Article 20 — Holding Company Activity

20.1 A Holding Company is a Company incorporated under the Companies Regulations and registered by the CRO as a Holding Company. Subject to the terms of its Licence, a Holding Company may only carry on any one or more of the following activities ("Holding Company Activities"):
(a) owning and maintaining one or more Subsidiary;
(b) granting any type of security interest over its assets (tangible or intangible, including but not limited to receivables, shares, real or personal rights, interests, options or privileges of any kind whatsoever in, over or in respect of any such asset) for its own benefit or for the benefit of any Entity within the Holding Company Group;
(c) providing an indemnity, guarantee or similar support to any third party for its own benefit or for the benefit of any Entity within the Holding Company Group;
(d) the acquisition, holding or disposal of any interest in any asset whether tangible or intangible for its own benefit or for the benefit of any Entity within the Holding Company Group;
(e) providing any type of loan or other form of financing to any Entity within the Holding Company Group;
(f) any activities which are ancillary to the activities set out under (a) to (e) above; and
(g) any other activity approved in writing by the QFC Authority that falls within the Permitted Activities identified in paragraphs 12, 14, or 15, Part 2, Schedule 3 of the QFC Law, or qualifies as an exemption under Schedule 3 of the FSR.
20.2 The Subsidiaries of a Holding Company and other companies that may be established by the Holding Company within the Holding CompanyGroup may be, but are not required to be, incorporated in the QFC.
20.3 A Holding Company must not engage:
(a) in activities with any Persons that are not its Shareholders or do not form part of its Holding CompanyGroup unless expressly provided for in Article 20.1; and
(b) in any Regulated Activity with any Persons that do not form part of its Holding CompanyGroup unless it is duly authorised by the Regulatory Authority in relation to the conduct of such Regulated Activity.
Amended (as from 19th October 2017).