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  • Schedule 3: Schedule 3: Regulated Activities and Permitted Activities

    • Part 1: Exemptions

      Subject to any Rules, an activity will not constitute Regulated Activities for the purposes of these Regulations if it falls within one or more of the categories set out in the following paragraphs.

      1. Group Exemption

      The Group Exemption applies to an activity other than Effecting a Contract of Insurance or Carrying Out a Contract of Insurance carried on with or for Persons within the same Group as the Person undertaking that activity.

      2. Joint Venture Exemption

      2.1 The Joint Venture Exemption applies to an activity other than Effecting a Contract of Insurance or Carrying Out a Contract of Insurance carried on by a Person if that Person and all the Persons with or for whom it is carrying on such activity are, or propose to become, participants in a joint venture where the activity is carried on for the purposes of, or in connection with that joint venture.
      2.2 For the purposes of paragraph 2.1:
      (1) a joint venture means an enterprise into which two or more Persons enter for commercial purposes relating to a business carried on by them (provided that that business is not the business of engaging in a Regulated Activity); and
      (2) the term "a participant in a joint venture" is to be regarded as including (1) a person who is within the same Group as a participant in that joint venture; and (2) the joint venture vehicle.

      3. Trustee Exemption

      The Trustee Exemption applies to an activity which:

      3.1 is carried on by a bare trustee on the instructions of a beneficiary; and
      3.2 would not constitute a Regulated Activity if that activity were carried on by that beneficiary provided that the trustee is not separately remunerated for carrying on that activity.

      4. Professional Business Exemption

      4.1 The Professional Business Exemption applies to the activities of Arranging Deals in Investments, Arranging Credit Facilities, Arranging the Provision of Custody Services and Advising on Investments where the activity in question:
      (1) is carried on in the course of a professional business that does not otherwise consist of the carrying on of a Regulated Activity; and
      (2) is a necessary part of that profession or business provided the Person carrying on the activity is not separately remunerated for carrying on that activity.
      4.2 For the purposes of paragraph 4.1 a professional business is the business of providing legal, actuarial or accounting services.

      5. Sale of Body Corporate Exemption

      5.1 The Sale of Body Corporate Exemption applies to the activity of Dealing in Investments where the activity in question constitutes the sale of shares in a body corporate by a qualifying transferor to a qualifying transferee such that on completion of the sale, the qualifying transferee holds 50% or more of the voting shares in that body corporate or may reasonably be regarded as having acquired day to day control of the affairs of that body corporate.
      5.2 The Sale of Body Corporate Exemption applies to the activities of Advising on Investments, Arranging Deals in Investments and Arranging Credit Facilities where the advice or arrangements are made in connection with a sale of the kind described in paragraph 5.1.
      5.3 To qualify for the purposes of paragraph 5.1 the transferor and the transferee must be:
      (1) a body corporate, a partnership or an individual; or
      (2) a group comprised of individuals each of whom is a director or manager of the body corporate (or in the case of a transferee will, immediately following the sale be a director or manager of the body corporate) or a Close Relative of any such individuals and the trustees of any such individuals.

      6. Employee Share Scheme Exemption

      The Employee Share Scheme Exemption applies to the activities of Dealing in Investments, Providing Custody Services, Arranging the Provision of Custody Services, Arranging Deals in Investments and Advising on Investments where

      6.1 the purpose of the activity in question is to facilitate the participation by employees, directors, former employees or former directors of a body corporate in Shares of that body corporate or Shares of a member of the same Group as that body corporate or other Investments whose price is linked to such Shares; and
      6.2 the activity in question is carried out by the body corporate or a member of the same Group as that body corporate.

      7. Special Purpose Vehicle Exemption

      7.1 Subject to paragraph 7.2, the Special Purpose Vehicle Exemption applies to activities carried on by an Entity having the characteristics of a project finance special purpose vehicle in relation to any financing or related activities (including the procurement of insurance) undertaken by that Entity;
      7.2 The Regulatory Authority may make Rules specifying:
      (1) the types of Entity which will be deemed to have the characteristics of a project finance special purpose vehicle for the purposes of paragraph 7.1;
      (2) the types of financing or related activities (including the procurement of insurance) to which the Special Purpose Vehicle Exemption applies; and
      (3) in respect of any activity specified in sub-paragraph (2), the circumstances in which the Special Purpose Vehicle Exemption will apply.

      8. Collective Investment Funds Exemption

      The Collective Investment Funds Exemption applies to the activity of Dealing in Investments where that activity is carried on by a Collective Investment Fund in the circumstances and to the extent so provided in Rules made by the Regulatory Authority.

      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Part 2: Specified Activities

      Subject to any Rules, an activity is a Specified Activity for the purposes of Article 23(1)(A) of these Regulations if it falls within one of the descriptions set out in the following paragraphs and does not fall within the scope of any of the exclusions set out in that paragraph.

      1. Deposit Taking

      1.1 Activity

      Deposit Taking is the activity of accepting money received as a Deposit if:
      (1) that money is lent to others; or
      (2) any other activity of the Person accepting the deposit is financed wholly, or to a material extent, out of the capital of or interest on that money.
      1.2 Exclusions

      There are no specific exclusions for this activity.

      2. Effecting a Contract of Insurance

      2.1 Activity

      Effecting a Contract of Insurance is the activity of effecting a Contract of Insurance as Principal.
      2.2 Exclusions

      There are no specific exclusions for this activity.

      3. Carrying out a Contract of Insurance

      3.1 Activity

      Carrying out a Contract of Insurance is the activity of carrying out a Contract of Insurance as Principal.
      3.2 Exclusions

      There are no specific exclusions for this activity.

      4. Dealing in Investments

      4.1 Activity

      Dealing in Investments is:
      (1) the activity of buying, selling, subscribing for or underwriting Investments or agreeing to do so, either as a principal or as an agent; or
      (2) the activity of buying, selling, underwriting or entering into a Contract of Insurance as agent or agreeing to do so.
      4.2 Exclusions

      The following activities are excluded from the Specified Activity of Dealing in Investments:
      (1) the issue by a body corporate of its own Shares or Debentures or of its own Share Warrants or Debenture Warrants; and
      (2) the acceptance by a Person of an Instrument Creating or Acknowledging Indebtedness in respect of any loan, credit, guarantee or other similar financial accommodation or assurance which that Person has made, granted or provided.

      5. Arranging Deals in Investments

      5.1 Activity

      Arranging Deals in Investments is the activity of making, or agreeing to make arrangements with a view to another Person buying, selling, subscribing for or underwriting an Investment or Contract of Insurance.
      5.2 Exclusions
      (1) The making by a Person of arrangements with a view to the following are excluded from the Specified Activity of Arranging Deals in Investments:
      (A) a transaction, contract or facility to which that Person is to be a party either as principal or as agent for another Person;
      (B) the issue by a body corporate of its own Shares or Debentures or of its own Share Warrants or Debenture Warrants;
      (C) the acceptance by a Person of an Instrument Creating or Acknowledging Indebtedness in respect of any loan, credit, guarantee or other similar financial accommodation or assurance which that Person has made, granted or provided; and
      (D) the provision of finance to enable a Person to buy, sell, subscribe for or underwrite Investments.
      (2) A Person does not carry on the Specified Activity of Arranging Deals in Investments merely by providing the means by which one party to a transaction is able to communicate with other parties to such a transaction.

      6. Providing Credit Facilities

      6.1 Activity

      Providing Credit Facilities is the activity of providing a Credit Facility to another Person.
      6.2 Exclusions

      A Person does not carry on the Specified Activity of Providing Credit Facilities if the Credit Facility is to be provided by a Regulated Firm in the course of carrying on once or more of the following activities:
      (1) Dealing in Investments;
      (2) Arranging Deals in Investments;
      (3) Managing Investments;
      (4) Operating a Collective Investment Fund; or
      (5) Provision of Custody Services.

      7. Arranging Credit Facilities

      7.1 Activity

      Arranging Credit Facilities is the activity of arranging for the Provision of a Credit Facility by one or more Persons.
      7.2 Exclusions

      A Person will not carry on the Specified Activity of Arranging Credit Facilities if:
      (1) he is to be a party to the Provision of Credit Facilities in question; or
      (2) he merely provides the means by which a Person providing a Credit Facility communicates with the Person to whom the Credit Facility is or is to be provided.

      8. Providing Custody Services

      8.1 Activity
      (1) Providing Custody Services is the activity of both safeguarding and administering assets belonging to another which consist of or include Investments or Long Term Insurance Contracts or agreeing to do so.
      (2) For the purposes of paragraph (1) the following activities do not constitute administering assets:
      (A) providing information as to the number of units or the value of any assets safeguarded;
      (B) converting currency; or
      (C) transmitting documents.
      8.2 Exclusions

      A Person does not carry out the Specified Activity of Providing Custody Services if that Person does so under a delegation arrangement with an Authorised Firm which has permission to carry on the Specified Activity of Providing Custody Services, provided that the Authorised Firm accepts a responsibility for the assets which is no less onerous than it would have if it were doing the safeguarding and administration itself.

      9. Arranging the Provision of Custody Services

      9.1 Activity

      Arranging the Provision of Custody Services is the activity of arranging for one or more Persons to Provide Custody Services.
      9.2 Exclusions

      A Person will not carry on the Specified Activity of Arranging the Provision of Custody if:
      (1) he is to provide custody services himself; or
      (2) he merely provides the means by which the provider of custody communicates with the Person to whom Custody Services are or are to be provided.

      10. Managing Investments

      10.1 Activity

      Managing Investments is the activity of managing, or agreeing to manage, assets belonging to another Person where:
      (1) the assets consist of or include Investments or Long Term Insurance Contracts; and
      (2) the arrangements for their management are such that the assets may consist of or include Investments at the discretion of the Person managing or offering or agreeing to manage them.
      10.2 Exclusions

      There are no specific exclusions for this activity.

      11. Advising on Investments

      11.1 Activity

      Advising on Investments is the activity of giving or agreeing to give advice to a Person on the merits of
      (1) buying, selling, subscribing for or underwriting a particular Investment or Contract of Insurance; or
      (2) exercising any right conferred by an Investment to acquire, dispose of, underwrite or convert an Investment or Contract of Insurance.
      11.2 Exclusions

      The giving of advice in a newspaper, journal, magazine or other periodical publication is excluded from the Specified Activity of Advising on Investments provided that the principal purpose of the publication or service taken as a whole (including any advertisements or other promotional material contained in it) is not Advising on Investments or leading or enabling a Person to Deal in Investments, Effect Contracts of Insurance or Carry Out Contracts of Insurance.

      12. Operating a Collective Investment Fund

      12.1 Activity
      (1) Operating a Collective Investment Fund is the activity of establishing, operating or winding-up a Collective Investment Fund.
      (2) For the purposes of paragraph (1) a Person operates a Collective Investment Fund if he:
      (A) acts in the capacity of trustee of a Collective Investment Fund that takes the form of a trust;
      (B) acts as transfer or registration agent for the Collective Investment Fund, or provides valuation or accounting services for the Collective Investment Fund; or
      (C) otherwise has responsibility for the day to day administration of those parts of the business of the Collective Investment Fund that do not constitute Managing Investments.
      12.2 Exclusions

      There are no specific exclusions for this Activity.
      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Part 3: Specified Products

      Subject to any Rules, each of the following is a Specified Product for the purposes of these Regulations.

      1. Share

      A share or stock in the share capital of:

      1.1 any body corporate (wherever incorporated); or
      1.2 any unincorporated body constituted under the law of a country or territory outside the QFC,

      other than a Unit in a Collective Investment Fund.

      2. Debt Instrument

      2.1 Subject to paragraph 2.2, an instrument creating or acknowledging indebtedness that is:
      (1) a debenture;
      (2) debenture stock;
      (3) loan stock;
      (4) a bond;
      (5) a certificate of deposit; or
      (6) any other instrument creating or acknowledging a present or future indebtedness that is transferable without the consent of the borrower.
      2.2 Paragraph 2.1 does not apply to an instrument:
      (1) acknowledging or creating a debt for goods or services;
      (2) a bill of exchange (including a cheque), banker's draft or letter of credit but not a bill of exchange accepted by a banker;
      (3) a banknote, a statement showing a balance on a bank account;
      (4) a lease or other disposition of property; or
      (5) a contract of insurance.

      3. Credit Facility

      3.1 Subject to paragraph 3.2, any advance, loan or other facility in whatever form or by whatever name called whereby the Person to whom such advance, loan or other facility is given has access, indirectly or directly, to the funds of the Person giving it.
      3.2 An advance loan or facility made under an instrument that is (or but for paragraphs 2.1-2.6 of the definition of the definition of Debt Instrument, would be) a Debt Instrument is not a Credit Facility for the purposes of this Regulation.

      4. Warrants

      Warrants or other instruments entitling the holder to subscribe for:

      4.1 Shares; or
      4.2 Debt Instruments.

      5. Securities Receipt

      5.1 Subject to paragraph 5.2, a certificate or other instrument which confers contractual or property rights in respect of a Share, a Debt Instrument or a Warrant held by a Person (the security holder) other than the Person on whom the rights are conferred by the certificate or other instrument (the certificate beneficiary), the transfer of which may be effected without requiring the consent of the security holder;
      5.2 An Option is not a Securities Receipt for the purposes of this Regulation.

      6. Unit in a Collective Investment Fund

      6.1 Units in a Collective Investment Fund within the meaning of paragraph 6.2.
      6.2 Subject to paragraphs 6.5 and 6.6, a Collective Investment Fund is any arrangement:
      (1) the purpose or effect of which is to enable persons taking part in the arrangements (the participants) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of property or sums paid out of such profits or income;
      (2) that meets the property condition in paragraph 6.3 and the investment condition in paragraph 6.4.
      6.3 An arrangement will meet the property condition referred to in paragraph (2) if:
      (1) the arrangement is made with respect to property of any description, including money, whether the participants become owners of the property or any part of it or otherwise; and
      (2) any of the participants do not have day-to-day control over the management of the property, whether or not they have the right to be consulted or give directions in respect of the property.
      6.4 An arrangement will meet the investment condition referred to in paragraph 6.2 if:
      (1) the contributions of the participants and the profits or income out of which payments to be made are pooled; or
      (2) the property is managed as a whole by or on behalf of the operator of the scheme.
      6.5 Arrangements for such pooling as is mentioned in paragraph 6.4(1) in relation to separate parts of the property are not to be regarded as constituting a single Collective Investment Fund unless the participants are entitled to exchange rights in one part for rights in another.
      6.6 The Regulatory Authority may make Rules specifying the circumstances in which particular arrangements do not constitute a Collective Investment Fund for the purposes of paragraph 6.1.

      7. Options

      7.1 Options to acquire or dispose of:
      (1) a Share, Debt Instrument, Warrant, Securities Receipt, Unit in a Collective Investment Fund, Future, or Contract for Differences;
      (2) currency of any country or territory;
      (3) metals / commodities; or
      (4) an option of the kind specified in paragraphs 7.1(1), (2) or (3).
      7.2 The Regulatory Authority may issue Rules excluding from the scope of paragraph 7.1 options which are entered into for commercial and not investment purposes and setting out circumstances in which a contract is to be regarded as made for commercial or investment purposes for the purposes of paragraph 7.2.

      8. Future

      8.1 Subject to paragraphs 8.2 and 8.3 rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made and which is made for investment and not commercial purposes.
      8.2 A contract is not a Future for the purposes of paragraph 8.1 if the seller delivers or intends to deliver the property or the purchaser takes or intends to take delivery of the property.
      8.3 The Regulatory Authority may issue Rules as to the circumstances in which a contract is to be regarded as made for commercial or investment purposes for the purposes of paragraph 8.1.

      9. Contract for Differences

      9.1 Subject to paragraph 9.2–9.3 rights under a contract the purpose or purported purpose of which is to secure a profit or avoid a loss by reference to fluctuations in:
      (1) the value or price of property of any description; or
      (2) an index or other factor designated for that purpose in the contract.
      9.2 A contract will not be a Contract for Differences for the purposes of paragraph 9.1 if:
      (1) the parties intend that the profit is to be secured or the loss avoided by one or more of the parties taking delivery of any property to which the contract relates;
      (2) money is received on terms that the entire principal amount will be repaid (after deduction of reasonable fees, if relevant) but any interest or other return to be paid on the sum received will be calculated by reference to fluctuations in an index or other factor; or
      (3) the contract is a Contract of Insurance.
      9.3 The Regulatory Authority may issue Rules excluding from the scope of paragraph 9.1 contracts for differences which are entered into for commercial and not investment purposes and setting out the circumstances in which a contract is to be regarded as made for commercial or investment purposes for the purposes of paragraph 9.1.

      10. Contract of insurance

      10.1 Rights under a qualifying contract of insurance or reinsurance that is either a General Insurance Contract within the scope of paragraph 10.3 or a Long Term Insurance Contract within the scope of paragraph 10.4.
      10.2 The Regulatory Authority shall make Rules prescribing the circumstances in which a contract is a qualifying contract of insurance for the purposes of paragraph 10.1.
      10.3 A qualifying contract of insurance will be a General Insurance Contract if it falls within one or more of the following categories:

      General Insurance Category 1: Accident

      Contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the Person insured:
      (1) sustaining injury as the result of an accident or of an accident of a specified class;
      (2) dying as a result of an accident or of an accident of a specified class; or
      (3) becoming incapacitated in consequence of disease or of disease of a specified class,

      including contracts relating to industrial injury and occupational disease but excluding contracts falling within Long Term Insurance Category 4: Permanent Health described in paragraph 10.4 of this Schedule.

      General Insurance Category 2: Sickness

      Contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of loss to the Persons insured attributable to sickness or infirmity but excluding contracts falling within Long Term Insurance Category 4: Permanent Health described in paragraph 10.4 of this Schedule.

      General Insurance Category 3: Land vehicles

      Contracts of insurance against loss of or damage to vehicles used on land, including motor vehicles but excluding railway rolling stock.

      General Insurance Category 4: Railway rolling stock

      Contract of insurance against loss of or damage to railway rolling stock.

      General Insurance Category 5: Aircraft

      Contracts of insurance upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.

      General Insurance Category 6: Ships

      Contracts of insurance upon vessels used on the sea or on inland water, or upon the machinery, tackle, furniture or equipment of such vessels.

      General Insurance Category 7: Goods in transit

      Contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, irrespective of the form of transport.

      General Insurance Category 8: Fire and natural forces

      Contracts of insurance against loss of or damage to property (other than property to which paragraphs 3 to 7 relate) due to fire, explosion, storm, natural forces other than storm, nuclear energy or land subsidence.

      General Insurance Category 9: Damage to property

      Contracts of insurance against loss of or damage to property (other than property to which paragraphs 3 to 7 relate) due to hail or frost or any other event (such as theft) other than those mentioned in paragraph 8.

      General Insurance Category 10: Motor vehicle liability

      Contracts of insurance against damage arising out of or in connection with the use of motor vehicles on land, including third-party risks and carrier's liability.

      General Insurance Category 11: Aircraft liability

      Contracts of insurance against damage arising out of or in connection with the use of aircraft, including third-party risks and carrier's liability.

      General Insurance Category 12: Liability of ships

      Contracts of insurance against damage arising out of or in connection with the use of vessels on the sea or on inland water, including third party risks and carrier's liability.

      General Insurance Category 13: General liability

      Contracts of insurance against risks of the persons insured incurring liabilities to third parties, the risks in question not being risks to which General Insurance Categories 10, 11 or 12 relates.

      General Insurance Category 14: Credit

      Contracts of insurance against risks of loss to the Persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.

      General Insurance Category 15: Suretyship

      (1) Contracts of insurance against the risks of loss to the Persons insured arising from their having to perform contracts of guarantee entered into by them.
      (2) Fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee, where these are:
      (A) effected or carried out by a Person not carrying on the business of Deposit Taking;
      (B) not effected merely incidentally to some other business carried on by the Person effecting them; and
      (C) effected in return for the payment of one or more premiums.

      General Insurance Category 16: Miscellaneous financial loss

      Contracts of insurance against any of the following risks, namely:
      (1) risks of loss to the Persons insured attributable to interruptions of the carrying on of business carried on by them or to reduction of the scope of business so carried on;
      (2) risks of loss to the Persons insured attributable to their incurring unforeseen expense (other than loss such as is covered by contracts falling within General Insurance Category 18); or
      (3) risks which do not fall within sub-paragraph (1) or (2) and which are not of a kind such that contracts of insurance against them fall within any other General Insurance Category.

      General Insurance Category 17: Legal expenses

      Contracts of insurance against risks of loss to the Persons insured attributable to their incurring legal expenses (including costs of litigation).

      General Insurance Category 18: Assistance

      Contracts of insurance providing either or both of the following benefits, namely:
      (1) assistance (whether in cash or in kind) for Persons who get into difficulties while travelling, while away from home or while away from their permanent residence; or
      (2) assistance (whether in cash or in kind) for Persons who get into difficulties otherwise than as mentioned in sub-paragraph (1).
      10.4 A qualifying contract of insurance will be a Long Term Insurance Contract if it falls within one or more of the following categories:

      Long Term Insurance Category 1: Life and annuity

      Contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within Long Term Insurance Category 3.

      Long Term Insurance Category 2: Marriage and birth

      Contract of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year.

      Long Term Insurance Category 3: Linked long term

      Contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or party to be determined by references to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).

      Long Term Insurance Category 4: Permanent health

      Contracts of insurance providing specified benefits against risks of Persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that:
      (1) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the Persons concerned, or without limit of time; and
      (2) either are not expressed to be terminable by the Insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.

      Long Term Insurance Category 5: Tontines

      Tontines.

      Long Term Insurance Category 6: Capital redemption contracts

      Capital redemption contracts, where effected or carried out by a Person who does not carry on a banking business, and otherwise carries on the Specified Activity of Effecting Contracts of Insurance or Carrying Out Contracts of Insurance.

      Long Term Insurance Category 7: Pension fund management
      (1) Pension fund management contracts, and
      (2) pension fund management contracts which are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest,
      where effected or carried out by a person who does not carry on a banking business, and otherwise carries on the Specified Activity of Effecting Contracts of Insurance or Carrying Out Contracts of Insurance.

      11. Deposits

      11.1 Subject to paragraphs 11.2, 11.3 and 11.4, rights under any contract under which a sum of money is paid on terms under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the Person making the payment and the Person receiving it.
      11.2 Rights under a contract will not be a Deposit for the purposes of paragraph 11.1 if money is paid:
      (1) by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired, or otherwise provided;
      (2) by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract; or
      (3) by way of security for the delivery up or return of property, whether in a particular state of repair or otherwise.
      11.3 Rights under a contract will not be a Deposit for the purposes of paragraph 11.1 if the Person who pays the money is:
      (1) carrying on a business consisting wholly or significantly of lending money;
      (2) an Authorised Firm which has permission to carry on Deposit Taking or to effect or carry out Contracts of Insurance;
      (3) a member of the same Group as the payee; or
      (4) a Close relative, director, manager or Controller of the payee.
      11.4 Rights under a contract will not be a Deposit for the purposes of paragraph 11.1 if the payee of the money is:
      (1) a lawyer acting in the course of his profession duly licensed by the QFC Authority
      (2) the issuer of a Debt Instrument;
      (3) the recipient of a Credit Facility; or
      (4) an Authorised Firm (other than one whose Authorisation permits it to carry on Deposit Taking) in the course of carrying one or more of the following activities:
      (A) Dealing in Investments;
      (B) Arranging Deals in Investments;
      (C) Managing Investments;
      (D) Operating a Collective Investment Fund; or
      (E) Provision of Custody Services.

      13. Rights in investments

      Any right or interest in any Investment under this Part.

      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Part 4: Activities in the QFC under the QFC Law

      1. Permitted activities within the QFC

      1.1 The QFC Law provides that no activities other than Permitted Activities may be carried on in the QFC.
      1.2 The following are the Permitted Activities itemised in the QFC Law:
      (1) financial business, banking business of whatever nature, and investment business, including (without limit) all business activities that are customarily provided by investment, corporate and wholesale financing banks, as well as Islamic and electronic banking business;
      (2) insurance and reinsurance business of all categories;
      (3) money market, stock exchange and commodity market business of all categories, including trading in and dealing in precious metals, stocks, bonds, securities, and other financial activities derived therefrom, or associated therewith;
      (4) money and asset management business, investment fund business, the provision of project finance and corporate finance in all business fields and Islamic banking and financing business;
      (5) funds administration, fund advisory and fiduciary business of all kinds;
      (6) pension fund business and the business of credit companies;
      (7) the business of insurance broking, stock broking, and all other financial brokerage business;
      (8) financial agency business and the business of provision of corporate finance and other financial advice, investment advice and investment services of all kinds;
      (9) the provision of financial custodian services and the business of acting as legal trustees;
      (10) the business of ship broking and shipping agents;
      (11) the business of provision of classification services and investment grading and other grading services;
      (12) business activities of company headquarters, management offices and treasury operations and other related functions for all kinds of business, and the administration of companies generally;
      (13) the business of providing professional services including but not limited to audit, accounting, tax, consulting and legal services;
      (14) business activities of holding companies, and the provision, formation, operation and administration of trusts and similar arrangements of all kinds; and
      (15) the business of provision, formation, operation and administration of companies.

      2. Activities Prohibited in the QFC

      The Council of Ministers may designate any activities as prohibited from being carried on in or from the QFC on the grounds that it is contrary to the interests of the State or to public policy.