• Part 4 Part 4 Obligations and Contraventions

    • Article 90 - General Contraventions

      (1) If an Investment Club carries on any activities other than Investment Club activities as set out in its licence, it will be in breach of its licence.
      (2) In such circumstances, the QFC Authority shall be entitled to give notice to the Investment Club requiring it to desist from the activities in question with immediate effect. The QFC Authority shall further be entitled to exercise one or more of the powers set out in Article 23 of the QFC Authority Regulations in relation to the Investment Club.
      (3) A person who:
      a. does an act or thing that the person is prohibited from doing under an Article of these Regulations referred to in Schedule 1; or
      b. does not do an act or thing that the person is required or directed to do under an Article of these Regulations referred to in Schedule 1; or
      c. otherwise contravenes an Article of these Regulations referred to in Schedule 1,
      commits a contravention of these Regulations.
      (4) In this Article 90, "person" does not include the QFC Authority, the Regulatory Authority, the CRO or the Registrar.
      Derived (as from 20th December 2016).

    • Article 91 - Involvement in Contraventions

      (1) If a person is knowingly concerned in the contravention of these Regulations or any other Regulations conferring functions on the CRO committed by another person, the aforementioned person as well as the other person, commits the contravention and is liable to be proceeded against and dealt with accordingly.
      (2) Without limiting the generality of Article 91(1), if an officer of an Entity is knowingly concerned in a contravention of these Regulations or any other Regulations conferring functions on the CRO committed by an Entity, the officer as well as the Entity commits the contravention and is liable to be proceeded against and dealt with accordingly.
      (3) If the affairs of an Entity are managed by its Members, Article 91(2) applies in relation to the acts and defaults of a Member in connection with his functions of management as if he were a director of the Entity.
      (4) For the purposes of this Article 91, "officer" means a director, member of a committee of management, chief executive, manager, secretary or other civil officer of an Entity, or a person purporting to act in such capacity, and an individual who is in control of the body.
      (5) For the purposes of this Article 91, a person is "knowingly concerned" in a contravention if, and only if, the person:
      a. has aided, abetted, counselled or procured the contravention;
      b. has induced, whether by threats or promises or otherwise, the contravention;
      c. has in any way, by act or omission, directly or indirectly, been knowingly involved in or been party to, the contravention;
      d. has conspired with another or others to effect the contravention; or
      e. has, alone or in concert with others, directly or indirectly, done, attempted or planned any of the following:
      (i) to conceal the existence or nature of a contravention; or
      (ii) to obstruct, impede or prevent the QFC Authority, the Regulatory Authority or the CRO from detecting, investigating or prosecuting a contravention.
      (6) In this Article 91, "person" does not include the QFC Authority, the Regulatory Authority, the CRO or the Registrar.
      Derived (as from 20th December 2016).

    • Article 92 - Imposition of Financial Penalties

      (1) The QFC Authority may in rules prescribe procedures in relation to the imposition and recovery of financial penalties under these Regulations.
      (2) Where the CRO considers that a person has contravened a provision in these Regulations referred to in Schedule 1 and in relation to which a penalty is stipulated in that Schedule, it may impose by written notice given to the person a penalty, in respect of the contravention, of such amount as it considers appropriate but not exceeding the amount of the maximum penalty specified in Schedule 1 in respect of each contravention.
      (3) If, within the period specified in the notice:
      a. the person pays the prescribed penalty to the CRO, then no proceedings may be commenced by the CRO against the person in respect of the relevant contravention; or
      b. the person takes such action as is prescribed in rules made by the QFC Authority to object to the imposition of the penalty or has not paid the prescribed penalty to the CRO, the CRO may apply to the Regulatory Tribunal for, and the Regulatory Tribunal may so order, the payment of the penalty or so much of the penalty as is not paid and make any further order as the Regulatory Tribunal sees fit for recovery of the penalty.
      (4) A certificate that purports to be signed by or on behalf of the CRO and states that a written notice was given to the person pursuant to Article 92(2) imposing a penalty on the basis of specific facts is:
      a. conclusive evidence of the giving of the notice to the person; and
      b. prima facie evidence of the facts contained in the notice
      in any proceedings commenced under this Article 92.
      (5) Where a person commits a contravention of these Regulations and no penalty is stipulated in Schedule 1 in relation to such contravention, such person shall be liable to such penalty as may be provided for or determined under any other provision of these Regulations or any other Regulations.
      Derived (as from 20th December 2016).

    • Article 93 - Transactions

      (1) The Investment Club must ensure that it is not involved in a contravention of the AML/CFT Law.
      (2) The Investment Club must not:
      a. receive from a Member, or make a payment to a Member, in cash other than by way of bank transfer; or
      b. make or receive cash payments in relation to Assets and or Securities other than by way of bank transfer.
      (3) Notwithstanding Article 93(1), the Investment Club must report any suspicious transactions to the Financial Information Unit established under AML/CFT Law.
      Derived (as from 20th December 2016).

    • Article 94 - Custodian

      (1) The Investment Club must appoint a Custodian to ensure that Securities held by the Investment Club are safeguarded, unless resolved otherwise by a Special Resolution of the Members.
      (2) Where such Custodian is appointed, the Investment Club must notify the CRO within 21 days of appointment.
      Derived (as from 20th December 2016).