INMA Glossary

AAOIFI means the Accounting and Auditing Organisation for Islamic Financial Institutions.

accounting standards include accounting rules, principles, practices and conventions.

advising on investments includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 11; and

(b) advising on Islamic investments.

advisory firm has the meaning given by rule 5.1.2(1).

affiliate, of an INMA firm, means any entity of which the firm holds 10% or more, but less than a majority, of the voting power.

approved representative, of an INMA firm, has the meaning given by rule 5.2.5.

approved website means a website that is approved under the Interpretation and Application Rules 2005, rule 3.1.2.

arranging financing facilities includes:

(a) arranging credit facilities — that is, the regulated activity described in FSR, Schedule 3, Part 2, paragraph 7; and

(b) arranging Shari'a — compliant financing facilities.

arranging deals in investments includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 5; and

(b) arranging deals in Islamic investments.

arranging the provision of custody services includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 9; and

(b) arranging the provision of custody services in relation to Islamic investments.

associate of an INMA firm means any other entity in the same corporate group as the firm.

authorisation means an authorisation granted under FSR, Part 5.

authorised firm (or firm) means a person that has an authorisation.

BANK means the Banking Business Prudential Rules 2014.

branch means the local office in the QFC of a legal person incorporated outside the QFC.

business customer, of an INMA firm, has the same meaning as in CIPR.

business day means a day that is not a Friday, a Saturday, or a public or bank holiday in Qatar.

cheque includes a payable order of any other kind.

CIPR means Customer and Investor Protection Rules 2019.

client bank account has the meaning given by rule 5.5.1.

client money has the meaning given by rule 5.2.2.

client money distribution rules means the provisions of Part 5.10.

client money protection rules means the provisions of Part 5.5.

CM requirement has the meaning given by rule 5.9.1.

CM resource has the meaning given by rule 5.9.1.

COLL means the Collective Investment Schemes Rules 2010.

collective investment scheme has the same meaning as in COLL.

contingent liability transaction, in relation to an INMA firm and a customer, means a transaction in a relevant investment under the terms of which the customer will be, or may be, liable to make further payments (other than charges, and whether or not secured by margin) either when the transaction is to be completed or on the earlier closing out of the customer's position.

corporate group: an INMA firm's corporate group is made up of:

(a) the firm;

(b) any parent entity of the firm;

(d) any subsidiary (direct or indirect) of a parent entity of the firm.

CTRL means the Governance and Controlled Functions Rules 2012.

custody investment has the meaning given by rule 6.1.4.

customer, of an INMA firm, means a person to whom the firm provides, has provided or offers to provide a service or product, and is one of the following:

(a) a retail customer;

(b) a business customer;

Note The categories retail customer, business customer and eligible counterparty (which are defined in this Glossary) are mutually exclusive. To avoid any doubt, a customer of an INMA firm that is an eligible counterparty is not a business customer of the firm even if the customer would otherwise qualify as a business customer.

customer dispute resolution scheme, means the scheme established under the Customer Dispute Resolution Scheme Rules 2019.

dealing in investments includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 4; and

(b) dealing (as agent) in Islamic investments.

eligible bank has the meaning given by rule 5.2.3.

eligible clearing house means a clearing house that meets the following requirements:

(a) transactions on a regulated exchange may be cleared through it;

(b) it is incorporated or otherwise established in a jurisdiction outside the QFC;

(c) the Regulatory Authority has not, by notice published on an approved website, declared that this definition does not apply to the jurisdiction.

eligible counterparty, in relation to an INMA firm, means a customer of the firm that is any of the following:

(a) an approved representative of the firm;

(b) a non-QFC intermediary of the firm;

(d) a regulated financial institution or an entity in the same group as a regulated financial institution;

(e) an eligible clearing house or eligible exchange;

(f) a government, government agency, or central bank or other national monetary authority, of any jurisdiction;

(g) a state investment body, or a body charged with, or intervening in, the management of the public debt;

(h) a supranational organisation, the members of which are jurisdictions, central banks or national monetary authorities.

eligible custodian has the meaning given by rule 6.1.3.

eligible exchange means a regulated exchange for which the Regulatory Authority has not, by notice published on an approved website, declared that this definition does not apply to the jurisdiction in which the exchange is incorporated or established.

Note Regulated exchange is defined in this Glossary.

eligible third party has the meaning given by rule 5.2.4.

entity means any kind of entity, and includes, for example, any person.

financial group of an INMA firm has the meaning given by rule 3.3.8(2).

firm-related distribution event has the meaning given by rule 5.10.1.

FSR means the Financial Services Regulations.

GENE means the General Rules 2005.

governing body of an entity means its board of directors, committee of management or other governing body (whatever it is called).

hold money has the meaning given by rule 5.2.1.

home financial services regulator for an entity means the regulator responsible for the prudential regulation of the entity in the jurisdiction where the entity's authorisation or licence was granted.

IAH means investment account holder of a restricted PSIA.

IBANK means the Islamic Banking Business Prudential Rules 2015.

IFRS means the International Financial Reporting Standards, as amended and in force from time to time.

INMA firm means an authorised firm to which, under rule 1.1.4, these rules apply.

independent entity has the same meaning as in COLL.

investments includes Islamic investments.

investment and advisory business means the business of conducting, in or from the QFC, any of the activities mentioned in rule 1.1.4.

investment business firm has the meaning given by rule 5.1.2(1).

investment manager means an authorised firm that is engaged in:

(a) the activity of managing, or agreeing to manage, relevant investments belonging to a customer (if the investments may consist of or include particular investments at the firm's discretion); or

(b) the activity of offering or agreeing to manage relevant investments.

investment research means a publication (other than a personal recommendation) that contains:

(a) the results of research into a relevant investment or its issuer;

(b) analysis of factors likely to influence the future performance of a relevant investment or its issuer; or

Islamic financial institution means an authorised firm whose authorisation includes a condition that the whole of the firm's business must be conducted in accordance with Shari'a.

Islamic INMA firm has the meaning given by rule 9.1.1 (1).

Islamic investments has the meaning given by rule 1.1.3A (2).

jurisdiction means any kind of legal jurisdiction, and includes, for example:

(a) the State of Qatar;

(b) a foreign country (whether or not an independent sovereign jurisdiction), or a state, province or other territory of such a foreign country; and

legal person means an entity (other than an individual) on which the legal system of a jurisdiction confers rights and imposes duties, and includes, for example, any entity that can own, deal with or dispose of property.

managing investments includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 10; and

(b) managing Islamic investments.

money is any form of money of any currency, and includes a cheque.

Note Cheque includes a payable order of any other kind — see this glossary.

month means calendar month — that is, the period beginning at the start of any day of one of the 12 named months of the year and ending:

(a) at the end of the day before the corresponding day of the next named month; or

(b) if there is no corresponding day — at the end of the last day of the next named month.

non-QFC intermediary, of an INMA firm, has the meaning given by rule 5.2.6.

operating a collective investment scheme has the same meaning as in COLL.

operator (of a QFC scheme) has the same meaning as in COLL.

overseas regulator means a regulatory or governmental authority, body or agency outside the QFC (whether in the State of Qatar or elsewhere).

paid-up share capital, for an INMA firm that is not a company, means the equity (however described) of the members or owners of the firm.

parent entity, for a legal person (A), means any of the following:

(a) a legal person that holds a majority of the voting power in A;

(b) a legal person that is a member of A (whether direct or indirect, or though legal or beneficial entitlement) and alone, or together with 1 or more legal persons in the same corporate group, holds a majority of the voting power in A;

Note Legal person and corporate group are defined in this glossary.

person means:

(a) an individual (including an individual occupying an office or position from time to time); or

(b) a legal person.

private placement scheme has the same meaning as in the Private Placement Schemes Rules 2010.

providing custody services includes:

(a) the regulated activity described in FSR, Schedule 3, Part 2, paragraph 8; and

(b) providing custody services in relation to Islamic investments.

providing scheme administration has the same meaning as in COLL.

PSIA means profit-sharing investment account.

QFC means Qatar Financial Centre.

QFC Authority means the Qatar Financial Centre Authority established under article 3, Law No. 7 of 2005 of the State of Qatar.

QFC bank means an authorised firm that is:

(a) a deposit-taker, within the meaning of BANK; or

(b) an Islamic bank or Islamic investment dealer, within the respective meanings of IBANK.

QFC scheme has the same meaning as in COLL.

regulated activity means an activity that is a regulated activity under FSR.

regulated exchange means an exchange:

(a) that is incorporated or otherwise established in a jurisdiction outside the QFC; and

(b) that is regulated as an exchange by an overseas regulator in that jurisdiction.

Regulatory Authority means the Qatar Financial Centre Regulatory Authority.

related person: a person (the second person) is related to another person (the first person) if:

(a) the first person and the second person are members of the same corporate group;

(b) the second person is an individual who is a director or officer of the first person or of another member of the same corporate group;

(d) the second person is a company that is subject to significant influence by or from an individual mentioned in paragraph (b) or (c).

relevant investments means:

(a) investments of the following kinds (in each case, within the meaning given in FSR, Schedule 3, Part 3), and rights in such investments:

(i) shares;

(ii) debt instruments;

(iii) warrants;

(iv) securities receipts;

(v) units in collective investment schemes;

(vi) options;

(vii) futures;

(viii) contracts for differences.

(b) Islamic investments and rights in such investments.

research recommendation means research or other information:

(a) that concerns:

(i) one or more relevant investments admitted to trading on regulated exchanges, or in relation to which an application for admission to trading has been made; or

(ii) issuers of such investments;

(b) that is intended for distribution so that it is accessible, or is likely to become accessible, by a large number of persons, or for the public; and

(i) explicitly or implicitly, recommends or suggests an investment strategy;

(ii) directly or indirectly, expresses a particular investment recommendation; or

(iii) expresses an opinion as to the present or future value or price of such investments;

but does not include:

(d) an informal short-term investment personal recommendation expressed to customers of an authorised firm that originates from inside the firm's sales or trading department, and is not likely to become publicly available or available to a large number of persons; or

(e) advice given by an authorised firm to a body corporate in the context of a takeover bid and disclosed only as a result of compliance with a legal or regulatory obligation.

restricted PSIA has the meaning given by rule 9.1.2(2).

retail customer, of an INMA firm, means a customer of the firm who is neither a business customer nor an eligible counterparty.

Rules means rules made by the Regulatory Authority under FSR, article 15 (1), and includes:

(a) any standard, principle or code of practice made by the authority; and

(b) any other instrument made or in force under any Rules.

scheme property has the same meaning as in COLL.

shortfall, in relation to a calculation under rule 5.9.1, is the amount by which an INMA firm's CM resource is less than its CM requirement.

Note CM resource and CM requirement are defined in rule 5.9.1 and this glossary.

stock lending means an arrangement between a person (the borrower) and another person (the lender) under which:

(a) the lender transfers securities to the borrower otherwise than by way of sale; and

(b) a requirement is imposed on the borrower to transfer back to the lender, otherwise than by way of sale, securities in the same quantity, with the same rights, and of the same type and nominal value, as the transferred securities (or, if agreed between the borrower and lender, assets into which the transferred securities have been transformed following a stock split, consolidation, conversion, merger, takeover, redemption or similar event).

structured capital at risk investment means an investment, other than a derivative, that provides an agreed level of income or growth over a specified investment period and has the following characteristics:

(a) the customer is exposed to a range of outcomes in relation to the return of the initial capital invested;

(b) the return of the initial capital invested at the end of the investment period is linked by a pre-set formula to the performance of:

(i) an index;

(ii) a combination of indices;

(iii) a basket of selected investments (typically from an index or indices); or

(iv) another factor or combination of factors;

(c) if the performance mentioned in paragraph (b) is within specified limits, the initial capital invested is returned, but, if not, the customer may lose some or all of the initial capital invested.

subsidiary: a legal person (A) is a subsidiary of another legal person (B) if B is a parent entity of A.

surplus, in relation to a calculation under rule 5.9.1, is the amount by which an INMA firm's CM resource exceeds its CM requirement.

Note CM resource and CM requirement are defined in rule 5.9.1 and this glossary.

terms of business (of an INMA firm for a customer) means a statement in writing of the terms on which the firm will conduct investment and advisory business with or for the customer.

Note Under CIPR, Parts 4.4, 5.2 and 5.3, an INMA firm must give a customer a statement, in writing, of the terms and conditions on which the firm will conduct investment and advisory business for the customer.

third party account (of an INMA firm) means an account with an eligible third party in which client money is (or is to be) held by the firm.

third-party-related distribution event has the meaning given by rule 5.10.2.

unit (in a collective investment scheme) has the same meaning as in COLL.

US GAAP means the United States Generally Accepted Accounting Principles, as amended and in force from time to time.

writing means any form of writing, and includes, for example, any way of representing or reproducing words, numbers, symbols or anything else in legible form (for example, by printing or photocopying).

Amended by QFCRA RM/2019-4 (as from 1st January 2020).

Amended by QFCRA RM/2020-1 (as from 15th August 2020)

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INMA Glossary