• General Rules 2005 (GENE)

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    General Rulebook (GENE)
    GENE Chapter 1:
    General provisions
    GENE Part 1.1 Introductory
    GENE Part 1.2 Principles relating to the conduct, operation and financial standing of authorised firms
    GENE Chapter 2:
    Fitness and Propriety
    GENE Part 2.1 Application
    GENE Part 2.2 General provisions
    GENE Part 2.3 Fitness and propriety
    GENE Part 2.4 Other authorisation requirements
    GENE Part 2.5 Restrictions on Client Money and Insurance Money [deleted]
    GENE Chapter 3:
    General provisions
    GENE Part 3.1 Disclosure of regulatory status
    GENE 3.2 Communication with the Regulatory Authority - [Deleted]
    GENE 3.3 Complaints against the Regulatory Authority - [Deleted]
    GENE 3.4 Registers of Public Information - [Deleted]
    GENE Part 3.5 Provision of information
    GENE Chapter 4:
    Notice of certain events required
    GENE 4.1 Application and Purpose - [Deleted]
    GENE 4.2 Provision of Notifications - [Deleted]
    GENE 4.3 Notice of certain events required - [Deleted]
    GENE Chapter 4A:
    Protected reporting
    GENE 4A.1 General
    GENE 4A.2 Protected reporting policies
    GENE Chapter 5:
    Communications to Regulatory Authority
    GENE Part 5.1 Communications to Regulatory Authority — general provisions
    GENE Part 5.2 Communications to Regulatory Authority — accuracy and completeness of information
    GENE Part 5.3 Approved forms
    GENE Part 5.4 Electronic submission system
    GENE Chapter 5A:
    Giving of written notices by Regulatory Authority
    GENE Part 5A.1 Application
    GENE Part 5A.2 Rules about giving written notices
    GENE Chapter 6:
    Recordkeeping
    GENE Part 6.1 General recordkeeping requirement
    GENE Part 6.2 Maintenance of records
    GENE Chapter 7:
    Waivers and modifications
    GENE 7.1 Application - [Deleted]
    GENE 7.2 Application to Waive or Modify Rules - [Deleted]
    GENE 7.3 Procedure on Receipt of an Application - [Deleted]
    GENE 7.4 Conditions for Granting a Waiver or Modification - [Deleted]
    GENE 7.5 Applicability of a Waiver or Modification Notice - [Deleted]
    GENE 7.6 Continuing Relevance of a Written Notice - [Deleted]
    GENE 7.7 Publication of a Waiver or Modification Notice - [Deleted]
    GENE 7.8 Revocation or Variation of a Waiver or Modification Notice - [Deleted]
    GENE Chapter 8:
    Controllers and close links
    GENE Part 8.1 General provisions
    GENE Part 8.2 Seeking approval to change control — QFC entities
    GENE Part 8.3 Giving notice about changes in control — branches
    GENE Part 8.4 Giving notice about controllers
    GENE Part 8.5 Systems, controls and reports
    GENE 8.6 Annual Controllers Report - [Deleted]
    GENE Chapter 9:
    Accounting and Auditing
    GENE Part 9.1 Application
    GENE Part 9.2 Accounting records
    GENE Part 9.3 Accounting standards
    GENE Part 9.4 Time limits for annual financial statements and other matters for assurance
    GENE Part 9.5 Assurance engagements and reports
    GENE Part 9.6 Change in the financial year end
    GENE Part 9.7 Auditors
    GENE Chapter 10:
    Fees
    GENE Part 10.1 Application
    GENE Part 10.2 General provisions
    GENE Part 10.3 Supplementary fees
    GENE Part 10.4 Application fees
    GENE Part 10.5 Annual fees
    GENE Part 10.6 Fees for extracts of information from the registers of public information
    GENE Part 10.7 Fees for certain reporting etc contraventions
    GENE Part 10.8 Fees for failure to comply with certain requirements
    GENE Chapter 11:
    Restrictions in relation to specified products
    GENE 11.1 Purpose - [Deleted]
    GENE 11.2 Futures and Options - [Deleted]
    GENE 11.3 Qualifying Contracts of Insurance - [Deleted]
    GENE Schedule 1:
    Guidance on fitness and propriety of authorised firms
    GENE A1.1 Introduction
    GENE A1.2 Fitness and Propriety Criteria
    GENE Schedule 2:
    Overview of reporting requirements
    GENE Schedule 3:
    Overview of recordkeeping requirements
    GENE Schedule 4:
    Fees table
    GENE Part A4.1 The fees table
    GENE Part A4.2 Application fees
    GENE Part A4.3 Applications to conduct additional regulated activities
    GENE Part A4.4 Other fees
    GENE Glossary


    Amended by QFCRA RM/2018-4 (as from 1st August 2018).

    • GENE Chapter 1 GENE Chapter 1 General provisions

      Amended by QFCRA RM/2014-3 (as from 1st January 2015)

      • GENE Part 1.1 GENE Part 1.1 Introductory

        Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.1.1 Name of rules (Versions from January 1, 2012)

          These rules are the General Rules 2005 (or GENE).

          Inserted by QFCRA RM/2011-5 (as from 1st January 2012).

        • GENE 1.1.2 Effect of definitions, notes and examples

          (1) A definition in the glossary to these rules also applies to any instructions or document made under these rules.
          (2) A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.
          (3) An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.
          Note Under FSR, art 17 (4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.
          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 1.1.3 Application of GENE (Versions from January 1, 2012)

          These rules apply to:

          (a) an authorised firm operating, or applying to operate, in or from the QFC; and
          (b) an individual approved, or applying for approval, to exercise a controlled function.
          Editorial changes (as from 1st January 2016).

        • GENE 1.1.4 References to particular currencies

          In these rules, the specification of an amount of money in a particular currency is also taken to specify the equivalent sum in any other currency at the relevant time.

          Inserted by QFCRA RM/2017-3 (as from 1st April 2017).

      • GENE Part 1.2 GENE Part 1.2 Principles relating to the conduct, operation and financial standing of authorised firms

        • GENE 1.2.1 Application of the principles

          (1) The principles in this Part apply to an authorised firm in relation to its conduct of regulated activities in or from the QFC.
          (2) The principles also apply to the activities of such a firm carried on outside the QFC, if the activities relate to regulated activities carried on by the firm in or from the QFC and are capable of having an effect on:
          (a) confidence in the financial system operating in or from the QFC;
          (b) the firm's ability to comply with the Regulatory Authority's requirements as to financial resources; or
          (c) the firm's fitness and propriety.
          (3) When the Regulatory Authority is considering the fitness and propriety of an authorised firm, it may take into account whether or not the other members of its group act in accordance with the principles in this Part.
          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.2 Principle 1 — integrity

          An authorised firm must observe high standards of integrity in the conduct of its business.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.3 Principle 2 — skill, care and diligence

          An authorised firm must act with due skill, care and diligence in the conduct of its business.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.4 Principle 3 — management

          An authorised firm must ensure that its affairs are managed effectively by its senior management.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.5 Principle 4 — systems and controls

          An authorised firm must have effective systems and controls, including risk management systems and adequate human and technological resources.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.6 Principle 5 — financial prudence

          An authorised firm must maintain adequate financial resources.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.7 Principle 6 — market conduct

          An authorised firm must observe proper standards of market conduct.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.8 Principle 7 — regard to customers' interests

          An authorised firm must have due regard to its customers' interests and must treat them fairly.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.9 Principle 8 — communications with clients

          An authorised firm must pay due regard to the information needs of its clients, and must communicate information to them in a way that is clear, fair and not misleading.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.10 Principle 9 — conflicts of interest

          An authorised firm must manage conflicts of interest fairly, both between itself and its customers and between 1 customer and another, and must organise its affairs in such a way that conflicts can be identified.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.11 Principle 10 — relationship of trust

          An authorised firm must faithfully discharge a responsibility of trust toward a customer. In doing so it must take reasonable care to ensure the suitability of its advice and discretionary decisions for a customer who is entitled to rely upon the firm's judgment.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.12 Principle 11 — customers' assets

          An authorised firm must arrange adequate protections for its customers' assets when it is responsible for them in accordance with the responsibility it has accepted.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.13 Principle 12 — confidentiality

          An authorised firm must ensure that information of a confidential nature received in the course of dealings with its customers is treated in an appropriate manner.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • GENE 1.2.14 Principle 13 — relations with regulators

          An authorised firm must deal with all relevant regulators in an open and cooperative manner and must keep the Regulatory Authority promptly informed of anything relating to the firm of which the authority would reasonably expect notice.

          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

        • Part 1.2 Guidance

          1 The principles in this Part are drawn up in accordance with FSR, article 15 (3), and are part of these rules.
          2 The principles are a general statement of the standards expected of authorised firms. They apply directly to the conduct of business, and the operation and financial standing, of authorised firms.
          3 The principles are not exhaustive of the standards expected. Complying with the principles does not absolve an authorised firm from failing to observe other requirements in these rules, and observing other requirements in these rules is not necessarily complying with the principles.
          4 An authorised firm's failure to comply adequately with the principles is likely to affect the Regulatory Authority's assessment of the firm's fitness and propriety. A breach of the principles could form the basis of action by the authority.
          Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1 GENE 1 Application [Deleted]

      Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 1.1 GENE 1.1 Application [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

    • GENE Chapter 2 GENE Chapter 2 Fitness and propriety

      Editorial changes (as from 1st January 2016).

      • GENE Part 2.1 GENE Part 2.1 Application

        • GENE 2.1.1 GENE 2.1.1 Application — Chapter 2

          This Chapter applies to an applicant and an authorised firm.

          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

          • GENE 2.1.1 Guidance

            1. FSR, article 29 provides the Regulatory Authority with the power to make rules setting out the criteria which an applicant must satisfy before authorisation can be granted. The FSR states that such criteria shall include the fitness and propriety, legal form, resources, systems and controls and location of offices of an applicant.
            2. The purpose of fitness and propriety criteria is to set out the minimum criteria that a person must meet for it to become and remain Authorised. It also enables the Regulatory Authority to ensure that its regulation of authorised firms is not impeded as a result of:
            a. the authorised firm's group structure or internal administration;
            b. any other laws, regulations or administrative provisions of another jurisdiction to which the authorised firm is subject; or
            c. an inability or unwillingness to comply, on an ongoing basis with the requirements imposed by the regulatory system.
            3. The fitness and propriety criteria summarises some of the areas that the Regulatory Authority will consider during the assessment of an applicant for authorisation. Also, as part of its supervisory approach, the Regulatory Authority will monitor whether an authorised firm continues to meet the fitness and propriety requirements. Under Article 31, the Regulatory Authority may impose conditions or withdraw the authorised firm's authorisation if it fails to satisfy the criteria in Article 29.
            Editorial changes (as from 1st January 2016).

      • GENE Part 2.2 GENE Part 2.2 General provisions

        Editorial changes (as from 1st January 2016).

        • GENE 2.2.1 What applicant must demonstrate

          Under FSR, article 29, in order to become and remain an authorised firm, a person must be able to demonstrate to the Regulatory Authority's satisfaction both initially and on an ongoing basis that it satisfies the fitness and propriety criteria outlined in this chapter.

          Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • GENE Part 2.3 GENE Part 2.3 Fitness and propriety

        Editorial changes (as from 1st January 2016).

        • GENE 2.3.1 What Regulatory Authority will consider

          In considering the fitness and propriety of an applicant or authorised firm, the Regulatory Authority will consider:

          (a) the applicant's or authorised firm's connection with its controllers as outlined in FSR and GENE chapter 8;
          (b) the applicant's or authorised firm's close links with another person or connection with any other person including any person appearing to be, or likely to be in a contractual relationship with the applicant or authorised firm;
          (c) the nature of the regulated activities concerned;
          (d) whether the applicant's or authorised firm's affairs will be or are conducted and managed in a sound and prudent manner;
          (e) the location and jurisdiction of the applicant or authorised firm's head office and registered office and the location and jurisdiction of its parent entity;
          (f) the legal form that the applicant intends to adopt in light of the location of its offices and of the regulated activities concerned; and
          (g) any other relevant matters including those contained in GENE Schedule 1.
          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

      • GENE Part 2.4 GENE Part 2.4 Other authorisation requirements

        Editorial changes (as from 1st January 2016).

        • GENE 2.4.1 When applicant must be body corporate

          If the application is in respect of any of the following Regulated Activities:

          (A) effecting contracts of insurance;
          (B) carrying out contracts of insurance; or
          (C) deposit taking

          the applicant must be a body corporate.

          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

        • GENE 2.4.2 Applicant for authorisation must be incorporated etc in QFC

          An application for authorisation may be granted only if the applicant is:

          (a) a limited liability company incorporated under the Companies Regulations 2005;
          (b) a limited liability partnership incorporated under the Limited Liability Partnerships Regulations 2005;
          (c) a partnership formed (including a limited partnership incorporated) under the Partnership Regulations 2007; or
          (d) an entity registered as a branch under any regulations.
          Editorial changes (as from 1st January 2016).

        • GENE 2.4.3 Additional requirement for Islamic financial institutions

          (1) An applicant for authorisation that proposes to conduct its business in accordance with Shari’a must state that fact in its application.
          (2) The Regulatory Authority may grant an authorisation as an Islamic financial institution only if the applicant’s constitutional documents require the business to be conducted in accordance with Shari’a.
          (3) If the Authority grants an authorisation as an Islamic financial institution, the Authority must impose on the authorisation a condition that the business must be conducted in accordance with Shari’a.

           

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

      • GENE 2.5 GENE 2.5 Restrictions on Client Money and Insurance Money [deleted]

        Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

        • GENE 2.5.1 GENE 2.5.1 [deleted]

          Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

          • GENE 2.5.1 Guidance [deleted]

            Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

        • GENE 2.5.2 [deleted]

          Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

    • GENE Chapter 3 GENE Chapter 3 General provisions

      Editorial changes (as from 1st January 2016).

      • GENE Part 3.1 GENE Part 3.1 Disclosure of regulatory status

        Editorial changes (as from 1st January 2016).

        • GENE 3.1.1 Regulatory status not to be misrepresented

          An authorised firm must not misrepresent its regulatory status expressly or by implication.

          Amended by QFCRA RM/2015-3 (as from 1st January 2016).

        • GENE 3.1.2 Disclosures that must be in business documents

          (1) An authorised firm must take reasonable care to ensure that all business documents in connection with the carrying on of regulated activities in or from the QFC include 1 of the disclosures in subrule (3).
          (2) The expression "business documents":
          (a) includes, but is not limited to, letterheads, whether issued by post, fax or electronic means, terms of business, client agreements, written financial communications, business cards, prospectuses and websites; but
          (b) does not include compliment slips, account statements or text messages.
          (3) The disclosure required under this rule is:
          (a) "Authorised by the Qatar Financial Centre Regulatory Authority"; or
          (b) "Authorised by the QFC Regulatory Authority".
          (4) The Regulatory Authority logo must only be reproduced with the express written permission of the Regulatory Authority and in accordance with any conditions for use issued from time to time.
          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

      • GENE 3.2 Communication with the Regulatory Authority [Deleted]

        [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 3.3 GENE 3.3 Complaints against the Regulatory Authority [Deleted]

        Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 3.3 Guidance [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE 3.4 GENE 3.4 Registers of Public Information [Deleted]

        Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 3.4 Guidance [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE Part 3.5 GENE Part 3.5 Provision of information

        Editorial changes (as from 1st January 2016).

        • GENE 3.5.1 Certain extracts to be evidence

          An extract of information from the registers maintained by the Regulatory Authority, in relation to any particular authorised firm or approved individual, provided in accordance with FSR, article 18 by the Regulatory Authority, upon application and payment of the prescribed fee, is prima facie evidence of the matters stated in it.

          Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • GENE Chapter 4 GENE Chapter 4 Notice of certain events required

      Amended by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 4.1 GENE 4.1 Application and Purpose [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 4.1.1 GENE 4.1.1 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

          • GENE 4.1.1 Guidance [Deleted]

            [Deleted]

            Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 4.2 GENE 4.2 Provision of Notifications [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 4.2.1 GENE 4.2.1 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

          • GENE 4.2.1 Guidance [Deleted]

            [Deleted]

            Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 4.2.2 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 4.2.3 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 4.2.4 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 4.3 Notice of certain events required [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010). Contents renumbered to form GENE 4.1.1 to 4.1.7.

      • GENE 4.1.1 Notice of changes in certain core details

        (1) An authorised firm must give the Regulatory Authority reasonable notice of at least 10 business days before any proposed change in relation to a matter to which this rule applies.
        (2) If the authorised firm cannot give advance notice of a change in relation to a matter to which this rule applies in accordance with subrule (1), the firm must tell the Regulatory Authority about the change immediately after it becomes aware that the change is to happen or has happened, but by no later than the second business day after the day it becomes aware of the change.
        (3) This rule applies to the following matters:
        (a) the authorised firm's name;
        (b) any business or trading name under which the firm conducts a regulated activity in or from the QFC;
        (c) the address of the firm's principal place of business in the QFC;
        (d) if the firm is a branch — its registered office or head office address;
        (e) the firm's legal structure;
        (f) the name of an approved individual for the firm or any material matter relating to the approved individual's suitability and competence to exercise a controlled function for which the individual is approved.
        Amended by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE 4.1.2 Notice of establishing or closing of branch office by local firm

        A local firm must not establish or close a branch office anywhere in the world from which it proposes to conduct, or conducts, financial services unless it gave notice to the Regulatory Authority of its intention to do so at least 10 business days before the day it establishes or closes the branch office.

        Amended by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE 4.1.3 GENE 4.1.3 Notice of certain significant events

        (1) If an authorised firm becomes aware, or has reasonable grounds to believe, that a matter to which this rule applies has or may have happened, or may be about to happen, the firm must tell the Regulatory Authority about the matter immediately, but within 1 business day.
        Examples — meaning of "within 1 business day"
        1 If, on a business day, the authorised firm becomes aware that a matter to which this rule applies has or may have happened, the firm must tell the authority about it immediately, but on that day.
        2 If, on a day that is not a business day, the authorised firm has reasonable grounds to believe that a matter to which this rule applies may be about to happen, the firm must tell the authority about it immediately, but by no later than the next business day.
        (2) This rule applies to the following matters:
        (a) the authorised firm's failure to satisfy fitness and propriety;
        (b) any matter which could have a significant adverse effect on the authorised firm's reputation;
        (c) any matter in relation to the authorised firm which could result in serious adverse financial consequences to the financial system or to other firms;
        (d) a significant breach of a rule by the authorised firm or any of its employees;
        (e) a significant breach of any requirement imposed by any applicable regulation or other law by the authorised firm or any of its employees;
        (f) any proposed restructuring, merger, acquisition, reorganisation or business expansion which could have a significant impact on the authorised firm's risk profile or resources;
        Example

        material changes in the firm's controllers
        (g) any material deficiency, material weakness or material failure in the firm's internal control functions (within the meaning given by CTRL);
        (h) any action that would result in a material change in the capital adequacy or solvency of the authorised firm;
        (i) a contravention of any rules by the firm because of an emergency outside the firm's control;
        (j) the implementation or planned implementation of major new or revised information technology systems or new technology affecting the firm's business, risk profile or resources.
        Editorial changes (as from 1st January 2016).

        • GENE 4.3.3 Guidance [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 4.1.4 Notice of events relating to fraud etc

        (1) If an event to which this rule applies happens in relation to the activities of an authorised firm that are conducted in or from the QFC, the firm must tell the Regulatory Authority about the event immediately, but within 1 business day after the day the event happens.
        Examples

        See examples to rule 4.1.3(1) on the meaning of "within 1 business day".
        (2) This rule applies to the following events:
        (a) it becomes aware that an employee may have committed a fraud against 1 of its customers;
        (b) a serious fraud has been committed against it;
        (c) it has reason to believe that a person is acting with intent to commit a serious fraud against it;
        (d) it identifies significant irregularities in its accounting or other records, whether or not there is evidence of fraud;
        (e) it suspects that 1 of its employees who is connected with the authorised firm's regulated activities may be guilty of serious misconduct concerning his honesty or integrity.
        Editorial changes (as from 1st January 2016).

      • GENE 4.1.5 Notice of certain events involving other regulators

        (1) If an authorised firm becomes aware of an event to which this rule applies, the firm must tell the Regulatory Authority about the event immediately, but within 1 business day.
        Examples

        See examples to rule 4.1.3(1) on the meaning of "within 1 business day".
        (2) This rule applies to the following events:
        (a) an application by the authorised firm for, or for revocation of, an authorisation (however described) to conduct financial services in any jurisdiction outside the QFC is granted, refused or withdrawn (however described);
        (b) an application by the firm for, or for revocation of, membership of any exchange or clearing house is granted, refused or withdrawn (however described);
        (c) an overseas regulator starts an investigation (however described) into any of the firm's affairs;
        (d) an overseas regulator appoints investigators (however described) to investigate any of the firm's affairs;
        (e) disciplinary measures or sanctions (however described) are imposed on the firm by an overseas regulator, or any exchange or clearing house, in relation to its conduct of financial services.
        Editorial changes (as from 1st January 2016).

      • GENE 4.1.6 Notice of certain action against authorised firm

        (1) If an authorised firm becomes aware of an event to which this rule applies, the firm must tell the Regulatory Authority about the event immediately, but within 1 business day.
        Examples

        See examples to rule 4.1.3(1) on the meaning of "within 1 business day".
        (2) This rule applies to the following events:
        (a) a civil proceeding is brought against the authorised firm and the amount involved is significant in relation to its financial resources or reputation;
        (b) the firm is prosecuted for, or found guilty of, any offence involving fraud or dishonesty;
        (c) a penalty is imposed on the firm for tax evasion.
        Editorial changes (as from 1st January 2016).

      • GENE 4.1.7 Notice of certain insolvency-related events

        (1) If an authorised firm becomes aware of an event to which this rule applies, the firm must tell the Regulatory Authority about the event immediately, but within 1 business day.
        Examples

        See examples to rule 4.1.3(1) on the meaning of "within 1 business day".
        (2) This rule applies to the following events:
        (A) the calling of a meeting to consider a resolution for winding up the authorised firm;
        (B) an application to dissolve the authorised firm or to strike it from the register, maintained by the CRO, or a comparable register in another jurisdiction;
        (C) the presentation of a petition for the winding up of the authorised firm;
        (D) the making of, or any proposals for the making of, a composition or arrangement with creditors of the authorised firm;
        (E) the application of any person for the commencement of any insolvency proceedings, appointment of any receiver, administrator or provisional liquidator under the law of any country.
        Editorial changes (as from 1st January 2016).

      • GENE 4.4 GENE 4.4 Significant Events [effective until 5th December 2009]

        Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.3.

        • GENE 4.4.1 GENE 4.4.1 [effective until 5th December 2009]

          Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.3.

          • GENE 4.4.1 Guidance [effective until 5th December 2009]

            Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.3.

      • GENE 4.5 GENE 4.5 Fraud and Errors [effective until 5th December 2009]

        Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.4.

        • GENE 4.5.1 [effective until 5th December 2009]

          Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.4.

      • GENE 4.6 GENE 4.6 Other Regulators [effective until 5th December 2009]

        Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.5.

        • GENE 4.6.1 [effective until 5th December 2009]

          Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.5.

      • GENE 4.7 GENE 4.7 Action against an Authorised Firm [effective until 5th December 2009]

        Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.6.

        • GENE 4.7.1 [effective until 5th December 2009]

          Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.6.

      • GENE 4.8 GENE 4.8 Winding up, Bankruptcy and Insolvency [effective until 5th December 2009]

        Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.7.

        • GENE 4.8.1 [effective until 5th December 2009]

          Restructured by QFCRA RM02/2009 (as from 6th December 2009) to form GENE 4.3.7.

    • GENE Chapter 4A GENE Chapter 4A Protected reporting

      • GENE Part 4A.1 GENE Part 4A.1 General

        • GENE 4A.1.1 Introductory

          This Chapter provides a framework for making confidential reports about alleged wrongdoing by authorised firms or persons connected with such firms. Protected reporting is often called whistleblowing. The maker of such a report is often (but not necessarily) an employee of the firm concerned.

          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).

        • GENE 4A.1.2 Meaning of protected report and protected reporter

          (1) In this Chapter:
          protected report means a report that meets all of the following requirements:
          (a) it is made in good faith;
          (b) it is about an authorised firm or a person connected with such a firm;
          (c) it is made to the firm itself or an authority or officer specified or referred to in subrule (3);
          (d) if it is made to an authority or officer, the authority or officer is responsible for matters of the kind reported;
          (e) it gives information that the reporter believes shows that any of the following has happened, is happening, or is likely to happen:
          (i) a criminal offence (whether under the law of Qatar or of another jurisdiction);
          (ii) a contravention of a relevant requirement, or a failure to comply with a legal obligation of another kind;

          Note For contravention of a relevant requirement, see FSR, article 84.
          (iii) the endangering of the health and safety of an individual;
          (iv) a breach of an authorised firm's policies and procedures (including, for example, a breach of any code of conduct or policy in relation to ethical behaviour);
          (v) the deliberate concealment of a matter referred to in any of subparagraphs (i) to (iv).

          protected reporter means an individual who makes a protected report.

          Guidance
          Nothing in this Chapter requires that a protected reporter be an employee of the authorised firm about which the report is made.
          (2) For this Chapter, a report is made in good faith only if the individual who made it believes on reasonable grounds that it is true.
          (3) For this Chapter, a report with the characteristics set out in the definition of protected report in subrule (1) is a protected report whether it is made to:
          (a) the authorised firm concerned;
          (b) the Regulatory Authority;
          (c) an officer of the State to whom crimes may be reported under Law No. (23) of 2004, or whose responsibilities include the matters that are referred to in the report; or
          (d) a regulatory or governmental authority, body or agency in a jurisdiction outside the QFC (whether in Qatar or not), including a body or officeholder responsible for enforcing the criminal law of the jurisdiction.
          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).

        • GENE 4A.1.3 Reports to be treated as protected until contrary established

          (1) An authorised firm that receives a report that purports to be a protected report:
          (a) must treat the individual who made the report as a protected reporter; and
          (b) must treat the report as a protected report; until the firm has decided, on the basis of a proper investigation, that the report is not a protected report.
          (2) Subrule (3) applies if an authorised firm becomes aware that an individual has made a report that purports to be a protected report about the firm to an authority or officer specified or referred to in rule 4A.1.2 (3).
          (3) The firm must treat the individual as a protected reporter until the firm establishes that the report is not a protected report.
          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).

      • GENE Part 4A.2 GENE Part 4A.2 Protected reporting policies

        • GENE 4A.2.1 Obligation to have protected reporting policy

          (1) An authorised firm must establish a written policy on protected reporting that:
          (a) is approved by the firm's governing body;
          (b) complies with this Part; and
          (c) is appropriate for the nature, scale and complexity of the firm's business.
          (2) An authorised firm that is a branch, or is a member of a corporate group, may rely on the protected reporting policy of its head office, or a group-wide protected reporting policy, provided that the policy substantially complies with this Part.
          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).

        • GENE 4A.2.2 Content of protected reporting policy

          (1) An authorised firm's protected reporting policy must comply with all of the following requirements:
          (a) it must provide 2 or more independent channels for making a protected report;

          Guidance
          For example, a firm's policy could provide both a dedicated email address and a dedicated telephone number to which reports can be made.

          (b) if appropriate, it must provide for such a report to be made in a language other than English;
          (c) it must recognise that such a report could be made by anybody with the necessary information (not only by an officer or employee);
          (d) it must allow a protected report to be made anonymously;
          (e) it must provide for the identity of a protected reporter to be kept confidential (so far as possible);

          Guidance
          The Regulatory Authority recognises that the investigation of a protected report may reveal the identity of a protected reporter or make it possible to infer it.
          (f) it must provide for reasonable measures to protect a protected reporter, anyone who assists in investigating a protected report, and anyone who cooperates with the investigation, against retaliation;
          (g) it must explicitly recognise a protected reporter's right (and, in certain cases, obligation) to report to or communicate with the Regulatory Authority, another regulator or an authority of the State;

          Note 1 Under the Criminal Procedures Code of the State (Law No. (23) of 2004), article 32, a person who has knowledge of certain crimes must report it to the State Prosecutor's Office or a judicial commissioner.

          Note 2 For the firm's obligation to cooperate with the Regulatory Authority, see rule 1.2.14.
          (h) it must provide a suitable set of guiding principles, and clear procedures, for the assessment, investigation and escalation of a protected report;
          (i) it must provide for the investigation of a protected report to be independent of the individual or business unit concerned;

          Guidance
          This could include making arrangements for the investigation to be done by a third party.
          (j) it must provide for a protected report to be acknowledged, and for the protected reporter who made it to be kept informed (to the extent that is appropriate in the circumstances) about the progress and outcome of the investigation;
          (k) it must provide for the reporting, monitoring and investigation of retaliation, attempts at retaliation and threats of retaliation;
          (l) it must provide for retaliation, an attempt at retaliation, or a threat of retaliation to be treated as gross misconduct;
          (m) it must provide for appropriate reporting to the firm's governing body and the Regulatory Authority about protected reports, the investigation of such reports and the outcome of the investigations.
          (2) The firm must set out the policy clearly in a document, and must ensure that all of the firm's officers and employees have access to, and understand, the document.
          (3) The document must also clearly set out statements of:
          (a) the benefits to the firm of the protected reporting policy; and
          (b) the firm's commitment to it.
          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).

        • GENE 4A.2.3 Implementation of protected reporting policy

          (1) The senior management of an authorised firm must ensure that the firm's protected reporting policy is fully implemented.
          (2) In particular, the firm's senior management must take reasonable steps to ensure that a protected reporter, anyone who assists in investigating a protected report, and anyone who cooperates in the investigation, are protected against retaliation.

          Note Under the Employment Regulations of the QFC, article 16, a person "...who in good faith raises concerns about or reports crimes, contraventions (including negligence, breach of contract, breach of law or requirements), miscarriages of justice, dangers to health and safety or the environment and the cover up of any of these by their Employer shall not be dismissed or otherwise penalised directly or indirectly for such acts, including in respect of any prohibition against disclosure of nonpublic information.".

          Guidance
          1 Retaliation or an attempt at retaliation against an employee who has made a report referred to in the Employment Regulations, article 16, would therefore be a contravention of a legal requirement (see rule 4A.1.1 (1), definition of protected report, paragraph (e) (ii)), and could itself be the subject of a protected report.
          2 Also, see FSR, article 84 (1) (B) — retaliation against such an employee would contravene article 16 of the Employment Regulations, thus is a contravention of a relevant requirement, and could therefore give rise to disciplinary or enforcement action under FSR, Part 9.
          3 However, article 16 protects only employees; this Chapter requires anybody who makes a protected report to be protected against retaliation.
          (3) An authorised firm must nominate an appropriately senior individual to oversee the implementation of the firm's protected reporting policy.

          Guidance
          The individual nominated need not be an employee or even a board member, but could for example be a legal adviser in an outside law firm.
          (4) An authorised firm that receives a protected report must notify the Regulatory Authority within 5 business days.
          (5) An authorised firm's governing body must ensure that the firm's protected reporting policy is reviewed at least once every 3 years by:
          (a) the firm's internal auditor; or
          (b) an independent and objective external reviewer.
          (6) An authorised firm must provide regular training for all of its officers and employees on its protected reporting policy and the applicable procedures. In particular, the firm must provide appropriate specialist training for the officers and employees who are responsible for key elements of the policy.
          (7) An authorised firm may outsource the implementation of its protected reporting policy. If the firm does so, it must ensure that the outsourcing agreement:
          (a) nominates the individual referred to in subrule (3); and
          (b) otherwise provides appropriately for the implementation of the firm's obligations under the policy.
          Inserted by QFCRA RM/2018-3 (as from 1st May 2018).
          Amended by QFCRA RM/2021-1 (as from 1st July 2021)

    • GENE Chapter 5 GENE Chapter 5 Communications to Regulatory Authority

      Amended by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE Part 5.1 GENE Part 5.1 Communications to Regulatory Authority — general provisions

        Amended by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 5.1.1 GENE 5.1.1 Communications to Regulatory Authority must generally be in writing

          (1) This rule applies if a person is required or permitted under any law, regulations or rules to give any information (however described), or make another communication, to the Regulatory Authority.

          Examples of application of rule
          1 a person is permitted under any rules to make any application or request, or to give any election, to the authority
          2 a person is required under any regulations to give the authority any certificate, declaration, notice, return or statement of opinion or belief
          3 a person is required under any rules to notify or tell the authority about something
          (2) The person must give the information, or make the other communication, to the Regulatory Authority in writing unless:
          (a) the information or communication is required or permitted under any law, regulations or rules to be given or made to it in another way; or
          (b) the authority, whether under this subrule or otherwise, requires or permits the person to give the information, or make the communication, to it in another way.
          Note See especially rule 5.1.3 (Giving documents to Regulatory Authority — general requirements) and rule 5.4.1 (Electronic submission system).
          (3) A requirement or permission under subrule (2) (b) may be imposed or given either:
          (a) generally or otherwise by written notice published on an approved website; or
          (b) by notice given to the person in relation to the giving of particular information, or the making of a particular communication, to the Regulatory Authority by the person.
          (4) A permission under subrule (2) (b) may be given subject to conditions.
          (5) If the person gives the information, or makes the other communication, to the Regulatory Authority in contravention of:
          (a) this rule;
          (b) a requirement made under this rule; or
          (c) a condition of a permission given under this rule;
          then, for the purpose of satisfying any requirement to give the information or make the other communication to the authority, the person is taken not to have given the information or made the other communication to the authority.
          (6) Without limiting subrule (5) and any other remedies available to the Regulatory Authority in relation to that contravention, the authority may require the person to give the information or make the communication to it in accordance with this rule (including any requirement or condition under this rule) within a stated time.
          (7) The person must comply with a requirement under subrule (6).
          Editorial changes (as from 1st January 2016).

          • GENE 5.1.1 Guidance [Deleted]

            [Deleted]

            Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 5.1.2 Communications to Regulatory Authority must generally be in English

          (1) This rule applies if a person is required or permitted under any law, regulations or rules to give any information (however described), or make another communication, to the Regulatory Authority.

          Examples of application of rule

          See examples of application of rule 5.1.1.
          (2) The person must give the information, or make the other communication, to the Regulatory Authority in English unless:
          (a) the information or communication is required or permitted under any law, regulations or rules to be given or made to it in another language; or
          (b) the authority, whether under this subrule or otherwise, requires or permits the person to give the information, or make the communication, to it in another language.
          Note See especially rule 5.1.3 (Giving documents to Regulatory Authority — general requirements) and rule 5.4.1 (Electronic submission system).
          (3) A requirement or permission under subrule (2) (b) may be imposed or given either:
          (a) generally or otherwise by written notice published on an approved website; or
          (b) by notice given to a person in relation to the giving of particular information, or the making of a particular communication, to the Regulatory Authority by the person.
          (4) A permission under subrule (2) (b) may be given subject to conditions.
          (5) If a person gives the information, or makes the other communication to the Regulatory Authority, in contravention of:
          (a) this rule;
          (b) a requirement made under this rule; or
          (c) a condition of a permission given under this rule;
          then, for the purpose of satisfying any requirement to give the information or make the other communication to the authority, the person is taken not to have given the information or made the other communication to the authority.
          (6) Without limiting subrule (5) and any other remedies available to the Regulatory Authority in relation to that contravention, the authority may require the person to give the information or make the communication to it in accordance with this rule (including any requirement or condition under this rule) within a stated time.
          (7) The person must comply with the requirement under subrule (6).
          Editorial changes (as from 1st January 2016).

        • GENE 5.1.3 Giving documents to Regulatory Authority — general requirements

          (1) This rule applies if a person is required or permitted under any law, regulations or rules to give a document (however described) to the Regulatory Authority, whether the word "give", "lodge", "serve", "tell" or some other word is used.

          Note A "document" includes anything in writing (see INAP, glossary, def document).
          (2) To remove any doubt, this rule applies in relation to a document (including a document in electronic form) if it includes or contains information (however described), or another communication, that a person is required or permitted under any law, regulations or rules to give or make to the authority.

          Example

          See examples of application of rule 5.1.1.
          (3) The Regulatory Authority may, by written notice published on an approved website:
          (a) prescribe requirements (including requirements mentioned in subrule (4)) that must be complied with in relation to the giving of a document to the authority (the lodgement requirements); and
          (b) provide that stated requirements applying to the document under any rules are taken to be satisfied if the lodgement requirements are satisfied in relation to the document.

          Examples of requirements for paragraph (b)
          1 a requirement that information be given to the authority in writing
          2 a requirement that a document be signed by a particular person or in a particular way
          3 a requirement that a document or information in a document be verified in a particular way
          (4) Without limiting subrule (3) (a), a notice under that provision may:
          (a) require a document to be given to the Regulatory Authority in a stated way or form;
          (b) require a stated person or persons to sign the document;
          (c) require a person who is required or permitted to sign a document to sign and keep the signed document and to give a copy of the signed document in any form (including electronic form) to the Regulatory Authority;
          (d) require a person who is required or permitted to sign a document, to give a declaration or certificate (however described) in or with a document, or to verify (however described) a document or any information in or with a document, to take stated steps:
          (i) to confirm his or her identity; or
          (ii) to indicate the person's agreement to, and acceptance of responsibility for the accuracy and completeness (however described) of, the document, information in the document, or any other document (or information in any other document); or
          (e) prescribe consequential or ancillary requirements in relation to the document or the giving of the document to the authority.
          (5) The Regulatory Authority may permit a person to give a document to the authority even though a lodgement requirement has not (or may not have) been complied with in relation to the document.
          (6) A permission under subrule (5) may be given subject to conditions.
          (7) If a person gives a document to the Regulatory Authority in contravention of:
          (a) a lodgement requirement (and without a permission under subrule (5)); or
          (b) a condition of a permission given under that subrule;
          then, for the purpose of satisfying any requirement to give the document to the authority, the person is taken not to have given the document to the authority.
          (8) Without limiting subrule (7) and any other remedies available to the Regulatory Authority in relation to that contravention, the authority may require the person to give the document to the authority in accordance with any requirement or condition under this rule within a stated time.
          (9) The person must comply with the requirement under subrule (8).
          Editorial changes (as from 1st January 2016).

        • GENE 5.1.4 Time documents are taken to have been given to Regulatory Authority

          (1) If a document (however described) is given to the Regulatory Authority on a working day before the start of or during ordinary business hours on that day, the document is taken, for any rules, to have been given to the authority on that day.
          (2) If a document (however described) is given to the Regulatory Authority on a day that is not a working day or on a working day after ordinary business hours on that day, the document is taken, for any rules, to have been given to the authority on the next working day.
          (3) For this chapter, the Regulatory Authority may, by written notice published on an approved website, declare:
          (a) that a stated day is or is not a working day; or
          (b) that stated times on a day are ordinary business hours on that day.
          (4) Subject to any notice made under subrule (3), in this rule:

          ordinary business hours, on a day, means between 8 am and 5 pm on that day.

          working day means a business day.
          Editorial changes (as from 1st January 2016).

        • GENE 5.1.5 Due date for periodic reports, returns and other documents

          (1) If:
          (a) an authorised firm is required under any rules to give a report, return or other document (however described) to the Regulatory Authority periodically; and
          (b) the firm would, apart from this rule, be required to give a particular report, return or other document of that kind to the authority on a day that is not a working day;
          the firm may give the report, return or other document to the authority on the next working day.
          (2) The Regulatory Authority may, by written notice published on an approved website, declare that a report, return or other document (however described) is a report, return or other document to which this rule applies.
          (3) Subject to any notice made under rule 5.1.4 (3) (a) (Time documents are taken to have been given to Regulatory Authority), in this rule:

          working day means a business day.
          Amended by QFCRA RM 2019-1 (as from 28th March 2019).

      • GENE Part 5.2 GENE Part 5.2 Communications to Regulatory Authority — accuracy and completeness of information

        Amended by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 5.2.1 Authorised firms must ensure accuracy and completeness of information given to Regulatory Authority etc

          (1) An authorised firm or other person must take all reasonable steps to ensure that all information that the person gives to the Regulatory Authority under any law, regulations or rules is:
          (a) factually accurate or, for an estimate or judgment, fairly and properly based after appropriate inquiries have been made; and
          (b) complete, in that it includes everything that the authority would reasonably expect to be told about.
          (2) Without limiting subrule (1), the authorised firm or other person must take particular care to ensure that information that the person gives to the Regulatory Authority:
          (a) is not false or misleading; and
          (b) does not omit anything without which the information is false or misleading.
          (3) If the authorised firm or other person becomes aware that, or becomes aware of information that suggests (or may reasonably suggest) that, information given (or that may have been given) by it to the Regulatory Authority:
          (a) was (or may have been) factually inaccurate or, for an estimate or judgment, not fairly or properly based after appropriate inquiries had been made;
          (b) was (or may have been) incomplete, in that it did not (or may not) include something that the authority would reasonably expect to be told about;
          (c) was (or may have been) false or misleading;
          (d) omitted (or may have omitted) something without which the information was (or may have been) false or misleading;
          (e) was (or may have been) otherwise inaccurate or incomplete; or
          (f) is no longer (or may no longer be) accurate and complete for any reason;
          the person must tell the authority about the matter immediately, but within 1 business day.

          Examples

          See examples to rule 4.1.3 (1) on the meaning of "within 1 business day".
          (4) Without limiting subrule (3), the notification under that subrule must:
          (a) identify:
          (i) the information given (or that may have been given) by the authorised firm or other person to the Regulatory Authority; and
          (ii) the particulars in which:
          (A) it was (or may have been) inaccurate or incomplete; or
          (B) it is (or may) now be inaccurate or incomplete;
          (b) explain why those particulars of the information were (or may have been) given to the authority; and
          (c) provide the correct and complete, or correct and complete upto-date, information.
          (5) An authorised firm must:
          (a) have adequate and appropriate policies, procedures, systems and controls to ensure that it can comply, and does comply, with this rule; and
          (b) make and keep the records necessary to show how it complied with this rule in relation to all information (however described) given by it to the Regulatory Authority.
          (6) A person (other than an authorised firm, but including a person acting on behalf of an authorised firm) who gives information (however described) to the Regulatory Authority under any law, regulations or rules must make and keep the records necessary to show how the person complied with this rule in relation to the information.
          (7) For this rule and without limiting the persons who may give information to the Regulatory Authority on behalf of an authorised firm, any information given to the authority by an approved individual or director of the firm is taken to have been given to the authority by the firm.
          (8) This rule is additional to, and does not limit, any other provision of these rules or any other rules (including CTRL).
          Editorial changes (as from 1st January 2016).

        • GENE 5.2.2 GENE 5.2.2 Powers of Regulatory Authority in relation to inaccurate or incomplete information

          (1) This rule applies if the Regulatory Authority considers that information (however described) given to it by an authorised firm or another person under any law, regulations or rules:
          (a) is (or may be) factually inaccurate or, for an estimate or judgment, not fairly or properly based after appropriate inquiries had been made;
          (b) is (or may be) incomplete, in that it does not (or may not) include something that the authority would reasonably expect to be told about;
          (c) is (or may be) false or misleading;
          (d) omitted (or may have omitted) something without which the information is (or may be) false or misleading;
          (e) is otherwise (or may otherwise be) inaccurate or incomplete; or
          (f) is no longer (or may no longer be) accurate and complete for any reason.
          (2) The Regulatory Authority may, by written notice given to the authorised firm or other person, require the person to do all or any of the following within the period stated in the notice:
          (a) give the authority an explanation or further information;
          (b) provide the correct and complete, or correct and complete upto- date, information;
          (c) if the information is included in an application, report, return or other document (however described) all or any of the following:
          (i) amend the document;
          (ii) withdraw the document;
          (iii) give the authority a replacement document;
          (d) do anything else in relation to the information, or a document that includes the information, that the authority considers necessary or desirable for the exercise of its functions;
          (e) comply with the authority's directions in doing anything mentioned in paragraphs (a) to (d).
          (3) The authorised firm or other person must comply with a requirement under subrule (2).
          (4) To remove any doubt, the Regulatory Authority may give the authorised firm or other person 2 or more notices under subrule (2).
          (5) The power given by this rule is additional to the Regulatory Authority's other powers.

          Note See for example FSR, article 48 (Power to obtain documents and information).
          (6) This rule does not limit any other action that the Regulatory Authority may take against the authorised firm or other person (or anyone else) in relation to the giving of the information to the authority.

          Note See for example FSR, Part 9 (Disciplinary and enforcement powers).
          Editorial changes (as from 1st January 2016).

          • GENE 5.2.2 Guidance [Deleted]

            [Deleted]

            Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE Part 5.3 GENE Part 5.3 Approved forms

        Amended by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 5.3.1 Approval of forms etc

          (1) The Regulatory Authority may:
          (a) approve forms for any purpose under or related to any law, regulations or rules; and
          (b) give instructions for the completion of approved forms.
          (2) To remove any doubt, instructions for the completion of an approved form may be given under subrule (1) (b) in the form itself or in a separate document.
          (3) Forms approved, and instructions given, under subrule (1) must be published on an approved website.
          Editorial changes (as from 1st January 2016).

        • GENE 5.3.2 Approved forms to be used and properly completed

          (1) If a form is approved under rule 5.3.1 for a particular purpose, a person must:
          (a) use the form for that purpose unless the Regulatory Authority permits the person not to use the form for the purpose; and
          (b) properly complete the form in accordance with rule 5.3.3.
          (2) If the person does not use the form for that purpose or does not properly complete the form in accordance with rule 5.3.3, the purpose is taken not to be satisfied.

          Example

          If a person makes an application to the Regulatory Authority but does not use the form approved under rule 5.3.1 for the application, or uses the form but does not properly complete it in accordance with rule 5.3.3, the authority may treat the application as having not been made to it and accordingly refuse to consider it.
          (3) A permission under subrule (1) (a) may be given subject to conditions.
          (4) Without limiting subrule (2), if:
          (a) a person is required or permitted under any law, regulations or rules to give an application, report, return or other document (however described) to the Regulatory Authority;
          (b) a form is approved under rule 5.3.1 for the document; and
          (c) the person gives the document to the authority; but
          (d) any of the following applies:
          (i) the person does not use the approved form (and does not have a permission under subrule (1) (a));
          (ii) the person does not properly complete the form in accordance with rule 5.3.3;
          (iii) a permission under subrule (1) (a) applies, but the person contravenes a condition of the permission;
          then, for the purpose of satisfying any requirement to give the document to the authority, the person is taken not to have given the document to the authority unless the authority waives the requirement.
          (5) Without limiting subrule (4) and any other remedies available to the Regulatory Authority in relation to the contravention of subrule (1), the authority may require the person to give the document to the authority within a stated time using, and properly completing, the approved form.
          (6) The person must comply with the requirement under subrule (5).
          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

        • GENE 5.3.3 Proper completion of approved forms

          (1) This rule applies if a form approved by the Regulatory Authority under rule 5.3.1, or instructions given by the Regulatory Authority under that rule in relation to a form approved by the authority, require:
          (a) the form to be signed, signed in a stated way or signed by a stated person or persons;
          (b) the form to be prepared in a stated way (for example, on paper of a stated size or quality or in a stated electronic form);
          (c) the form to be completed in a stated way;
          (d) stated information to be included in the form, or in a stated document to be attached to or given with the form;
          (e) a stated document to be attached to or given with the form;
          (f) the form, information or a document to be verified in a stated way (for example, by a declaration or certificate); or
          (g) another requirement to be satisfied.
          (2) The form is properly completed only if the requirement is complied with unless the Regulatory Authority waives the non-compliance.
          (3) Without limiting subrule (2), if the form is required to be signed by 2 or more persons, the requirement is not complied with (and the form is not properly completed) if the form is not signed by each of those persons.
          (4) Without limiting subrule (2), if stated information is required to be included in the form, or in a stated document to be attached to or given with the form, the requirement is not complied with (and the form is not properly completed) if:
          (a) the information is not included in the form or document at all; or
          (b) the information that is included:
          (i) is factually inaccurate in a material particular or, for an estimate or judgment, not fairly or properly based after appropriate inquiries have been made;
          (ii) is incomplete in a material particular;
          (iii) is false or misleading in a material particular;
          (iv) omits something without which the information is false or misleading in a material particular; or
          (v) is otherwise inaccurate or incomplete in a material particular.
          (5) Without limiting subrule (2), if a stated document is required to be attached to or given with the form, the requirement is not complied with (and the form is not properly completed) if:
          (a) the document is not attached to or given with the form at all; or
          (b) the document is attached to or given with the form but:
          (i) the document itself is false or misleading in a material particular; or
          (ii) the document includes information of a kind mentioned in subrule (4) (b) (i) to (v).
          (6) A decision by the Regulatory Authority under subrule (2) to waive non-compliance with a requirement may be made subject to conditions.
          (7) If a condition is contravened, the requirement is not complied with (and the form is not properly completed).
          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

        • GENE 5.3.4 Transitional provisions — approved forms and instructions [Deleted]

          Deleted by QFCRA RM/2017-3 (as from 1st April 2017).

        • GENE 5.3 Guidance [Deleted]

          Deleted by QFCRA RM02/2009 (as from 6th December 2009).

      • GENE Part 5.4 GENE Part 5.4 Electronic submission system

        Inserted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 5.4.1 Electronic submission system

          (1) The Regulatory Authority may establish a system (the electronic submission system) to enable authorised firms and other persons to communicate to it electronically and, in particular, to give it documents and information in electronic form that can be reproduced by it in legible form.
          (2) The Regulatory Authority may, by written notice published on an approved website:
          (a) require or permit authorised firms and other persons (each of which is a permitted user) to make stated communications to it using the electronic submission system;
          (b) require stated communications to the authority on behalf of a permitted user to be submitted by a stated person or persons;

          Example of requirement

          If the permitted user is an authorised firm, particular communications to the authority may be required to be submitted by an approved individual for, or director of, the firm.
          (c) issue instructions (access instructions) in relation to the provision of access to the system for individuals who are to use the system on behalf of permitted users, including, for example, instructions in relation to:
          (i) the nomination of individuals to the Regulatory Authority by permitted users;
          (ii) the acceptance of nominated individuals by the authority; and
          (iii) the withdrawal of nominations by permitted users; and
          (d) issue instructions (usage instructions) about access to and use of the system, including, for example, instructions that the authority considers necessary or desirable to maintain the integrity and security of the system or confidence in its integrity and security.
          (3) An individual using the electronic submission system must not contravene any of the usage instructions.
          (4) A permitted user of the electronic submission system must take all reasonable steps to ensure:
          (a) that it nominates only suitable individuals to the Regulatory Authority to have access to the system;
          (b) that only individuals who are nominated by it, and accepted by the authority as users, have access to the system on its behalf;
          (c) that individuals who have access to the system on its behalf do not contravene the usage instructions or otherwise use the system improperly; and
          (d) that it and its directors, officers, employees, agents and contractors do not do, or fail to do, anything that compromises, or could reasonably compromise, the integrity or security of the system or confidence in its integrity or security.
          (5) An authorised firm that is a permitted user of the electronic submission system must:
          (a) have adequate and appropriate policies, procedures, systems and controls to ensure that it can comply, and does comply, with subrule (4); and
          (b) make and keep the records necessary to show how it complied with that subrule.
          (6) A person (other than an authorised firm) who is a permitted user of the electronic submission system must make and keep the records necessary to show how it complied with subrule (4).
          (7) If a communication is made to the Regulatory Authority using access to the electronic submission system provided to a permitted user (including to any individual nominated by the permitted user and accepted by the authority as a user), then, whether or not the communication was made by or on behalf of the permitted user:
          (a) the permitted user is taken to have made the communication to the authority; and
          (b) for the purposes of the FSR and any rules — is taken to have made the communication to the authority in writing and to have signed (and, if necessary, sealed, stamped or otherwise executed) the communication.
          Note See FSR, article 108 (1) (D) and article 109 (1) (F).
          (8) However, subrule (7) does not apply to the communication if the permitted user satisfies the Regulatory Authority that:
          (a) the communication was not made by it (or by any person on its behalf or with its approval or permission);
          (b) it complied fully with subrules (4) and (5);
          (c) the making of the communication was not caused or contributed to by a contravention of any of the usage instructions by an individual nominated by it for this rule (other than an individual whose nomination had been withdrawn in accordance with the access instructions); and
          (d) it informed the authority that it had not made the communication immediately after becoming aware of it, but within 1 business day.

          Examples for rule (8) (d) and rule (10) (c)

          See examples to rule 4.1.3 (1) on meaning of "within 1 business day".
          (9) If a communication is made to the Regulatory Authority using access to the electronic submission system provided to an individual nominated by a permitted user for this rule, then, whether or not the communication was made by or on behalf of the individual:
          (a) the individual is taken to have made the communication to the authority; and
          (b) for the purposes of the FSR and any rules — is taken to have made the communication to the authority in writing and to have signed (and, if necessary, otherwise executed) the communication.
          (10) However, subrule (9) does not apply to the communication if the individual satisfies the Regulatory Authority that:
          (a) the communication was not made by the individual (or by any person on the individual's behalf or with the individual's approval or permission);
          (b) the making of the communication was not caused or contributed to by a contravention by the individual of any of the usage instructions; and
          (c) the individual informed the permitted user and the authority that the individual had not made the communication immediately after becoming aware of it, but within 1 business day.
          (11) A communication made to the Regulatory Authority using the electronic submission system is taken to have been made to the authority at the time it is received by the authority, but subject to rule 5.1.4 (Time documents are taken to have been given to Regulatory Authority).
          (12) This rule is additional to, and does not limit, rule 5.1.3 (Giving documents to Regulatory Authority — general requirements), any other provision of these rules or any other rules (including CTRL).
          Editorial changes (as from 1st January 2016).

    • GENE Chapter 5A GENE Chapter 5A Giving of written notices by Regulatory Authority

      • GENE Part 5A.1 GENE Part 5A.1 Application

        • GENE 5A.1.1 Application of Chapter 5A

          (1) This Chapter sets out how the Regulatory Authority may give a person any written notice that the FSR require the authority to give the person.

          Note In the FSR, "writing" includes any form of representing or producing words in legible form — see FSR, article 109 (1) (F).
          (2) Nothing in this Chapter applies in relation to the publication of a statement required or permitted by the FSR.

          Note The Regulatory Authority is required or permitted to publish statements by FSR, articles 15, 16, 17, 18, 58, 59 and 79.
          Editorial changes (as from 1st January 2016).

      • GENE Part 5A.2 GENE Part 5A.2 Rules about giving written notices

        • GENE 5A.2.1 How written notices may be given

          (1) Where the Regulatory Authority is required to give a person a written notice, the authority may do so by any means that the authority reasonably believes will bring the notice to the person's attention.
          (2) In particular, and without limiting subrule (1), the authority may give a person a written notice:
          (a) personally;
          (b) electronically; or
          (c) by post.
          Editorial changes (as from 1st January 2016).

        • GENE 5A.2.2 Giving written notices personally

          (1) A written notice is given to a person (the intended recipient) personally if:
          (a) where the intended recipient is an individual — it is given to him or her directly;
          (b) where the intended recipient is not an individual — it is given to an individual who is a member, or an employee or representative, of the intended recipient;
          (c) it is given to another person (for example, a solicitor) who the intended recipient has nominated to receive the notice; or
          (d) it is left at the intended recipient's principal place of business or place of residence last notified to the authority.
          (2) If a written notice is left at the intended recipient's principal place of business or place of residence, it is given to the intended recipient personally for this rule if:
          (a) it is given to a person at the place who is:
          (i) apparently 16 years old or older;
          (ii) apparently employed at the place or resident at the place, as the case requires; and
          (iii) apparently capable of ensuring that the intended recipient receives it; or
          (b) it is otherwise left at the place in such a way that it can reasonably be expected to come to the intended recipient's attention.
          Editorial changes (as from 1st January 2016).

        • GENE 5A.2.3 Giving written notices electronically

          (1) A written notice is given to a person (the intended recipient) electronically if the notice is sent electronically to:
          (a) the intended recipient's fax number or email address notified to the Regulatory Authority; or
          (b) if there is no such fax number or email address — any other electronic address at which the authority reasonably believes that the notice will come to the intended recipient's attention.
          (2) For subrule (1), a written notice is sent electronically if the notice:
          (a) is incorporated in or attached to an email message;
          (b) is sent by fax; or
          (c) is placed on a website where the intended recipient:
          (i) is able to have access to it; and
          (ii) is likely to become aware of it.
          (3) In this rule:

          electronic address means:
          (a) a fax number;
          (b) an email address; or
          (c) a person's user identity on an electronic communication facility (for example, a social networking website).
          Editorial changes (as from 1st January 2016).

        • GENE 5A.2.4 Giving written notices by post

          (1) A written notice is given to a person by post if the notice is properly pre-paid, posted and addressed to:
          (a) the person's post office box notified to the Regulatory Authority; or
          (b) if there is no such post office box — to any other post office box, or any other address, at which the authority reasonably believes that the notice will reach the person.
          Amended by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 5A.2.5 When written notice is taken to have been given

          (1) If a written notice is given to a person electronically during working hours, the person is taken to have been given the notice on the day on which the notice was sent.
          (2) If a written notice is given to a person electronically outside working hours, the person is taken to have been given the notice at 8 am on the next business day after it was sent.
          (3) If a written notice is given by post to a person who is normally resident in the State, the person is taken to have been given the notice on the 3rd working day after the notice is posted.
          (4) If a written notice is given by post to a person who is not normally resident in the State, the person is taken to have been given the notice on the 5th business day after the notice is posted.
          (5) In this rule:

          business day:
          (a) in a place that is in the State, has the meaning given by INAP; and
          (b) in a place that is not in the State, means a day on which banks are open for business.
          Editorial changes (as from 1st January 2016).

    • GENE Chapter 6 GENE Chapter 6 Recordkeeping

      Editorial changes (as from 1st January 2016).

      • GENE Part 6.1 GENE Part 6.1 General recordkeeping requirement

        Amended by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 6.1.1 Records that must be kept — general requirement

          An authorised firm must maintain appropriate records of:

          (a) matters and dealings, including accounting records;
          (b) policies and procedures; and
          (c) other documentation;

          which are required under regulations or rules applicable in the QFC.

          Note FSR, article 107 (2) provides that "all internal procedures, records or other documentation created or maintained by authorised firms or approved individuals as the Regulatory Authority shall determine shall be in English.".
          Amended by QFCRA RM 2019-1 (as from 28th March 2019).

      • GENE Part 6.2 GENE Part 6.2 Maintenance of Records

        • GENE 6.2.1A Application of s 6.2

          To remove any doubt, this Part applies to records that an authorised firm is required to keep (however described) under any regulations or rules.

          Editorial changes (as from 1st January 2016).

        • GENE 6.2.1 Reproduction of records on paper

          An authorised firm must ensure records, however stored, are capable of reproduction on paper within a reasonable period not exceeding 3 days.

          Editorial changes (as from 1st January 2016).

        • GENE 6.2.2 How records must be kept

          In maintaining records, an authorised firm must have regard to any requirements for preservation, confidentiality, security and the frequency and ease of access required to records.

          Amended by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 6.2.3 General requirement for records to be kept in English

          subject to rule 6.2.4, an authorised firm must ensure records are maintained in the English language.

          Editorial changes (as from 1st January 2016).

        • GENE 6.2.4 Keeping records in other languages

          Where records relate to an authorised firm's activities not related to regulated activities in or from the QFC, the authorised firm may maintain those records in another language. If those records are requested by the Regulatory Authority they must be reproduced in English within a reasonable period not exceeding 7 days.

          Editorial changes (as from 1st January 2016).

        • GENE 6.2.5 Certified copies for original records

          (1) If original documents cannot be maintained, copies may be kept, provided they are duly certified copies of the original documents.
          (2) A document in subrule (1) must be certified by:
          (a) in the case of a document created or issued by the authorised firm itself, a director or secretary of the authorised firm;
          (b) in the case of a document issued by a public body responsible for the maintenance of the original document, a person properly authorised by that public body; or
          (c) in any other case, a person duly authorised to certify official documents in the jurisdiction in which the copy is being certified.
          Editorial changes (as from 1st January 2016).

        • GENE 6.2.6 How long records and documents must be kept — general requirement

          Unless otherwise stated in a specific provision, records and documents must be maintained by the authorised firm for at least 6 years.

          Editorial changes (as from 1st January 2016).

        • GENE 6.2.7 Records of firms formerly authorised

          (1) This rule applies to an authorised firm:
          (a) that has applied for its authorisation to be withdrawn in relation to all regulated activities; or
          (b) that has been given notice under FSR, article 31 (2) (C), that the Regulatory Authority has withdrawn the firm's authorisation, or varied it to remove all regulated activities.
          (2) Before the authorisation ceases to be in effect, the firm must make arrangements satisfactory to the Regulatory Authority:
          (a) for the storage and safe-keeping, for at least 6 years after the authorisation ceases to be in effect, of the firm's records in relation to its regulated activities; and
          (b) providing for those records to be produced to the authority within a reasonable period, at the authority's request, during the 6-year period.
          Inserted by QFCRA RM/2017-3 (as from 1st April 2017).

      • GENE 6.3 GENE 6.3 Summary of Record Keeping Requirements [Deleted]

        Deleted by QFCRA RM02/2009 (as from 6th December 2009).

        • GENE 6.3 Guidance [Deleted]

          Deleted by QFCRA RM02/2009 (as from 6th December 2009).

    • GENE Chapter 7 GENE Chapter 7 Waivers and modifications

      Editorial changes (as from 1st January 2016).

      • GENE 7.1 GENE 7.1 Application [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.2 GENE 7.2 Application to Waive or Modify Rules [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010). Contents renumbered to form GENE 7.1.1.

        • GENE 7.2.2 [restructured effective 1st October 2010]

          Restructured by QFCRA RM/2010-04 (as from 1st October 2010) to form subrule GENE 7.1.1.

        • GENE 7.2.3 [restructured effective 1st October 2010]

          Restructured by QFCRA RM/2010-04 (as from 1st October 2010) to form subrule GENE 7.1.1.

      • GENE 7.1.1 GENE 7.1.1 Application for waiver or modification of provisions of rules

        An application under FSR, article 16 (Waiver or modifications of Rules) must include:

        (a) the applicant's name and QFC number;
        (b) the provisions of the rules to which the application relates;
        (c) a clear explanation of the waiver or modification sought and why it is sought;
        (d) details of any requirements for the waiver or modification sought and the reasons for them;

        Example of requirements

        the waiver or modification is required for a particular, stated period
        (e) any reasons why the applicant requests that the waiver or modification notice should not be published or should be published without disclosing the applicant's identity or the confidential or proprietary nature of stated information; and
        (f) all relevant facts to support the application.

        Note 1 An application may be made by "a person in the QFC" for example an authorised firm.

        Note 2 For the matters about which the Regulatory Authority must be satisfied before giving a waiver or modification notice, see FSR, article 16 (2).

        Note 3 For the publication, revocation and variation of waiver and modification notices, see FSR, article 16 (4) to (6).
        Editorial changes (as from 1st January 2016).

        • GENE 7.1.1 Guidance

          Guidance

          1 An applicant for a waiver or modification may withdraw the application at any time up to when the application is decided. The applicant should give reasons for the withdrawal of the application.
          2 If a provision of the rules is modified in its application to a person, contravention by the person of the provision as modified may be a contravention of a Relevant Requirement under the FSR (see article 84).
          3 If a waiver or modification notice is given to a person subject to a condition, contravention of the condition may also be a contravention of a relevant requirement under the FSR.
          Editorial changes (as from 1st January 2016).

      • GENE 7.1.2 GENE 7.1.2 Notice of material change in circumstances — applicant for waiver etc

        If an applicant for a waiver or modification under FSR becomes aware of any material change in circumstances that may affect the Regulatory Authority's decision on the application, the applicant must tell the authority about the change immediately, but within 1 business day.

        Examples

        See examples to rule 4.1.3(1) on the meaning of "within 1 business day".
        Editorial changes (as from 1st January 2016).

        • GENE 7.2.4 Guidance [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.1.3 Notice of material change in circumstances — person with waiver etc

        If a waiver or modification under FSR applies to a person and the person becomes aware of any material change in circumstances that may affect the continuing relevance of the waiver or modification, the person must tell the Regulatory Authority about the change immediately but within 1 business day.

        Examples

        See examples to rule 4.1.3 (1) on the meaning of "within 1 business day".
        Editorial changes (as from 1st January 2016).

      • GENE 7.3 GENE 7.3 Procedure on Receipt of an Application [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 7.3 Guidance [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.4 Conditions for Granting a Waiver or Modification [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.5 GENE 7.5 Applicability of a Waiver or Modification Notice [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 7.5 Guidance [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.6 GENE 7.6 Continuing relevance of waiver or modification notice [restructured effective 1st October 2010]

        Restructured by QFCRA RM/2010-04 (as from 1st October 2010), to form subrule GENE 7.1.3.

        • GENE 7.6.1 Notice of material change in circumstances — firm with waiver etc restructured effective 1st October 2010]

          Restructured by QFCRA RM/2010-04 (as from 1st October 2010), to form subrule GENE 7.1.3.

      • GENE 7.7 Publication of a Waiver or Modification Notice [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.8 Revocation or Variation of a Waiver or Modification Notice [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • GENE 7.9 GENE 7.9 Referral of the Regulatory Authority's decisions in relation to a Waiver or Modification Notice [Deleted]

        Deleted by QFCRA RM02/2009 (as from 6th December 2009).

        • GENE 7.9 Guidance [Deleted]

          Deleted by QFCRA RM02/2009 (as from 6th December 2009).

    • GENE Chapter 8 GENE Chapter 8 Controllers and close links

      Amended by RM/2018-4 (as from 1st August 2018).

      • GENE Part 8.1 GENE Part 8.1 General provisions

        • GENE 8.1.1 Introduction

          This Chapter is about:

          (a) the controllers of applicants for authorisation and authorised firms, and the entities with which such applicants and firms have close links;
          (b) the obligations and procedures relating to first becoming such a controller, and to increasing, decreasing and ceasing control; and
          (c) the systems and controls that a firm must have, and the reports it must make, relating to its controllers and the entities with which it has close links.
          Note Under rule 2.3.1, the connection of an applicant or authorised firm with its controllers, and the persons with which an applicant or firm has close links, are matters to be considered in determining an applicant's or firm's fitness and propriety.
          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.1.2 Application of Part 8.1

          This Part applies to an authorised firms.

          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.1.3 Meaning of controller, types of control and first becomes a controller

          (1) Controller, of an authorised firm, is a person who (whether alone or together with 1 or more associates) has acquired control over the firm through any of the following types of control described in FSR, article 37 (1):
          (a) holding 10% or more of the shares in the firm;
          (b) being entitled to exercise, or control the exercise of, 10% or more of the voting power in the firm;
          (c) holding 10% or more of the shares in a parent entity of the firm;
          (d) being entitled to exercise, or control the exercise of, 10% or more of the voting power in a parent entity of the firm;
          (e) being able to exercise significant influence over the management of the firm or a parent entity of the firm because of the person's shareholding or voting power, or by contractual or other arrangements;
          Guidance
          Other arrangements include trusts, agreements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights. These arrangements could comprise a number of arrangements that would not individually enable the person to exercise a type of control over the authorised firm but would do so if they were taken together.
          (f) being able to exercise, or control the exercise of, 10% or more of the voting power in the firm because of the person's shareholding or voting power in a third party that holds 10% or more of the shares of the firm;
          (g) being able to exercise significant influence over the management of the firm because of the person's shareholding or voting power in a third party that holds 10% or more of the shares of the firm.
          (2) In determining whether a person is a controller of an authorised firm, any shares, voting power or rights to acquire shares or voting power that the person holds in the firm (whether alone or together with 1 or more associates) must be disregarded if:
          (a) the shares are held for the sole purpose of clearing and settling within a short settlement cycle;
          (b) the shares are held as custodian or nominee and the voting power attached to the shares is exercised only in accordance with written instructions given to the person; or
          (c) the person is an authorised firm and it:
          (i) acquires shares as a result of an underwriting of a share issue or a placement of shares on a firm commitment basis;
          (ii) does not exercise the voting power attached to the shares or otherwise intervene in the management of the issuer; and
          (iii) retains the shares for less than 1 year.
          (3) A person first becomes a controller:
          (a) when the person becomes a controller of the firm for the first time; or
          (b) if the person is not a controller of the firm but had previously been such a controller — when the person again becomes a controller of the firm.
          Inserted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.1.4 Meaning of increases control

          (1) A controller increases control over an authorised firm if:
          (a) the controller (whether alone or together with 1 or more associates) acquires a different type of control over the firm;
          (b) the controller becomes a parent entity of the firm;
          (c) the percentage of shares held by the controller (whether alone or together with 1 or more associates) in the firm or in a parent entity of the firm increases from, or below, a level mentioned in subrule (2) to above that level; or
          (d) the percentage of voting power that the controller (whether alone or together with 1 or more associates) is entitled to exercise, or control the exercise of, in the firm or in a parent entity of the firm increases from, or below, a level mentioned in subrule (2) to above that level.
          (2) The levels for increased control are 24%, 49% and 74%.
          Inserted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.1.5 Meaning of decreases control

          (1) A controller decreases control over an authorised firm if:
          (a) the controller (whether alone or together with 1 or more associates) loses a type of control over the firm;
          (b) the controller ceases to be a parent entity of the firm;
          (c) the percentage of shares held by the controller (whether alone or together with 1 or more associates) in the firm or in a parent entity of the firm decreases from above a level mentioned in subrule (2) to, or below, that level; or
          (d) the percentage of voting power that the controller (whether alone or together with 1 or more associates) is entitled to exercise, or control the exercise of, in the firm or in a parent entity of the firm decreases from above a level mentioned in subrule (2) to, or below, that level.
          (2) The levels for decreased control are 74%, 49% and 24%.
          Inserted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.1.6 Meaning of voting power and control

          (1) Voting power of a person in an authorised firm or a parent entity of the firm means the total rights of the person to vote, or take part in any decision-making, about any of the following:
          (a) the distribution of capital or profits of the firm to its shareholders;
          (b) the articles of association, partnership agreement or similar document constituting the firm or governing its activities;
          (c) any variation of the share capital of the firm;
          (d) any appointment of a director (however called) of the firm;
          (e) the overall policy of the firm.
          (2) A person's voting power includes:
          (a) voting power held by a third party with whom the person has concluded an agreement that obliges the person and the third party to adopt, by concerted exercise of the voting power they hold, a lasting common policy towards the management of the firm or parent entity;
          (b) voting power held by a third party under an agreement concluded with the person providing for the temporary transfer, for consideration, of the voting power;
          (c) voting power attaching to shares that are lodged as collateral with the person, if the person controls the voting power and declares an intention to exercise it;
          (d) voting power attaching to shares in which the person has a life interest;
          (e) voting power that is held, or may be exercised in any of the ways described in paragraphs (a) to (d), by a subsidiary of the person;
          (f) voting power attaching to shares deposited with the person that the person has discretion to exercise in the absence of specific instructions from the shareholders;
          (g) voting power held in the name of a third party on behalf of the person; and
          (h) voting power that the person may exercise as a proxy where the person has discretion about the exercise of the voting power in the absence of specific instructions from the shareholders.
          (3) Control (of the exercise of voting power) includes direct and indirect control, and control that is exercisable as a result, or by means, of arrangements or practices:
          (a) whether or not having legal or equitable force; and
          (b) whether or not based on legal or equitable rights.
          (4) If the percentage of total rights to vote or participate in decision-making differs as between different types of voting or decision-making, the highest of those percentages applies for the purposes of this rule.
          (5) If a firm or parent entity:
          (a) is limited both by shares and by guarantee; or
          (b) does not have a share capital;
          this rule has effect as if the members or policy holders of the firm or parent entity were shareholders.

          Note FSR, article 37 (3) (B) states that voting power, in relation to an authorised firm or relevant parent entity which does not have general meetings at which matters are decided by the exercise of voting rights, means the right under the constitution of the authorised firm or relevant parent entity to direct the overall policy of the authorised firm or relevant parent entity or alter the terms of its constitution.

          Editorial changes (as from 1st January 2016).

      • GENE Part 8.2 GENE Part 8.2 Seeking approval to change control — QFC entities

        • GENE 8.2.1 Application of Part 8.2

          This Part applies to an authorised firm that is a QFC entity.

          Editorial changes (as from 1st January 2016).

        • GENE 8.2.2 Approval to change control — QFC entities (FSR, articles 35 and 38)

          A person must not first become a controller or increase or decrease control over an authorised firm without the Regulatory Authority's approval.

          Editorial changes (as from 1st January 2016).

        • GENE 8.2.3 Controller notice seeking approval to change control — QFC entities

          (1) An authorised firm must give a controller notice in the approved form to the Regulatory Authority before a person becomes a controller of the firm or increases or decreases control over the firm. The controller notice serves as an application for the approval required under rule 8.2.2.
          (2) If the firm does not know of the matter or does not have sufficient information to give the controller notice, the notice must be given by the person proposing to first become a controller or increase or decrease control.
          (3) If the firm has reasonable grounds to suspect that any of the matters mentioned in subrule (1) exists, the firm must make appropriate inquiries to satisfy itself about the matter and decide whether it should give a controller notice.

          Note Under FSR, article 36 (3), an authorised firm that does not have sufficient information to enable it to give the controller notice must notify the person proposing to acquire or change control about the person's obligation to give the controller notice to the authority.
          (4) A controller notice must be given:
          (a) at least 30 days before the person first becomes a controller or increases or decreases control; or
          (b) if it is not practicable to give the notice in accordance with paragraph (a) — immediately after the firm or person required to give the notice becomes aware of the matter.
          (5) A controller notice may be withdrawn at any time before the authority decides on the application for approval.
          (6) If, at any time before the authority makes its decision, the firm or person making the proposal becomes aware of a change that is reasonably likely to be material to the Regulatory Authority's decision, the firm or person must notify the authority about the change without delay.
          Editorial changes (as from 1st January 2016).

        • GENE 8.2.4 Additional requirement — letter of comfort

          (1) A controller notice must be accompanied by a letter of comfort if the notice is seeking approval to increase existing control:
          (a) from a level of 10% to 48.99% to a level of 49% or more; or
          (b) from a level of 10% to 73.99% to a level of 74% or more.

          Note By giving a letter of comfort when a controller crosses the thresholds at 49% and 74%, the controller signifies its continuing willingness and commitment to support the firm in case of unforeseen contingencies that may affect the firm's ability to maintain adequate capital and liquidity levels in order to meet its obligations and regulatory requirements.
          (2) The Regulatory Authority may require a letter of comfort to accompany a controller notice seeking approval to increase control from a level of 10% to 23.99% to a level up to 48.99%.
          (3) A letter of comfort must be in a form acceptable to the authority and must state that the person:
          (a) has adequate financial resources to fulfil its commitments under the letter;
          (b) will support the firm:
          (i) to conduct its business under the applicable laws, regulations and rules; and
          (ii) to enable it at all times to meet its obligations in accordance with standards of prudence generally accepted for the firm's business; and
          (c) will notify the authority immediately of any significant change in its relationship with the firm.
          Guidance

          The Regulatory Authority expects the following to be part of the letter in addition to the matters in rule 8.2.4 (3):
          •  acknowledgment of its purpose
          •  clear statement of the relationship between the firm and the controller, and the type and level of control to which the letter relates
          •  the nature and extent of the commitments to support the firm.
          (4) A letter of comfort given by a person ceases to have effect if:
          (a) the person's level of control subsequently decreases to 49% or less; and
          (b) on application by the person, the Regulatory Authority is satisfied (after considering the person's financial capability, capital adequacy and risk profile and any evidence offered by the person) that the letter should cease to have effect.
          (5) The Regulatory Authority will notify the person in writing of its decision. If the authority is satisfied that the letter of comfort should cease to have effect, the notice must state the date when the letter so ceases.
          (6) A letter of comfort from a person that is not an individual must also state that it is made under a resolution of the governing body of the person. The person must give a copy of the resolution to the Regulatory Authority if the authority requires it.
          (7) A firm that is the beneficiary of a letter of comfort must immediately notify the authority of any cancellation or variation of the letter.
          Amended by QFCRA RM/2015-1 (as from 1st July 2015).

        • GENE 8.2.5 Approval process (FSR, article 38)

          (1) If the Regulatory Authority receives a controller notice in relation to a proposal for a person to first become a controller of a firm or to increase or decrease control over a firm, the authority may:
          (a) approve the proposal without conditions;
          (b) approve the proposal subject to such conditions as the authority considers appropriate;
          (c) refuse to approve the proposal; or
          (d) object to the proposal and then decide whether to approve or refuse to approve it.
          Note 1 Under FSR, article 38 (2), the Regulatory Authority shall seek to make its determination within 30 days of receipt of all the required information and shall notify the authorised firm (or if the controller notice has been submitted by another person, both the firm and that other person) of its determination promptly.

          Note 2 Under FSR, article 38 (4), the Regulatory Authority may grant unconditional approval only if it is satisfied that:
          •  the person acquiring or increasing the control is a fit and proper person to have the control in question;
          •  the conditions in article 29 (5) (A) and (B) (Close Links) have been met; and
          •  granting such approval would be consistent with the regulatory objectives.
          (2) Nothing in this rule prevents the authority from taking any other action against a person who has failed to comply with these rules or any other rules or law applying in the QFC.

          Note Under FSR, article 38 (6), the Regulatory Authority's power to approve or refuse to approve a proposal remains even if no controller notice seeking approval is given to the authority.
          Editorial changes (as from 1st January 2016).

        • GENE 8.2.6 Objection process

          (1) If the Regulatory Authority objects to a proposal for a person to first become a controller or to increase or decrease control, the authority must, as soon as practicable after it receives the controller notice, letter of comfort and any additional information it requires, give the authorised firm and the person written notice:
          (a) stating the reasons for its objection; and
          (b) giving the firm and person an opportunity to make representations within 14 days after receipt of the notice or a longer period fixed by the authority.
          Example
          The Regulatory Authority may object to a proposal if it considers that the letter of comfort accompanying the application is not acceptable taking into consideration the financial capability, capital adequacy and risk profile of the proposed controller or controller and the authorised firm.
          (2) The authority must, as soon as practicable after the expiry of the period for making representations, consider any representations and:
          (a) withdraw its objection and approve (with or without conditions) the proposal; or
          (b) refuse to approve the proposal.
          Note Under rule 5.2.2 (2), the Regulatory Authority may require a person to give additional information in relation to any document given to the authority.
          Editorial changes (as from 1st January 2016).

        • GENE 8.2.7 When approved proposal lapses

          (1) A proposal for a person to first become a controller or to increase or decrease control that has been approved (with or without condition) must be acted on by the person:
          (a) by the date specified by the Regulatory Authority in its approval; or
          (b) if there is no date specified — within 6 months after the date of the approval.
          (2) The approval lapses if the person does not become a controller or does not increase or decrease control by that date or period, unless the Regulatory Authority gives an extension in writing.
          Inserted by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE Part 8.3 GENE Part 8.3 Giving notice about changes in control — branches

        • Approval - Local Firms [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • Notification - Local Firms [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • Notification - Non-Local Firms [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.3.1 Application of Part 8.3

          This Part applies only to authorised firms that are branches.

          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.3.2 Controller notice about changes in control of branches (FSR, article 36)

          (1) An authorised firm must give a controller notice in the approved form to the Regulatory Authority if the firm knows that:
          (a) a person is proposing to first become a controller of the firm;
          (b) a controller is proposing to increase control over the firm;
          (c) a controller is proposing to decrease its level of control over the firm from more than 50% to 50% or less; or
          (d) a controller is proposing to cease control.
          (2) The notice must be given immediately after the firm becomes aware of the matter.
          (3) If the firm has reasonable grounds to suspect that any of the matters in subrule (1) exists, the firm must make appropriate inquiries to satisfy itself about the matter and decide whether it should give a controller notice.

          Note A firm that is a branch must have systems and controls to monitor changes in control; it must also give to the authority annual reports on controllers (see rules 8.5.2 and 8.5.3).
          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

        • GENE 8.3.3 GENE 8.3.3 [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

          • GENE 8.3.3 Guidance [Deleted]

            Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE Part 8.4 GENE Part 8.4 Giving notice about controllers

        Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.4.1 Application of Part 8.4

          This Part applies to all authorised firms.

          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.4.2 Significant changes in controllers

          (1) An authorised firm must give notice to the Regulatory Authority if any of the following matters happen in relation to a controller:
          (a) the controller is the subject of a legal proceeding or an investigation that calls, or might call, the controller's integrity into question;
          (b) there is a significant deterioration in the controller's financial position;
          (c) there is any significant change in the conduct or circumstances of the controller that might reasonably be considered to diminish the fitness and propriety of the firm or its ability to conduct its business soundly and prudently;
          (d) if the controller is not an individual — the controller undergoes a substantial change or series of changes in its governing body;
          Note Governing body is defined in the glossary.

          Examples for para (d)
          1 for a firm incorporated under the Companies Regulations 2005 — removal or replacement of a majority of the members of the board of directors in a single event or a series of connected events
          2 for a firm that is a partnership constituted under the Partnership Regulations 2007 — removal of all, or a majority of, the members of the body (whatever it is called) that, under the firm's constitutional document, has the responsibility of overseeing the firm's business in or from the QFC
          3. for a firm that is a branch that has for its governing body a committee of management given the responsibility of overseeing the firm's business in or from the QFC — abolition or change of the committee.
          (2) The notice must be given in the approved form immediately after the firm becomes aware of the matter.
          (3) If the firm has reasonable grounds to suspect that any of the matters in subrule (1) may happen or has happened, the firm must make appropriate inquiries to satisfy itself about the matter and decide whether it should give notice.

          Guidance

          The test of reasonable grounds for suspicion applies to the firm's obligation to make inquiries for itself (and thereafter decide whether or not to give notice). The grounds for making inquiries based on the suspicion must be that a reasonable person would, in the circumstances, be expected to make those inquiries.
          (4) If there is a legal or regulatory restriction on a firm's complying with subrule (1), (2) or (3), the firm must immediately notify the Regulatory Authority of the specific nature of the restriction. On being notified, the authority will direct the firm as to what action the firm must take to comply with this rule.
          Editorial changes (as from 1st January 2016).

        • GENE 8.4.3 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 8.4.4 [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.4.5 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 8.4.6 [Deleted]

          [Deleted]

          Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

        • GENE 8.4.7 Time limit for giving controller notice [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

      • GENE Part 8.5 GENE Part 8.5 Systems, controls and reports

        • GENE 8.5 Guidance [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.5.1 Application of Part 8.5

          This Part applies to all authorised firms.

          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.5.1A Meaning of close links for Part 8.5

          (1) For this Part, an authorised firm has close links with any undertaking:
          (a) that is its direct holding company;
          (b) that is its direct subsidiary;
          (c) that is another direct holding company of a subsidiary of the firm; or
          (d) that is another direct subsidiary of the firm's holding company.
          (2) For this Part, an authorised firm has close links:
          (a) with any undertaking of which the firm owns or controls 10% or more of the voting rights or shares; or
          (b) with any undertaking that, or individual who, owns or controls 10% or more of the firm's voting rights or shares.
          (3) For this rule, an undertaking is an entity that is carrying on a trade or business with or without a view to profit.
          Inserted by RM/2018-4 (as from 1st August 2018).

        • GENE 8.5.2 Systems and controls to monitor changes (FSR, article 36 (4))

          The systems and controls that an authorised firm is required to have under FSR, article 36 (4) must enable it to be notified of, and to monitor:

          (a) any change or proposed change of its controllers;
          (aa) any change or proposed change in the persons with which it has close links;
          (b) any significant change in the conduct or circumstances of its controllers, or the persons with which it has close links, that might reasonably be considered to diminish the fitness and propriety of the firm or its ability to conduct its business soundly and prudently; and
          (c) any other change required to be notified to the Regulatory Authority under these rules.

          Examples of how to monitor

          A firm may monitor changes about controllers using regulatory disclosures, press reports, public announcements, share registers and entitlements to vote, or the control of voting power, at general meetings

          Note Matters referred to in paragraph (a) will be reported to the Regulatory Authority under Part 8.2, 8.3 or 8.4, as appropriate. Matters referred to in paragraph (b) will be reported under rule 8.4.2 (1) (c).
          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.5.3 Annual report on controllers (FSR, article 40)

          (1) The annual report on controllers that an authorised firm is required to give to the Regulatory Authority under FSR, article 40 must include:
          (a) the name of each person who was a controller of the firm at any time during the financial year;
          (b) the type of control (that is, whether by way of shareholding or of voting rights) held by each controller;
          (c) if applicable, the level of control (expressed as a percentage) held by each controller;
          (d) for each controller that is an individual — his or her date and place of birth; and
          (e) for each controller that is a body corporate — its place of incorporation, address and registered number.
          (2) In subrule (1):
          (a) a reference to an individual's place of birth is a reference to the country, and the city or town, in which that birth happened; and
          (b) a reference to a body corporate's place of incorporation is a reference to the jurisdiction of its incorporation and the city or town in which its principal office is located.
          Amended by RM/2018-4 (as from 1st August 2018).

        • GENE 8.5.4 Annual report about close links

          (1) With the report on controllers referred to in rule 8.5.3, an authorised firm must give the Regulatory Authority a report setting out the following:
          (a) the name of each person with which the firm had close links at any time during the financial year;
          (b) for each such person who is an individual — his or her date and place of birth;
          (c) for each such person that is a body corporate — its place of incorporation, address and registered number;
          (d) the firm's relationship with each such person;
          (e) for each such person, if applicable, the level of control (expressed as a percentage of shareholding or voting power or both, as the case may be) that the person held over the firm; and
          (f) for each such person, if applicable, the level of control (expressed as a percentage) that the firm held over the person.
          (2) In subrule (1), references to an individual's place of birth, or to a body corporate's place of incorporation, have the same respective meanings as in rule 8.5.3 (1).
          Inserted by RM/2018-4 (as from 1st August 2018).

      • GENE 8.6 GENE 8.6 Annual Controllers Report [Deleted]

        Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

        • GENE 8.6.1 [Deleted]

          Deleted by QFCRA RM/2014-1 (as from 1st February 2014).

    • GENE Chapter 9 GENE Chapter 9 Accounting and auditing

      Editorial changes (as from 1st January 2016).

      • GENE Part 9.1 GENE Part 9.1 Application

        • GENE 9.1.1 GENE 9.1.1 Application — Chapter 9

          This Chapter applies to every authorised firm.

          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

          • GENE 9.1.1 Guidance

            1. Authorised firms that are QFC entities are subject to the accounting and audit requirements set out in the Companies Regulations 2005 (Section 11) and the Limited Liability Partnerships Regulations 2005 (Part 9) as appropriate.
            2. Article 123 of the Companies Regulations 2005 and Article 52 of the Limited Liability Partnerships Regulations 2005 contain record keeping requirements for branches.
            3. FSR contain provisions relating to:
            (a) disclosure of information by auditors; and
            (b) rights and obligations regarding cooperation with auditors and an auditor's right of access to an authorised firm's books, accounts and material records.
            4. This Chapter provides additional provisions relating to audit and accounting requirements as they apply to authorised firm's.
            Amended by QFCRA RM 2019-1 (as from 28th March 2019).

      • GENE Part 9.2 GENE Part 9.2 Accounting records

        Editorial changes (as from 1st January 2016).

        • GENE 9.2.1 Matters about which accounting records must be kept

          An authorised firm must keep accounting records with respect to all sums of money received and expended by the authorised firm and all sales and purchases of goods and services and other transactions by the authorised firm and the assets, liabilities and equity of the authorised firm. Such accounting records must be sufficient to show and explain all transactions by the authorised firm and must be such to:

          (a) disclose with reasonable accuracy the financial position and performance of the authorised firm at any time;
          (b) enable the authorised firm to ensure that any accounts prepared by the authorised firm comply with the requirements in these rules; and
          (c) record the firm's financial position and performance as at its financial year end or as at the end of some other period.
          Amended by QFCRA RM 2019-1 (as from 28th March 2019).

        • GENE 9.2.2 How long accounting records must be retained

          An authorised firm must maintain the accounting records, financial accounts and statements and auditors' reports required under the Companies Regulations 2005, the Limited Liability Partnerships Regulations 2005 and this Chapter for at least 6 years from the date to which they relate.

          Amended by QFCRA RM/2015-3 and Editorial changes (as from 1st January 2016).

      • GENE Part 9.3 GENE Part 9.3 Accounting standards

        Editorial changes (as from 1st January 2016).

        • GENE 9.3.3 Guidance

          AAOIFI FAS 18 sets out the accounting rules for conventional financial institutions offering Islamic financial services. It provides rules for the recognition, measurement and presentation of assets managed, funds held and income earned on the basis of Shari'a principles. It also sets out the necessary disclosures required to be made in the course of conducting Islamic financial business.

          Amended by QFCRA RM/2015-3 (as from 1st January 2016).