• GENE Part 1.2 GENE Part 1.2 Principles relating to the conduct, operation and financial standing of authorised firms

    • GENE 1.2.1 Application of the principles

      (1) The principles in this Part apply to an authorised firm in relation to its conduct of regulated activities in or from the QFC.
      (2) The principles also apply to the activities of such a firm carried on outside the QFC, if the activities relate to regulated activities carried on by the firm in or from the QFC and are capable of having an effect on:
      (a) confidence in the financial system operating in or from the QFC;
      (b) the firm's ability to comply with the Regulatory Authority's requirements as to financial resources; or
      (c) the firm's fitness and propriety.
      (3) When the Regulatory Authority is considering the fitness and propriety of an authorised firm, it may take into account whether or not the other members of its group act in accordance with the principles in this Part.
      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.2 Principle 1 — integrity

      An authorised firm must observe high standards of integrity in the conduct of its business.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.3 Principle 2 — skill, care and diligence

      An authorised firm must act with due skill, care and diligence in the conduct of its business.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.4 Principle 3 — management

      An authorised firm must ensure that its affairs are managed effectively by its senior management.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.5 Principle 4 — systems and controls

      An authorised firm must have effective systems and controls, including risk management systems and adequate human and technological resources.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.6 Principle 5 — financial prudence

      An authorised firm must maintain adequate financial resources.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.7 Principle 6 — market conduct

      An authorised firm must observe proper standards of market conduct.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.8 Principle 7 — regard to customers' interests

      An authorised firm must have due regard to its customers' interests and must treat them fairly.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.9 Principle 8 — communications with clients

      An authorised firm must pay due regard to the information needs of its clients, and must communicate information to them in a way that is clear, fair and not misleading.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.10 Principle 9 — conflicts of interest

      An authorised firm must manage conflicts of interest fairly, both between itself and its customers and between 1 customer and another, and must organise its affairs in such a way that conflicts can be identified.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.11 Principle 10 — relationship of trust

      An authorised firm must faithfully discharge a responsibility of trust toward a customer. In doing so it must take reasonable care to ensure the suitability of its advice and discretionary decisions for a customer who is entitled to rely upon the firm's judgment.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.12 Principle 11 — customers' assets

      An authorised firm must arrange adequate protections for its customers' assets when it is responsible for them in accordance with the responsibility it has accepted.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.13 Principle 12 — confidentiality

      An authorised firm must ensure that information of a confidential nature received in the course of dealings with its customers is treated in an appropriate manner.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • GENE 1.2.14 Principle 13 — relations with regulators

      An authorised firm must deal with all relevant regulators in an open and cooperative manner and must keep the Regulatory Authority promptly informed of anything relating to the firm of which the authority would reasonably expect notice.

      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)

    • Part 1.2 Guidance

      1 The principles in this Part 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 authorised firms. They apply directly to the conduct of business, and the operation and financial standing, of authorised firms.
      3 The principles are not exhaustive of the standards expected. Complying with the principles does not absolve an authorised firm 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 authorised firm's failure to comply adequately with the principles is likely to affect the Regulatory Authority's assessment of the firm's fitness and propriety. A breach of the principles could form the basis of action by the authority.
      Inserted by QFCRA RM/2014-3 (as from 1st January 2015)