Part 4: Part 4: Licensing Requirements and Process
Article 19 - Application
(1) AnApplication for aLicence to conductPermitted Activities may be made to theQFC Authority by:(A) a body corporate;(B) a partnership; or(C) an unincorporated association.(2) ALicence constitutes an approval, authorisation or licence for the purposes of Article 12(1) of the QFC Law.(3) ALicensed Firm may apply to theQFC Authority to vary itsLicence . A variation may include:(A) extending aLicensed Firm’s Licence to includePermitted Activities other than those in respect of which it al has aLicence ;(B) varying conditions restrictions or requirements imposed on itsLicence in accordance with Article 21(1) or 23(2); or(C) withdrawing itsLicence in respect of one or morePermitted Activities .(4) TheApplicant for aLicence , variation of aLicence or withdrawal ofLicence as a whole may withdraw itsApplication by giving theQFC Authority written notice at any time before theQFC Authority determines theApplication .Article 20 - Form and content of Application
An
Application for aLicence or variation or withdrawal of aLicence shall be in such form and contain such information as may be prescribed by theQFC Authority from time to time.Article 21 - Grant of Licence, variation or withdrawal and rejection of an Application
(1) TheQFC Authority may:(A) grant anApplication for aLicence , variation or withdrawal of aLicence or for approval of appointment of a Person as a Key Person or Interest Holder of a proposed or existing Licensed Firm either without conditions, restrictions or requirements or with such conditions, restrictions or requirements as it considers appropriate; or(B) reject theApplication .(2) The powers and discretion of theQFC Authority under Article 21(1) may be exercised having regard to such matters as theQFC Authority considers appropriate, including (without limitation):(A) the position and circumstances of theQFC and the objectives, strategies and priorities of theQFC Authority ;(B) the position and circumstances of theApplicant ,Application ,Licence ,Permitted Activity , and any implications or potential implications in respect of the State of Qatar, other states, international financial and business centres, or other bodies, institutions and organisations, andLicensed Firms .(3) TheQFC Authority may makeRules setting out the criteria which anApplicant for aLicence , variation or withdrawal of aLicence or for approval of appointment of a Person as a Key Person or Interest Holder of a proposed or existing Licensed Firm, must satisfy before anApplication can be granted by theQFC Authority . Such criteria may include requirements (as appropriate) relating to:(A) the fitness and propriety of anApplicant , proposed Key Person or Interest Holder having regard to all the circumstances including his connection with any person, the nature of anyPermitted Activity that he carries on or seeks to carry on and the need to ensure that his affairs are conducted soundly and prudently;(B) the legal form that anApplicant must adopt; and(C) the resources of theApplicant , whether financial or otherwise.(4) Where theQFC Authority :(A) grants anApplication for aLicence , variation or withdrawal of aLicence or approval of appointment of a Person as a Key Person or an Interest Holder of a proposed or existing Licensed Firm, theQFC Authority must notify theApplicant accordingly; or(B) rejects anApplication for aLicence, variation or withdrawal of aLicence , or approval of appointment of a Person as a Key Person or an Interest Holder of a proposed or existing Licensed Firm, theQFC Authority shall promptly inform theApplicant in writing of such refusal and, where requested by theApplicant , the reasons for such refusal, and of theApplicant's right to appeal that decision to theTribunal .(5) Where theQFC Authority grants anApplication for aLicence or variation of anLicence , it must also notify theApplicant of thePermitted Activity or Activities that may be carried out following such grant (and of any restriction, condition or requirement imposed on theApplicant ) in a format which theQFC Authority considers appropriate.(6)(A) TheQFC Authority may grant anApplication for aLicence or variation of aLicence to conduct aPermitted Activity of the kinds specified in Schedule 3 of theQFC Law .(B) However, theQFC Authority must not grant anApplication for aLicence or variation of aLicence to conduct a Permitted Activity under Part 1 of Schedule 3 of theQFC Law , unless:(i) theApplicant has been authorized by theRegulatory Authority to conduct that activity; or(ii) theQFC Authority , after consulting the QFC Regulatory Authority, is satisfied that the activity meets and will continue to meet any of the following conditions:1. the activity is being conducted under an exemption set out in Part 1 of Schedule 3 of the Financial Services Regulations;2. the activity is not being carried on “by way of business” as that term is defined in Article 25 of the Financial Services Regulations or any rules issued thereunder;3. the activity is excluded under Part 2 of Schedule 3 of the Financial Services Regulations; or4. the activity has been otherwise excluded or exempted by the QFC Regulatory Authority from the authorisation requirement.Amended (as from 6th April 2022). Article 22 - Status of Licence
(1) ALicence granted pursuant to this Part is not transferable.(2) If theLicensed Firm is a partnership or an unincorporated association:(A) it is licensed to carry on thePermitted Activities concerned in the name of the partnership or unincorporated association; and(B) subject to Article 23, itsLicence is not affected by any change in its membership.Article 22A - Nationality of Entities
(1) All Entities incorporated or registered in the QFC are local and national Entities.(2) Except for branches, an Entity that is incorporated or registered in the QFC has the Qatari nationality.(3) A branch registered in the QFC follows the nationality of its parent.(4) The Qatari nationality does not confer upon the Entity any privileges exclusive to Qatari nationals unless such Entity is wholly owned by Qatari nationals.Article 23 - Own initiative action by the QFC Authority
(1) TheQFC Authority may exercise any of the powers or take any of the steps set out in Article 23(2) in respect of aLicensed Firm that is not anAuthorised Firm at any time where it considers it appropriate to do so in accordance with its Objectives, including where it is satisfied that:(A) aLicensed Firm is failing, or is likely to fail, to satisfy applicable criteria;(B) aLicensed Firm has failed, during a period of at least 12 months, to carry on aPermitted Activity for which it has aLicence ;(C) it is desirable to take such steps to exercise such power in order to protect the interests of clients or customers of aLicensed Firm or the interests of theQFC ;(D) aLicensed Firm is in breach of, or has been, in breach of one or more conditions, restrictions or requirements applicable to itsLicence ;(E) aLicensed Firm is (or has been) otherwise in breach of theQFC Law , theseRegulations or anyRules or other relevant legislation;(F) aLicensed Firm has, during the course of making application for aLicense or at any subsequent time, provided information to theQFC Authority which is false, misleading or deceptive; or(G) a Key Person or Interest Holder of a Licensed Firm is not fit and proper to be a Key Person or Interest Holder.(2) The powers and steps referred to in Article 23(1) are, by written notice to theLicensed Firm , to:(A) impose or vary such conditions, restrictions and requirements on aLicence as theQFC Authority shall consider appropriate;(B) require aPerson specified in the condition, restriction or requirement to take or refrain from taking such action as theQFC Authority considers appropriate;(C) withdraw theLicensed Firm's Licence or vary itsLicence to remove one or morePermitted Activities ; or(D) take any other action against aLicensed Firm , Key Person or Interest Holder.(3) Subject to Article 23(4), theQFC Authority may only exercise powers or take steps pursuant to Article 23(2) where it has provided the relevantLicensed Firm beforehand with an appropriate opportunity to make representations to theQFC Authority in relation to the proposed steps and has given due consideration to those representations in determining the steps to be taken.(4) The requirement on theQFC Authority under paragraph 23(3) above shall not apply:(A) where theQFC Authority concludes that any delay likely to arise as a result of the requirement to allow representations contained in Article 23(3) is prejudicial to the interests of the clients or customers of theLicensed Firm , or the interests of theQFC (provided in such case that theQFC Authority shall provide theLicensed Firm with an opportunity to make such representations promptly after such powers have been exercised or steps taken and shall give due consideration to such representations); or(B) where the powers to be exercised or steps to be taken follow a determination by theQFC Authority pursuant to procedures as set forth in its rules or a decision by theTribunal relating to or affecting theLicensed Firm in question.Amended (as from 6th April 2022). Article 24 – Qualification and Appointment of Auditor
(1) AnApplication to be appointed as an auditor for a QFC Firm under theCompanies Regulations or theLLP Regulations shall be in such form and contain such information as may be prescribed by theQFC Authority from time to time.(2) The criteria for the qualification of such auditors shall be those set out inRules developed by theQFC Authority pursuant to Article 21(3) as they may apply to auditors seeking to become aLicensed Firm .(3) ALicensed Firm whosePermitted Activities include that of an auditor shall not be required to file a separate application under this Article.