• GENE Part 11.1 Activities

    • GENE 11.1.1 Definitions for Chapter 11

      In this Part:

      commercial captive finance, as an activity of an entity (the captive financier), means providing finance to a commercial customer to enable the customer to lease or purchase (through finance lease, operating lease, hire-purchase or a similar form) an asset (usually immoveable properties, machinery, vehicles and equipment) from the captive financier’s parent entity or from a member of the parent entity’s group.

      commercial customer means a business customer or eligible counterparty within the meaning of each of those terms in the Customer and Investor Protection Rules 2019.

      Amended by QFCRA RM/2020-06 (as from 15th October 2020)

    • GENE 11.1.2 Declaration of providing captive finance as regulated activity

      Subject to rule 11.1.3, for FSR, article 23, the regulated activity of providing credit facilities is taken to include the activity of providing captive finance by way of business. The activity of providing captive finance by way of business is therefore a regulated activity.

      Amended by QFCRA RM/2020-6 (as from 15th October 2020)

    • GENE 11.1.3 Exclusion of certain captive finance to commercial customers

      For FSR, article 25 (2), providing captive finance is not regarded as carried on by way of business (and is therefore not a regulated activity) if it is carried on by way of commercial captive finance.

      Note An entity that provides captive finance to commercial customers (and carries on no other regulated activity) in or from the QFC in the circumstances described in rule 11.1.3 need only be licensed and does not need to apply for an authorisation from the Regulatory Authority.

      Amended by QFCRA RM/2020-6 (as from 15th October 2020)