22-Apr-2022
Written by Faisal Amaan & Karen Abi Younes.
On April 6, 2022, the QFC issued new amendments to be followed by QFC firms in relation to the subsequent laws; the (i) Qatar Financial Centre's Authority Regulations (the “QFCA Regulations”); (ii) the QFC Companies Regulations 2005 (the “Companies Regulations”), (iii) Investment Clubs Regulations 2016 (the “ICR”), (iv) the Qatar Financial Center’s Authority Rules (the “QFCA Rules”); and (v) the QFC Foundation Rules 2016 (the “Foundation Rules”). Such amendments will support the QFC firms to benefit from a strong, transparent legal and regulatory environment.
- The QFCA Regulations
The QFC have amended article 21, article 23 and related definitions in article 28 of the QFCA Regulations:
- Previously, article 21 of the QFCA Regulations have allowed the QFCA the right to (a) grant an application for a license, variation, or withdrawal of a license to an applicant, (b) make rules to be satisfied by the applicant before an application may be granted by the QFC Authority and to (c) notify the approval or rejection of the application for a licence to the applicant. However, with the new amendment, the QFC Authority have been allowed to grant an application to approve the appointment of a person as a key person or interest holder of a proposed or existing licensed firm.
- Furthermore, the QFC have introduced a new section in article 23 (1) (g) stating that the QFC Authority may exercise any of the powers or take any of the steps set out in Article 23(2) in respect of a licensed firm that is not an authorised firm at any time where it considers it appropriate to do so in accordance with its objectives, including where it is satisfied that a key person or interest holder of a licensed firm is not fit and proper to be a key person or interest holder.
- Additionally, the QFC have integrated a new section to article 23 (2) (d) granting a new power to the QFCA by taking any other action against a licensed firm, key person or interest holder.
- Therefore, the QFC have defined “key person” and “interest holder” in article 28 of the QFC Regulations that lead us to article 13.3 of the QFCA Rules.
- The Companies Regulations
The QFC have amended article 52 (2) B of the Companies Regulations stating that an LLC must have one director that shall not be disqualified from being or becoming a director in the QFC or in any other place. The word “becoming” has been newly added.
- The ICR
The QFC have amended article 49 (2) (b) of the ICR.
Previously, this section only disqualified a person who is being a director in the QFC or elsewhere, however, with the new amendment the word “becoming” has been added to the new section which states that no person shall be director who has been disqualified from being or becoming a director in the QFC or in any other place.
- The QFCA Rules
The QFC have introduced a new rule 13.3 to the QFCA Rules, the latter consist of 10 sections stating the assessment of the QFCA of the key persons and interest holders. Some rights that have been granted to the QFCA are without limitation:
- Reject or disqualify an application for the approval of the appointment of a person as a key person or interest holder of a proposed or existing licensed firm where the QFCA is satisfied that the person is not fit and proper to be a key person or an interest holder;
- Notify the licenced firm about the disqualified key person or interest holder, and the licenced firm shall notify the latter; and
- Issue a decision notice disqualifying an existing key person or interest holder and take any action necessary to remove them from their position with immediate effect if the QFCA concludes that any delay in doing so is prejudicial to the interests of the clients or customers of the licensed firm, or the interests of the QFC.
- The Foundation Rules
The QFC have amended the rule 4.1 (2) (B) of the Foundation Rules.
Previously, the above rule stated that a person must not be a person who was disqualified from being a member of the council or a director of a company in the QFC or any other jurisdiction. However, with the new amendment the word “becoming” have been added by which a member must not be a person who is disqualified from being a member or a director but also who is disqualified for becoming a member of the council or a director of a company in the QFC or any other jurisdiction.