This week the spotlight is on regulatory developments in the Qatar Financial Centre (QFC), where the QFC Regulatory Authority has launched a consultation on proposals to introduce requirements for rule-based ongoing monitoring of close links and annual reporting of these links for QFC authorised firms. The consultation ends on 9 May 2018. These proposals are relevant to all QFC authorised firms and if approved would apply from July 2018.
The Regulatory Authority is proposing to amend the General Rules to include ongoing requirements relating to an authorised firm’s close links, including introducing systems and control requirements for the ongoing monitoring of changes to an authorised firm’s close links. They are also proposing requirements for authorised firms to submit an annual report to the Regulatory Authority about its close links (to be submitted with the annual controllers report). In addition they are suggesting a new definition for close links in Chapter 8 of the General Rules which would expand monitoring and reporting requirements to links between two or more persons who are linked through a holding or subsidiary company structure or through ownership or control of 10% or more of their voting rights or shares. Finally they are proposing clarifying the application of various Parts of Chapter 8 of the General Rules and consequential changes to the Interpretation and Application Rules 2005.