• Part 8: Part 8: Supervision and Investigations

    • Article 48 - Powers to obtain documents and information

      (1) The Regulatory Authority may require the production by a Person in the QFC or (subject to Article 48(2)) elsewhere of:
      (A) specified information or information of a specified description; and/or
      (B) specified documents or documents of a specified description,
      within such timetable and in such form and manner as the Regulated Authority may reasonably require.
      (2) The Tribunal may on application by the Regulatory Authority order that the Regulatory Authority may make a requirement under Article 48(1) in respect of a Person outside the QFC (whether in the State or otherwise). The Regulatory Authority may request the appropriate Overseas Regulator to assist in exercising the power under Article 48(1) in respect of any such Person.
      (3) The Regulatory Authority may enter the premises of any Person in the QFC at any time for the purpose of inspecting and copying information or documents stored in any form on such premises.
      (4) The Person to which Article 48(1) or (3) relates must give the Regulatory Authority all such assistance as the Regulatory Authority may reasonably require.

    • Article 49 - Reports

      (1) The Regulatory Authority may, by notice in writing given to a Person require the production to the Regulatory Authority of a report by a Nominated Person on any matter about which the Regulatory Authority has required or could require the provision of information or production of documents under Article 48.
      (2) The Regulatory Authority may require any such report to be in such form as may be specified in the notice.
      (3) The Nominated Person appointed to make any report required by Article 49(1) must be nominated or approved by the Regulatory Authority.
      (4) Where a report under Article 49 has been required, the Person to whom a notice has been given under Article 49(1) must give the Person or Persons appointed to make the report all such assistance as that Person may reasonably require.
      (5) The obligation in Article 49(4) is enforceable on application by the Regulatory Authority to the Tribunal.
      (6) The costs of providing a report under Article 49 shall be borne by the Person to whom a notice has been given under Article 49(1).

    • Article 50 - Appointment of Investigators

      (1) If it appears to the Regulatory Authority that there may have been, may be or may about to be a Contravention of a Relevant Requirement or there is any other good reason for doing so, the Regulatory Authority may appoint an employee of the authority or another competent Person (an Investigator) to conduct an investigation and report to it.
      (2) The Regulatory Authority must give written notice of the appointment of an Investigator to all Persons subject to investigation, unless it believes that giving such notice would risk frustrating the investigation in a material way. Any such notice must specify the purpose of the investigation.
      (3) A Person under investigation is entitled to legal representation during the course of an investigation under Article 50.
      (4) The Regulatory Authority shall pay the costs and expenses of an investigation save that, where, as a result of an investigation under Article 50, the Person under investigation is found to have contravened a Relevant Requirement, the Regulatory Authority or, where appropriate, the Appeals Body or Tribunal, may order that the Person must pay the Regulatory Authority in respect of the whole or any part of the costs and expenses of the investigation.
      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Article 51 - Investigation of Companies, LLPs and branches

      (1) In relation to any Company incorporated or branch registered under the Companies Regulations and any LLP incorporated under the LLP Regulations, the Regulatory Authority may also appoint Investigators under Article 50 if:
      (A) in the case of a Company, the Company has, or the members of the Company holding not less than ten per cent in nominal value of the issue of share capital of the company have requested the Regulatory Authority in writing (setting out the reasons for the request) to do so; or
      (B) the Regulatory Authority considers that there are circumstances suggesting that:
      (i) the affairs of the Company, branch or LLP are being or have been conducted with intent to defraud the creditors of the company or of any other Person, or otherwise for a fraudulent or unlawful purpose, or in a manner unfairly prejudicial to some part of its members;
      (ii) any actual or proposed act or omission by or on behalf of the Company, branch or LLP is or could be prejudicial to some part of its members;
      (iii) any Person concerned with the formation or management of the Company, branch or LLP or its affairs has in connection therewith been guilty of fraud, misfeasance or other misconduct toward it or towards its members;
      (iv) the members of the Company, branch or LLP (or any of them) have not been given all the information with respect to its affairs to which they are entitled or which they might reasonably expect; or
      (v) the Company has been carrying on in or from the QFC a business which it is not permitted to be carried on in the QFC.
      (2) Investigators appointed to investigate the affairs of a Company, branch or LLP may also investigate and report on the affairs of another Entity which is or has been the Subsidiary of the Company, LLP or Entity which has registered a branch under the Companies Regulations or a Subsidiary of any of its Parent Entities, if they consider it necessary for the purposes of their investigation.
      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Article 52 - Investigations - duties and powers

      (1) An Investigator must, unless the investigation is discontinued for any reason, make a written report of his investigation to the Regulatory Authority.
      (2) In support of an investigation, the Regulatory Authority or an Investigator may require, by written notice, any Person:
      (A) to attend before the Investigator at a specified time and place and to answer questions;
      (B) to produce at a specified time and place any specified document or documents of a specified description; and/or
      (C) provide such information or assistance as the Investigator may require and the Person is able to give.
      (3) The Regulatory Authority or an Investigator may require the relevant Person to give such information or produce such documents within such reasonable time period and/or at such a specified place as detailed in the written notice.
      (4) Where the Regulatory Authority is conducting an investigation under Article 50 or 51 and has reasonable grounds for believing that an Approved Individual may have engaged in conduct that would form grounds for the withdrawal or variation of that Approved Individual's status, it may, upon written notice to both the Approved Individual and the relevant Authorised Firm, suspend or vary that individual's approved status for the duration of the investigation and/or and related proceedings insofar as such investigation or proceedings relate to that individual.
      (5) Where the Regulatory Authority is conducting an investigation into a Person under Article 50 or 51, it may apply to the Tribunal for an order that all or any of the assets, books and records of the Person be preserved and not moved or otherwise dealt with.
      Amended by QFC Reg 2010-2 (as from 9th December 2010)

    • Article 53 - Admissibility

      A statement made, information given or documents produced in compliance with a request under this Part shall be admissible in evidence in any proceedings, provided it also complies with any requirements governing the admissibility of evidence in the relevant proceedings.

    • Article 54 - The role of the Tribunal in investigations

      (1) The Regulatory Authority may apply to the Tribunal to assist in the enforcement of the Regulatory Authority's powers in this Part 8.
      (2) The Tribunal shall provide such assistance as it considers appropriate in the circumstances and in accordance with its powers, including the imposition of financial penalties for contraventions in accordance with these Regulations and the issue of search orders and orders for the seizure of documents and/or information.

    • Article 55 - Self incrimination

      (1) Subject to Article 56, it is not a reasonable excuse for a Person to refuse or fail to:
      (A) permit the inspection or copying of any information or document;
      (B) produce, or disclose, or procure the production or disclosure of, any information or document; or
      (C) answer questions;
      pursuant to any requirement under this Part, on the grounds that any such information or document or answer, as the case may be, might tend to incriminate the Person or make the Person liable to a financial penalty.

    • Article 56 - Protected Items

      (1) A Person may not be required under these Regulations to produce, disclose or permit the inspection of Protected Items.
      (2) A communication or item is not a Protected Item if it is held with the intention of furthering a criminal purpose.

    • Article 57 - Obstruction of the Regulatory Authority

      A Person must not do, or fail to do, anything that obstructs, or is intended to obstruct, the Regulatory Authority in the Exercise of its Functions.

      Examples

      1 destruction of documents
      2 failure to give or produce information or documents
      3 failure to attend and answer questions
      4 giving false or misleading information
      5 failure to give assistance in relation to an investigation
      Amended by QFC Reg 2010-2 (as from 9th December 2010)