CTRL 3.1.6 Allocation of responsibilities

(1) The governing body of an authorised firm retains primary responsibility for all of the firm’s operations at all times. The firm’s senior management is responsible for effectively implementing the governing body’s business strategy consistently with the governing body’s policies and risk appetite and under the governing body’s supervision.
(2) The governing body must give the individual who exercises the senior executive function for the firm a written document that sets out his or her responsibilities. The individual must acknowledge, in writing, having received that document, and must confirm in the acknowledgement that he or she understands, and undertakes to carry out, those responsibilities.
(3) Unless the governing body specifically allocates a responsibility, it retains it.
(4) The individual who exercises the firm’s senior executive function must give each individual who exercises a controlled function for the firm a written document that sets out that individual’s responsibilities.
(5) The individual who exercises the firm’s senior executive function must obtain the governing body’s approval (or the approval of the body’s audit committee, if any) of the content of the document given to the individual who exercises the internal audit function.
(6) The individual who exercises the firm’s senior executive function must consult with the governing body (or the body’s risk committee, if any) in relation to the content of the document given to the individual who exercises the risk management function.
(7) The individual who exercises the firm’s senior executive function must not attempt, in a document referred to in subrule (4), to restrict, limit or compromise any right, duty, responsibility or authority conferred by these rules or any other Rules on an individual who exercises any other controlled function.
(8) Each such individual must acknowledge, in writing, having received that document, and must confirm in the acknowledgement that he or she understands, and undertakes to carry out, those responsibilities.
(9) Unless the individual who exercises the senior executive function specifically allocates a responsibility, he or she retains it.
(10) The allocation of a responsibility by the governing body does not remove or reduce the body’s duty to oversee the individual who exercises the firm’s senior executive function and the firm’s senior management. Also, the allocation of a responsibility by the individual who exercises the senior executive function does not remove or reduce the individual’s duty to exercise oversight in relation to the other controlled functions.
(11) The scope of the responsibilities allocated to an individual who exercises a controlled function for the firm must not be less than the scope of the controlled function as set out in these rules and INDI.
(12) The allocation of responsibilities referred to in this rule is separate from operational authorities and limits exercised by the individual who exercises the firm’s senior executive function and the firm’s senior management (such as limits on loan approvals, underwriting, claims handling, investments, or signing cheques).
(13) The governing body:
(a) must ensure that the firm’s business can be adequately managed by the body, the individual who exercises the firm’s senior executive function and the firm’s senior management; and
(b) must consider whether the firm’s senior management (other than the individual who exercises the senior executive function, and the individual who exercises the risk management function for a QFC insurer) ought to be ordinarily resident in Qatar to exercise their functions properly.
Note The individual who exercises the senior executive function for an authorised firm, and the individual who exercises the risk management function for a QFC insurer, are already required by these rules to be ordinarily resident in Qatar — see respectively rules 4.1.4 (2) and 6.2.3 (4) (b).

 

Amended by QFCRA RM/2014-6 (as from 1st January 2015)
Amended by QFCRA RM/2020-4 (as from 1st July 2021)