• IMEB Part 2.2 IMEB Part 2.2 Minimum capital and asset requirements

    • IMEB 2.2.1 When part 2.2 does not apply

      This part does not apply to a firm that conducts insurance mediation by means of a branch.

      Note 1 Under rule 2.1.1, this part applies to every firm that is an insurance intermediary with an authorisation that permits it to conduct only insurance mediation and no other business that is or includes a regulated activity. However, this rule excludes from the application of this part firms that are not incorporated, or otherwise established as a partnership or unincorporated association, in the QFC.

      Note 2 A firm that conducts insurance mediation by means of a branch will be subject to the regulatory capital requirements in its home jurisdiction.

      Note 3 Insurance mediation is defined in rule 1.2.2. Branch is defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 2.2.2 Firms must have minimum capital and assets

      (1) A firm must have at all times a paid-up share capital of at least—
      (a) for a captive insurance manager that is not also an insurance intermediary — QR180,000;
      (b) for an insurance intermediary that is not permitted to hold client money — QR900,000; or
      (c) for an insurance intermediary that is permitted to hold client money — QR1.8 million.
      Note 1 Paid-up share capital is defined in the glossary for firms that are not companies. Captive insurance manager is defined in rule 1.2.4. Insurance intermediary is defined in rule 1.2.1.

      Note 2 Rule 5.1.1 prohibits certain insurance intermediaries from holding client money.
      (2) A firm must also ensure that it has at all times a net asset value of at least 50% of the paid-up share capital that it is required to have under subrule (1).
      Amended by QFCRA RM/2015-1 (as from 1st July 2015).

    • IMEB 2.2.3 What is a firm's net asset value?

      (1) The net asset value of a firm is the amount (if any) by which the total value of its assets exceeds the total amount of its liabilities.
      (2) In calculating the total value of a firm's assets, no amount may be allowed for—
      (a) goodwill or any other intangible asset; and
      (b) tangible fixed assets, including inventories, plant and equipment and vehicles; and
      (c) deferred tax assets; and
      (d) deficiencies of net assets in subsidiaries; and
      (e) debts and other loans owed to the firm by policyholders and other insurance intermediaries, if they are more than 180 days overdue; and
      (f) any investment by a subsidiary of the firm in the firm's own shares; and
      (g) holdings of other investments that are not readily realisable investments; and
      (h) investments in, and loans to, affiliates and related persons.
      Note Subsidiary is defined in the glossary.
      (3) In calculating the total amount of a firm's liabilities, all contingent liabilities must be taken into account.
      (4) In this rule:

      affiliate, of a firm, means any entity of which the firm holds 10% or more but less than a majority of the voting power.

      related person: a person (the second person) is related to another person (the first person) if:
      (a) the first person and the second person are members of the same group;
      (b) the second person is an individual who is a director or officer of the first person or of another member of the same group;
      (c) the second person is the spouse or minor child of an individual mentioned in paragraph (b); or
      (d) the second person is a company that is subject to significant influence by or from an individual mentioned in paragraph (b) or (c).
      Amended by QFCRA RM/2014-6 (as from 1st January 2015)