The Qatar Financial Centre Regulatory Authority (“QFCRA”) today issued a Consultation Paper on proposals to update the regulatory rules framework to reflect the Basel Committee on Banking Supervision’s (“BCBS”) revised Core Principles for Effective Banking Supervision (“BCPs”).

While the BCPs relate to banks only, the draft Rules also include proposed amendments that would apply to all authorised firms. These include:

• amendments to the General Rules 2005, to introduce a new notification and no-objection framework for major (and certain other) acquisitions; and
• amendments to the Governance and Controlled Functions Rules 2020, to require firms to appropriately aggregate risk data.

Most of the remaining amendments will apply to firms conducting conventional and Islamic banking business. The proposed amendments to the Banking Business Prudential Rules 2014 and the Islamic Banking Business Prudential Rules 2015 include:

• enhanced requirements for managing country and transfer risk;
• targeted refinements to the requirements on credit risk, problem exposures, related party transactions and liquidity risk, enhancing existing requirements rather than introducing significant new obligations; and
• thematic and other amendments (including amendments to update terminology and clarify governance roles in respect of significant policies, among others).

The QFCRA proposes a six-week consultation period to allow authorised firms sufficient time to review the proposals. The QFCRA will be available to meet with firms wishing to discuss the consultation proposals.