• 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).