The regulatory authority of the Qatar Financial Centre (QFC) said it will start implementing key changes in its rules with regard to significant ownership positions in QFC-authorised firms.

The move comes following the approval by the board of the QFC Regulatory Authority.

The implementation follows a period of consultation with industry last year, during which the regulatory authority issued a consultation paper seeking input on the proposed changes to update and strengthen the rules, said the QFC in its statement.

The key amendments in the QFC's general rules include:
*Controller band threshold approval - introducing thresholds for the approval of controller shareholding, based on fitness and propriety and the financial capability of the shareholder.

*The proposed thresholds are 10 per cent; exceeding 24 per cent but not more than 49 per cent; exceeding 49 per cent but not more than 74 per cent; and exceeding 74 per cent;
*Letter of comfort - requirements for significant controller shareholders crossing a 49 per cent or 74 per cent shareholding threshold to provide a ‘letter of comfort’ to the QFC Regulatory Authority; confirming the shareholders’ capability and willingness to support the firm;
*Systems, controls and reports - requirements for authorised firms to submit particular reports and maintain systems and controls which allow the firm to monitor controller shareholder positions; make required applications for approval and also prevent shareholding increases across band thresholds from being registered without approval from the QFC Regulatory Authority.

This initiative supports the regulatory authority’s ongoing commitment to meet high international regulatory standards, and supports the continued development of the QFC as a leading financial and business centre in the region, said the QFC statement.

These proposals are relevant to all QFC authorised firms and any firms considering doing business in the QFC, it added.-TradeArabia News Service