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Authority to establish a MMoU with the European Securities and Markets Authority (ESMA) and cooperation agreements with European Union members. An ESMA MMoU will enable Qatar Financial Centre firms to comply with the requirements of the Alternative Investment Fund Managers Directive.
The MoU between the Regulatory Authority and the National Bank of Kazakhstan (NBK) was signed on 25 October 2015 during a ceremony that took place at the Regulatory Authority. The MoU provides for mutual cooperation and support on financial services regulation. It was initiated at the request of NBK, which is setting up a financial services centre in Astana, Kazakhstan.
Conduct of Business Rules
The Qatar National Vision 2030 recognises that support for entrepreneurship and small
and medium-sized enterprises (SMEs) is essential to promote
the diversification of the Qatari economy. This priority is also reflected in the Strategic Plan for Financial Sector Regulation 2013- 2016 which promotes access to credit and venture capital funds for SMEs. In that connection, the Regulatory Authority decided to review its definition of business customer and its framework for the classification of customers more generally. Following public consultation, the revised COND framework was approved and came into force in January 2016. It is anticipated that this initiative will lend further support to improving access for SMEs to the financial services being offered in the Qatar Financial Centre.
Partnering with Peer Regulators in Qatar
The Regulatory Authority has continued to work closely with the Qatar Central Bank and the Qatar Financial Markets Authority under the auspices of the Financial Stability and Risk Control Committee chaired by His Excellency Sheikh Abdulla bin Saoud Al-Thani, Governor of Qatar Central Bank and Chairman of the Regulatory Authority. Key examples of close coordination are outlined throughout the Annual Report and in the paragraphs below.
Qatar Renminbi (RMB) Centre Initiative
In 2014, the Qatar Central
Bank and the People’s Bank of China signed a memorandum of understanding pursuant to which the central banks sought to cooperate to establish a framework for the clearing of RMB in Doha. Simultaneously, the People’s Bank of China announced Industrial and Commercial Bank of China Limited (ICBC), Doha Branch
as the RMB clearing institution for Doha. ICBC is the first RMB clearing bank in the Middle East region designated by the Chinese central bank.
Following these announcements, the Regulatory Authority commenced work with its authorised firm ICBC and
the Qatar Central Bank to implement the RMB initiative. This collaborative work culminated in April 2015 with the launch of the Qatar RMB Centre under
the patronage of His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, Prime Minister of Qatar and Minister of Interior.
The aims of the Qatar RMB Centre are to increase financial connectivity between China and the MENA region, while expanding opportunities to improve trade and investment between China, Qatar and
the region. For the Regulatory Authority, it will mean an expanded scope of work, as ICBC’s activities will form part of its regulatory responsibilities.
The Qatar RMB Centre is being supported by an RMB Advisory Council which is formed of
State banks, the Qatar RMB clearing bank, Qatar Exchange, Qatar Central Bank, Qatar Financial Markets Authority
and Regulatory Authority representatives. Its purpose is to advise on initiatives to develop and promote products and services concerning the Qatar RMB Centre.
International Cooperation
On 18 August 2015, the International Organization of Securities Commissions (IOSCO) confirmed its approval of the Regulatory Authority as an Associate Member. Having gained IOSCO membership, the Regulatory Authority
is proceeding to become
a signatory to the IOSCO multilateral memorandum of understanding (MMoU). In turn, this will allow the Regulatory
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