INMA 6.1.3 Eligible custodian

(1) A person is an eligible custodian in relation to a customer of an INMA firm if the person is:
(a) an INMA firm that has an authorisation for providing custody services;
(b) an eligible bank;
(c) an entity to which subrule (2) applies;
(d) a central securities depository to which subrule (3) applies;
(e) an eligible clearing house;

Note Eligible clearing house is defined in the Glossary.
(f) an entity to which subrule (4) applies.
(2) This subrule applies to an entity if:
(a) it is regulated by an overseas regulator;
(b) the Regulatory Authority has not, by notice published on an approved website, declared that this subrule does not apply to the regulator's jurisdiction;
(c) the entity's regulatory authorisation (however described) in the jurisdiction covers carrying on activities that are broadly equivalent to providing custody services;
(d) the entity is required to prepare audited accounts;
(e) it has assets of QR1.8 million or more;

Note The specification of a sum of money in a particular currency is also taken to specify the equivalent sum in any other currency at the relevant time — see rule 3.3.2.
(f) it has a surplus of revenue over expenditure for its last 2 financial years; and
(g) its latest annual audit report is not materially qualified.
Note Approved website, jurisdiction and overseas regulator are defined in the glossary.
(3) This subrule applies to a central securities depository if:
(a) its custody services are regulated by an overseas regulator;
(b) the Regulatory Authority has not, by notice published on an approved website, declared that this subrule does not apply to the regulator's jurisdiction;
(c) the depository is required to prepare audited accounts;
(d) it has assets of QR35 million or more;
(e) it has a surplus of revenue over expenditure for its last 2 financial years; and
(f) its latest annual audit report is not materially qualified.
(4) This subrule applies to an entity in relation to a customer of an INMA firm if:
(a) the entity is not a person mentioned in subrule (1) (a) to (e);
(b) the entity's business includes the provision of custodial services;
(c) the firm believes, on reasonable grounds, that:
(i) it is not feasible for the firm to use an entity mentioned in any of subrules (1) (a) to (e) to provide custodial services for the customer;
(ii) the entity can provide appropriate custodial services for the customer; and
(iii) it is in the customer's best interests for the firm to use the entity to provide custodial services for the customer; and
(d) the firm's use of the entity to provide custodial services for the customer otherwise complies with these rules.
Amended by QFCRA RM/2019-4 (as from 1st January 2020).