or customers
and is specified as a Controlled Function in Rules issued by the Regulatory Authority from time to time.
(3) The Regulatory Authority shall make Rules detailing:
(A) the procedure for Application to the Authority for registration as an Approved Individual including requirements as to the form and content of the Application, any fees payable by an Authorised Firm in respect of its Approved Individuals and the procedures for modification or withdrawal of an Approved Individual's registration;
(B) principles or other requirements to which Approved Individuals are required to adhere in the performance of Controlled Functions;
(C) requirements for Approved Individuals to report to the Regulatory Authority; and
(D) the circumstances in which registration of an Approved Individual may be withdrawn at the instance of the Regulatory Authority.
|
| Amended by QFCRA RM/2011-4 (as from 1st July 2011). |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
These rules are the Individuals Rules 2005 (or INDI).
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
The glossary at the end of these rules is part of these rules.
Note 1 There are also relevant definitions in the INAP glossary. To assist the reader, the application of a definition in that glossary would usually be indicated by the word(s) being in italics (other than bold italics).
Note 2 By contrast, the application of a definition in the glossary in these rules is not indicated by the word(s) being in italics.
Note 3 For the application of definitions, see INAP, rule 2.1.8 (Application of definitions).
Note 4 A note on or to these rules is explanatory and is not part of the rules (see INAP, rule 2.1.6 (1) and rule 2.1.7).
Note 5 However, examples and guidance are part of these rules (see INAP, rule 2.1.4 (1) (b) and (2)).
Note 6 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 (see INAP, rule 2.1.5).
Note 7 For the effect of guidance, see FSR, article 17(4).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
These rules apply to—
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
Each of the functions described in rules 2.1.2 to 2.1.11 is a controlled function for the purposes of Article 41(2) of the FSR.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
The Senior Executive Function is the function of having overall responsibility alone or jointly with one or more individuals:
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
In most cases, the Regulatory Authority would expect an Authorised Firm to have one individual performing the Senior Executive Function.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
The Non-Executive Governance Function is the function of holding a position on the Governing Body of a Local Firm but not having responsibility for the day-to-day direction of a Local Firm's affairs.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
The Compliance Oversight Function is the function of having responsibility for compliance matters of an Authorised Firm as provided in CTRL section 4.3.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
The Risk Management Function is the function of having responsibility in relation to setting and controlling an Authorised Firm's risk exposure as provided in CTRL section 4.4.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
The Finance Function is the function of having responsibility for ensuring that an Authorised Firm complies with the Regulatory Authority's prudential requirements.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
| Amended by QFCRA RM/2010-03 (as from 30th April 2010). |
The MLRO function is the function of being an authorised firm's MLRO under AML/CFTR.
| Amended by QFCRA RM/2010-03 (as from 30th April 2010). |
The Senior Management Function is carried on by an individual who has significant responsibility either alone or with others for management and supervision of one or more elements of an Authorised Firm's business relating to its Regulated Activities other than those matters identified in INDI Rule 2.1.2 to 2.1.8.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
Customer facing function is the function of carrying on 1 or more of the following regulated activities with or for a customer on behalf of an authorised firm in or from the QFC—
| Amended by QFCRA RM/2011-4 (as from 1st July 2011). |
The Actuarial Function is the function of having responsibility for monitoring, advising, investigating and reporting on risks facing an Insurer that materially impact on the Insurer's ability to meet policyholder liabilities and on capital levels.
| Derived from QFCRA RM01/2006 (as from 1st October 2006). |
The Senior Executive Function must be carried out by an individual who:
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
| Deleted by QFCRA RM/2010-03 (as from 30th April 2010). |
Subject to INDI Rule 2.2.4, the Regulatory Authority will only register one individual for the Compliance Oversight Function in respect of an Authorised Firm.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
The Regulatory Authority may, if it considers it appropriate in the circumstances, register more than one individual to perform the Compliance Oversight Function in respect of different internal business divisions within a large Authorised Firm provided that one individual is appointed with responsibility for the overall Compliance Oversight Function for the whole of the Authorised Firm.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An individual can only be registered to perform the Actuarial Function if he also meets the following additional criteria:
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
Because of the critical role played by the Actuarial Function, additional criteria are placed on Approved Actuaries to ensure their independence, education, skill and experience.
| Derived from QFCRA RM01/2006 (as from 1st October 2006). |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
If more than one individual is appointed to perform any of the Controlled Functions listed in INDI Rule 2.3.1 the Authorised Firm must ensure that the allocation of responsibility for the purposes of CTRL section 3.1 clearly avoids duplication or omission.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An insurer (other than a QFC captive insurer) conducting Long Term Insurance Business must have at least one individual approved to carry on the Actuarial Function.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An insurer (other than a QFC captive insurer) conducting General Insurance Business, where:
must have at least one individual approved to carry on the Actuarial Function.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
The purpose of INDI Rules 2.3.3 and 2.3.4 is to ensure all Insurers carrying out Contracts of Insurance where either the Contract of Insurance is in force for more than one year or where a material potion of these Contracts of Insurance include long-tail business, are required to seek actuarial advice. Long-tail business comprises classes of Insurance Business where the claims are typically settled one year or more after the date of the occurrence of the event that gives rise to the claim.
| Derived from QFCRA RM01/2006 (as from 1st October 2006). |
| Inserted by QFCRA RM/2010-03 (as from 30th April 2010). |
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
| Amended by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2008 (as from 7th April 2008). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Deleted by QFCRA RM01/2010 (as from 3rd March 2010). |
| Restructed by QFCRA RM01/2010 (as from 3rd March 2010) to form new rule INDI 6.3.1. |
| Deleted by QFCRA RM/2010-04 (as from 1st October 2010) |
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
If the appointment of an approved actuary for an insurer ends for any reason, the insurer must tell the Regulatory Authority immediately, but by no later than the second business day after the day the appointment ends —
Note For the obligation of the approved actuary to notify the Regulatory Authority if the actuary's appointment ends, see Financial Services Regulations, art 91 (Resignation of auditors and actuaries).
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
If at any time there is not an approved actuary for an insurer, the insurer must appoint an approved actuary as soon as practicable, but within 3 months after the day the vacancy arises.
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Amended by QFCRA RM/2010-04 (as from 1st October 2010) |
Note for chapters 4, 4A and 5
Individuals performing controlled functions need to have the appropriate competency elements of skills, knowledge and experience. Individuals having these competency elements strengthen the protection given to clients, customers and stakeholders. Authorised firms need to prudently manage the risks that may arise as a result of individuals performing controlled functions.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
The senior management of an authorised firm must ensure that the firm's policies, procedures, systems and controls appropriately and adequately address the training and competency requirements in this chapter, chapter 4A and chapter 5.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An authorised firm must design, deliver and maintain an appropriate ongoing training and competency programme for individuals performing controlled functions for the firm.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An authorised firm must undertake initial and ongoing assessment of each individual's competencies to perform controlled functions.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An authorised firm must ensure that individuals performing controlled functions receive or undertake sufficient training and continuing professional development.
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An authorised firm must be able to provide documentary evidence of its compliance with the requirements relating to training and competency of individuals performing controlled functions.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Note for part 4A.2
Principle 3 (see rule 4.1.3) requires an authorised firm to undertake initial and ongoing assessment of each individual's competencies to perform controlled functions.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Before making an application to the Regulatory Authority for an individual to be approved to perform 1 or more controlled functions, an authorised firm must be satisfied, on reasonable grounds after making appropriate inquiries, that the individual—
Note 1 Under FSR, article 41(1) (Approval of persons performing controlled functions), an authorised firm must ensure that no individual performs a controlled function for it unless the individual is approved by the Regulatory Authority as an approved individual.
Note 2 Section 2.2 of these rules sets out additional requirements for particular controlled functions.
Note 3 This rule is subject to rule 4A.4.1 (Application—individuals likely to acquire competencies for customer facing function within 12 months).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Examples for subrule (4)
Guidance for rule 4A.2.3
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
If an authorised firm is satisfied under rule 4A.2.1 (Initial competency and fitness assessments by firms) that the individual has the competencies required to perform 1 or more controlled functions, the firm may apply to the Regulatory Authority for approval of the individual to perform the function or functions for the firm.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
An individual is eligible to be approved by the Regulatory Authority to perform 1 or more controlled functions for an authorised firm only if the firm demonstrates to the authority's satisfaction that the individual—
Note 1 Section 2.2 of these rules sets out additional requirements for particular controlled functions.
Note 2 For conditional approval of individuals (to perform a customer facing function) who are not eligible under this rule, see Part 4A.4.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
In deciding whether it is satisfied than an individual has the competencies required to perform a controlled function for an authorised firm, the Regulatory Authority may have regard to matters that the authority considers relevant, including the matters in subrule 4A.2.2(1).
Note For competencies for controlled functions, see rule 4A.2.3 and the guidance following that rule.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
An approved individual is eligible to continue to be approved by the Regulatory Authority to perform 1 or more controlled functions for an authorised firm only if the firm can demonstrate on an ongoing basis to the authority's satisfaction that—
Note For competencies for controlled functions, see rule 4A.2.3 and the guidance following that rule.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Despite rule 4A.2.1 (Initial competency and fitness assessments by firms), an authorised firm may apply to the Regulatory Authority for approval of an individual to perform the customer facing function even if the individual does not have the competencies required for that function, if—
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Examples of variations in degree of supervision of individuals conditionally approved under rule 4A.4.2
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
Notes for chapter 5
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
An authorised firm must ensure that each approved individual for the firm receives sufficient continuing professional development appropriate to the nature and complexity of the individual's role to ensure that the individual continues to have the competencies required to perform the controlled function or functions for which the individual is approved.
Examples of continuing professional development
Note The authorised firm's training and competency document must state its policies and procedures about continuing professional development (see rule 4A.1.3 (2) (c)).
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012). |
An individual may carry on Controlled Functions for more than one Authorised Firm provided that:
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An individual may carry on more than one Controlled Function for an Authorised Firm provided that the Authorised Firm is satisfied that the performance of such Controlled Functions does not give rise to any internal or external conflicts of interest and is appropriate having regard to the nature, scale and complexity of the business carried on by that Authorised Firm.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An individual registered for the Customer Facing Function should not also be registered for the Compliance Oversight Function or any similar control function.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An Authorised Firm which is a Non-Local Firm or which is part of wider group of regulated entities, may permit an individual who is an Employee of the Authorised Firm or the Authorised Firm's Group to carry out a Customer Facing Function during one or more occasional visits to the QFC, without requiring such an individual to have Approved Individual status, provided:
| Amended by QFCRA RM/2011-5 (as from 1st January 2012). |
Where an individual is appointed under INDI Rule 6.2.1 the Regulatory Authority may exercise any powers as it would otherwise be entitled to do, as if the individual held Approved Individual status.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
| Inserted by QFCRA RM01/2010 (as from 3rd March 2010). |
Examples — meaning of 'within 2 business days'
1 If, on a business day, the authorised firm becomes aware that the individual will cease to exercise the controlled function, the firm must make the application immediately, but by no later than the next business day.2 If, on a day that is not a business day, the authorised firm becomes aware that the individual has ceased to exercise the controlled function, the firm must make the application immediately, but by no later than 2 business days after that day.
| Amended by QFCRA RM01/2010 (as from 3rd March 2010). |
An Approved Individual must act with integrity at all times in the carrying out of Controlled Functions.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An Approved Individual must act with due skill, care and diligence in the carrying out of Controlled Functions.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An Approved Individual must observe appropriate standards of market conduct in the carrying out of Controlled Functions.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An Approved Individual must deal with the Regulatory Authority in an open and cooperative manner and disclose appropriately to the Regulatory Authority any information of which the Regulatory Authority would reasonably expect notice.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
An Approved Individual who is a Senior Manager must give appropriate priority to his management responsibilities and ensure that the business of the Authorised Firm for which he is responsible is effectively supervised and controlled and complies with the relevant requirements of the Regulatory System.
| Derived from QFCRA RM03/2005 (as from 13th October 2005). |
A person approved to perform a controlled function before 1 January 2012 whose approval is in effect continues to be an approved individual to perform that controlled function on and after that date.
Note An approved individual before 1 January 2012 continues to be an approved individual and need not re-apply and be re-assessed as competent under the new training and competency rules. However, the individual will be subject to new requirements such as on-going assessment (see rule 4A.3.5) and continuing professional development (see rule 5.1.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| Deleted by QFCRA RM/2010-04 (as from 1st October 2010) |
[Deleted]
| Deleted by QFCRA RM/2010-04 (as from 1st October 2010) |
[Deleted]
| Deleted by QFCRA RM/2010-04 (as from 1st October 2010) |
(r 4A.2.3(2))
Note 1 The requirements in this schedule are in addition to other requirements prescribed under any other Rules (see, for example, INDI, section 2.2 for senior executive function, compliance oversight function and actuarial function; CTRL, section 4.3 for compliance oversight function, CTRL, section 4.4 for risk management function and AML/CFTR, rule 2.3.2 for MLRO function).
Note 2 The competencies in this schedule are based on the National Occupational Standards (the FSP Standards) prepared by the Financial Skills Partnership (UK). The FSP Standards are used in these rules with, and subject to, the permission of FSP. Copyright of the FSP Standards is vested in FSP and their use or reproduction by any person for any purpose without the written consent of FSP is prohibited.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S1
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual's role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S2
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Notes for part S3
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S4
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S5
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S6
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual's role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S7
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S8
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3). Such qualifications may include legal, accounting, audit, risk and other specialised professional qualifications.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S9
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on the nature and complexity of the individual’s role in the day-to-day activities of the firm (see rule 4A.2.3).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
(r 4A.2.3(3))
Note 1 The requirements in this schedule are in addition to other requirements prescribed under any other Rules.
Note 2 The competencies in this schedule are based on the National Occupational Standards (the FSP Standards) prepared by the Financial Skills Partnership (UK). The FSP Standards are used in these rules with, and subject to, the permission of FSP. Copyright of the FSP Standards is vested in FSP and their use or reproduction by any person for any purpose without the written consent of FSP is prohibited.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function
Note for part S1
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Example of exception to rule S1.41
An individual who has recently obtained the CISI Regulatory qualification and CII Award in General Insurance may be conditionally approved under rule 4A.4.2 to exercise (under appropriate supervision) the customer facing function with retail customers despite the lack of experience in the customer facing function for general insurance if the individual will be likely to obtain the appropriate experience competency within 12 months.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function
Notes for part S2
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Example of exception to rule S2.31
An individual who has recently obtained the CISI Regulatory qualification and CII Award in Financial Planning may be conditionally approved under rule 4A.4.2 despite the lack of experience in the customer facing function with retail customers if the individual will be likely to obtain the appropriate experience competency within 12 months.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Note for part S3
The competencies that individuals are expected to have under this part are not exhaustive, and the extent of their application depends on—
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function—advising on investments
1 financial adviser
2 investment strategist
3 private client investment adviser
4 client service representative or relationship manager
5 advising on securities or derivatives
6 institutional sales
7 commodities futures broker
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function—managing investments
1 private client asset management
2 discretionary and specialised portfolio management
3 asset manager
4 investment manager
5 institutional asset manager
6 investment banker working in asset management
7 portfolio manager
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function—dealing in investments
1 private client stock broker
2 trader in securities, equities, futures or bonds
3 securities underwriter
4 dealing in securities or derivatives
5 commodities futures broker
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Examples of roles performing this function—research and analysis
1 corporate finance analyst
2 security or investment analyst
3 derivatives analyst
Guidance for subdivision S3.1.D
Before assessing an individual's research and analytical skills, rule 4A.2.3(4) requires that the regulated activity or activities to be conducted by the individual be taken into consideration in determining the extent of the application of the competencies in this part. If the research and analysis to be performed by the individual are not in relation to a regulated activity (for example, if the research and analysis are for publication in a newspaper article that does not constitute giving advice on investments), then the individual need not be assessed against the competencies in this part. If the individual's research and analysis are part of conducting the regulated activity of advising on investments, then the individual must be assessed against the competencies in this part and approved as an approved individual.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
Example of exception to rule S3.71
An individual who has recently obtained the CISI Regulatory qualification and the appropriate technical qualifications may be conditionally approved under rule 4A.4.2 despite the lack of experience in the customer facing function with retail customers if the individual will be likely to obtain the appropriate experience competency within 12 months.
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012), substituting Appendix 1. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
| Deleted by QFCRA RM/2011-5 (as from 1st January 2012) and substituted by Schedules 1 and 2. |
(r 1.1.2)
appropriately supervised, in relation to an individual, has the meaning given by rule 4A.4.3.
approved individual means an individual approved under the FSR, article 41 to perform 1 or more controlled functions.
authorisation means an authorisation granted under the Financial Services Regulations, part 5.
authorised firm (or firm) means a person that has an authorisation.
CII Award in General Insurance means the award (AGI) for passing the examination given by the Chartered Insurance Institute on general insurance, as revised from time to time; or
CII Award in Financial Planning (AFP) means the award for passing the examination given by the Chartered Insurance Institute on financial planning, as revised from time to time.
CISI Regulatory qualification means the award for passing the examination on the QFC Rules and Regulations, developed by the Regulatory Authority in conjunction with the Chartered Institute for Securities and Investments, as revised from time to time.
competencies, for a controlled function, has the meaning given by rule 4A.2.3.
conditional approval means an approval under rule 4A.4.2.
controlled function has the meaning given by the FSR, article 41(2).
customer facing function has the meaning given by rule 2.1.10.
document means a record of information in any form (including electronic form), and includes, for example—
FSR means the QFC Financial Services Regulations 2005.
INAP means the Interpretation and Application Rulebook.
month means calendar month.
QFC means the Qatar Financial Centre.
regulated activity means an activity that is a regulated activity under the Financial Services Regulations.
Regulatory Authority means the Regulatory Authority of the QFC.
senior management, of an authorised firm, means the firm's senior managers, jointly and separately.
senior manager, of an authorised firm, means an individual employed by the firm or a member of the firm's group who has responsibility either alone or with others for management and supervision of 1 or more elements of a firm's business relating to regulated activities.
training and competency programme means the programme required under rule 4A.1.1.
training and competency document means the document required under rule 4A.1.3.
writing means any form of writing, and includes, for example, any way of representing or reproducing words, numbers, symbols or anything else in legible form (for example, by printing or photocopying).
| Inserted by QFCRA RM/2011-5 (as from 1st January 2012). |
| a = after | om = omitted/repealed |
| am = amended | orig = original |
| amdt = amendment | par = paragraph/subparagraph |
| app = appendix | prev = previously |
| art = article | pt = part |
| att = attachment | r = rule/subrule |
| b = before | renum = renumbered |
| ch = chapter | reloc = relocated |
| def = definition | s = section |
| div = division | sch = schedule |
| g = guidance | sdiv = subdivision |
| hdg = heading | sub = substituted |
| ins = inserted/added |
| Amended by QFCRA RM01/2008 (as from 7th April 2008). |