Doha, Qatar, Tuesday, 5 March 2024
The QFC Regulatory Authority (“Regulatory Authority”) today issued a Consultation Paper on proposals to significantly update the Governance and Controlled Functions Rules 2020 (“CTRL”) by inserting new operational risk and resilience requirements, as well as other miscellaneous rule amendments.
The proposed amendments are set out in:
- Governance and Controlled Functions (Operational Risk and Resilience) Amendments Rules 2024; and
- BANK, PINS, INMA and IBANK (ORR and SSB) Amendments Rules 2024.
The proposed amendments update the following key prudential areas:
- new rules in CTRL addressing the growing level and complexity of operational risks facing authorised firms, as well as placing a heightened regulatory focus on their operational resilience in the event of disruptions;
- clarifying and simplifying certain rules relating to a firm’s risk management framework and centralising these in CTRL; and
- removing the Sharia Supervisory Board requirements in the Islamic Banking Business Prudential Rules 2015 as these duplicate the Sharia Supervisory Board requirements contained in CTRL.
Given the significant update to CTRL, the Regulatory Authority is proposing a consultation period of three months to provide sufficient time for authorised firms to review the proposals. The Regulatory Authority is seeking to assess the impact of these proposals on authorised firms and will also be available to meet on a one-to-one basis with any firm wishing to discuss the consultation proposals.
It is proposed that the updated final CTRL and other amended rules commence on Monday, 1 July 2025.
You are invited to submit your comments by Thursday, 6 June 2024.
Please click here to access the Consultation Paper and the draft Rules.
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