Page 16 - Annual Report 2016 EN

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GOVERNANCE FRAMEWORK by the Regulatory Authority to advance the strategic goals set forth
in the Strategic Plan for Financial Sector Regulation.
Board Composition Committees of the Board

Under the QFC Law, the Board may have a maximum of six mem- The Board is empowered to establish committees to undertake and
bers appointed by the Council of Ministers. Board members are advise on certain areas of responsibility. The Governance Resolu-
required to have significant expertise in the regulation of finan- tion of the Board provides for the establishment of an Audit and Risk
cial services. The Chairman and other Directors on the Board were Committee as well as a Nominations and Remuneration Committee
appointed by the Council of Ministers for a three-year term on 8 and sets out the nature and membership of these committees. The
March 2012 and their terms were renewed for a further three years committees review matters under their Terms of Reference and
from 8 March 2015. The Board reports annually to the Council of make recommendations and provide reports to the Board.
Ministers on the discharge by the Board of the Regulatory Author-
ity’s functions; the extent to which, in its opinion, the Regulatory
Authority objectives have been met; and other matters required Audit and Risk Committee
by law.
Mr O’Sullivan served as ARC Chairman and Mr Lepetit is a member
of the Audit and Risk Committee (ARC). Dr Carmichael also parti-
Board Meetings and Attendance cipated in ARC meetings during the second half of 2016.

The Board met four times during 2016. The principal focus of the ARC is to monitor and oversee:
• the effectiveness of the Regulatory Authority’s policies, pro-
Board Activity cedures and internal controls including those for financial
reporting;
The Board reviewed and approved a number of new rules and
rule amendments in 2016, considered various regulatory policies, • compliance with legal and other requirements;
considered various enforcement matters, and reviewed a number • the performance of the internal audit function and the external
of standing items. The rule and policy amendments decided by the audit firm appointed by the Regulatory Authority;
Board in 2016 included the revised Collective Investment Schemes • the effectiveness of the internal controls framework; and
Rules 2010. In December 2016, the Board approved the issuing of
a consultation paper on the proposed Islamic Banking Business • business continuity and disaster recovery plans.
Prudential (Securitisation) Amendments Rules 2017 and the Banking
Business Prudential (Securitisation) Amendments Rules 2017. The ARC met four times during 2016, supplemented by exchanges

The standing items that were reviewed included the annual of information between meetings. The Head of Internal Audit, the
budget, the audited financial statements, the quarterly financial Managing Director, Corporate Services, the Director of Finance
reports, the annual review of the Enterprise Risk Management pro- and other executives attended ARC meetings by invitation. The
cess and the monthly management report to the Board. The Board ARC reviewed quarterly updates on the status of the Regulatory
also reviewed the semi-annual macroprudential supervisory report Authority’s risk register.
(The Macroprudential Review). The ARC approved the yearly internal audit programme and fol-
The Board was kept informed of developments in relation to regu- lowed its implementation through regular communication with
latory coordination among Qatar’s financial regulators, including the Head of Internal Audit. In 2016, the ARC met with the external
progress made by the Financial Stability and Risk Control Commit- auditors of the Regulatory Authority on two occasions and oversaw
tee. The Board was briefed on the initiatives in process, proposed the completion of the external audit concerning the Regulatory
Authority’s financial statements.