• CTRL Chapter 4 CTRL Chapter 4 Senior management

    Notes for Chapter 4

    1 The senior management of an authorised firm is made up of the individuals who are approved to exercise the controlled functions mentioned in rule 4.1.1 (a). Although the individuals who are approved to exercise the MLRO function and the internal control and assurance functions (risk management function, compliance oversight function, internal audit function and actuarial function) form part of an authorised firm’s senior management, those controlled functions are not specifically further dealt with in Chapter 4.
    2 For firms’ obligations in relation to the MLRO function, see:
    • for general insurance firms — AMLG
    • for all other authorised firms — AML/CFTR.
    3 The internal control and assurance functions are dealt with in Chapter 6.

     

    Derived from QFCRA RM/2012-4 (as from 1st July 2013)
    Amended by QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 4.1.1 CTRL 4.1.1 What is an authorised firm’s senior management?

      An authorised firm’s senior management is made up of:

      (a) each individual (if any) who is approved to exercise any of the following controlled functions for the firm:
      (i) the senior executive function;
      (ii) the finance function;
      (iii) the senior management function;
      (iv) the MLRO function;
      (v) the risk management function;
      (vi) the compliance oversight function;
      (vii) the internal audit function;
      (viii) the actuarial function; and
      (b) any other individual who, in the Regulatory Authority’s opinion, has overall responsibility for the day-to-day management of the part or parts of the firm’s business in or from the QFC.

       

      Derived from QFCRA RM/2012-4 (as from 1st July 2013)
      Amended by QFCRA RM/2020-4 (as from 1st July 2021)

      • CTRL 4.1.1 Guidance

        1 FSR article 31 provides that, subject to that article, the Regulatory Authority may:
        (a) impose or vary such conditions, restrictions and requirements on an authorisation as the Authority considers appropriate; or
        (b) require a person specified in the condition, restriction or requirement to take or refrain from taking such action as the Authority considers appropriate.
        2 For this Part, the powers in FSR article 31 enable the Authority, for example, to direct a firm:
        • to appoint, to exercise a controlled function, an individual who is ordinarily resident in Qatar even if this Part does not require the individual to be so resident
        • to appoint an individual to exercise a controlled function even if this Part does not require the firm to have such an individual.

         

        Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 4.1.2 Senior management’s role

      The members of an authorised firm’s senior management are collectively responsible for implementing the corporate governance framework and risk management framework approved by the firm’s governing body, and for overseeing the firm’s daily operations. The members of the senior management:

      (a) must ensure that the implementation of the frameworks is in accordance with these rules;
      (b) must discharge their management responsibilities conscientiously and prudently;
      (c) must maintain clear decision-making procedures to the extent appropriate to the nature, scale and complexity of the firm’s business;
      (d) must actively promote a strong governance and risk management culture throughout the firm; and
      (e) must establish and maintain policies and procedures that enable them to be satisfied that any individual who is to act for the firm is suitable, having regard to:
      (i) the role that he or she is to have in the firm; and
      (ii) the law applicable in the QFC.

       

      Derived from QFCRA RM/2012-4 (as from 1st July 2013)
      Amended by QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 4.1.3 Duties of individuals towards firm

      Each member of an authorised firm’s senior management owes the following duties to the firm:

      (a) to act for the firm’s benefit;
      (b) to avoid any conflict between his or her interests and those of the firm (or, if it is not possible to avoid such a conflict, to mitigate it);
      (c) to have, and to maintain, the knowledge and skills that are reasonably expected of an individual who holds a similar appointment, and carries out similar functions, in the senior management of the firm;
      (d) to carry out his or her functions diligently.

       

      Derived from QFCRA RM/2012-4 (as from 1st July 2013)
      Amended by QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 4.1.4 Requirement for firms to have senior executive function

      (1) An authorised firm must have an individual who is approved to exercise the senior executive function for the firm.
      (2) The individual must be ordinarily resident in Qatar.

       

      Amended by QFCRA RM/2014-3 (as from 1st January 2015)
      Amended by QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 4.1.5 Requirement for firms to have finance function

      An authorised firm must have an individual who is approved to exercise the finance function for the firm.

       

      Derived from QFCRA RM/2012-4 (as from 1st July 2013)
      Amended by QFCRA RM/2020-4 (as from 1st July 2021)