(MENAFN- Gulf Times) The Qatar Financial Centre Regulatory Authority (QFCRA) has introduced several enhancements to its prudential framework for QFC authorised firms undertaking banking, investment management or advisory business.
The changes are included in two new sets of prudential rules - Banking Business Prudential Rules (BBPR) 2014 and the Investment Management and Advisory Rules (IMAR) 2014.
The new rules come into force on January 1, 2015.
"The strengthening of the prudential framework for QFC authorised firms undertaking banking, investment management and advisory business in the QFC is closely aligned with the significant improvements in international regulatory standards in recent years," QFCRA CEO Michael Ryan said. "It reinforces the ability of our firms to operate with a strong capital base and sound risk management practices as their business activities increase and expand."
The new BBPR 2014 contain the framework for authorised firms that undertake banking business - accepting deposits, providing credit, dealing in investments as principal, or undertaking Islamic financial management.
They are designed to align with the banking principles established by the Basel Core Principles for effective banking supervision and Basel accord frameworks which aim to provide a more resilient global banking system in the wake of the 2008 global financial crisis.
The enhancements are on areas such as internal capital adequacy assessment process, capital adequacy and capital requirements, credit risk, market risk, interest rate risk in the banking book, liquidity risk, group risk, prudential reporting and Islamic financial management firms.
The new IMAR 2014 contains enhancements particularly focused on such areas as minimum paid-up share capital and liquid assets requirement, risk management, professional indemnity insurance and client money and asset protection.
Both the new rules replace the framework for banking business firms contained in the Investment and Banking Business Rules 2005 to be repealed at the end of 2014.
The QFCRA also introduced a number of improvements to its framework for approving individuals to perform certain key positions in QFC authorised firms.
The new framework - which is contained in the Individuals (Assessment, Training and Competency) Rules 2014 - amend the existing approved individual regime by placing clearer accountability and responsibility on the board and senior management for the appointment of competent, fit and proper staff; removing the requirement for the QFCRA to approve individuals performing the customer facing function; and making certain enhancements to the knowledge competency requirements.
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