1. Is the senior management of an Authorised Firm subject to particular requirements?
Authorised firms are expected to exercise high standards of governance and controls. All firms must have clear reporting lines and controls in place to ensure that the business is managed in an effective manner and that senior management take clear responsibility for the firm’s activities. These standards are outlined in the Governance and Controlled Functions Rulebook.
In addition, where their activities fall into the definition of a Controlled Function, certain senior managers (as well as certain directors, partners and other mandatory positions) will be required to be approved by the QFC Regulatory Authority. See our Governance and Controlled Functions Rulebook and Individuals Rulebook.
2. Who needs to be an approved individual?
Before individuals can exercise one or more defined functions for an Authorised Firm, known as Controlled Functions, they must submit an application to the QFC Regulatory Authority.
The Governance and Controlled Functions Rules 2012 set out these Controlled Functions:
- Executive Governance Function;
- Non-Executive Governance Function;
- Senior Executive Function;
- Senior Management Function;
- Finance Function;
- Risk Management Function;
- Compliance Oversight Function;
- Money Laundering Reporting Officer Function;
- Internal Audit Function; and
- Actuarial Function.
3. Can one individual carry out more than one Controlled Function?
An individual may carry out more than one Controlled Function for an Authorised Firm provided that the Authorised Firm and the QFC Regulatory Authority are satisfied that the performance of such Controlled Functions does not give rise to any internal or external conflicts of interest and is appropriate in regard to the nature, scale and complexity of the business carried on by that Authorised Firm. The rules relating to multiple appointments are set out in Part 3.2.8 of CTRL, which is available here.
4. Can one individual carry out a Controlled Function for more than one Authorised Firm?
An individual may perform Controlled Functions for more than one Authorised Firm only if the firms are part of the same group or are owned by the same shareholders.