CTRL 3.1.3 What individuals are eligible as independent non-executive member?

(1) An individual is eligible to be an independent non-executive member of the governing body of an authorised firm unless:
(a) he or she is, or has been during the last 3 years:
(i) an employee of the firm; or
(ii) an employee, board member, owner, partner or controller of a consultant to the firm (including the firm’s external auditor);
(b) he or she is a relative of a member of the firm’s senior management;
(c) within the last 3 years, he or she or any of his or her relatives has had, directly or indirectly, 1 or more substantial commercial or financial transactions with the firm;
(d) he or she is receiving, or has received during the last 3 years, remuneration from the firm (other than as a member of its governing body);
(e) he or she:
(i) owns 1% or more of the shares of the firm; or
(ii) is a representative of a legal person that owns 5% or more of the shares of the firm or another company in its corporate group;
(f) he or she has been a member of the firm’s governing body for longer than 9 consecutive years; or
(g) he or she might reasonably be taken to have a conflict of interest because of a personal or business relationship with:
(i) a member of the firm’s governing body, the individual who exercises the senior executive function for the firm, or a member of the firm’s senior management; or
(ii) a major shareholder of the firm.

 

Derived from QFCRA RM/2012-4 (as from 1st July 2013)
Amended by QFCRA RM/2020-4 (as from 1st July 2021)