COLL 4.2.13 Non-QFC Independent Entities—Removal by Regulatory Authority

(1) The rule applies in relation to the independent entity of a QFC scheme if the independent entity is not an authorised firm.
(2) The Regulatory Authority may, by written notice given to the operator, require the operator to remove the independent entity and appoint another person as the independent entity if satisfied that—
(a) the independent entity is not, or is no longer, an appropriate person to be the independent entity of the scheme; or

Note See r 4.2.9 (Non-QFC independent entities—criteria for Regulatory Authority action)).
(b) it is desirable to remove the independent entity to protect participants or potential participants in the scheme or the financial system operating in or from the QFC; or
(c) the independent entity is in breach of, or has been in breach of, these rules, any other law of the QFC or the law of any other jurisdiction; or
(d) a request has been received under the Financial Services Regulations, article 20 (International relations and cooperation) in relation to the independent entity.
(3) The Regulatory Authority may give a notice under subrule (2) only if it has—
(a) given the independent entity and the operator prior notice of its intention to give the notice; and
(b) given the independent entity and the operator a reasonable opportunity to make representations; and
(c) considered any representations made.
(4) However, subrule (3) does not apply if—
(a) the Regulatory Authority considers that any delay likely to arise because of the application of the subrule would be prejudicial to participants or potential participants in the QFC scheme or the financial system operating in or from the QFC; or
(b) the power is to be exercised following a decision by the Regulatory Authority under the Financial Services Regulations, part 9 (Disciplinary and enforcement powers), or by the Regulatory Tribunal or the QFC Court, in relation to the independent entity.
(5) If subrule (4) (a) applies, the Regulatory Authority must—
(a) give the independent entity and the operator an opportunity to make representations promptly after the notice under subrule (2) has been given; and
(b) consider any representations made.
(6) If the Regulatory Authority gives a notice under subrule (2), it must give the independent entity a written notice—
(a) stating that it has given the notice under subrule (2); and
(b) giving reasons for the notice; and
(c) tell the independent entity that the independent entity may appeal to the Regulatory Tribunal against the decision.
(7) The operator must give effect to a notice under subrule (2).
(8) The person appointed by the operator as the replacement independent entity must be eligible to be the independent entity of the scheme under rule 4.2.1 (Requirements for independent entity— all QFC schemes).
(9) This rule is additional to, and does not limit, any other powers of the Regulatory Authority to remove the independent entity of a QFC scheme.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)