• INMA Part 5.2 INMA Part 5.2 Client money concepts

    • INMA 5.2.1 When a firm holds money

      An investment business firm holds money if the money is held:

      (a) directly by the firm;
      (b) in an account in the firm’s name; or
      (c) by a person, or in an account in the name of a person, controlled by the firm.

      Note Money is defined in the glossary.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.2.2 Client money

      (1) Client money of an investment business firm is money:
      (a) that the firm receives from or holds for a customer in the course of, or in connection with, conducting investment and advisory business in or from the QFC; or
      (b) that the firm treats as client money in accordance with this Chapter.
      (2) However, money that the firm receives or holds that would otherwise be client money is not client money if an exception in Part 5.3 (Money that is not client money) applies to it.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.2.3 Eligible banks

      In these rules:

      eligible bank means:

      (a) a QFC bank; or

      Note QFC bank is defined in the glossary.
      (b) an entity for which all of the following requirements are satisfied:
      (i) it is incorporated in a jurisdiction outside the QFC;
      (ii) it is regulated as a bank, and principally regulated for prudential purposes, by an overseas regulator in the jurisdiction;
      (iii) the Regulatory Authority has not, by notice, declared that this definition does not apply to the jurisdiction;
      (iv) the entity is required to prepare audited accounts;
      (v) it has assets of QR35 million or more;
      (vi) it had surplus revenue over expenditure for its last 2 financial years;
      (vii) its latest annual audit report is not materially qualified.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.2.4 Eligible third parties

      In these rules:

      eligible third party means:

      (a) an authorised firm (other than an eligible bank); or
      (b) an entity for which all of the following requirements are satisfied:
      (i) it is authorised (however described) under the law of a jurisdiction outside the QFC to carry on any business of a similar nature to investment and advisory business;
      (ii) it is principally regulated for prudential purposes by an overseas regulator in the jurisdiction;
      (iii) the Regulatory Authority has not, by notice, declared that this definition does not apply to the jurisdiction.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA 5.2.5 Approved representative — definition

      (1) An individual who is not an employee of an INMA firm is an approved representative of the firm if:
      (a) he or she is authorised under a contract (approved representative contract) with the firm to perform that function for the firm in or from the QFC;
      (b) he or she has been assessed by the firm as meeting the requirements in INDI, rule 4.1.1 to perform the customer-facing function; and
      (c) the firm has agreed in the approved representative contract to accept responsibility for his or her every act or omission in performing (or purporting to perform) that function for the firm.
      (2) An INMA firm must not enter into an approved representative contract with an individual if the individual is a party to an approved representative contract in force with another authorised firm.
      Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

    • INMA 5.2.6 Non-QFC intermediary — definition

      (1) A body corporate is a non-QFC intermediary of an INMA firm if:
      (a) the body corporate is authorised under a contract (non-QFC intermediary contract) with the firm to act as an intermediary for the firm in the State outside the QFC; and
      (b) the firm has agreed in the non-QFC intermediary contract to accept liability to the client for every act or omission of the body corporate directly applicable to the activity that the body corporate undertakes (or purports to undertake) as an intermediary for the firm in the State outside the QFC.
      (2) An INMA firm must not enter into a non-QFC intermediary contract with a body corporate unless:
      (a) it is lawful for the body corporate to act as its intermediary in the State outside the QFC; and
      (b) every law, rule or regulation of the State applying in relation to the entering into of the contract is complied with.
      Inserted by QFCRA RM/2019-4 (as from 1st January 2020).