• Individuals (Assessment, Training and Competency) Rules 2014 (INDI)

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    Individuals (Assessment, Training and Competency) Rules 2014 (INDI)
    INDI Chapter 1:
    General
    INDI 1.1.1 Introduction
    INDI 1.1.2 Commencement
    INDI 1.1.3 Effect of definitions, notes and examples
    INDI 1.1.4 Application of INDI
    INDI 1.1.5 Customer-facing function
    INDI 1.1.6 Record-keeping
    INDI Chapter 2:
    Principles of conduct for individuals
    INDI 2.1.1 Application of the principles
    INDI 2.1.2 Principle 1 — integrity
    INDI 2.1.3 Principle 2 — due skill, care and diligence
    INDI 2.1.4 Principle 3 — market conduct
    INDI 2.1.5 Principle 4 — relations with the Regulatory Authority
    INDI 2.1.6 Principle 5 — appropriate priority for management and compliance
    INDI Chapter 3:
    Controlled functions
    INDI Part 3.1 Assessment of individuals for controlled functions
    INDI Part 3.2 Approval of individuals for controlled functions
    INDI Part 3.3 Cessation of performance of controlled functions
    INDI Chapter 4:
    Management of risk
    INDI Part 4.1 Assessment of individuals for customer-facing function
    INDI Part 4.2 Cessation of performance of customer-facing function
    INDI Chapter 5:
    Training and competency
    INDI Part 5.1 Principles for training and competency
    INDI Part 5.2 Training and competency programme
    INDI Part 5.3 Training and other ongoing obligations
    INDI Chapter 6:
    Transitional
    INDI 6.1.1 Definitions for Chapter 6
    INDI 6.1.2 Approved individuals to remain approved
    INDI 6.1.3 Individuals approved for customer facing function before 1 January 2015
    INDI 6.1.4 Individuals conditionally approved for customer facing function
    INDI Schedule 1 Competencies for controlled functions INDI Part S1.1 Senior executive function competencies
    INDI Part S1.2 Executive governance function competencies
    INDI Part S1.3 Non-executive governance function competencies
    INDI Part S1.4 Compliance oversight function competencies
    INDI Part S1.5 Risk management function competencies
    INDI Part S1.6 Finance function competencies
    INDI Part S1.7 MLRO function competencies
    INDI Part S1.8 Senior management function competencies
    INDI Part S1.9 Actuarial function competencies
    INDI Part S1.10 Internal audit function competencies
    INDI Schedule 2 Competencies for customer-facing function INDI Part S2.1 Customer-facing function competencies — general insurance contracts and pure protection contracts
    INDI Part S2.2 Customer-facing function competencies — other long term insurance contracts and units in collective investment schemes
    INDI Part S2.3 Customer-facing function competencies—relevant investments
    INDI Glossary

    • INDI Chapter 1 INDI Chapter 1 General

      • INDI 1.1.1 Introduction

        (1) These rules are the Individuals (Assessment, Training and Competency) Rules 2014 (or INDI).
        (2) These rules set out:
        (a) the principles of conduct for individuals who perform controlled functions or the customer-facing function for authorised firms; and
        (b) the principles and framework under which:
        (i) authorised firms assess the competence, and the fitness and propriety, of individuals who perform controlled functions or the customer-facing function;
        (ii) the Regulatory Authority approves individuals to perform controlled functions; and
        (iii) authorised firms establish training and competency programmes for individuals who perform controlled functions or the customer-facing function.
        Note There are 10 controlled functions, which are described in CTRL, Division 1.2.B. The controlled functions are:
        •   the non-executive governance function
        •   the executive governance function
        •   the senior executive function
        •   the finance function
        •   the senior management function
        •   the MLRO function
        •   the risk management function
        •   the compliance oversight function
        •   the internal audit function
        •   the the actuarial function.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021)

      • INDI 1.1.2 Commencement

        These rules commence on 1 January 2015.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 1.1.3 Effect of definitions, notes and examples

        (1) A definition in the glossary to these rules also applies to any instructions or document made under these rules.
        (2) A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.
        (3) An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.

        Note Under FSR, article 17 (4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 1.1.4 Application of INDI

        These rules apply to:

        (a) an authorised firm;
        (b) an individual who is approved, or who is applying for approval, to perform a controlled function; and
        (c) an individual who performs, or who proposes to perform, the customer-facing function.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 1.1.5 Customer-facing function

        An individual performs the customer-facing function for an authorised firm if he or she carries on 1 or more of the following regulated activities with or for customers in or from the QFC:

        (a) dealing in investments (that is, the regulated activity described in FSR, Schedule 3, Part 2, paragraph 4);
        (b) managing investments (that is, the regulated activity described in FSR, Schedule 3, Part 2, paragraph 10);
        (c) advising on investments (that is, the regulated activity described in FSR, Schedule 3, Part 2, paragraph 11);
        (d) arranging deals in investments (that is, the regulated activity described in FSR, Schedule 3, Part 2, paragraph 5);
        (e) insurance mediation (that is, the regulated activity described in the Insurance Mediation Business Rules 2011, rule 1.2.2).

        Note Insurance mediation is a regulated activity if carried on by way of business — see the Insurance Mediation Business Rules 2011, rule 1.2.3.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 1.1.6 Record-keeping

        (1) An authorised firm must maintain the records necessary:
        (a) to enable the firm to comply with Chapter 3, Chapter 4 and Chapter 5; and
        (b) to demonstrate, at all times, that it has complied with those Chapters.
        (2) Without limiting subrule (1), the firm must maintain a record of how it made each decision about an individual, including, for example:
        (a) the inquiries that it made before making the decision, the dates on which it made them and the results;
        (b) the matters that it took into account in making the decision;
        (c) the provisions of Rules and guidance that it considered or complied with in making the decision, and, if appropriate, how it complied with the Rules; and
        (d) the decision, the date on which it was made and the reasons for it.
        (3) The firm must retain such records for at least 6 years after the day on which they are made.
        (4) However, the firm must retain records made for subrule (2) about an individual who is (or has been) performing a controlled function or the customer-facing function for at least 6 years after the day on which he or she ceases (or ceased) to perform the function for the firm.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Chapter 2 INDI Chapter 2 Principles of conduct for individuals

      • INDI 2.1.1 Application of the principles

        The principles in rule 2.1.2 to rule 2.1.6 apply to an individual who performs a controlled function or the customer-facing function for an authorised firm.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 2.1.2 Principle 1 — integrity

        The individual must act with integrity at all times.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 2.1.3 Principle 2 — due skill, care and diligence

        The individual must act with due skill, care and diligence.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 2.1.4 Principle 3 — market conduct

        The individual must observe appropriate standards of market conduct.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 2.1.5 Principle 4 — relations with the Regulatory Authority

        The individual must deal with the Regulatory Authority in an open and cooperative manner, and must disclose appropriately to the authority any information that the authority would reasonably expect to be informed of.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 2.1.6 INDI 2.1.6 Principle 5 — appropriate priority for management and compliance

        If the individual is a member of the firm's senior management, he or she must give appropriate priority to his or her management responsibilities, and must ensure that the business for which he or she is responsible:

        (a) is effectively supervised and controlled; and
        (b) complies with the requirements of the regulatory system.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 2.1.6 Guidance

          1 The principles are drawn up in accordance with FSR, article 15 (3), and are part of these rules.
          2 The principles are a general statement of the standards expected of individuals who perform controlled functions or the customer-facing function for authorised firms. They apply directly to the conduct of firms' business by such individuals.
          3 The principles are not exhaustive of the standards expected. Complying with the principles does not absolve an individual from failing to observe other requirements in these rules, and observing other requirements in these rules is not necessarily complying with the principles.
          4 An individual's failure to comply adequately with the principles is likely to affect the Regulatory Authority's assessment of his or her fitness and propriety. A breach of the principles could form the basis of action by the authority.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Chapter 3 INDI Chapter 3 Controlled functions

      • INDI Part 3.1 INDI Part 3.1 Assessment of individuals for controlled functions

        Note

        Principle 3 of the principles on training and competency (see rule 5.1.3) requires an authorised firm to undertake initial and ongoing assessments of each individual's competencies to perform controlled functions.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 3.1.1 Controlled functions — firms' competence and fitness assessments

          Before making an application to the Regulatory Authority for an individual to be approved to perform a controlled function, an authorised firm must be satisfied, on reasonable grounds after making appropriate inquiries, that the individual:

          (a) has the competencies required to perform the function;
          (b) is a fit and proper person to perform the function; and
          (c) satisfies any additional requirements under these or any other Rules for the function.

          Note Under FSR, article 41 (1) (Approval of persons performing controlled functions), an authorised firm must ensure that no individual performs a controlled function unless he or she is approved by the Regulatory Authority as an approved individual.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 3.1.2 How firms to make competence assessments

          (1) In deciding whether an individual has the competencies required to perform a controlled function, an authorised firm must take into account:
          (a) the specific requirements, characteristics and role of the function within the firm;

          Guidance

          Requirements: what an individual should have to perform the function — for example, a certain level of knowledge, experience and training

          Characteristics: what an individual should be able to do in performing the function — that is, his or her skills (technical and behavioural).

          Role: what the individual is expected to do — for example, the function's duties, responsibilities, reporting lines and position within the firm.
          (b) the nature, scale and complexity of the firm's business, including:
          (i) the products and services that it offers or provides, or proposes to offer or provide; and
          (ii) changes to those products and services and to the market;
          (c) the firm's customers; and
          (d) the regulatory system, including any recent, or reasonably expected, changes to it.
          (2) The assessment of an individual's competence to perform the internal audit function must be made by the firm's governing body.

          Note Governing body is defined in the glossary.
          (3) The assessment of an individual's competence to perform the risk management function, the compliance oversight function or the actuarial function must be made:
          (a) by the firm's governing body; or
          (b) after consultation with the firm's governing body.
          (4) In making its decision the firm may also take any other relevant matter into account.
          Note Under CTRL, rule 3.1.15, decisions about the appointment, performance assessment, remuneration, disciplining and dismissal of certain approved individuals must be made by the firm's governing body, or after consultation with it.

           

          Amended by QFCRA RM/2019-4 (as from 1st January 2020).
          Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI 3.1.3 INDI 3.1.3 Competencies

          (1) The competencies for a controlled function are the elements of skills, knowledge and experience that make an individual competent to perform the function.
          (2) Subject to subrules (3) and (4), an individual who is to perform a controlled function is expected to have the competencies set out in Schedule 1 for the function.
          (3) An individual must have the qualifications set out in Schedule 1 as knowledge competencies before he or she can be approved to perform certain controlled functions. Those controlled functions are the following:
          (a) the compliance oversight function;
          (b) the risk management function;
          (c) the finance function;
          (d) the MLRO function;
          (e) the actuarial function;
          (f) the internal audit function.
          (4) In assessing an individual's competencies against the relevant requirements in Schedule 1, the level of the competencies that the individual must have must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts.

          Example for subrule (4)
          An individual who seeks to be assessed as competent to perform the compliance oversight function for a firm that conducts only limited regulated activities need not necessarily have all the skills set out in Schedule 1, clause S1.4.1 to clause S1.4.13. In contrast, an individual who seeks to be assessed as competent to perform that function for a firm that conducts complex regulated activities would be expected to have all or most of those skills.
          Amended by QFCRA RM/2018-1 (as from 1st May 2018).

          • INDI 3.1.3 Guidance

            1 The 3 kinds of competency elements against which an individual is to be assessed as competent or not are:
            •   the individual's skills (what he or she ought to be able to do)
            •   the individual's knowledge (what he or she ought to know or to have by way of qualifications)
            •   the individual's experience (what he or she has previously done, if anything).
            2 The competency elements are to be used in making assessments under this rule and rule 3.2.3 (Eligibility to remain approved).
            3 The firm must decide whether the individual has the competencies required to perform the function, taking into account the circumstances of the case and the individual's role.
            4 The following are examples of levels of experience that the firm may use when assessing the individual's competence:
            •   for a junior role — up to 2 years' experience performing the function or a similar role
            •   for a mid-level role — more than 2 years', and up to 10 years', experience
            •   for a senior role — more than 10 years' experience.
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 3.1.4 Qualifications that are appropriate or equivalent

          (1) If Schedule 1 specifies a particular qualification as a knowledge competency, but allows an authorised firm to assess another qualification as being appropriate for an individual's role, the firm must hold appropriate evidence about the appropriateness of the other qualification.
          (2) If Schedule 1 specifies a particular qualification as a knowledge competency, but allows an authorised firm to assess another qualification as being equivalent, or that the qualification is unnecessary, the firm must hold appropriate evidence, or must otherwise demonstrate, that the other qualification is equivalent, or that the qualification is unnecessary, as the case may be.

          Note Qualification includes the membership of a professional body or association — see the glossary.
          (3) In considering whether a qualification is equivalent to a qualification that is specified in Schedule 1, an authorised firm may take into account qualifications that are recognised as appropriate for the relevant role by another regulator.

          Examples of other regulators
          •   the Financial Conduct Authority (UK)
          •   the Australian Securities and Investments Commission
          •   the Financial Markets Authority (New Zealand)
          •   the Financial Industry Regulatory Authority (US)
          •   the Securities and Futures Commission (Hong Kong)
          •   the Monetary Authority of Singapore.
          (4) The firm must record its assessment, and any supporting evidence, in the record about the individual required by rule 1.1.6 (Record-keeping).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 3.1.5 How firms to make fitness assessments

          (1) In deciding whether an individual is a fit and proper person to perform a controlled function, an authorised firm must take into account:
          (a) the individual's honesty, integrity and reputation; and
          (b) the individual's financial soundness.
          (2) For paragraph (1) (a), the firm must take into account the following matters about the individual's honesty, integrity and reputation:
          (a) any past, ongoing or pending legal proceedings, whether civil or criminal, relating to or involving the individual;
          (b) any investigation undertaken, disciplinary action taken, or sanctions imposed, in relation to or on the individual by a court, tribunal, regulatory or governmental agency, body or authority, exchange, clearing house, self-regulatory body or other professional body;
          (c) any complaint against the individual relating to, or any contravention by or involving the individual of, any financial services legislation (including any regulations, rules, statements of principle or codes of practice made by an exchange, clearing house, self-regulatory body or other professional body);
          (d) any complaint made about the individual's standard of conduct in relation to activities subject to regulation inside or outside the QFC;
          (e) the individual's involvement with any business that:
          (i) was wound up or put into liquidation, placed in receivership or administration, ceased trading, negotiated a settlement with creditors, or became insolvent:
          (A) while the individual was involved with the business; or
          (B) within 1 year after that involvement ended;
          (ii) had any approval, authority, licence, registration or other permission to conduct business removed, restricted or suspended;
          (iii) has been refused any approval, authority, licence, registration or other permission to conduct business;
          (iv) has been expelled by any regulatory or governmental agency, body or authority; or
          (v) has been investigated, criticised, disciplined, censured or suspended by any regulator, professional body or tribunal, whether publicly or privately;
          (f) whether the individual has been dismissed, or has been asked to resign and has resigned, from a position of trust or fiduciary appointment;
          (g) the effect that the individual's reputation may have on the authorised firm and the QFC;
          (h) whether the individual has been candid and truthful in dealing with the authority.
          (3) For paragraph (1) (b), the firm must take into account the following matters about the individual's financial soundness:
          (a) whether the individual is able to pay debts as they fall due;
          (b) any arrangement that individual has made with creditors;
          (c) whether the individual has filed for bankruptcy, been served with any bankruptcy petition or been subject to any bankruptcy order;
          (d) whether the individual has had assets seized, confiscated or frozen.
          (4) In deciding whether an individual is a fit and proper person to perform a controlled function, the firm may also take any other relevant matter into account.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part 3.2 INDI Part 3.2 Approval of individuals for controlled functions

        • INDI 3.2.1 Firms' application for approval of individuals

          If an authorised firm is satisfied that an individual:

          (a) has the competencies required to perform a controlled function;
          (b) is a fit and proper person to do so; and
          (c) satisfies any other requirements under these or any other Rules;

          the firm may apply to the Regulatory Authority for the approval of the individual to perform the function.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 3.2.2 Eligibility for approval of individuals — general

          An individual is eligible to be approved by the Regulatory Authority to perform a controlled function for an authorised firm only if the firm has assessed him or her:

          (a) as having the competencies required to perform the function;
          (b) as being a fit and proper person to perform the function; and
          (c) as satisfying any other requirements under these or any other Rules for the function.

          Note In certain circumstances an individual may be approved to perform 2 or more controlled functions for an authorised firm, or to perform a controlled function for 2 or more members of a group. See CTRL, Chapter 5.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)
          Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI 3.2.3 Eligibility to remain approved

          An approved individual is eligible to remain approved by the Regulatory Authority to perform a controlled function only if the authorised firm concerned can demonstrate, on an ongoing basis, to the authority's satisfaction that the individual:

          (a) has the competencies required to perform the function;
          (b) is a fit and proper person to perform the function; and
          (c) satisfies any additional requirements under these or any other Rules for the function.

          Note For the competencies for controlled functions, see rule 3.1.3 and the guidance following that rule.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part 3.3 INDI Part 3.3 Cessation of performance of controlled functions

        • INDI 3.3.1 Regulatory Authority withdrawal of approval

          The Regulatory Authority may withdraw the approval of an individual to perform a controlled function in any of the following circumstances:

          (a) the authority has determined that the individual is no longer a fit and proper person in relation to the function;
          (b) the authority considers that the individual no longer has the relevant competencies;
          (c) the authority considers that the individual's performance of the function has fallen below the standard at which a reasonable person having the necessary skills, knowledge and experience would be expected to perform the function.

          Note If the authority has permitted an approved individual to perform 2 or more controlled functions for an authorised firm, the authority may direct the firm to stop combining the functions, or to appoint another approved individual to perform 1 of them (see CTRL, rule 5.1.1 (5)).

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)
          Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI 3.3.2 What firm must do if individual ceases to perform controlled function

          (1) If an authorised firm becomes aware that, for any reason (other than the withdrawal of the individual's approval by the Regulatory Authority), an approved individual is to cease to perform, or has ceased to perform, a controlled function that he or she is approved to perform, the firm must request the authority to withdraw the individual's approval to perform the function.
          (2) The firm must make the request:
          (a) at least 10 business days before the day on which the individual is to cease to perform the function; or
          (b) if the request cannot be made as required by paragraph (a) — immediately after the firm becomes aware that the individual is to cease to perform, or has ceased to perform, the function, but within 2 business days after that time.

          Examples — meaning of 'within 2 business days'
          1 If the firm becomes aware, on a business day, that the individual will cease to perform the function, the firm must make the request immediately, but by no later than the next business day.
          2 If the firm becomes aware, on a day that is not a business day, that he or she has ceased to perform the function, the firm must make the request immediately, but by no later than 2 business days after that day.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Chapter 4 INDI Chapter 4 Customer-facing function

      • INDI Part 4.1 INDI Part 4.1 Assessment of individuals for customer-facing function

        Note

        Principle 3 of the principles on training and competency (see rule 5.1.3) requires an authorised firm to undertake initial and ongoing assessments of each individual's competencies to perform the customer-facing function.

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.1 Customer-facing function — firms' competence and fitness assessments

          (1) An authorised firm must be satisfied, on reasonable grounds after making appropriate inquiries, that an individual who performs, or is proposed to perform, the customer-facing function:
          (a) has the competencies required to do so;
          (b) is a fit and proper person to do so; and
          (c) satisfies any other requirements under these or any other Rules.
          (2) An individual must not perform the customer-facing function for an authorised firm unless the firm continues to be satisfied that he or she:
          (a) has the competencies required to do so;
          (b) is a fit and proper person to do so; and
          (c) satisfies any other requirements under these or any other Rules.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.2 How firms to make competence assessments

          In deciding whether an individual has the competencies required to perform the customer-facing function, an authorised firm must take into account:

          (a) the customer-facing activities that the individual is to perform (and in particular whether the individual must exercise discretion or personal judgement);
          (b) the nature, scale and complexity of the firm's business, including:
          (i) the products and services that it offers or provides, or proposes to offer or provide; and
          (ii) changes to those products and services and to the market;
          (c) the firm's customers; and
          (d) the regulatory system, including any recent, or reasonably expected, changes to it.
          Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI 4.1.3 INDI 4.1.3 Competencies

          (1) The competencies for the customer-facing function are the elements of skills, knowledge and experience that make an individual competent to perform the function.
          (2) Subject to subrules (3) and (4), an individual who is to perform the customer-facing function is expected to have the competencies set out in Schedule 2.
          (3) An individual who will perform the customer-facing function with retail customers must have the qualifications set out in Schedule 2 as knowledge competencies for the function before he or she can be assessed as competent to perform the function.
          (4) In assessing an individual's competencies against the relevant requirements in Schedule 2, the level of the competencies that the individual must have must be commensurate to the nature and complexity of his or her role in the firm.

          Example

          An individual who will perform the customer-facing function only in relation to advising on motor vehicle insurance policies need be assessed for the skills, knowledge and experience required only for that limited role.

          Amended by QFCRA RM/2018-1 (as from 1st May 2018).

          • INDI 4.1.3 Guidance

            1 The 3 kinds of competency elements against which an individual is to be assessed as competent or not are:
            •   the individual's skills (what he or she ought to be able to do)
            •   the individual's knowledge (what he or she ought to know or to have by way of qualifications)
            •   the individual's experience (what he or she has previously done, if anything).
            2 The competency elements are to be used in making assessments under rule 4.1.1 (Customer-facing function¡Xfirms' competence and fitness assessments)
            3 The firm must decide whether the individual has the competencies required to perform the function, taking into account the circumstances of the case and the individual's role.
            4 The following are examples of levels of experience that the firm may use when assessing the individual's competence:
            •   for a junior role — up to 2 years' experience performing the function or a similar role
            •   for a mid-level role — more than 2 years', and up to 10 years', experience
            •   for a senior role — more than 10 years' experience.
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.4 Qualifications that are appropriate or equivalent

          (1) If Schedule 2 specifies a particular qualification as a knowledge competency, but allows an authorised firm to assess another qualification as being appropriate for an individual's role, the firm must hold appropriate evidence about the appropriateness of the other qualification.
          (2) If Schedule 2 specifies a particular qualification as a knowledge competency, but allows an authorised firm to assess another qualification as being equivalent, or that the qualification is unnecessary, the firm must hold appropriate evidence, or must otherwise demonstrate, that the other qualification is equivalent, or that the qualification is unnecessary, as the case may be.
          (3) In considering whether a qualification is equivalent to a qualification specified in Schedule 2, or is appropriate for an individual's role, an authorised firm may take into account qualifications that are recognised as appropriate for the role by another regulator.

          Examples of other regulators

          •   the Financial Conduct Authority (UK)
          •   the Australian Securities and Investments Commission
          •   the Financial Markets Authority (New Zealand)
          •   the Financial Industry Regulatory Authority (USA)
          •   the Securities and Futures Commission (Hong Kong)
          •   the Monetary Authority of Singapore.
          (4) The firm must record its assessment, and any supporting evidence, in the record about the individual required by rule 1.1.6 (Record-keeping).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.5 How firms to make fitness assessments

          (1) In deciding whether an individual is a fit and proper person to perform the customer-facing function, an authorised firm must take into account:
          (a) the individual's honesty, integrity and reputation; and
          (b) the individual's financial soundness.
          (2) For paragraph (1) (a), the firm must take into account the following matters about the individual's honesty, integrity and reputation:
          (a) any past, ongoing or pending legal proceedings, whether civil or criminal, relating to or involving the individual;
          (b) any investigation undertaken, disciplinary action taken, or sanctions imposed, in relation to or on the individual by a court, tribunal, regulatory or governmental agency, body or authority, exchange, clearing house, self-regulatory body or other professional body;
          (c) any complaint against the individual relating to, or any contravention by or involving the individual of, any financial services legislation (including any regulations, rules, statements of principle or codes of practice made by an exchange, clearing house, self-regulatory body or other professional body);
          (d) any complaint made about the individual's standard of conduct in relation to activities subject to regulation inside or outside the QFC;
          (e) the individual's involvement with any business that:
          (i) was wound up or put into liquidation, placed in receivership or administration, ceased trading, negotiated a settlement with creditors, or became insolvent:
          (A) while the individual was involved with the business; or
          (B) within 1 year after that involvement ended;
          (ii) had any approval, authority, licence, registration or other permission to conduct business removed, restricted or suspended;
          (iii) has been refused any approval, authority, licence, registration or other permission to conduct business;
          (iv) has been expelled by any regulatory or governmental agency, body or authority; or
          (v) has been investigated, criticised, disciplined, censured or suspended by any regulator, professional body or tribunal, whether publicly or privately;
          (f) whether the individual has been dismissed, or has been asked to resign and has resigned, from a position of trust or fiduciary appointment;
          (g) the effect that the individual's reputation may have on the authorised firm and the QFC;
          (h) whether the individual has been candid and truthful in dealing with the authority.
          (3) For paragraph (1) (b), the firm must take into account the following matters about the individual's financial soundness:
          (a) whether the individual is able to pay debts as they fall due;
          (b) any arrangement that the individual has made with creditors;
          (c) whether the individual has filed for bankruptcy, been served with any bankruptcy petition or been subject to any bankruptcy order;
          (d) whether the individual has had assets seized, confiscated or frozen.
          (4) In deciding whether an individual is a fit and proper person to perform the customer-facing function, the firm may also take any other relevant matter into account.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.6 Retail customer-facing function — non-discretionary customer-facing activities

          (1) An authorised firm may designate an individual to perform only non-discretionary customer-facing activities.
          (2) For this rule, customer-facing activities are either discretionary or non-discretionary. Non-discretionary customer-facing activities are customer-facing activities that meet all of the following requirements:
          (a) the activities are in relation only to general insurance contracts or pure protection contracts (or both);
          (b) the activities are in relation only to retail customers;
          (c) the activities either:
          (i) do not require the individual who performs them to exercise discretion or personal judgement; or
          (ii) require him or her to do so only in relation to routine activities.
          Examples of non-discretionary customer-facing activities
          •   using a sales process that involves putting scripted questions to retail customers
          •   the use of prepared answers or scripted responses for retail customers by call centre staff
          •   routine data collection from retail customers in filling out policy documentation
          •   giving routine assistance with claims management to retail customers.
          (3) An individual who is designated by an authorised firm under subrule (1) may perform only non-discretionary customer-facing activities for the firm.
          (4) An authorised firm may designate an individual under subrule (1) only if the firm:
          (a) has systems, controls, policies and procedures to ensure that individuals who are designated to perform non-discretionary customer-facing activities do not perform discretionary customer-facing activities;
          (b) has at least 1 individual who performs the customer-facing function who has obtained the CISI Regulatory qualification; and
          (c) has systems, controls, policies and procedures to ensure that only an individual who has obtained the CISI Regulatory qualification performs discretionary customer-facing activities.
          Examples of discretionary customer-facing activities
          •   providing advice to retail customers based on personal judgement or discretion
          •   answering technical questions — for example, in relation to an insurance contract's exclusions or terms and conditions
          •   undertaking non-routine activities relating to arranging a contract or in support of the performance of a contract.
          (5) A person who is designated under subrule (1) and is performing non-discretionary customer-facing activities is performing the customer-facing function, and rule 4.1.1 (2) applies to him or her.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.1.7 Firms to maintain publicly available registers

          (1) Subject to subrule (6), an authorised firm must maintain a register of all the individuals who perform the customer-facing function for it.

          Note An individual designated under rule 4.1.6 to perform only non-discretionary customer-facing activities is performing the customer-facing function — see rule 4.1.6 (5). Therefore, the obligation under this rule applies in relation to such an individual.
          (2) The register must contain, for each individual:
          (a) the individual's name;
          (b) the date on which he or she began to perform the function, and (if applicable) the date on which he or she ceased to do so; and
          (c) any restriction on the customer-facing activities that he or she can perform.

          Examples
          •   "designated to perform non-discretionary customer-facing activities only"
          •   "to perform customer-facing activities for business customers only"
          (3) The firm must keep the register up to date.
          (4) The firm must make the register available for access by the public generally, and may do so either at its office or the office of a representative, or by means of a website.
          (5) The firm must retain the entry in the register for an individual who no longer performs the customer-facing function for the firm for at least 3 years after the individual ceases to do so, and must note in the register that the individual has so ceased.
          (6) The firm need not make an entry in the register for an individual who:
          (a) is employed by a related firm, or is employed by the firm but is not ordinarily resident in Qatar; and
          (b) performs the customer-facing function for the firm:
          (i) only in relation to business customers; and
          (ii) only infrequently, and in any event in no more than 3 transactions in any 1 calendar year.
          Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • INDI Part 4.2 INDI Part 4.2 Cessation of performance of customer-facing function

        • INDI 4.2.1 Regulatory Authority may direct firms to remove individuals from performing customer-facing function

          (1) The Regulatory Authority may direct an authorised firm:
          (a) to remove a specified individual from performing the customer-facing function; or
          (b) to ensure that a specified individual who is performing the customer-facing function takes, or refrains from taking, action that the authority specifies.
          (2) The Regulatory Authority may give such a direction if it is satisfied that the individual:
          (a) is no longer a fit and proper person in relation to the function;
          (b) is performing the function at below the standard reasonably expected of a person with the necessary skills, knowledge and experience; or
          (c) has contravened a relevant requirement (within the meaning given by FSR, article 84 or 85).
          (3) Subject to subrule (4), before giving such a direction the Regulatory Authority:
          (a) must give the firm an appropriate opportunity to make representations to the authority in relation to the proposed direction; and
          (b) must give appropriate consideration to any representations that the firm makes.
          (4) If the Regulatory Authority considers that allowing the firm to make representations would cause delay that is likely to be prejudicial to the interests of the firm's customers, or the financial system operating in or from the QFC, subrule (3) does not apply. However, in such a case the authority must give the firm an opportunity to make representations promptly after the direction has been given, and must give appropriate consideration to any representations that the firm makes.

          Note An individual designated under rule 4.1.6 to perform only non-discretionary customer-facing activities is performing the customer-facing function — see rule 4.1.6 (5). Therefore, the power given by this rule extends to such an individual.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 4.2.2 Firms to notify Regulatory Authority of certain matters

          (1) If an authorised firm considers that an individual who performs, or has performed, the customer-facing function for the firm:
          (a) is not, or is no longer, a fit and proper person in relation to the function;
          (b) is performing, or performed, the function at below the standard reasonably expected of a person with the necessary skills, knowledge and experience; or
          (c) has contravened a relevant requirement (within the meaning given by FSR, article 84 or 85);
          the firm must notify the Regulatory Authority.
          (2) The notification must be given within a reasonable period after the firm becomes aware of the relevant facts. It must be given even if the individual no longer performs the function for the firm.
          (3) The notification must include a statement of the relevant facts and of any action that the firm has taken or proposes to take.

          Note An individual designated under rule 4.1.6 to perform only non-discretionary customer-facing activities is performing the customer-facing function — see rule 4.1.6 (5). Therefore, the obligation under this rule applies in relation to such an individual.
          (4) If this rule requires the firm to notify the Regulatory Authority of a matter, and a provision of GENE, Chapter 4, requires the firm to give the authority notice of, or tell the authority about, the matter, the firm satisfies the requirements of this rule if it complies with the provision of GENE.

          Note This rule requires an authorised firm to notify the authority about certain matters that are not covered by GENE, chapter 4 — see GENE, rule 4.1.3 to rule 4.1.7.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Chapter 5 INDI Chapter 5 Training and competency

      • INDI Part 5.1 INDI Part 5.1 Principles for training and competency

        Guidance

        Individuals who perform controlled functions or the customer-facing function need to have the appropriate competency elements of skills, knowledge and experience. Individuals having these competency elements strengthen the protection given to customers and stakeholders. Authorised firms need to prudently manage the risks that may arise as a result of individuals performing a controlled function or the customer-facing function.

        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI 5.1.1 Principle 1 — senior management responsibility

          The senior management of an authorised firm must ensure that the firm's policies, procedures, systems and controls appropriately and adequately address the training and competency requirements in this Chapter.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.1.2 Principle 2 — training and competency programme

          An authorised firm must design, deliver and maintain an appropriate ongoing training and competency programme for individuals who perform a controlled function or the customer-facing function.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.1.3 Principle 3 — assessment of competencies

          An authorised firm must undertake initial and ongoing assessment of each individual's competencies to perform a controlled function or the customer-facing function.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.1.4 Principle 4 — training

          An authorised firm must ensure that individuals who perform a controlled function or the customer-facing function receive or undertake sufficient training and continuing professional development.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.1.5 Principle 5 — record-keeping

          An authorised firm must be able to provide documentary evidence of its compliance with the requirements relating to the training and competency of individuals who perform a controlled function or the customer-facing function.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part 5.2 INDI Part 5.2 Training and competency programme

        • INDI 5.2.1 Appropriate programme to be delivered

          (1) An authorised firm must design, deliver and maintain an appropriate ongoing training and competency programme for individuals who perform a controlled function or the customer-facing function.
          (2) The programme:
          (a) must be relevant, timely and appropriately structured;
          (b) must ensure that individuals who perform a controlled function or the customer-facing function are aware, and have an appropriate understanding, of:
          (i) their roles, responsibilities and obligations;
          (ii) the firm's processes in so far as they apply to each individual's role;
          (iii) any reports that they are required to make; and
          (iv) the sources of information for making the reports; and
          (c) must include policies, procedures, systems and controls on how the firm is to decide whether individuals are competent to perform a controlled function or the customer-facing function.
          (3) In designing its training and competency programme, the firm must consider the following:
          (a) the individuals' differing needs, experience, skills and abilities;
          (b) their differing roles and levels in the firm;
          (c) the degree of supervision over, or independence exercised by, them;
          (d) the availability of information needed for them to perform their roles;
          (e) the nature, scale and complexity of the firm's business, including:
          (i) the products and services it offers or provides, and proposes to offer or provide; and
          (ii) changes to those products and services and to the market;
          (f) the firm's customers;
          (g) the outcome of reviews of the individuals' training and competency;
          (h) any analysis showing areas where training needs to be enhanced;
          (i) the regulatory system, including any recent, or reasonably expected, changes to it.
          (4) In designing the programme, the firm may also consider any other relevant matter.
          Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI 5.2.2 Training must be maintained and reviewed

          (1) An authorised firm's training and competency programme must include ongoing training to ensure that individuals who perform a controlled function or the customer-facing function:
          (a) maintain their competencies;
          (b) are kept up to date with developments relating to their functions; and
          (c) are trained on any changes to the firm's policies, procedures, systems and controls.
          (2) The firm must, at regular and appropriate intervals, review and evaluate:
          (a) its training and competency programme and training and competency document for quality and effectiveness; and
          (b) those individuals' training needs, to ensure that those needs are met.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.2.3 Training and competency document

          (1) An authorised firm must prepare a document (training and competency document) describing its training and competency programme.
          (2) A firm's training and competency document must include:
          (a) the requirements, characteristics and role of each of the following functions:
          (i) a controlled function for which a rule requires the firm to have an individual approved;
          (ii) any other controlled function that an individual performs for the firm;
          (iii) if the firm has 1 or more individuals who perform the customer-facing function — that function;

          Guidance

          Requirements: what an individual should have to perform the function — for example, a certain level of knowledge, experience and training

          Characteristics: what an individual should be able to do in performing the function — that is, his or her skills (technical and behavioural).

          Role: what the individual is expected to do — for example, the function's duties, responsibilities, reporting lines and position within the firm.
          (b) how the firm is to satisfy itself that each individual who performs a controlled function or the customer-facing function has, and continues to have, the competencies required to perform the function;
          (c) the continuing professional development to be provided for such individuals and the review and evaluation of their training needs;

          Note See rule 5.3.3 (Continuing professional development).
          (d) how the firm is to ensure that it complies, and can demonstrate its compliance, with its training and competency programme;
          (e) how, and in what circumstances, the firm will review the programme and the document, including who is to carry out the review and evaluation and when; and
          (f) how, and in what circumstances, the firm will revise the programme and the document, including who is to approve any revision.
          (3) Revision includes amendment and replacement.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.2.4 Firm must comply with its training and competency programme

          (1) An authorised firm must comply with the requirements and procedures in its training and competency programme and training and competency document as revised from time to time.
          (2) The individual approved to perform the compliance oversight function for an authorised firm:
          (a) must monitor, on an ongoing basis, the firm's compliance with its training and competency programme and training and competency document; and
          (b) must report to the firm's governing body at least once a year about the firm's compliance with that programme and that document.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part 5.3 INDI Part 5.3 Training and other ongoing obligations

        Notes

        1 Principle 4 (see rule 5.1.4) requires an authorised firm to ensure that individuals who perform a controlled function or the customer-facing function receive or undertake sufficient training and continuing professional development.
        2 Principle 5 (see rule 5.1.5) requires an authorised firm to be able to provide documentary evidence of its compliance with the requirements about the training and competency of such individuals.
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.3.1 Obligation to review competencies

          (1) An authorised firm must, from time to time in accordance with its training and competency document, ensure that each individual who performs a controlled function or the customer-facing function:
          (a) continues to have the competencies required to perform the function; and
          (b) continues to be a fit and proper person to perform the function.
          (2) The following rules apply to an authorised firm in deciding whether an individual continues to have the competencies, and continues to be a fit and proper person:
          (a) to perform a controlled function:
          •   rule 3.1.2 (How firms to make competence assessments)
          •   rule 3.1.5 (How firms to make fitness assessments);
          (b) to perform the customer-facing function:
          •   rule 4.1.2 (How firms to make competence assessments)
          •   rule 4.1.5 (How firms to make fitness assessments).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.3.2 Obligation to review training and development needs

          (1) An authorised firm must, from time to time in accordance with its training and competency document, assess the training and development needs of each individual who performs a controlled function or the customer-facing function.
          (2) The interval between assessments of an individual's training and development needs must not be longer than 12 months.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI 5.3.3 Continuing professional development

          An authorised firm must ensure that each individual who performs a controlled function or the customer-facing function receives sufficient continuing professional development, appropriate to the nature and complexity of his or her role, to ensure that he or she continues to have the competencies required to perform the function.

          Examples of continuing professional development

          1 in-house training
          2 industry literature review
          3 academic studies
          4 obtaining professional qualifications
          5 technical training for roles that are highly technical or that involve constant changes in legislation or regulatory practice.

          Note The authorised firm's training and competency document must state its policies and procedures about continuing professional development (see rule 5.2.3 (2) (c)).

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Chapter 6 INDI Chapter 6 Transitional

      • INDI 6.1.1 Definitions for Chapter 6

        conditionally approved individual means an individual to whom, at some time before 1 January 2015, an approval was granted under INDI 2005, rule 4A.4.2 (Conditional approval — individuals likely to acquire competencies for customer facing function within 12 months), if that approval would still have been in effect on 1 January 2015 had these rules not been made.

        INDI 2005 means the Individuals Rules 2005 (as in force immediately before 1 January 2015).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI 6.1.2 Approved individuals to remain approved

        If an individual was approved to perform a controlled function (other than the customer-facing function) at some time before 1 January 2015, and that approval has not been withdrawn, the individual continues to be an approved individual to perform that function.

        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • INDI 6.1.3 Individuals approved for customer-facing function before 1 January 2015

        (1) In this rule:

        approved individual does not include a conditionally approved individual.
        (2) An individual who was an approved individual in relation to the customer-facing function immediately before 1 January 2015 is taken to have been assessed, in accordance with rule 4.1.1 (1), by the authorised firm for whom he or she performs the function:
        (a) as having the competencies to perform the customer-facing function;
        (b) to be a fit and proper person to do so; and
        (c) to satisfy any other requirements under these or any other Rules.
        (3) The firm must enter details of the individual in the register that it maintains under rule 4.1.7.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • INDI 6.1.4 Individuals conditionally approved for customer-facing function

        (1) Subject to subrules (2), (3) and (4), a conditionally approved individual may continue to perform the customer-facing function for the authorised firm concerned.
        (2) The firm:
        (a) must continue to supervise the individual appropriately (within the meaning given by INDI 2005); and
        (b) must assess the individual in accordance with Part 4.1 (Assessment of individuals for customer-facing function).
        Note The firm may designate the individual to perform non-discretionary customer-facing activities if he or she has the competencies, is fit and proper, and satisfies any other requirement under these or any other Rules, to do so. See rule 4.1.6.
        (3) The firm must carry out the assessment before the end of the 12 month period for the individual referred to in INDI 2005, rule 4A.4.2.
        (4) If the result of the assessment is that the individual does not have the competencies, is not fit and proper, or does not satisfy any other requirement under these or any other Rules, to perform the customer-facing function, the individual must cease to perform that function on or before the end of the 12 month period referred to in subrule (3).
        (5) The firm must not enter details of the individual in the register that it maintains under rule 4.1.7 until the individual has been assessed as having the competencies, being fit and proper, and satisfying any other requirement under these or any other Rules, to perform the customer-facing function.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

    • INDI Schedule 1 INDI Schedule 1 Competencies for controlled functions

      (see rule 3.1.3)

      Notes

      The competencies in this Schedule for a controlled function are in addition to any requirements under other Rules for the function. Specific references to other rules are given in notes for the relevant controlled functions.

      Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.1 INDI Part S1.1 Senior executive function competencies

        Notes

        1 The competencies in this Part for the senior executive function are in addition to any requirements under other Rules for the function. See in particular CTRL, rule 4.1.4 (2).
        2 The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI Division S1.1.A Skills

          S1.1.1 Assume, alone or with others, overall responsibility for the whole of the business of the firm
          S1.1.2 Exercise critical judgement
          S1.1.3 Plan, lead and implement change
          S1.1.4 Develop the senior management team
          S1.1.5 Manage risk
          S1.1.6 Demonstrate and encourage strategic thinking
          S1.1.7 Exhibit organisational leadership
          S1.1.8 Undertake, in an effective manner, the fiduciary responsibilities of a member of the governing body of the firm
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.1.B Knowledge

          S1.1.21 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
          S1.1.22 Good knowledge of the principles of sound and effective corporate governance
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.1.C Experience and other elements

          S1.1.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.2 INDI Part S1.2 Executive governance function competencies

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.2.A Skills

          S1.2.1 Act as a member of the governing body of the firm with executive responsibility for at least some of the day-to-day direction of its affairs
          S1.2.2 Exercise critical judgement
          S1.2.3 Plan, lead and implement change
          S1.2.4 Develop staff
          S1.2.5 Manage risk
          S1.2.6 Demonstrate and encourage strategic thinking
          S1.2.7 Exhibit organisational leadership
          S1.2.8 Promote compliance culture of the firm
          S1.2.9 Undertake, in an effective manner, the fiduciary responsibilities of a member of the governing body of the firm
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.2.B Knowledge

          S1.2.21 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
          S1.2.22 Good knowledge of the principles of sound and effective corporate governance
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.2.C Experience and other elements

          S1.2.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.3 INDI Part S1.3 Non-executive governance function competencies

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Part S1.3 Guidance

          Competency assessments for an individual who performs the non-executive governance function are likely to be less frequent than for an individual with a role in the firm's day-to-day activities. For example, his or her competency might be assessed through participation and assessment in executive coaching, board retreats and planning days or board peer review, or through membership of other boards and governing bodies.

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.3.A Skills

          S1.3.1 Act as a member of the governing body of the firm, but without responsibility for the day-to-day direction of its affairs
          S1.3.2 Perform the role in a way that demonstrates independence within the governing body of the firm
          S1.3.3 Undertake in an effective manner the fiduciary responsibilities of a member of the governing body of the firm
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.3.B Knowledge

          S1.3.21 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
          S1.3.22 Good knowledge of the principles of sound and effective corporate governance
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.3.C Experience and other elements

          S1.3.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.4 INDI Part S1.4 Compliance oversight function competencies

        Notes

        1 The competencies in this Part for the compliance oversight function are in addition to any requirements under other Rules for the function. See in particular CTRL, rule 6.3.2 (2).
        2 The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI Division S1.4.A Skills

          S1.4.1 Research the firm's organisation and its requirements to help inform a compliance policy
          S1.4.2 Develop, communicate and implement a compliance policy
          S1.4.3 Develop and monitor compliance controls
          S1.4.4 Keep up to date with regulatory developments
          S1.4.5 Support the staff in the firm to maintain compliance and assist the governing body in developing the compliance culture of the firm
          S1.4.6 Write and present compliance reports
          S1.4.7 Consider and advise on the regulatory implications of new business strategies
          S1.4.8 Plan and deliver compliance training
          S1.4.9 Maintain an effective relationship with relevant external bodies and respond to requests on consultations
          S1.4.10 Deal with complaints regarding non-compliance
          S1.4.11 Identify, investigate and resolve non-compliant activity within the firm
          S1.4.12 Inform regulatory bodies of breaches in rules and regulations
          S1.4.13 Develop and monitor the firm's compliance with its training and competency programme and training and competency document
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.4.B Knowledge

          S1.4.21 The CISI Regulatory qualification
          S1.4.22 A recognised compliance oversight function professional qualification at certificate level, or any other qualification that the firm is satisfied is appropriate for the role

          Note 1 In considering a qualification for clause S1.4.22, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 3.1.4 (3).

          Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 3.1.4 (4)).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.4.C Experience and other elements

          S1.4.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.5 INDI Part S1.5 Risk management function competencies

        Notes

        1 The competencies in this Part for the risk management function are in addition to any requirements under other Rules for the function. See, in particular CTRL, rule 6.2.3 (4).
        2 The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI Division S1.5.A Skills

          S1.5.1 Research the firm's organisation and its requirements to help inform risk strategy and policy
          S1.5.2 Establish risk strategy and policy
          S1.5.3 Identify, assess and report risk management information to senior management
          S1.5.4 Identify available resources to manage risk
          S1.5.5 Facilitate risk action planning
          S1.5.6 Facilitate business continuity planning and disaster recovery
          S1.5.7 Develop and maintain external third party relationships relevant to risk management
          S1.5.8 Develop and maintain effective risk management communication within the firm
          S1.5.9 Monitor and evaluate the effectiveness of risk management controls
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.5.B Knowledge

          S1.5.21 A recognised risk management function professional qualification, or any other qualification that the firm is satisfied is appropriate for the role

          Note 1 In considering a qualification for clause S1.5.21, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 3.1.4 (3).

          Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 3.1.4 (4)).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.5.C Experience and other elements

          S1.5.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.6 INDI Part S1.6 Finance function competencies

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.6.A Skills

          S1.6.1 Work effectively in or with accountancy and finance to ensure that the firm complies with the Regulatory Authority's prudential requirements
          S1.6.2 Display high standards of professional ethics in accountancy and finance
          S1.6.3 Ensure that the firm maintains accounting records, financial accounts and statements and auditors' reports to the standards, and for the periods, required
          S1.6.4 Ensure that the firm has its accounts and financial statements examined, reported, audited and filed in a timely manner and in accordance with applicable standards
          S1.6.5 Review accounting systems
          S1.6.6 Implement external audit procedures
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.6.B Knowledge

          S1.6.21 A recognised finance function professional qualification, or any other qualification that the firm is satisfied is appropriate for the role
          S1.6.22 Membership of an appropriate professional body, unless the firm is satisfied that membership of such a body is not required
          Note 1 In considering a qualification for clause S1.6.21 or clause S1.6.22, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 3.1.4 (3).

          Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 3.1.4 (4)).

          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.6.C Experience and other elements

          S1.6.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.7 INDI Part S1.7 MLRO function competencies

        Notes

        1 The competencies in this Part for the MLRO function are in addition to any requirements under other Rules for the function. See in particular AML/CFTR, rule 2.3.2, and AMLG, rule 2.3.2.
        2 The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.7.A Skills

          S1.7.1 Gather and disseminate information about AML/CFT requirements in the firm
          S1.7.2 Identify the implications of AML/CFT measures for the business conducted by the firm
          S1.7.3 Assess and mitigate the money laundering and terrorist financing risks relevant to the firm
          S1.7.4 Identify improvements to the implementation of AML/CFT measures in the firm
          S1.7.5 Design an AML/CFT programme
          S1.7.6 Communicate and implement the firm's AML/CFT policy
          S1.7.7 Assist in developing the compliance culture of the firm
          S1.7.8 Design and oversee procedural controls to monitor money laundering and terrorist financing risks in the firm
          S1.7.9 Report progress in securing AML/CFT outcomes
          S1.7.10 Assist senior management in ensuring their staff comply with AML/CFT measures
          S1.7.11 Develop and maintain AML/CFT records for the firm (including documentary evidence of compliance, records for customers and transactions, and reporting and training records)
          S1.7.12 Advise and guide staff on AML/CFT
          S1.7.13 Conduct a business risk assessment
          S1.7.14 Plan and deliver AML/CFT training
          S1.7.15 Respond to requests to contribute to consultations
          S1.7.16 Handle requests for financial information from the relevant authorities
          S1.7.17 Design and monitor an internal reporting system for suspicious transactions and activities
          S1.7.18 Identify, investigate and resolve non-compliant activity within the firm
          S1.7.19 Report suspicious financial activity to the relevant authorities
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.7.B Knowledge

          S1.7.21 The CISI Regulatory qualification
          S1.7.22 A recognised MLRO function professional qualification at certificate level, or any other qualification that the firm is satisfied is appropriate for the role

          Note 1 In considering a qualification for clause S1.7.22, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 3.1.4 (3).

          Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 3.1.4 (4)).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.7.C Experience and other elements

          S1.7.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.8 INDI Part S1.8 Senior management function competencies

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.8.A Skills

          S1.8.1 Manage and supervise, alone or with others, 1 or more elements of the firm's business relating to its regulated activities (other than in performing a function referred to in Part S1.1 to Part S1.7)
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.8.B Knowledge

          S1.8.21 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.8.C Experience and other elements

          S1.8.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.9 INDI Part S1.9 Actuarial function competencies

        Notes

        1 The competencies in this Part for the actuarial function are in addition to any requirements under other Rules for the function. See in particular CTRL, rule 6.5.2 (2).
        2 The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021)

        • INDI Division S1.9.A Skills

          S1.9.1 Assume responsibility for monitoring, advising, investigating and reporting on risks facing a firm that is an insurer that materially affect the firm's ability to meet policyholder liabilities and capital requirements
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.9.B Knowledge

          S1.9.21 The individual must have a recognised actuarial function professional qualification and membership of an actuarial professional body
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.9.C Experience and other elements

          S1.9.31 At least 5 years' experience as an actuary to an insurer that is sufficiently recent to ensure familiarity with current issues in the provision of actuarial services
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S1.10 INDI Part S1.10 Internal audit function competencies

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm and the regulated activity or activities that the firm conducts (see rule 3.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.10.A Skills

          S1.10.1 Maintain appropriate, sufficient and effective internal audit resources to carry out the firm's audit plan
          S1.10.2 Establish risk-based audit plans to determine the priorities for internal audit and then communicate and implement the plan
          S1.10.3 Provide independent assurance and evaluation and contribute to the improvement of governance (including internal controls and risk management) using a systematic and disciplined approach
          S1.10.4 Evaluate the adequacy and effectiveness of the firm's policies, procedures, documentation and controls against changing trends and market and economic conditions
          S1.10.5 Evaluate risk exposures relating to the firm's governance, operations and information systems regarding:
          (a) the reliability and integrity of financial and operational information;
          (b) the effectiveness and efficiency of operations;
          (c) the safeguarding of assets; and
          (d) compliance with laws, regulations, policies, procedures and contracts
          S1.10.6 Report periodically to the firm's governing body on internal audit activities and the progress made in carrying out the firm's audit charter and risk-based audit plan
          S1.10.7 Establish a process to monitor the implementation of management action and ensure that implementation has been effective, or that the firm's senior management have accepted the risk of not taking action
          S1.10.8 Develop and maintain internal audit records to support audit conclusions
          S1.10.9 Display high standards of professional ethics
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.10.B Knowledge

          S1.10.21 A recognised audit professional qualification, or any other qualification that the firm is satisfied is appropriate for the role
          S1.10.22 Membership of an appropriate professional body, unless the firm is satisfied that membership of such a body is not required

          Note The firm must record and retain its assessment and any supporting evidence (see rule 3.1.4 (4)).
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S1.10.C Experience and other elements

          S1.10.31 Appropriate level of experience and seniority for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Schedule 2 INDI Schedule 2 Competencies for customer-facing function

      (see rule 4.1.3)

      Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S2.1 INDI Part S2.1 Customer-facing function competencies — general insurance contracts and pure protection contracts

        Examples of roles performing this function

        •   insurance adviser
        •   insurance broker
        •   insurance underwriter

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm, the regulated activity or activities that he or she is to conduct and the specified products that those activities relate to (see rule 4.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.1.A Skills

          S2.1.1 Identify the customers' insurance needs for general insurance business
          S2.1.2 Gather and validate financial information
          S2.1.3 Analyse customers' financial situation
          S2.1.4 Research and select appropriate insurance solutions to inform recommendations
          S2.1.5 Advise on suitable insurance solutions and agree the next steps
          S2.1.6 Implement insurance solutions
          S2.1.7 Agree insurance policies with customers to enable them to be appropriately insured
          S2.1.8 Process insurance applications
          S2.1.9 Assist customers with claims
          S2.1.10 Evaluate insurance products and services
          S2.1.11 Process insurance business as an intermediary
          S2.1.12 Process insurance renewals as an intermediary
          S2.1.13 Process mid-term insurance amendments
          S2.1.14 Evaluate risk and advise other insurance intermediaries
          S2.1.15 Process insurance policy documentation
          S2.1.16 Underwrite risks
          S2.1.17 Prepare insurance policy documentation for business
          S2.1.18 Process insurance policy alterations
          S2.1.19 Process insurance renewals
          S2.1.20 Review underwriting decisions to accept risks
          S2.1.21 Underwrite policy alterations
          S2.1.22 Deal with requests to cancel insurance products or services
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.1.B INDI Division S2.1.B Knowledge

          • INDI Subdivision S2.1.B.1 Retail customers

            S2.1.31 The CISI Regulatory qualification (except for an individual who has been designated to perform non-discretionary customer-facing activities under rule 4.1.6)
            S2.1.32 The CII Award in General Insurance, or any other qualification that the firm is satisfied is appropriate for the role

            Note 1 In considering a qualification for clause S2.1.32, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 4.1.4 (3).

            Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 4.1.4 (4)).
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.1.B.2 Subdivision S2.1.B.2 Business customers

            S2.1.35 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
            Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI Division S2.1.C Experience and other elements

          S2.1.41 Experience appropriate for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S2.2 INDI Part S2.2 Customer-facing function competencies — other long term insurance contracts and units in collective investment schemes

        Examples of roles performing this function

        •   financial adviser
        •   investment consultant
        •   private client investment adviser
        •   client service representative or relationship manager
        •   institutional sales

        Guidance

        Roles performing this function typically involve the regulated activities of advising on investments and arranging deals in investments.

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm, the regulated activity or activities that he or she is to conduct and the specified products that those activities relate to (see rule 4.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.2.A Skills

          S2.2.1 Engage the customer for financial advice and planning
          S2.2.2 Gather and validate financial information, including information about:
          (a) the customer's financial situation;
          (b) the customer's investment objectives and risk tolerance;
          (c) the customer's knowledge of and experience in the relevant investment field;
          (d) the nature, volume and frequency of the customer's transactions in the investment field and the period over which they have been carried out; and
          (e) the customer's level of education and profession or former profession
          S2.2.3 Analyse the customer's financial situation and assess the customer's demands and needs
          S2.2.4 Research and select appropriate financial solutions to inform recommendations
          S2.2.5 Advise on suitable financial solutions and agree on the next steps
          S2.2.6 Explain possible disadvantages that a course of action advised might have for the customer, including the nature of the risks involved
          S2.2.7 Implement financial solutions
          S2.2.8 Review and respond to the customer's changing financial needs and circumstances
          S2.2.9 Deal with requests to cancel policies or investments
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.2.B INDI Division S2.2.B Knowledge

          • INDI Subdivision S2.2.B.1 Retail customers

            S2.2.21 The CISI Regulatory qualification
            S2.2.22 For an individual who performs the role for an insurance intermediary in relation to investment-linked insurance — an appropriate Qualification and Credit Framework Level 4 (diploma level) qualification, or any other qualification that the firm is satisfied is equivalent
            S2.2.23 In any other case than that mentioned in clause S2.2.22 — the CII Award in Financial Planning, or any other qualification that the firm is satisfied is equivalent

            Note 1 In considering a qualification for clause S2.2.22 or clause S2.2.23, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 4.1.4 (3).

            Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 4.1.4 (4)).

            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.2.B.2 Business customers

            S2.2.25 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
            Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI Division S2.2.C Experience and other elements

          S2.2.31 Experience appropriate for the role.
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Part S2.3 INDI Part S2.3 Customer-facing function competencies — relevant investments

        Note

        The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm, the regulated activity or activities that he or she is to conduct and the specified products that those activities relate to (see rule 4.1.3 (4)).

        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.3.A INDI Division S2.3.A Skills

          • INDI Subdivision S2.3.A.1 Advising on, and arranging deals in, investments (excluding long term insurance contracts and units in collective investment schemes)

            Examples of roles performing this function — dvising on investments

            •   financial adviser
            •   investment strategist
            •   private client investment adviser
            •   client service representative or relationship manager
            •   advising on securities or derivatives
            •   institutional sales
            •   commodities futures broker
            S2.3.1 Develop an investment strategy to meet agreed investment objectives
            S2.3.2 Analyse the risk and return profile of asset types for customers
            S2.3.3 Construct a risk profile for a proposed portfolio change
            S2.3.4 Make contact with the customers and gather and validate financial information relevant to the securities or derivatives market
            S2.3.5 Follow the initial contact process with customers and engage customers for financial advice and planning
            S2.3.6 Open an account and carry out appropriate administration for customers in the securities or derivatives market
            S2.3.7 Establish the investment objectives of customers
            S2.3.8 Analyse the customers' financial situation and assess the customers' demands, needs and investment objectives
            S2.3.9 Research and select appropriate financial solutions to inform recommendations
            S2.3.10 Advise on appropriate financial solutions and agree the next steps
            S2.3.11 Review and respond to the customers' changing financial needs and circumstances
            S2.3.12 Advise customers on investment strategy and investment selection
            S2.3.13 Monitor individual portfolio performance using appropriate comparators
            S2.3.14 Prepare investment recommendations for re-structuring an individual or corporate portfolio
            S2.3.15 Report to customers on investment performance
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.3.A.2 Managing investments

            Examples of roles performing this function — managing investments

            •   private client asset management
            •   discretionary and specialised portfolio management
            •   asset manager
            •   investment manager
            •   institutional asset manager
            •   investment banker working in asset management
            •   portfolio manager.
            S2.3.21 Develop an investment strategy to meet agreed investment objectives
            S2.3.22 Implement a defined investment strategy
            S2.3.23 Analyse the risk and return profile of asset types
            S2.3.24 Construct a risk profile for a proposed portfolio change
            S2.3.25 Make contact with the customers and gather and validate financial information relevant to the securities or derivatives market
            S2.3.26 Monitor individual portfolio performance using appropriate comparators
            S2.3.27 Review and re-structure an individual or corporate portfolio
            S2.3.28 Establish and operate individual or corporate investment portfolio performance monitoring procedures
            S2.3.29 Report to customers on investment performance
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.3.A.3 Dealing in investments

            Examples of roles performing this function — dealing in investments

            •   private client stock broker
            •   trader in securities, equities, futures or bonds
            •   securities underwriter
            •   dealing in securities or derivatives
            •   commodities futures broker
            S2.3.31 Dealing in investments following receipt of orders or instructions from customers
            S2.3.32 Dealing in investments on the firm's own account
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.3.A.4 Research and analysis as part of advising on investments or other regulated activities

            Examples of roles performing this function — research and analysis

            •   corporate finance analyst
            •   security or investment analyst
            •   derivatives analyst

            Guidance

            Before assessing an individual's research and analytical skills, rule 4.1.3 (4) requires the regulated activity or activities to be conducted by the individual to be taken into consideration in deciding how far the competencies in this Subdivision apply. If the research and analysis to be performed by the individual are not in relation to a regulated activity (for example, if the research and analysis are for publication in a newspaper article that does not constitute giving advice on investments), the individual need not be assessed against those competencies. If the research and analysis are part of conducting the regulated activity of advising on investments, the individual must be assessed against those competencies.

            S2.3.41 Analyse and report on the implications of sector economics on investments
            S2.3.42 Analyse and report on the implications of national economics on investments
            S2.3.43 Analyse and report on the implications of international economics and foreign exchange markets on investments
            S2.3.44 Carry out financial and investment analysis of an individual business
            S2.3.45 Carry out financial and investment analysis of a collective investment scheme
            S2.3.46 Provide equity capital research and analysis support for portfolio management activities
            S2.3.47 Provide fixed interest securities research and analysis support for portfolio management activities
            S2.3.48 Provide research and analysis of alternative investments support for portfolio management activities
            S2.3.49 Provide cash and currencies research and analysis support for portfolio management activities
            S2.3.50 Provide property based markets research and analysis support for portfolio management activities
            S2.3.51 Interpret and analyse a collective investment scheme's objectives and parameters
            S2.3.52 Benchmark a collective investment scheme's performance against investment objectives
            S2.3.53 Review a collective investment scheme portfolio and adjust investments within the scheme's objectives
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

        • INDI Division S2.3.B INDI Division S2.3.B Knowledge

          • INDI Subdivision S2.3.B.1 Retail customers

            S2.3.61 The CISI Regulatory qualification
            S2.3.62 A qualification that the firm is satisfied is appropriate for the role

            Note 1 In considering a qualification for clause S2.3.62, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 4.1.4 (3).

            Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 4.1.4 (4)).
            Derived from QFCRA RM/2014-5 (as from 1st January 2015)

          • INDI Subdivision S2.3.B.2 Business customers

            S2.3.65 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
            Amended by QFCRA RM/2019-4 (as from 1st January 2020).

        • INDI Division S2.3.C Experience and other elements

          S2.3.71 Experience appropriate for the role
          Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Glossary

      (see rule 1.1.3)

      actuarial function means the function described in CTRL, rule 1.2.15.

      advising on investments means the regulated activity described in FSR, Schedule 3, Part 2, paragraph 11.

      approved individual means an individual approved under FSR, article 41, to perform 1 or more controlled functions.

      arranging deals in investments means the regulated activity described in FSR, Schedule 3, Part 2, paragraph 5.

      authorisation means an authorisation granted under FSR, Part 5.

      authorised firm (or firm) means a person that has an authorisation.

      business customer has the same meaning as in CIPR.

      business day means a day that is not a Friday, Saturday, or a public or bank holiday in Qatar.

      CII Award in Financial Planning (AFP) means the award for passing the examination given by the Chartered Insurance Institute on financial planning, as revised from time to time.

      CII Award in General Insurance (AGI) means the award for passing the examination given by the Chartered Insurance Institute on general insurance, as revised from time to time.

      CISI Regulatory qualification means the award for passing the examination on the QFC Rules and Regulations, developed by the Regulatory Authority in conjunction with the Chartered Institute for Securities and Investments, as revised from time to time.

      collective investment scheme has the meaning given by the Collective Investment Schemes Rules 2010, rule 1.2.1.

      competencies has the meaning given by:

      (a) for a controlled function — rule 3.1.3; or
      (b) for the customer-facing function — rule 4.1.3.

      compliance oversight function means the function described in CTRL, rule 1.2.13.

      controlled function has the meaning given by FSR, article 41 (2).

      CTRL means the Governance and Controlled Functions Rules 2020.

      customer means a person to whom an authorised firm provides, has provided or offers to provide a service or product, and includes a retail customer and a business customer of the firm.

      customer-facing function has the meaning given by rule 1.1.5.

      document means a record of information in any form (including electronic form), and includes, for example:

      (a) anything in writing or on which there is writing;
      (b) anything on which there are figures, marks, numbers, perforations, symbols or anything else having a meaning for individuals qualified to interpret them;
      (c) a drawing, map, photograph or plan; and
      (d) any other item or matter (in whatever form) that is, or could reasonably be considered to be, a record of information.

      executive governance function means the function described in CTRL, rule 1.2.6.

      finance function means the function described in CTRL, rule 1.2.9.

      fitness and propriety, of an individual, has the same meaning as in FSR, article 29.

      FSR means the Financial Services Regulations.

      GENE means the General Rules 2005.

      general insurance contract has the meaning given by PINS, rule 1.2.6 (1).

      governing body of an entity means its board of directors, committee of management or other governing body (whatever it is called).

      insurance intermediary has the meaning given by the Insurance Mediation Business Rules 2011, rule 1.2.1.

      internal audit function means the function described in CTRL, rule 1.2.14.

      investment-linked insurance has the same meaning as in PINS.

      long term insurance contract has the meaning given by PINS, rule 1.2.6 (2).

      MLRO function means the function described in CTRL, rule 1.2.11.

      month means calendar month — that is, the period beginning at the start of any day of one of the 12 named months of the year and ending:

      (a) at the end of the day before the corresponding day of the next named month; or
      (b) if there is no corresponding day — at the end of the last day of the next named month.

      non-discretionary customer-facing activities has the meaning given by rule 4.1.6.

      non-executive governance function means the function described in CTRL, rule 1.2.7.

      PINS means the Insurance Business Rules 2006.

      QFC means the Qatar Financial Centre.

      qualification includes the membership of a professional body or association.

      regulated activity means an activity that is a regulated activity under FSR.

      Regulatory Authority means the Regulatory Authority of the QFC.

      regulatory system means the arrangements, in or under Regulations made under the QFC Law, article 9, or Rules, for regulating authorised firms.

      relevant investments: investments of the following kinds (in each case, within the meaning given in FSR, Schedule 3, Part 3), and rights in such investments, are relevant investments:

      (a) shares;
      (b) debt instruments;
      (c) warrants;
      (d) securities receipts;
      (e) units in collective investment schemes;
      (f) options;
      (g) futures;
      (h) contracts for differences.

      retail customer means a customer of the firm who is neither a market counterparty within the meaning of the Investment Management and Advisory Rules 2014 nor a business customer.

      risk management function means the function described in CTRL, rule 1.2.12.

      Rules means rules made by the Regulatory Authority under FSR, article 15 (1), and includes:

      (a) any standard, principle or code of practice made by the authority; and
      (b) any other instrument made or in force under any Rules.

      senior executive function means the function described in CTRL, rule 1.2.8.

      senior management, of an authorised firm, means the firm's senior managers, jointly and separately.

      senior management function means the function described in CTRL, rule 1.2.10.

      senior manager, of an authorised firm, means an individual employed by the firm or a member of the firm's group who has responsibility either alone or with others for management and supervision of 1 or more elements of a firm's business relating to regulated activities.

      specified product has the meaning given by FSR, article 110.

      training and competency document means the document required under rule 5.2.3.

      training and competency programme means the programme required under rule 5.2.1.

      writing means any form of writing, and includes, for example, any way of representing or reproducing words, numbers, symbols or anything else in legible form (for example, by printing or photocopying).

      Amended by QFCRA RM/2019-4 (as from 1st January 2020).
      Amended by QFCRA RM/2021-1 (as from 1st July 2021)