Part 4: Part 4: Regulated Activities
Article 22 - Background(1) The
QFC Lawprovides that no activities may be conducted in or from the QFCunless they fall within the general categories of Permitted Activitiesset out in the QFC Law(and which are set out in Part 4 of Schedule 3 for ease of reference).(2) The QFC Lawalso provides that no Regulated Activitiesare to be conducted in or from the QFCsave pursuant to an appropriate approval, authorisation or licence from the Regulatory Authority.
Article 23 - Regulated Activities(1) Subject to any Rules, an activity is a
Regulated Activityfor the purposes of the QFC Lawand these Regulationsif it:(A) falls within one or more of the categories of Specified Activitiesset out in Part 2 of Schedule 3 applying (to the extent stated in Part 2 of Schedule 3) to one or more Specified Products; and(B) is carried on by way of business as described in Article 25.(2) A Permitted Activityis also a Regulated Activityfor the purposes of the QFC Lawand these Regulationsif it is declared to be a regulated activity by or under any Rules.(3) However, subject to any Rules, an activity is not a Regulated Activityfor the purposes of the QFC Lawor these Regulationsif it falls within 1 or more of the exemptions in Part 1 of Schedule 3. Amended by QFC Reg 2010-2 (as from 9th December 2010)
Article 24 - Regulated Activities in respect of retail customers(1) The
Regulatory Authoritymay authorise Personsto carry on Regulated Activitieswith or for retail customers in the Stateafter it has put in place measures to ensure appropriate customer protections commensurate with the needs of such customers.(2) References in Articles 24(1) to retail customers are to individuals having such characteristics or such other type or category of Personas the Regulatory Authoritymay specify by Rules.
Article 25 - Activities carried on by way of business(1) Subject to Article 25(2) for the purposes of this Part an activity is carried on by way of business if:(A) the
Personwho carries on the activity;(i) holds himself out to other Personsas engaging in that activity; or(ii) regularly solicits Personsother than Authorised Firmsto engage with him in transactions constituting that activity; or(B) the activity is carried on in a manner which is otherwise deemed to constitute the carrying on of an activity by way of business in accordance with Rulesissued by the Regulatory Authorityunder Article 25(2).(2) The Regulatory Authoritymay from time to time issue Rules(A) as to the circumstances in which an activity is or is not to be regarded as carried on by way of business to supplement the provisions in this Article; and(B) in respect of the scope of Article 25(1)(A) including the circumstances in which a Personshould not be regarded as holding out or soliciting or should otherwise be regarded as a customer to the market (and accordingly not carrying on a Regulated Activityfor the purposes of the QFC Lawand these Regulations).
Article 26 - Activities conducted in or from the QFC(1) A
Personwho would not otherwise be regarded as carrying on activities in or from the QFCshall be deemed to be carrying on activities in or from the QFCfor the purposes of Article 11(2) of the QFC Lawand these Regulationsif:(A) that Personis a QFC Entityand the day-to-day management of those activities (even if those activities are undertaken in whole or in part from outside the QFC) are the responsibility of the QFC Entity;(B) that Person'shead office is outside the QFCbut the activity is carried on from an establishment maintained by him in the QFC; or(C) the activities are conducted in circumstances that are deemed to amount to activities carried on in or from the QFCunder Rulesmade by the Regulatory Authorityin accordance with Article 26(2).(2) The Regulatory Authoritymay from time to time issue Rulesas to the circumstances in which activities capable of having an effect in the QFCare or are not to be regarded as conducted in or from the QFC. Amended by QFC Reg 2010-2 (as from 9th December 2010)