Page 12 - Annual Report 2016 EN

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CEO’S STATEMENT

The goals and objectives set out in the Strategic Plan for Financial Our regulatory framework and our supervision are supported by
Sector Regulation have provided us with a clear direction and the changes made to our prudential reporting framework, which
detailed work plan over the last three years. It has focused financial were implemented in a phased manner from 2014 and which are
regulators in the State of Qatar collectively on delivering the most now fully operational for all of our regulated sectors. The enhanced
important objectives that are required to ensure that our financial prudential reporting and the calibration of our data collection to
services sector is positioned to provide and support the sustainable the most relevant risks to our firms and the broader financial sectors
growth and economic diversification anticipated by the National have greatly enhanced our risk-based supervision and the nature of
Vision 2030. our engagement with our firms. That engagement, which includes
meeting with the boards of directors and audit committees of our
We have reviewed our regulatory framework and taken the nec-
essary steps to ensure that it is aligned with new international firms, focuses discussions on the most important risks to the firms and
standards and best practice issued by global standard setters. their business models, the manner in which those risks are managed
by the firms, and our expectations with respect to risk management
We have also taken the steps to develop a deep understanding and controls.
of the macroeconomic environment and the global and regional
trends that can affect the stability of our financial sector, and the We have also continued to invest in our macroprudential capa-
nature and behaviour of the risks affecting our firms. bilities and the outcome of that investment has made a valuable
contribution to the Regulatory Authority, its assessment of risks and
During 2016, we implemented a new framework for Islamic finance its supervision. The macroprudential team has produced ten of its
and a new regime for real estate investment trusts. We also com- semiannual macroprudential reports dating back to 2012 and the
menced our consultation on new securitisation and sukuk rules, reports have become an integral part of our supervision planning
which became effective in 2017. A quantitative impact study was and the nature and focus of the supervision plans that we put in
initiated during 2016 in respect of our proposals for liquidity, which place for regulated firms. Our work in macroprudential matters has
will lead to a new liquidity risk framework for firms in the Qatar also positioned the Regulatory Authority to make a constructive
Financial Centre during 2017. In each case, our rule-making has and valued contribution to Qatar’s Financial Stability and Risk Con-
benefited from significant and extensive consultation with our firms trol Committee (“FSRCC”).
and the broader stakeholders in Qatar’s financial services sector
and, importantly, benefited also from constructive input from Our efforts to combat money laundering and terrorism financing
the Qatar Central Bank (“QCB”) and the Qatar Financial Mar- (“AML/CFT”) also continue to be a critical area of focus from a
kets Authority (“QFMA”) through the sharing of relevant market supervisory perspective and our engagement with, and supervision
experience. of, firms operating in the QFC. On a broader level, we have also
increased our partnership with the National Anti-Money Laundering