Qatar: Qatar Financial Centre Regulatory Authority (QFCRA) Proposes Amendments to Prudential Framework for Conventional QFC Authorised Banks

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Qatar: Qatar Financial Centre Regulatory Authority (QFCRA) Proposes Amendments to Prudential Framework for Conventional QFC Authorised Banks

The Qatar Financial Centre Regulatory Authority has announced it has launched a consultation on the proposed Banking Business Prudential (Counterparty Credit Risk) and Miscellaneous Amendments Rules 2022. It ends on 31 March 2022.

Any amendments will be made to the Banking Business Prudential Rules 2014.

The prudential banking framework which applies to banks in the QFC is largely based on the international framework developed by the Basel Committee on Banking Supervision. In June this year, the Regulatory Authority issued a consultation paper on the Banking Business Prudential (Credit Risk and related Matters) Amendments Rules 2021. The Regulatory Authority did not include its proposals for rules concerning counterparty credit risk in that consultation.

The Regulatory Authority has now completed its work to develop draft Rules and is now proposing new prudential requirements for counterparty credit risk and exposures to central counterparties.

The Regulatory Authority is also proposing a minor change to the General Rules 2006 in terms of auditor appointment notification requirements. The aim is to clarify the notification requirements for when the appointment of an auditor ends.  Article 91 of the QFC Financial Services Regulations requires an auditor to notify the Regulatory Authority about all issues related to their employment.

In addition, the Regulatory Authority is proposing to clarify the FSR requirement in the GENE Rules so auditors are clear about the circumstances where the notification requirement applies. The consultation ends on 28 February 2022.

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Marlé Van Sandwyk