Page 58 - English

ENFORCEMENT
Enforcement
Enforcement has a crucial role
in financial services regulation.
It plays an integral part in supporting the Regulatory Authority’s objectives to ensure the integrity of the financial system and deliver effective outcomes against firms and individuals where the need arises.
The enforcement function also aims to achieve outcomes which deter misconduct by strengthening the compliance structure within firms. Early detection, negotiation or settlement, and working with firms to enhance their training, systems and controls, risk mitigation and overall corporate governance are all part of the Enforcement methodology to deter misconduct.
When enforcement action is contemplated, the Regulatory Authority follows the processes set out in its Enforcement
Policy Statement, ensuring a prompt, proportionate, fair and transparent approach to the enforcement process.
Enforcement Matters
In 2015 the Regulatory Authority concluded a number of enforcement matters in relation to firms and individuals. A significant investigation of a firm and its senior management identified serious deficiencies in systems and controls, financial management and corporate governance, which resulted
in the firm being in breach of capital adequacy requirements. The enforcement investigation effected a change to systems and controls at the firm as well as changes in senior management.
Other significant enforcement matters included proceedings in the Qatar Financial Centre
Civil and Commercial Court for orders to secure judgement debts against individuals who had failed to pay financial penalties following earlier enforcement action. One matter was settled after payment in full by the individual and the other resulted in an order from the Court compelling payment. Both cases demonstrate the Regulatory Authority’s commitment to take all necessary action to ensure that financial penalties are recovered.
Unlicensed Financial Advisors
During 2015 the enforcement function widened its scope to have greater involvement in supporting the Strategic Plan objectives concerning unlicensed financial advisers in the State of Qatar. In particular, Enforcement has played an active role in working closely with other Qatari regulators to develop licensing systems to support consumer protection in Qatar. This is an ongoing and long-term project which will further strengthen the regulatory landscape of Qatar.
Consumer Protection
The Regulatory Authority’s consumer protection framework, which includes the Customer Dispute Resolution Scheme
(CDRS), is now a well-established function within the Enforcement department. The CDRS is a
service which is free to all Qatar Financial Centre firms and their customers and is administered
by the Regulatory Authority. Most customers’ complaints are resolved directly with the firm through the firm’s internal complaints system. However, where disputes remain, the CDRS assists the parties to reach an amicable resolution
and if that is not possible, for
the complaint to be sent to an independent adjudicator.
During 2015, four complaints were referred to the independent adjudicator, resulting in the upholding of two complaints and two outcomes in favour of the firm. The common theme in the upheld complaints was a failure to properly inform customers about fees and charges.
The Regulatory Authority
also took steps during 2015 to enhance consumer protection within the Qatar Financial Centre. This included increased consumer information and guidance and changes to the CDRS regulatory framework.
Consumer information on the Regulatory Authority’s website was expanded to cover matters customers should consider when making investments, as well
as detailed information about CDRS processes.
The regulatory framework
of the CDRS was clarified
and improved with changes
to the Conduct of Business Rulebook, which commenced on 1 January 2016. Notable amendments include the strengthening of provisions regarding information gathering and enforcement of awards, setting minimum qualifications for independent adjudicators, capping of awards, introducing a time limit to make a complaint to the CDRS and limiting access to the CDRS to retail customers and individuals.
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