• CTRL Division 1.2.B CTRL Division 1.2.B Key concepts—controlled functions

    • CTRL 1.2.5 What are controlled functions?

      (1) FSR, article 41, requires that, to exercise a controlled function for an authorised firm, an individual must be an approved individual, and authorises the Regulatory Authority to specify, in rules, the functions that are controlled functions.
      Note The assessment, training and competency of individuals to exercise controlled functions is dealt with in INDI.
      (2) For FSR, article 41 (2), each of the following is a controlled function:
      (a) the non-executive governance function;
      (b) the executive governance function;
      (c) the senior executive function;
      (d) the finance function;
      (e) the senior management function;
      (f) the MLRO function;
      (g) the risk management function;
      (h) the compliance oversight function;
      (i) the internal audit function;
      (j) the actuarial function.
      Note 1 Each of the controlled functions mentioned in subrule (2) (other than the MLRO function) is described elsewhere in these rules. There are signpost definitions in the Glossary.
      Note 2 The non-executive governance function, the executive governance function, the senior executive function, the finance function and the senior management function are responsible for the firm’s governance and general management — see Chapter 3.
      Note 3 The MLRO function is to do with compliance and reporting under the law relating to money laundering and preventing the financing of terrorism — see AML/CFTR or (for general insurance firms only) AMLG. The MLRO function is not further dealt with in these rules.
      Note 4 The matters referred to in FSR, article 41 (3) (application for approval as an approved individual, principles to be adhered to by approved individuals, reporting by approved individuals and withdrawal of authorisation) are set out in INDI.
      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.6 What is the executive governance function?

      (1) The executive governance function for an authorised firm that is a QFC entity is the function of being a member (other than a non-executive member) of the firm’s governing body.
      (2) The executive governance function for an authorised firm that is a branch is the function of being a member of the firm’s governing body with responsibility for the firm’s business in or from the QFC.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.7 What is the non-executive governance function?

      The non-executive governance function for an authorised firm that is a QFC entity is the function of being a member of the firm’s governing body but not being responsible for the day-to-day direction of the firm’s affairs.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.8 What is the senior executive function?

      The senior executive function for an authorised firm is the function of being responsible for:

      (a) the whole business of the firm; or
      (b) in the case of an authorised firm that is a branch — the business of the firm carried on in or from the QFC.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.9 What is the finance function?

      The finance function for an authorised firm includes the functions of being responsible for the prudential returns that the firm is required to prepare, and ensuring that the firm’s financial records are accurate and complete.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.10 What is the senior management function?

      The senior management function for an authorised firm is the function of being responsible (alone or with others) for managing and supervising a part or parts of the firm’s business related to its regulated activities (other than parts that are included in any of the other controlled functions).

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.11 What is the MLRO function?

      The MLRO function for an authorised firm is the function of being the firm’s MLRO under either AML/CFTR or AMLG.

      Note The MLRO function is not dealt with further in these rules. For firms’ obligations in relation to the MLRO function see:

      • for general insurance firms — AMLG
      • for all other authorised firms — AML/CFTR.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.12 What is the risk management function?

      The risk management function for an authorised firm is the function of being responsible for:

      (a) the firm’s risk management framework; and
      (b) overseeing and reviewing the firm’s implementation of, and its compliance with, those policies, procedures and controls.

      Note For more on the risk management function, see Part 6.2; for risk management generally, see Chapter 7.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.13 What is the compliance oversight function?

      The compliance oversight function for an authorised firm is the function of being responsible for:

      (a) the firm’s compliance policies, procedures and controls; and
      (b) overseeing and reviewing the firm’s implementation of, and its compliance with, those policies, procedures and controls.
      Note For more on the compliance oversight function, see Part 6.3.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.14 What is the internal audit function?

      The internal audit function for an authorised firm is the function of being responsible for:

      (a) the firm’s internal audit policies, procedures and controls; and
      (b) overseeing and reviewing the firm’s implementation of, and its compliance with, those policies, procedures and controls.
      Note For more on the internal audit function, see Part 6.4.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 1.2.15 What is the actuarial function?

      The actuarial function for an authorised firm is the function of being responsible for:

      (a) the firm’s actuarial policies, procedures and controls; and
      (b) overseeing and reviewing the firm’s implementation of, and its compliance with, those policies, procedures and controls.
      Note For more on the actuarial function, see Part 6.5.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)