• INMA Chapter 1 INMA Chapter 1 General

    • INMA 1.1.1 Introduction

      (1) These rules are the Investment Management and Advisory Rules 2014 (or INMA).
      (2) These rules establish the prudential framework, and the framework for client money and asset protection, for authorised firms to which, under rule 1.1.4, these rules apply. Such an authorised firm is called an INMA firm in these rules.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 1.1.2 Commencement

      These rules commence on 1 January 2015.

      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 1.1.3 INMA 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/2014-4 (as from 1st January 2015).

      • INMA 1.1.3A Declaration of activities as regulated activities

        (1) For FSR, article 23 (2), each of the following activities is a regulated activity:
        (a) dealing (as agent) in Islamic investments;

        Note Buying, selling, subscribing for or underwriting any Islamic investment as principal is covered by IBANK.
        (b) arranging deals in Islamic investments;
        (c) arranging Shari'a-compliant financing facilities;
        (d) providing custody services in relation to Islamic investments;
        (e) arranging the provision of custody services in relation to Islamic investments;
        (f) managing Islamic investments;
        (g) advising on Islamic investments.
        (2) Islamic investments means investments through any 1 or more of the following kinds of Islamic financial contracts mentioned in IBANK, rule 1.1.6 (b):
        (a) musharakah and its variations;
        (b) mudarabah and its variations;
        (c) any other Islamic financial contract that is recognised by the firm's Shari'a supervisory board.
        Inserted by QFCRA RM/2015-3 (as from 1st January 2016).

    • INMA 1.1.4 INMA 1.1.4 Application of these rules — general

      Subject to rule 1.1.5, these rules apply to an entity that has, or is applying for, an authorisation to conduct any of the following activities:

      (a) dealing in investments (if limited to dealing as agent);

      Note Dealing in investments as principal is covered by BANK or IBANK, as applicable. Dealing in investments includes buying, selling, subscribing for or underwriting investment.
      (b) managing investments;
      (c) providing custody services;
      (d) operating a collective investment scheme;
      (e) providing custody services in relation to a collective investment scheme;
      (f) providing scheme administration (that is, providing scheme administration in relation to a collective investment scheme);
      (g) arranging deals in investments;
      (h) arranging the provision of custody services;
      (i) arranging financing facilities;
      (j) advising on investments.

      Note Each reference to investments in rule 1.1.4 includes Islamic investments — see the Glossary.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • INMA 1.1.4 Guidance

        1 The following Rules also apply to a firm to which these Rules apply:
        •    if it is a banking business firm, within the meaning given by BANK — those Rules
        •    if it is an Islamic banking business firm, within the meaning given by IBANK — those Rules
        •    if it is an Islamic financial institution (but not an Islamic banking business firm) — CTRL, Chapter 9
        •    in relation to its dealings with customers — CIPR
        •    if it operates a collective investment scheme — COLL
        •    if it operates a private placement scheme — PRIV.
        Rules that are of general application (CTRL, INDI, GENE, AML/CFTR and INAP) also apply.
        2 It is possible for a firm both to be authorised as a banking business firm under BANK (that is, as a deposit-taker or investment dealer) and to hold an authorisation referred to in rule 1.1.4. Both these rules and BANK would apply to such a firm to some degree. Similarly, it is possible for a firm to be authorised as an Islamic banking business firm under IBANK and to hold an authorisation referred to in rule 1.1.4. (The firm's authorisation would include a condition that the whole of its business must be conducted in accordance with Shari'a.) Both these rules and IBANK would apply to such a firm to some degree. (It is not possible for a firm to be authorised under both BANK and IBANK because Islamic windows are not permitted.)
        3 For example, a banking business firm that also holds an authorisation referred to in rule 1.1.4 will need to comply with these rules, except as follows:
        •    Part 3.3 (Minimum capital and liquid assets requirements) does not apply because compliance with the capital adequacy and liquidity requirements in BANK or IBANK (as applicable) is taken to be compliance with Part 3.3.
        •    Part 4.3 (Professional indemnity insurance) would not apply because the Regulatory Authority considers it unnecessary for a firm that is also authorised as a banking business firm or an Islamic banking business firm.
        •    Part 4.1 (Introduction — Chapter 4), Part 4.2 (Risk management) and Schedule 1 (Guidance about risk management) would not apply if the firm can demonstrate to the Regulatory Authority's satisfaction that, having complied with BANK or IBANK (as applicable), the firm has in effect addressed all of the risks and other matters that Part 4.2 would otherwise require it to address.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020)
        Amended by QFCRA RM/2021-1 (as from 1st July 2021).

    • INMA 1.1.5 Interaction between these rules and IMEB

      If an authorised firm holds both an authorisation referred to in rule 1.1.4 and an authorisation for insurance mediation (within the meaning given by IMEB, rule 1.2.2), these rules and IMEB each apply to the firm to the extent that the Regulatory Authority directs.

      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 1.1.6 INMA 1.1.6 Application of these rules — branches

      These rules apply to a branch that has an authorisation to conduct an activity mentioned in rule 1.1.4, except to the extent stated otherwise.

      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

      • INMA 1.1.6 Guidance

        The requirements of these rules about financial resources do not apply to branches (see rule 3.3.1), but branches are subject to particular obligations to supply information to the Regulatory Authority (see rule 2.1.7).

        Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 1.1.7 Requirement for policy also requires procedures and systems

      In these rules, a requirement for an INMA firm to have a policy also requires such a firm to have the procedures, systems, processes, controls and limits needed to give effect to the policy.

      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 1.1.8 Legal form that firms must take

      An INMA firm may be:

      (a) a limited liability company incorporated under the Companies Regulations 2005;
      (b) a limited liability partnership incorporated under the Limited Liability Partnerships Regulations 2005; or
      (c) a branch registered with the QFC Companies Registration Office.

      Note Branch is defined in the glossary.
      Amended by QFCRA RM/2015-1 (as from 1st July 2015).