Qatar Financial Center - Assignment Example

 This research paper identifies the legislation of Qatar Financial Center which is indicted by its rules an regulation and the responsibility of the each facet of Qatar Financial Center Authority. In addition, it discusses the Civil and Commercial Court and Regulatory tribunal. Rules and Regulations The rules that have been established by the QFC are applicable to every person to whom the company relates with. The rationale of the rules and regulations is to provide guidelines in respect to the firm regulations[QFC091]. Common terms as used in the QFC banking system Authorization this is used to mean approval that is granted by the Regulatory Authority to execute Regulated Activities in accordance with registered Financial Services Regulations. CRO this is used to denote Companies Registration Office The QFC Companies Regulations indicates the business activities that are regulated by shari’a laws. Person: an individual in this sense includes a legal or natural or legal person, body unincorporated, or body incorporated, including a company, branch, unincorporated association, government or state , partnership or other undertaking[QFC091]. Requirements for a Financial Institution Articles of Association The Article of association as duly filed by the LLC for an application for a financial service certificate of incorporation must bear the following information. The objective and purpose for which the financial institution is being formed; The level of share capital of the financial institution and the creation of distinct classes of shares, where the financial institution considers that it may seek to create categories of shares; the issuance or alteration of company share capital; the rights which accrue to every shares or classes of shares; the transference of shares from one individual to another and, if pertinent, liens over the shares; company annual general meeting (AGM); the requisition, by members and shareholders of the company at the general meetings; company proceedings compromising of voting at any general meetings held; Additionally there is accounts and other pertinent information to be issued to members and shareholders before annual general meeting is held; the total number of company directors; the appointment, disqualification, retirement and removal of directors and other officers given position within the company; the compensation of directors according to the firm records; the powers given to the directors, counting powers to have a loan on behalf of the enterprise and the delegation of those powers; proceedings of meetings held by the directors; appointment and placement of the company secretary; and lastly keeping the records of the company minutes[QFC14]. Financial Institution registry Forms and Fees The Prescribed Forms must be duly completed in accordance with the instructions, directions, or requirements enclosed in the form. It is important to note that, any form, annexure or other document filed with the CRO must: be on white paper of conventional A4 size; be written or clearly printed in black so that it can be permanent and is able to be reproduced by photographic or electronic means if necessary; contain, where appropriate, original signature of the person(s) indicated on the form and the corresponding date on which they were signed; set out the names and QFC numbers, where relevant, to the financial institutions or Branch to which the form relates; be fully completed in the English language. Where it is established that the provision of the Companies Regulations as given by QFC or these rules needs a certified copy of the relevant document to be filed with the CRO, the copy must then be certified[QFC141]. Time for Filing Forms Where there is an Article in the Companies Regulations makes it mandatory for a notice to be duly filed with the CRO, the given notice must then be filed, in disregard of the time limit being stated in the Companies Regulations, within a period of 21days of the date of the said event happening depending on the event to which the given notice corresponds to[QFC13]. Provision of Information The CRO will, upon application and subsequent payment of the Set Fee, give out an extract of the information stored and maintained in the register preserved by the CRO in relation to any given Financial Institution or Branch. An extract of relevant information produced in regard to (1) is prima facie proof of the matters detailed in it. The CRO will, upon application and subsequent payment of the Prescribed Fee, give out a certified copy of a certificate of incorporation of the financial institution or the certified registration certificate of the Branch, or any other document that was filed with the CRO. A certified copy of a certificate of incorporation or certificate of registration produced pursuant to (1) definite evidence of the incorporation of the financial institution or registration of the Branch Accounting and Audit Accounting Standards The financial and accounting standard generated and published by (AAOIFI) the Accounting and Auditing Organization for Islamic Financial Institutions are outlined in regards to the financial institutions that are authorized Firm and which has on its authorizations and approval to conduct Islamic Financial Business. Approved Auditors The following gives a guideline for an auditor who wishes to be registered and given authority by QFC. Submit a dully complete form as prescribed in Appendix 2 by the QFC Authority; provide such additional material as may be required by the QFC Authority, and submit payment of the agreed Fee to the QFC Authority.QFC preserves the discretion of determining that the auditor satisfy the following is proven fit and have proper academic and experience to be registered as a certified auditor taking into account: In case the applicants is an individual, the qualifications are given by the following[QFC091] (b)hands on skills and experience; (c)membership of pertinent professional bodies; and (d)adequate resources to carry out the mandate as required; and (ii)In the case the applicant is a company or a firm, the applicant: (a)a good background and history; (b) must identify the link between ownership and Group; and (c)adequate resources to carry out the mandate as given; and any other relevant information as required by the CRO; has satisfactory professional indemnity insurance cover in respect to the work being undertaken in the QFC; and fulfils any other requirement as set by the QFC Authority. An applicant should meet the criteria set out in above if that applicant is: fully registered as a certified auditor in a zone that is acceptable by QFC Authority; and in good relationship with the governing body responsible for registration and certification of auditors in that area. An auditor must pay an annual prescribed fee to remain on the register of approved auditors. The QFC Authority may request the auditor to file with the firm CRO: when filing the prospective application for registration and approval; and during payments of the annual fee as prescribed by QFC or by at a later time depending on the direction given by CRO[QFC091]. If upon getting an annual evaluation the CRO forms, the opinion is that the auditor can no longer be considered longer fit to be on the register of credited auditors, the CRO may have powers to cancel the registration license of the of the auditor. The auditor must pay for the services of the firm or body undertaking the assessment referred to in (1). If, at any time after registration, an auditor no longer meets the requirements for registration as an approved auditor, the auditor must immediately inform the CRO in writing. Register of Approved Auditors The CRO will keep the register of certified auditors by mapping the following given information in regards to the current and former registered certified auditors: full name; address; date when the auditor was registered by the CR; and the date of cessation of registration as an auditor with the CRO[QFC141]. Power of QFC Authority In order to achieve the goals and objectives, QFC Authority has the following powers Provision of infrastructure, administrative services, premises and any other faculity that may be required for realizing its objectives Liaising with international financial, states, business centers, institutions, organizations Provide a platform for operation and proper administration of the AFC and delegate powers to the Director General Comply and submit regulations to the concerned ministry To authorize, approve, and license persons, companies and other entities which may be authorized pursuant to this Law that wish to conduct their business at the QFC. to streamline enterprise procedures between the distinct entities that work within the QFC and any other relevant bodies beyond the QFC. To impose a charge and collect fees for services provided by the QFC and any other institution affiliated to QFC. Advise the state of financial matters especially on the double tax treaties To undertake any other duty as it may be given by the council of ministers To form enterprises, companies and corporate for the purposes of carrying its functions To appoint consultants, employee, and any other service provider as the organization deem its desirable or necessary The QFC Regulatory Authority The QFCRA is a independent body which was formed to regulate financial business activities in and from Qatar. These regulations are based on the international standard legal principles. The issue covered includes insurance banking, derivatives, Islamic finance and securities The QFC Regulatory Tribunal QFCRT makes decision of appeal form the QFCRA decisions besides the QFC authorities. Some of the members who are involved in the tribunal include Sir William Blair who is the chairman, Prof. Fransis Gianviti and Michael Thomas among others. The Civil and Commercial Court This court owes its origin from the Article 8(3) of QFC of 2005, as amended by the law dated No. 2 of 2005. A Qatar Court The court proceeding are from both English and Arabic. The court has paid much emphasis on the Silver Leaf case which defines it as a Qatar Institutions giving the effect to English and Qatar laws where they are applicable and operates on the basis of the best international accredited practices. The interpretation of Qatar legislation takes the Arabic and English version. This accommodates various judicial processes to be carried out in an effective manner without denying anyone the right for a fair hearing. The court has two circuits which comprises a first instance circuit and an appeal circuit which is made of three judges. Decisions of the appeal circuit are always considered as the final decision. Bibliography QFC091: , (QFC, Guidance , 2009), QFC14: , (QFC, Qatar Financial Centre, 2014), QFC141: , (QFC, Regulatory Authority , 2014), QFC13: , (QFC, QFC, 2013), Read More