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					   Form Q02
   Application for regulated activities authorisation

   Firm name




   Date application
   made




Please give this form to:
QFC Regulatory Authority
Regulatory Services                          For Regulatory Authority Use
Level 14, QFC Tower
PO Box 22989                Reference No:
Doha, Qatar
Tel:   +974 4956 888        Date received:
Fax: +974 4835 031
Email: rs@qfcra.com         Received by:

   Q02-VER4-May08                                       Page 1 of 58
Background

          The Qatar Financial Centre (QFC) is a financial and business centre established by the
           Government of Qatar as a leading location for international finance and business,
           designed to attract international banking; financial services; insurance businesses;
           fund management; corporate head office functions; as well as other business. You
           should consider the extent to which your proposed activities contribute to these
           overall objectives.

Where can I find guidance on the application process?

          We recommend that you read the document ‘A Guide to the Application Process’,
           which is available from the Qatar Financial Centre Regulatory Authority (the
           Regulatory Authority) website, www.qfcra.com, before completing this form.

          It is important that you also read the Notes for completing form Q02, which will
           assist you in answering some questions. The availability of notes for a particular
           question will be indicated in the question itself by the words ‘(see notes)’.

Who should complete this form?

          ‘Form Q02, ‘Application for regulated activities authorisation’ should be completed by
           all firms seeking authorisation by the Regulatory Authority to conduct regulated
           activities.

          If you are applying to carry on the regulated activity of operating a collective
           investment fund to register funds in the QFC you must also complete and submit
           Form Q18 in respect of each collective investment fund to be established in the QFC.

          From the 1st of July 2007, the Regulatory Authority has extended its regulatory
           regime to allow firms to apply to carry on retail business in relation to contracts of
           insurance.

          If you are applying to carry on retail business in relation to contracts of insurance
           (including insurance mediation) you must read and address the points raised in
           Question 5.1 of ‘Notes for completing form Q02’.

Defined terms used in this form

          This application uses certain terms that are defined in the Glossary of the
           Interpretation and Application Rulebook (INAP) available through the Regulatory
           Authority website. Defined terms are identified throughout this form by the
           italicisation of the term. For example, applicant is defined as, ‘A body corporate,
           partnership or unincorporated association which is the subject of an application for an
           Authorisation made under Article 26 of the QFC Financial Services Regulations (FSR).’
           and refers to the entity to be established in the QFC.

What are regulated activities?

     Firms carrying on the following permitted activities in or from the QFC by way of business
     are likely to be carrying on regulated activities:

          financial business, banking business of whatever nature, and investment business,
           including (without limit) all business activities that are customarily provided by
           investment, corporate and wholesale financing banks, as well as Islamic and
           electronic banking business;

          insurance and reinsurance business of all categories;



     Q02-VER4-May08                                                                 Page 2 of 58
           money market, stock exchange and commodity market business of all categories,
            including trading in and dealing in precious metals, stocks, bonds, securities, and
            other financial activities derived there from, or associated therewith;

           money and asset management business, investment fund business, the provision of
            project finance and corporate finance in all business fields and Islamic banking and
            financing business;

           funds administration, fund advisory and fiduciary business of all kinds;

           pension fund business and the business of credit companies;

           the business of insurance broking, stock broking, and all other financial brokerage
            business;

           financial agency business and the business of provision of corporate finance and other
            financial advice, investment advice and investment services of all kinds; and

           the provision of financial custodian services and the business of acting as legal
            trustees.

     A more detailed description of the scope of regulated activities that may be conducted is
     contained in the FSR, which sets out the framework for the regulation of the financial
     services sector operating in or from the QFC. A firm must not carry on a regulated activity in
     or from the QFC without authorisation from the Regulatory Authority.

     A firm may only conduct the regulated activities that it has been granted specific
     authorisation by the Regulatory Authority to conduct.

Completing this form

           Firms that wish to conduct only permitted activities that are not regulated activities
            should instead complete form Q01, ’Application for a Licence to Conduct Non-
            regulated Activities’.

           We recommend that you look at the notes at the back of this form.

           All questions must be answered in full and abbreviations avoided.

           Dates must be provided in the following format: dd/mm/yyyy.

           Answers and all supporting documents must be in English or accompanied by a
            translation into English. (It is the applicant’s responsibility to ensure the accuracy of
            any translation and you may consider certification by a professional translator.)

           Answers must be typewritten and any additional pages attached if necessary. Please
            make sure that attachments are clearly labelled and securely attached.

           Every section of the form should be completed. If any question is not relevant, please
            state not applicable, and, if appropriate, give brief reasons. If this is not done, the
            application may be treated as incomplete.

           Except where otherwise stated in this form, answers must relate to the applicant, not
            to a group entity, and to the permitted activities to be carried on in or from the QFC.

           The completed form should be signed by 2 authorised signatories, i.e. individuals
            authorised by the applicant or parent entity to complete and submit the form for the
            applicant.




     Q02-VER4-May08                                                                    Page 3 of 58
Submitting this form

            The completed form Q02 should be submitted to the Regulatory Authority. We will
             invoice you for the relevant application fee, details of which can be found in the
             document ‘A Guide to the Application Process’ and Appendix 4.2 of the Regulatory
             Authority’s General Rulebook (GENE), available from its website.

Personal data

            The personal data provided in this form will be processed by the Regulatory Authority
             in accordance with the QFC’s Data Protection Regulations 2005.

Registration with Companies Registration Office

            To be granted authorisation by the Regulatory Authority to conduct regulated
             activities, the applicant must either be incorporated or registered in the QFC by the
             Companies Registration Office (CRO) to establish a legal presence within the QFC.
             The information submitted in the CRO forms, which should accompany this
             application, will be used by the CRO to incorporate the applicant either as a limited
             liability company (LLC), or a limited liability partnership (LLP), or to register the
             applicant as a branch office or any other legal structure as approved by the board of
             the QFCA. The applicant does not need to apply separately to the CRO.

QFCA Licence

            In accordance with the QFC Law No. 7 of 2005, all persons carrying on permitted
             activities in or from the QFC require a licence. The information contained in this form
             will allow licensing to be dealt with as an adjunct to the authorisation process. An
             applicant seeking authorisation does not need to apply separately for a licence from
             the Qatar Financial Centre Authority (QFCA) to operate in the QFC.

What is covered by this form?

In summary, the completion of the application pack covers the following:

            incorporation or registration of the applicant with the CRO;

            licensing of the applicant to operate in the QFC; and

            authorisation by the Regulatory Authority of the applicant to conduct regulated
             activities.

How will information supplied in this form be used?

            Information prInformation provided in or with forms submitted to the Regulatory
             Authority will be used to establish and update registers and databases kept by the
             Regulatory Authority, the QFCA and the CRO, for ongoing supervisory purposes and
             for the purposes of the Regulatory Authority performing its functions.

            Information provided in or with forms submitted to the Regulatory Authority may be
             shared between the Regulatory Authority, the QFCA and the CRO under arrangements
             between them.




      Q02-VER4-May08                                                                  Page 4 of 58
Table of Contents

Title                                                 Page

Section 1 - Core details

1.   Declaration and consent                             7
2.   General questions                                   8
3.   Business details and legal status                   9
4.   History of applicant                               16
5.   Proposed activities                                17

Section 2 - Business risks and controls section

6. Financial soundness                                  20
7. Risk management strategy                             29
8. Clients                                              30
9. Conflicts management                                 40
10. Management and control                              42
11. Financial crime                                     49
12. Human and technical resources                       52

Checklist for attachments                               55




Q02-VER4-May08                                    Page 5 of 58
                 Section 1
                 Core details




Q02-VER4-May08                  Page 6 of 58
1 Declaration and consent

1.1 Declaration of authorised persons

     I declare that:

           I have the authority to make this application for the applicant.

           all the information given in this application form (including any attachments) is, to the
            best of my knowledge and belief and after having made all reasonable inquiries, true
            and complete.

           if, at any time after making this declaration, I become aware of a material change in
            any information given in this application form (including any attachment) that is
            reasonably likely to be relevant to the Regulatory Authority’s assessment of this
            application, I will inform the Regulatory Authority in writing about the change without
            delay.

1.2 Consent of authorised persons

     I acknowledge that it may be necessary for the Regulatory Authority to obtain information
     from other regulators, law enforcement agencies or other persons (whether in Qatar or
     elsewhere) to properly consider and decide this application. Accordingly, I consent to the
     Regulatory Authority obtaining any information from third parties that the Regulatory
     Authority considers is necessary for the purpose of considering and deciding this application.

IMPORTANT

     It is a contravention of the QFC Financial Services Regulations to knowingly or
     recklessly give false or misleading information to the Regulatory Authority. All
     personal data provided to the Regulatory Authority will be processed in accordance
     with the QFC’s Data Protection Regulations 2005.

     Name and position of authorised signatory 1



     Signature



     Date



     Name and position of authorised signatory 2



     Signature



     Date



     Please attach board minutes or similar evidence authorising each of the signatories
     to make this application for the applicant.




     Q02-VER4-May08                                                                    Page 7 of 58
General questions
Applicant identification

2.1    Name of applicant (see notes)




2.2    Name of main contact in the applicant for this application (this is the person the Regulatory
       Authority will contact about the application)




2.3    Job title of main contact




2.4    Office address of main contact




2.5    Telephone and fax number of main contact




2.6    Email address of main contact




2.7    Preferred method of contact for main contact




       If the applicant has used a professional adviser to assist with the completion of this
       application, please provide contact details

2.8    Name of professional adviser’s firm and main contact




2.9    Telephone and fax number of principal contact




2.10   Email address of principal contact




2.11   Check box if the applicant wants the Regulatory Authority to copy correspondence to the
       professional adviser




       Q02-VER4-May08                                                                  Page 8 of 58
3 Business details and legal status
General

3.1    Proposed legal status within the QFC (LLC, LLP or branch – see notes)




3.2    Place and date of incorporation / formation




3.3    Registered number (if applicable - see notes)




3.4    Address of registered office




3.5    Address of head office (if different from registered office)




3.6    If the applicant has used any other trading name during the last 10 years, please provide
       details of each trading name used during the period and the period it was used

                  Trading name(s)                                     Period used




3.7     Proposed date of commencement of regulated activities




3.8    Applicant’s proposed trading name in the QFC




3.9    Full Qatar postal address, if known




3.10   Main telephone and fax number, if known




3.11   Email address, if known




3.12   Website address, if applicable




       Q02-VER4-May08                                                               Page 9 of 58
Premises and strategic fit

3.13 How will the applicant’s business plan for the QFC further the QFC’s objectives (see notes)?




       Applicants must attach a separate business plan with this form (see notes)

3.14   Have there been meetings or discussions with the QFCA to discuss intentions regarding the
       proposed QFC operation? If yes, please provide details. If no, please state why.

             Yes
             No




3.15   Will the applicant be taking premises already designated for the QFC (see notes)?

             Yes        (please go to question 3.17)
             No

3.16   If the applicant will not be taking up premises already designated for the QFC, has it
       commenced arrangements to have its intended premises designated (see notes)?

             Yes
             No

3.17   Will the applicant be carrying on business from or at any other address in Qatar (either
       inside the QFC or outside)? If yes, please provide details below (see notes).

                   Trading name(s)                     Address                  Main Activities




Group structure and controllers (see notes)

3.18   Is the applicant a member of a group?

             Yes        (please attach a group structure chart)
             No

3.19   Please detail all corporate controllers, including name, percentage holding, address, country
       of incorporation, registered number, principal activities and overseas regulator (if
       applicable)




             The latest audited financial statements of the applicant’s parent entity and corporate
             controller must also be attached to this form.

3.20   Has the applicant provided the latest audited statements for its parent entity or corporate
       controller with this application?

             Yes
             No         (If no please state why and when they will be submitted)




       Q02-VER4-May08                                                                 Page 10 of 58
3.21   Please detail all individual controllers, including name, address, place of birth, date of birth
       and percentage holding




3.22   Please submit certified copies of the relevant pages of any individual controller’s passport
       (see notes)

             (If copies are not submitted with this form, please state why and when they will be
             submitted)




3.23   Is the applicant or its group subject to consolidated supervision (see notes)?

             Yes
             No

3.24   Please state the applicant’s overseas regulator in its home state, its address and details of
       the main contact there (this question relates to branches only) (see notes)




3.25   Name of the parent entity of the applicant




3.26   Full postal address of the parent entity




3.27   Main telephone and fax number of the parent entity




3.28   Email address of the parent entity




3.29   Website address of the parent entity




3.30   Legal status of the parent entity (LLC or LLP)




3.31   Place and date of incorporation / formation of the parent entity




3.32   Registered number of the parent entity (if applicable)




       Q02-VER4-May08                                                                   Page 11 of 58
3.33   Please list all individuals who are members of the governing body of the parent entity and
       detail any significant business interests they have (see notes)




3.34   Is the applicant’s parent entity listed on a recognised or approved stock exchange? If yes,
       please state the exchange(s) on which it is listed

             Yes
             No




3.35   If applicable, please state the applicant’s parent entity’s overseas regulator in its home
       state, including the name, address, reference number and contact details for the main
       contact




       Q02-VER4-May08                                                               Page 12 of 58
Approved individuals

3.36   List all persons who will be seeking approved individual status and the controlled function(s)
       they will carry out (see notes)

       (Form Q03, ‘Application for approval of individuals’ must be submitted)

        Individual                                 Controlled function (required)
                                                   Senior executive function

                                                   Compliance oversight function

                                                   Money laundering reporting function

                                                   Finance function



        Individual                                 Controlled function (other)
                                                   Executive governance function

                                                   Non-executive governance function

                                                   Risk management function

                                                   Senior management function

                                                   Actuarial function

                                                   Customer facing function


3.37   Please list all individuals who are or will be the members of the applicant’s governing body
       and detail any significant business interests they have (see notes)




       Q02-VER4-May08                                                                 Page 13 of 58
Auditor

3.38   Name of audit firm (see notes)




3.39   Address of audit firm




3.40   Name of the partner responsible for the audit relationship with the applicant




3.41   Telephone and fax number of audit partner




3.42   Email address of audit partner




3.43   Date of appointment of auditor




3.44   Name of any professional body of which the auditor is a member




3.45   Is the auditor an approved QFC auditor (see notes)?

             Yes
             No

3.46   Is the auditor the applicant will use also the auditor for the group?

             Yes        (please go to question 3.48)
             No

3.47   If the auditor the applicant will use is not the same as the group’s, how will consolidated
       accounts be produced?




3.48   Has the applicant provided a copy of the letter of engagement?

             Yes        (please go to question 3.50)
             No

3.49   If a copy of the letter of engagement is not yet available, please confirm whether the
       applicant (QFC entity) will be included in the external audit scope and when it will be
       audited, including ongoing frequency




       Q02-VER4-May08                                                                  Page 14 of 58
3.50   Has the applicant changed auditors during the last 5 years? If yes, please provide details of
       the previous auditor, duration of appointment and reasons for the ending of the
       appointment

             Yes
             No




       Q02-VER4-May08                                                                 Page 15 of 58
4 History of applicant

      (see notes)

4.1   Is the applicant or any of its officers, or any related entity or any of its officers, currently or
      ever been, the subject of any government, regulatory, civil or criminal investigation, or
      been involved in disciplinary proceedings?

            Yes
            No

4.2   Is the applicant or any of its officers, or any related entity or any of its officers, currently or
      ever been the subject of any penalty, sanctions, regulatory fine or disciplinary orders by any
      government department or agency?

            Yes
            No

4.3   Has the applicant, or any related entity in any country or jurisdiction, ever been wound up,
      put into liquidation, ceased trading, placed in receivership or administration or negotiated a
      settlement with its creditors?

            Yes
            No

4.4   Does the applicant, or any related entity, have any outstanding debts (i.e. due but unpaid),
      awards or judgements against it?

            Yes
            No

4.5   Has the applicant, or any related entity, ever had a licence revoked, or been refused a
      licence, by an overseas regulator, or voluntarily withdrawn an application to an overseas
      regulator for such a licence?

            Yes
            No

4.6   Are there any other matters that the Regulatory Authority might reasonably expect to be
      made aware of by the applicant in its consideration of this application?

            Yes
            No

4.7   If the applicant has answered yes to any of the questions in this section, please provide a
      full explanation of the circumstances and the outcome and attach relevant documents to
      this form




      Q02-VER4-May08                                                                      Page 16 of 58
5 Proposed activities

           5.1        Please complete the matrix below indicating the proposed regulated activities and
                      associated specified products of the applicant (see notes).

                      If the applicant’s regulated activities fall within the areas of investment business,
                      insurance mediation and banking, please refer to the Regulatory Authority’s Interim
                      Prudential Investment, Insurance Mediation & Banking Business Rulebook (PIIB), and
                      complete matrix 5.1(a).

                      If the applicant’s regulated activities relate to insurance business, refer to the
                      ‘Prudential – Insurance Rulebook’ (PINS) and complete matrix 5.1(b).

Regulated activities and specified products matrix




                                                                                                                                                                                                                                                             Contract of general




                                                                                                                                                                                                                                                                                                                                                   customer (general
                                                                                                                                                                                                                                                                                                                               Business customer
                                                                                                                                Unit in a collective
                                                                                                     Securities receipt




                                                                                                                                                                                                                                                                                                                                                   (insurance only)
                                                    Debt instrument




                                                                                                                                investment fund




                                                                                                                                                                                                                                          Contract of long
                                                                                                                                                                                                                                          term insurance




                                                                                                                                                                                                                                                                                                                                                   Retail customer
                                                                                                                                                                                                                                                                                                                                                   insurance only)




                                                                                                                                                                                                                                                                                                                                                                       Islamic finance
                                                                                                                                                                                                                                                                                   Credit facility




                                                                                                                                                                                                                                                                                                                counterparty
                                                                                                                                                                                                                   investments
                                                                                                                                                                                                    Contract for




                                                                                                                                                                                                                                                                                                                                                   Commercial
                                                                                                                                                                                                    differences




                                                                                                                                                                                                                                                             insurance
                                                                                    Warrants




                                                                                                                                                                                                                   Rights in




                                                                                                                                                                                                                                                                                                                                                                       business
                                                                                                                                                                                                                                                                                                     Deposits
                                                                                                                                                                  Options




                                                                                                                                                                                                                                                                                                                Market
                                                                                                                                                                                           Future
                             Share




5.1 (a) PIIB Categories
Deposit taking

Providing credit
facilities
Arranging credit
facilities
Operating a collective
investment fund*
Dealing in investments
(as principal)
Dealing in investments
(as agent)

Managing investments

Arranging deals in
investments
Advising on
investments
Providing custody
services
Arranging the provision
of custody services
           *including acting as the fund manager, trustee, fund administrator or custodian of a collective investment fund



           5.1 (b) PINS Categories
                                                                                                                                                                                                                    Business customer




                                                                                                                                                                                                                                                                                           Please note that the shaded areas
                                                                                                                          Captive (Class 1)


                                                                                                                                                   Captive (Class 2)


                                                                                                                                                                            Captive (Class 3)
                                     Direct Insurance




                                                                                                                                                                                                                                                                                           are currently deactivated as at
                                                                                                                                                                                                                                                             Retail customer




                                                                                                                                                                                                                                                                                           present these combinations of
                                                                                                                                                                                                    counterparty
                                                                      Reinsurance




                                                                                                                                                                                                                                        Commercial




                                                                                                                                                                                                                                                                                           regulated activities and specified
                                                                                                                                                                                                                                        customer




                                                                                                                                                                                                                                                                                           products are not available.
                                                                                               Takaful




                                                                                                                                                                                                    Market




   Effecting a contract of long
   term insurance
   Carrying out a contract of
   long term insurance
   Effecting a contract of
   general insurance
   Carrying out a contract of
   general insurance




           Q02-VER4-May08                                                                                                                                                                                                                                                                                                                          Page 17 of 58
5.2   The regulated activity of operating a collective investment fund is defined in Schedule 3, Part
      2 paragraph 12 of the FSR. In the context of operating a collective investment fund, please
      indicate which of the following activities (if any) you propose to carry on in or from the QFC:

      (A)            Establishing a registered collective investment fund in the QFC.
      (B)            Acting in the capacity of a trustee of a registered fund.
      (C)            Providing day to day administration services of those parts of the business of a
                     collective investment fund (including safekeeping of fund property) that do not
                     constitute managing investments.
      (D)            Acting as transfer agent or registration agent, or providing valuation or
                     accounting services.
      (E)          …Providing day to day administration services of those parts of the business of a
                     collective investment fund (excluding safekeeping of fund property) that do
                     not constitute managing investments

5.3    Does the applicant carry on, or intend to carry on, any non-regulated activities in or from
      the QFC? If yes, please specify what non-regulated activities the applicant currently
      conducts, or intends to conduct (see notes)

             Yes
             No          (please go to question 5.4)




5.4   Does the applicant intend to carry on any business activities that are yet to be authorised or
      permitted, by an overseas regulator? If yes, please give details of the activity, the scale of
      the activity, the country or territory where it will be conducted and the overseas regulator(s)
      involved and the status of the application

             Yes
             No          (please go to question 5.5)




      Applicable to applicants intending to conduct Islamic financial business only

5.5   Please tick the box that describes how the applicant intends to conduct its Islamic financial
      business (see notes)

             as an Islamic financial institution
             by operating an Islamic window




      Q02-VER4-May08                                                                   Page 18 of 58
                 Section 2
  Business risks and controls section




Q02-VER4-May08                   Page 19 of 58
6 Financial soundness
General information

6.1   Please provide the applicant’s accounting reference date (see notes)




                       If the applicant is a partnership, please go to question 6.7

Share capital

6.2   Please provide details of the applicant’s authorised share capital

                  Value                                                        Class




6.3   Please provide details of the applicant’s issued share capital, excluding preference shares

                  Value                            Class                          Fully/Partly Paid




6.4   Please provide details of the applicant’s preference shares

                  Amount             Redemption      Cumulative     Convertible      Fixed
                  issued             date            (Y/N)          (Y/N)            dividend




6.5   Please provide details of the applicant’s audited reserve and share premium accounts




6.6   If applicable, please provide details of the applicant’s subordinated loans. Include only those
      loans which are subordinated to all other creditors (see notes)

                  Amount             Date of agreement       Approved lender       Duration




                   If the applicant is not a partnership, please go to question 6.10

Partnership capital

6.7   Please provide details of the applicant’s partnership capital, attaching additional pages if
      required

                  Name                             Capital (US $)                 Other (US $)




      Q02-VER4-May08                                                                     Page 20 of 58
6.8    Is the applicant satisfied that none of the partners is insolvent or financially over committed
       to an extent that could adversely affect the partnership and that, if partners have
       contributed their capital from borrowed funds, the funds cannot be withdrawn without
       reasonable notice?

              Yes
              No         (please provide details below)




6.9    All partners who own 10% or more of the partnership capital in the applicant firm must
       attach an individual statement of personal assets and liabilities




Insurance and indemnity cover

6.10   Please provide details of any insurance cover held by the applicant including start/expiry
       dates, insured persons and entities, sums insured, specific events or activities covered,
       whether the insurance covers activities carried out in or from the QFC, specific exclusions,
       amount of any excess, and the maximum claim payable




6.11   If the applicant does not have existing professional indemnity insurance (PII), please state
       the amount of proposed cover and excess




6.12   Has the applicant made any claims under PII policies in the 3 years before this application is
       made? If yes, please detail the date, type and amount of the claim(s)

              Yes
              No




6.13   Is any part of the above cover under a group policy (i.e. a policy written for a firm which is in
       the same group as the applicant)? If yes, please provide the name of the firm writing the
       policy, details of other regulated firms that are covered under the policy and the regulatory
       regime under which each firm is regulated

              Yes
              No




       Q02-VER4-May08                                                                    Page 21 of 58
Financial forecasts and additional information

       When answering questions 6.14 or 6.15, please use the pro forma provided below for the
       opening balance sheet, forecast profit and loss statements, and end of year balance sheets.
       Please see the summary of interim capital requirements in the notes for completing form
       Q02 (see notes).

6.14   Please attach the following supporting documents relating to the applicant. Please use the
       pro forma below for balance sheets and profit and loss forecasts

             an opening balance sheet

             a profit and loss forecast, including a forecast of gross income, for the first 3 years
              after authorisation and monthly profit and loss forecasts for the first 12 months

             a forecast balance sheet for each of the first 3 years after authorisation and monthly
              forecast balance sheets for the first 12 months

             a forecast cash flow statement for each of the first 3 years after authorisation and
              monthly forecast cash flow statements for the first 12 months

             a forecast capital requirement for each of the first 3 years after authorisation,
              including a sensitivity analysis and monthly capital requirement forecasts for the first
              12 months

             if the applicant’s regulated activities include effecting a contract of insurance or
              carrying out a contract of insurance Please split all premium income into primary
              insurance and inwards reinsurance, to provide the Regulatory Authority with an
              understanding of how much reinsurance business is being written by the applicant

       If the applicant’s regulated activities include Islamic financial business

6.15   Please confirm the applicant has read and understood the requirements relating to disclosure
       in financial statements, as detailed in AAOIFI FAS 12 and AAOIFI FAS 13 and describe the
       processes in place for compliance (see notes)




       Q02-VER4-May08                                                                  Page 22 of 58
Opening balance sheet pro forma


           As at                        (anticipated date of authorisation)   US$ 000

           Fixed assets
           Intangible assets                       (specify)

           Tangible assets

           Investments in own shares
           Other investments                       (specify)

           Total fixed assets                                                              (1)

           Current assets
           Investments                             (specify)

           Debtors – trade

           Debtors – non-trade                     (specify)
           Other                                   (specify)

           Cash in hand and at bank

           Total current assets                                                            (2)

           Creditors: amounts                      (specify)
           falling due within one year                                                     (3)

           Net current assets/(liabilities)        [(2)-(3)]                               (4)
           Total assets less current liabilities   [(1)+(4)]                               (5)

           Creditors: amounts falling              (specify)
           due after more than one year                                                    (6)

           Provisions for liabilities              (specify)
           and charges                                                                     (7)

           Total assets less total liabilities [(5)-(6)-(7)]                               (8)
           Capital and reserves
           Share capital (excluding preference shares)                                     (9)

           Cumulative preference shares                                                    (10)

           Non-cumulative preference shares                                                (11)

           Share premium account                                                           (12)

           Other reserves                          (specify)                               (13)
           Profit and Loss account                                                         (14)

           Total capital and reserves              [Sum of (9) to (14)]




     Q02-VER4-May08                                                                 Page 23 of 58
End of year 1 forecast profit and loss statement
           For period from                  to              US$ 000

           Income
           Interest income
           Income from trading securities

           Income from fees and commissions
           Other operating income           (specify)
           Total income                                                           (1)

           Expenses
           Interest paid and payable

           Fees and commissions paid and payable

           Staff expenses

           Depreciation and amortisation
           Other operating expenses         (specify)

           Provisions                       (specify)

           Total expenses                                                         (2)
           Profit/(loss) before taxation    [(1)-(2)}                             (3)

           Taxation                                                               (4)

           Profit/(loss) after taxation     [(3)-(4)]                             (5)
           Extraordinary items net of tax   (specify)                             (6)

           Appropriations                                                         (7)

           Net profit/(loss) for period     [(5)-(6)-(7)]




     Q02-VER4-May08                                               Page 24 of 58
End of year 1 forecast balance sheet pro forma

           As at                        (relevant end of year date)       US$ 000

           Fixed assets
           Intangible assets                       (specify)

           Tangible assets
           Investments in own shares

           Other investments                       (specify)

           Total fixed assets                                                       (1)

           Current assets

           Investments                             (specify)

           Debtors – trade
           Debtors – non-trade                     (specify)

           Other                                   (specify)

           Cash in hand and at bank
           Total current assets                                                        (2)

           Creditors: amounts                             (specify)
           falling due within one year                                                 (3)

           Net current assets/(liabilities)               [(2)-(3)]                    (4)

           Total assets less current liabilities          [(1)+(4)]                    (5)

           Creditors: amounts falling                     (specify)
           due after more than one year                                                (6)

           Provisions for liabilities                     (specify)
           and charges                                                                 (7)

           Total assets less total liabilities            [(5)-(6)-(7)]                (8)
           Capital and reserves

           Share capital (excluding preference shares)                                 (9)

           Cumulative preference shares                                                (10)

           Non-cumulative preference shares                                            (11)

           Share premium account                                                       (12)
           Other reserves                                 (specify)                    (13)

           Profit and loss account                                                     (14)

           Total capital and reserves              [Sum of (9) to (14)]




     Q02-VER4-May08                                                             Page 25 of 58
Financial resources statement
     Please complete the following pro forma using the figures provided in the opening balance
     sheet and forecast balance sheets for the first 12 months after authorisation (see notes)

           Opening position

           (A) Tier one capital                                                 US$ 000
               Permanent share capital / Partnership capital
               Audited reserves
               Share premium account
               Externally verified interim net profits

           (B) Deductions from tier one capital:
               Investments in own shares
               Intangible assets
               Interim net losses
               Excess of drawing over profits (for partnerships)

           (C) Total tier one capital (after deductions) = (A-B)

           (D) Upper tier two capital                                           US$ 000
               Perpetual qualifying hybrid capital instruments
               Fixed dividend ordinary shares
               Revaluation reserves
               General provisions
               Profit equalisation reserve
               Investment risk reserve
           (E) Lower tier two capital
               Subordinated debt
               Fixed term preference shares

           (F) Total tier one capital plus tier two capital = (C+D+E)

           Deductions from total of Tier One and Two Capital:
              Investments in subsidiaries and associates
              Connected lending of a capital nature
              Material holdings of capital instruments
                issued by regulated financial institutions
              Qualifying holdings
              Illiquid assets

           (G) Total deductions from total of tier one and two capital:

           (H) Capital Resources = (F-G)

           Financial resources requirement*

           Surplus/(deficit)

     * Financial resources requirement
           The financial resources requirement applicable to the applicant will depend on the
           regulated activities it intends to conduct. For details of the financial resources
           requirement applicable to applicants see PIIB (banking business, investment business
           and insurance mediation business) or PINS (insurance business).




     Q02-VER4-May08                                                              Page 26 of 58
      End of year 1 forecast position                                US$ 000

      (A) Tier one capital
          Permanent share capital / Partnership capital
          Audited reserves
          Share premium account
          Externally verified interim net profits

      (B) Deductions from tier one capital:
          Investments in own shares
          Intangible assets
          Interim net losses
          Excess of drawing over profits (for partnerships)

      (C) Total tier one capital (after deductions) = (A-B)

      (D) Upper tier two capital
          Perpetual qualifying hybrid capital instruments
          Fixed dividend ordinary shares
          Revaluation reserves
          General provisions
          Profit equalisation reserve
          Investment risk reserve
      (E) Lower tier two capital
          Subordinated debt
          Fixed term preference shares

      (F) Total tier one capital plus tier two capital = (C+D+E)

      Deductions from total of Tier One and Two Capital:
         Investments in subsidiaries and associates
         Connected lending of a capital nature
         Material holdings of capital instruments
           issued by regulated financial institutions
         Qualifying holdings
         Illiquid assets

      (G) Total deductions from total of tier one and two capital:

      (H) Capital Resources = (F-G)

      Financial resources requirement

      Surplus/(deficit)




Q02-VER4-May08                                                       Page 27 of 58
6.17 Please detail any material assets, liabilities or contingencies not set out in the financial
      statements above




6.18 Please provide the applicant’s audited annual report and accounts for the last 2 years. If no
      audited financial statements are available, please provide management accounts plus bank
      statements.

Auditor’s report on financial resources (see notes)

      We have reviewed the information provided by the applicant in the financial soundness
      section of form Q02 and carried out such additional procedures as we considered necessary
      for the purpose of our review. We have not performed an audit and, accordingly, we do not
      express an audit opinion.

      Based on our review, in our opinion, subject to any comments below, the financial results
      and forecasts provided in the financial soundness section have been prepared in accordance
      with the interim capital requirements detailed in the notes to this form and the forecasts
      have been properly prepared on the basis of the assumptions made by the directors or
      partners. Nothing has come to our attention that causes us to believe that the information in
      the financial soundness section is not presented fairly in all material aspects.

      We set out below information which we consider relevant to our review




      Name of applicant




      Name of auditor




      Address of auditor




      Signature of auditor




      Date




      Q02-VER4-May08                                                                 Page 28 of 58
7 Risk management strategy
General information

7.1   Please confirm the applicant has read, understood, and describe processes for compliance
      with, the requirement to establish and regularly review its risk management strategy as
      detailed in the Regulatory Authority’s Controls Rulebook (CTRL) 4.4 and PINS 2 for insurers
      (see notes)




7.2   Who is the individual responsible for the risk management strategy of the applicant, and
      what is that person’s role within the organisation? (see notes)




7.3   Please provide details of the staffing levels, responsibilities and reporting lines of the risk
      function




7.4   Please provide details of what risk monitoring and risk reporting the applicant will undertake
      once authorised




      An insurer must appoint a member of its senior management to the risk
      management function, and apply for approval to the Regulatory Authority for this
      individual, using the QFC Q03 form.

7.5   Please detail, or attach to this application, a risk management plan or manual covering how
      the applicant will evaluate and mitigate key risk areas (see notes)




      Q02-VER4-May08                                                                  Page 29 of 58
8 Clients
Client classification

Applicants who are insurers and general insurance brokers should go to question 8.3

8.1    Please confirm the applicant has read, understood, and describe the processes for
       compliance with, the client classification requirements as detailed in the Regulatory
       Authority’s Conduct of Business Rulebook (COND) 2, Part 2.3 (see notes)




8.2    Please provide details of the systems and controls used, or intended to be used, by the
       applicant to ensure appropriate checks are in place to support each assessment it undertakes
       to classify a client into a client category (see notes)




Insurers and general insurance brokers only (other applicants please go to question 8.4)

8.3    Please confirm the applicant has read, understood, and describe the processes for
       compliance with, the client classification and disclosure requirements as detailed in COND 2,
       Part 2.3 and COND 5.2.1 – 5.2.5 as applicable (see notes)




Communication with clients (all applicants)

8.4    Does the applicant intend to communicate any financial promotions to promote or advertise
       products and services to clients? If yes, please confirm the applicant has read and
       understood, and describe the procedures for compliance with, the financial promotions
       requirements in COLL 9 (and 10 if foreign funds) and the financial promotions requirements
       as detailed in COND 3 (see notes)

              Yes
              No




8.5    Please provide details of the nature of financial promotions and advertising practices that will
       be used to promote or advertise specified products or regulated activities, or to invite or
       induce a sale




8.6    Who is the individual responsible for the content and accuracy of financial promotions?
       Please describe that individual’s role and the process for sign off




8.7   Please explain the procedures and controls the applicant has to ensure financial
       communications are clear, fair and not misleading to clients (attach supporting documents
       where necessary)




       Q02-VER4-May08                                                                   Page 30 of 58
8.8    Please indicate whether the applicant will be issuing financial promotions in relation to: (see
       notes)

                     Registered retail funds (currently not permitted)
                     Registered qualified investor funds
                     Private placement funds
                     Foreign funds

Applicants conducting Islamic financial business only

8.9    Please detail the procedures the applicant will have in place to ensure the products and
       services to which any financial communication relates are reviewed by its Shari’a supervisory
       board (see notes)




Management and dealing
       (Applicants intending to conduct investment business only, otherwise please go to question
       8.13)

8.10   Please confirm the applicant has read, understood, and describe the procedures and controls
       to ensure compliance with, the dealing and managing requirements in COND 5, Division 4.5C
       (see notes – attach supporting documents where necessary)




8.11 For applicants who will be carrying on the regulated activity of advising on investments, please
      confirm whether this will involve acting as an investment manager. If yes, please describe
      how this activity will be carried on. Include arrangements for managing settlements,
      corporate actions, authorisation of transactions and investment limits. (see notes)
              Yes
              No




8.12 For applicants managing investments on a discretionary basis, please describe the
     arrangements for reconciling the proper exercise of discretionary management decisions.




       Q02-VER4-May08                                                                  Page 31 of 58
Client money (applicants intending to conduct investment business)

8.13   Does the applicant intend to hold client money? (see notes)

              Yes
              No        (please go to question 8.21)

8.14   Please confirm the applicant has read, understood, and describe the procedures to ensure
       compliance with, the client money requirements as detailed in the Regulatory Authority’s
       Assets Rulebook (ASET) 2 (see notes)




8.15 Please provide details of the applicant’s procedures for holding client money including
      segregation, notifications, reporting and reconciliations (attach any supporting documents)




8.16   Please provide name and address of the designated bank that will hold client money on
       behalf of the applicant (see notes)




8.17   In what jurisdiction is the designated bank?




8.18   How has the applicant assessed the suitability of the designated bank (see notes)?




8.19   Please confirm whether the applicant’s assessment of suitability of the designated bank
       includes a legal opinion on the regulatory and insolvency regime of the state where the bank
       is located
               Yes
               No        (If no, please explain why)




8.20   Does the scope of the auditor’s letter of engagement include producing the client money
       report? (see notes)

              Yes
              No         (If no, please explain why)




Insurance money (applicants conducting insurance mediation business)

8.21   Does the applicant intend to hold insurance money? (see notes)

              Yes
              No        (please go to question 8.24)




       Q02-VER4-May08                                                                Page 32 of 58
8.22   Please confirm the applicant has read, understood, and describe the procedures to ensure
       compliance with, the insurance money requirements relating to insurance money
       segregation, reporting and record keeping as detailed in ASET 7 (see notes)




8.23   Does the scope of the auditor’s letter of engagement include producing the insurance money
       report? (see notes)

              Yes
              No        (If no, please explain why)

Client assets

       The following questions should only be answered by applicants conducting investment
       business or deposit taking that intend carrying on the regulated activities of providing
       custody services or arranging the provision of custody services. Other applicants should go to
       question 8.35




8.24   Tick the box that describes the regulated activity the applicant intends carrying on
              Providing custody services
              Arranging the provision of custody services      (please go to question 8.28)

8.25   Will the applicant provide custody services to collective investment funds? (see notes)
               Yes
               No

8.26   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the systems and controls requirements relating to the identification and
       safeguarding of custody investments as detailed in ASET 4.3 (see notes)




8.27   Please detail who will hold the custody investments and confirm whether it is an eligible
       custodian




8.28   If holding investments with, or arranging the provision of custody services through, an
       eligible custodian, please provide details of the assessment of suitability the applicant has
       carried out on the eligible custodian including legal opinions on the insolvency and regulatory
       regime of the location of the eligible custodian (see notes)




       Providing custody services (if the applicant does not intend providing custody services,
       please go to question 8.32)

8.29   In whose name will the custody investments will be held?




8.30   Will the applicant stock lend?
               Yes
               No         (please go to question 8.32)



       Q02-VER4-May08                                                                  Page 33 of 58
8.31   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the requirements relating to the use of custody investments; client
       notifications; client reporting; reconciliation; auditor’s reports and record keeping as detailed
       in ASET 4.6 to 4.11 and, if applicable, COLL 4.2.5 to 4.2.7 and 6.1.8 (see notes)




       Applicants conducting deposit taking business (if the applicant does not intend to take
       deposits, please go to question 8.35)

8.32   Please provide details of the applicant’s policies and procedures for dealing with deposit
       taking, including details of security arrangements to hold cash and valuables (see notes)




8.33   Please provide details of the applicant’s policies and procedures for dealing with money
       transfers, powers of attorney and dormant accounts.




8.34   Please provide details of the applicant’s policies and procedures for dealing with letters of
       credit in relation to trade finance.




Disclosure and reporting

8.35   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the requirements relating to the issuing of, content and record keeping of
       terms of business as detailed in COND 4.2.5 – 4.2.9 and Schedule 1 of COND. (see notes)




8.36   Has the applicant provided a copy or draft copy of its terms of business with this application?
       (see notes)
               Yes
               No
       (If no, please confirm when a copy of the terms of business will be provided)




8.37   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the requirements relating to the issuing of, content and record keeping of
       confirmation notes and periodic statements as detailed in COND 4, Part 4.4 (see notes)




       Applicants conducting Islamic financial business (if the applicant does not intend to conduct
       Islamic financial business, please go to question 8.40)

8.38   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the requirements relating to disclosure of the Shari’a Supervisory Board
       membership and the manner and frequency of Shari’a reviews as detailed in the Regulatory
       Authority’s Islamic Finance Rulebook (ISFI) chapter 3 (see notes)




       Q02-VER4-May08                                                                    Page 34 of 58
8.39   Has the applicant performed a reconciliation of its Shari’a products to the specified products
       set out in the FSR? If yes, please provide a copy the results. If no, please indicate when such
       reconciliation will be undertaken (see notes)
              Yes
              No




       Applicants conducting insurance mediation business (if the applicant does not intend conduct
       insurance mediation business, please go to the next question)

8.40   Please confirm the applicant has read, understood, and describe the procedures for
       compliance with, the requirements relating to disclosure, the assessment of suitability, and
       claims management as detailed in COND 4, 5 and 6 (see notes)




Collective investment funds

       The following questions should only be answered by applicants applying to carry on the
       regulated activity of operating a collective investment fund, other applicants should go to
       part 9 (Conflicts management).

              Applicants that will be acting in the capacity of an operator of a fund should answer
              questions 8.41 to 8.44.

             Applicants that will be acting in the capacity of independent entity of a fund and/or
              responsible for the safekeeping of all of the fund property, i.e. providing custody
              services (other than by way of delegation), should answer questions 8.45 to 8.47.

             Applicants that will be providing fund administration on behalf of an operator should
              answer questions 8.48 to 8.52.

Applicants acting as operator

8.41   Please tick all the boxes that describe the types of fund you propose to establish and/or
       operate in the QFC:

              Securities fund                              Hedge fund
              Money market fund                            Islamic fund
              Futures and options fund                     Fund of funds
              Geared futures and options fund              Feeder fund
              Warrant fund                                 Umbrella fund
              Venture capital fund                         Listed fund
              Property fund
              Single property fund
              Private equity fund
              Other                                  (provide details)




8.42   Please indicate whether you will be establishing:

              Registered retail funds (currently not permitted);
              Registered qualified investor funds;
              Private placement funds (see notes)




       Q02-VER4-May08                                                                  Page 35 of 58
8.43   Please indicate whether you have submitted Form Q18 (application to register a collective
       investment fund) with this Form Q02.

              Yes
              No        (if no, please indicate when you will be submitting Form Q18)




8.44   Will the applicant appoint an investment advisor? (see notes)

              Yes           (if yes, please provide details)
              No




8.45   Please provide details of any fund administrator(s) that will be used in connection with the
       collective investment fund (see notes)




8.46   Please provide the details of any independent entity that will be used in connection with the
       collective investment fund, and submit a copy of the assessment carried out by the applicant
       on the suitability of the independent entity (see notes)




Systems and Controls

8.47   Describe the operator’s systems, controls and procedures to ensure that in respect of the
       collective investment fund, the provisions and requirements of COLL are complied with (see
       notes).




8.48   Describe the systems, controls and procedures the operator has in place to ensure that
       decisions about investments and borrowings by the fund are made in accordance with the
       fund’s objectives.




8.49   Where will the register of unitholders be maintained?




8.50   Describe how the operator will make the unitholder register, or a copy of the register,
       available for inspection in the QFC as required by COLL 7.2.1(4).




8.51   Advise which, if any, international better practice industry standards the operator will follow
       in relation to the collective investment fund.




       Q02-VER4-May08                                                                  Page 36 of 58
Applicants acting as independent entity

8.52   If known, please provide the following details in relation to the fund(s) that the applicant will
       be acting as the independent entity:

       (a) full name/proposed full name of the fund(s);
       (b) name of the operator, or proposed operator, of the fund(s)




8.53   Please tick all the boxes that describe the types of fund you propose to act as independent
       entity in the QFC:

              Securities fund                             Hedge fund
              Money market fund                           Islamic fund
              Futures and options fund                    Fund of funds
              Geared futures and options fund             Feeder fund
              Warrant fund                                Umbrella fund
              Venture capital fund                        Listed fund
              Property fund
              Single property fund
              Private equity fund
              Other                                   (provide details)




8.54   Please confirm the applicant has read and understood, and describe the procedures for
       compliance with, the requirements relating to the oversight functions and the safe keeping of
       assets as detailed in COLL 4.2.3 and 4.2.5 (see notes)




Applicants providing fund administration

8.55   If known, please provide the following details in relation to the fund(s) that the applicant will
       be providing fund administration services.

       (a) full name/proposed full name of the fund(s);
       (b) name of the operator, or proposed operator, of the fund(s)




8.56   Please tick all the boxes that describe the types of fund you propose to provide fund
       administration services:

              Securities fund                             Hedge fund
              Money market fund                           Islamic fund
              Futures and options fund                    Fund of funds
              Geared futures and options fund             Feeder fund
              Warrant fund                                Umbrella fund
              Venture capital fund                        Listed fund
              Property fund
              Single property fund
              Private equity fund
              Other                                   (provide details)




       Q02-VER4-May08                                                                    Page 37 of 58
8.57 For applicant’s providing fund administration, please describe the activities to be provided in
     or from the QFC.




8.58   Please indicate which, if any, of the following specific functions will be carried out by the fund
       administrator.

                     Processing dealing instructions including subscriptions, redemptions, stock
                     transfers and arranging settlements;
                     Valuation of assets and/or performing net asset value calculations;
                     Performing anti money laundering requirements;
                     Undertaking transaction monitoring and reconciliation functions;
                     Performing administrative activities in relation to banking, cash management,
                     treasury and foreign exchange;
                     Production of financial statements, other than as the fund’s registered auditor;
                     Communication with participants, the fund, the operator, the independent
                     entity, the investment manager, prime brokers, regulators and any other
                     parties in relation to the administration of the fund; or
                     Other (please describe)




8.59   Describe in detail the basis on which charges in respect of providing fund administration
       services will be calculated and received.




Hedge Funds

       Where the collective investment fund will be a hedge fund the following questions must be
       answered.

8.60   Describe how the operator will address the risk inherent in the operation of the hedge fund
       with due regard to the nature of the strategies and investment process employed by the
       operator.




8.61   Describe the role, if applicable, of the fund administrator, independent entity or prime
       broker.




8.62    Where the operator proposes to undertake asset pricing and fund valuation itself in respect
       of the hedge fund, please describe how the operator will demonstrate that the asset pricing
       and fund valuation is functionally separate and independent of the investment management
       process.




       Q02-VER4-May08                                                                     Page 38 of 58
Islamic Funds

       Where the collective investment fund will be an Islamic fund the following question must be
       answered.

8.63   Describe the operator’s systems and controls to ensure that its management of the Islamic
       fund and fund property is Shari’a compliant.




       Q02-VER4-May08                                                               Page 39 of 58
9 Conflicts management
Identification and management

9.1   Does the applicant have, or intend to have, a code of ethics or code of conduct? If yes,
      please provide a copy with this application. If no, please describe how the applicant and its
      employees will identify potential conflicts of interest (see notes)

             Yes
             No




9.2   Does the applicant have, or intend to have, procedures for managing conflicts of interest in
      dealing or arranging transactions for clients? If yes, please provide a copy with this
      application. If no, please confirm how the applicant and its employees will identify potential
      conflicts of interest in dealing or arranging transactions for clients (see notes)
              Yes
              No




9.3   Will the applicant disseminate or produce investment research for distribution to clients and
      sales staff? If yes, please detail the procedures that will be in place to ensure research is
      presented fairly and is not misleading (see notes)
             Yes
              No




9.4   If the applicant conducts, or intends to conduct, investment business, deposit taking or
      project finance business, please detail policies and procedures in relation to inducements and
      soft dollar agreements (see notes). Otherwise, please go to question 9.5




Staff remuneration

9.5   Please detail the applicant’s policy on the remuneration of its sales team (see notes)




9.6    Please detail the applicant’s policy on the remuneration of staff performing support functions
      (see notes)




Personal account dealing

9.7   Please describe the policy and procedures for personal account transactions? If available,
      please provide a copy with this application (see notes)




      Q02-VER4-May08                                                                  Page 40 of 58
Related party transactions

9.8   Will the applicant carry out related party transactions in or from the QFC? If yes, please
      describe the procedures and controls to be put in place to ensure these do not conflict with
      client interests (see notes)
              Yes
              No




      Q02-VER4-May08                                                                Page 41 of 58
10 Management and control
Allocation of responsibilities

10.1   Please describe the allocation of responsibilities between the applicant’s governing body and
       senior management (see notes)




10.2   Please describe the mechanisms for ensuring that responsibilities within the applicant are
       clearly recorded and understood by senior management (see notes)




Management and corporate governance

10.3   Please name the individual with responsibility for management oversight (see notes)




10.4   Will the individual with responsibility for management oversight be resident in Qatar? If no,
       please describe where the individual will be located and describe how the oversight
       responsibilities will be performed on a day-to-day basis
              Yes
               No




10.5   Please detail mechanisms for reporting to the applicant’s governing body and, if applicable,
       upwards to the parent entity




10.6   Please detail any governing body committees that are in place or that will be established and
       describe how they will oversee the applicant’s activities




10.7   Please describe how decisions of the governing body, or any of its committees, will be
       enacted within the applicant




10.8   If the application is not in respect of a branch, please identify which members of the
       governing body will be independent non-executive directors (otherwise please go to question
       10.9)




       Q02-VER4-May08                                                                 Page 42 of 58
Reporting lines and segregation

10.9   Please describe the reporting lines that are, or will be, in place between senior management
       and the governing body




10.10 Please detail reporting lines and functions within the applicant, or attach a structure chart
      that clearly demonstrates this information




10.11 Please describe how duties are, or will be, segregated between functions of a risk taking and
      risk management nature (see notes)




Compliance function and arrangements

10.12 Please name the individual who will perform the compliance oversight function




10.13 Please detail the experience and qualifications of the individual who will perform the
     compliance oversight function




10.14 Will the individual who will perform the compliance oversight function be resident in Qatar? If
      no, please describe where the individual will be located and describe how the oversight
      responsibilities will be performed
              Yes
              No




10.15 Please detail, or attach with this application, a job description for the individual who will
      perform the compliance oversight function




10.16 Will the applicant have a compliance committee? Please detail how the applicant’s governing
      body will be updated on compliance issues
             Yes
              No




10.17 Please detail, or attach an organisation chart showing the compliance department’s reporting
      lines, staffing levels, experience and responsibilities (see notes)




       Q02-VER4-May08                                                                  Page 43 of 58
10.18 Will any third parties perform compliance functions for the applicant? If yes, please provide
      details of the name, address, telephone number and main contact of each third party,
      together with the activities to be performed
             Yes
             No         (if no, please go to question 10.19)




10.19 Please detail the compliance plan to be implemented by the applicant (see notes)




10.20 Has the applicant performed a gap analysis of its compliance arrangements with conformity
      to the Regulatory Authority’s rules? If yes, please detail the main findings. If no, please
      confirm when such an analysis will be carried out
             Yes
             No




10.21 Does the applicant have a compliance manual and procedures in place? If yes, please attach
      a copy with this application. If no, please confirm when a compliance manual and procedures
      will be in place and detail the areas to be covered (see notes)
              Yes
              No




10.22 Please detail how compliance staff are, or will be, remunerated




10.23 Please detail the procedures that are, or will be, put in place to monitor, capture and
      implement any legislative or regulatory changes




10.24 Please detail procedures for compliance staff training




10.25 Please describe how compliance breaches will be identified, remedied and followed up




10.26 Will the compliance function be subject to independent review and audit? If yes, please name
      the individual who will conduct the review or audit, the terms under which it will be
      conducted and with what frequency. If no, please explain how the compliance department
      will be reviewed
              Yes
              No




10.27 Please detail the applicant’s policy for the retention, storage, back-up and format of records




       Q02-VER4-May08                                                                  Page 44 of 58
10.28 Please state where records will be kept



      Applicants who are Islamic financial institutions (other applicants should go to question
      10.33)

10.29 Please explain how the applicant will comply with the requirements of ISFI 5 in relation to
      ensuring its entire business operations comply with Shari’a (see notes)




10.30 Does the applicant have an Islamic financial business policy and procedures manual in place?
      If yes, please attach a copy. If no, please confirm when this will be put in place and the
      areas it will cover (see notes)
             Yes
              No




10.31 Please explain how the applicant will comply with the requirements of ISFI 6 in relation to
      the appointment and operation of a Shari’a supervisory board (see notes)




10.32 If the applicant intends to operate a profit sharing investment account, please explain how
      compliance with the requirements of ISFI 7 will be maintained (see notes)




Complaints arrangements

10.33 Does the applicant have complaints procedures in place? If yes, please attach a copy with
      this application. If no, please confirm when such procedures will be in place and what they
      will cover (see notes)
              Yes
              No




Business continuity

10.34 Does the applicant have business continuity and disaster recovery procedures in place? If
      yes, please attach a copy with this application. If no, please confirm when the procedures
      will be implemented and describe their main features (see notes)
              Yes
              No




10.35 Will the applicant’s business continuity and disaster recovery procedures be integrated into
      wider group procedures? If yes, please describe how this will be achieved and who will be
      responsible for its implementation, and attach a copy of the group‘s procedures with this
      application
             Yes
             No




      Q02-VER4-May08                                                                Page 45 of 58
10.36 Please name the individual responsible for business continuity and disaster recovery




10.37 Will any aspect of the applicant’s business continuity or disaster recovery be subject to
      outsourcing to third parties? If yes, please provide details of the name, address, main
      contact and telephone number of the outsourcing service provider and activities to be
      outsourced
             Yes
             No




Outsourcing

10.38 Will any aspect of the applicant’s business processes be subject to outsourcing, either to an
      external third party entity, or to a parent or other group entity? (see notes)
             Yes
             No         (please go to question 10.45)

      If yes, please state

             the name of the provider
             the provider’s address
             the name of the main contact at the provider
             the main contact’s telephone number
             the business processes to be outsourced
             who will be responsible within the applicant for the control and supervision of the
              outsourcing arrangement




10.39 For applicants applying to be an operator of a collective investment fund, please indicate
      whether any of the following functions will be outsourced:

                    Managing investments (making day to day investment decisions)
                    Investment adviser
                    Dealing in investments (executing transactions)
                    Processing dealing instructions, including effecting subscriptions, redemptions
                    and stock transfers, and arranging settlements.
                    Valuing assets and performing net asset value calculations
                    Unit pricing
                    Keeping the register of unitholders and unitholder registration details
                    Performing anti money laundering requirements
                    Undertaking transaction monitoring and reconciliation functions
                    Producing financial statements otherwise than as the fund’s auditor
                    Communicating with participants, the fund, the operator, the independent
                    entity (if any), the Regulatory Authority and other persons in relation to the
                    administration of the fund.
                    Where the fund is a Private Placement Fund, Providing Custody
                    Other

              Please describe the exact services to be outsourced.




      Q02-VER4-May08                                                                  Page 46 of 58
10.40 If the applicant is applying to be an independent entity of a collective investment fund,
      please indicate which of the following functions will be outsourced:

                     Oversight function
                     Providing custody
                     Other

              Please describe the exact services to be outsourced.




10.41 Please detail the procedures that are, or will be, put in place to decide the selection and
      appointment of outsourcing service providers




10.42 Please explain the rationale behind the decision to outsource business processes




10.43 Please detail the contingency plans that are, or will be, in place to cover instances when
      outsourcing service providers are unable or unwilling to provide the outsourced processes




10.44 Are terms of business, including any investment management agreements, fund
      administration agreements, custody agreements, service level agreements or other
      contractual documentation in place with all outsourcing service providers? If yes, please
      provide copies with this application. If no, please state when such agreements will be put in
      place and the matters they will cover.
             Yes
             No




Monitoring and audit

10.45 Will the applicant have an internal audit function? If yes, please detail its mandate, structure,
      scope, staffing, reporting lines and the regularity of reporting. If no, please explain how the
      applicant intends to review its systems, procedures and controls (see notes)
              Yes
              No




10.46 Please name the individual responsible for internal audit or the review of the applicant’s
      systems, procedures and controls




10.47 Will the applicant have an internal audit committee? If yes, please detail the mandate,
      structure, scope, reporting lines and the regularity of reporting. If no, please state why not
      and how the internal audit or review function will be overseen
             Yes
             No




       Q02-VER4-May08                                                                   Page 47 of 58
10.48 Please detail how internal audit or review findings will be followed up to ensure that
      recommended improvements have been implemented




10.49 Please state the likely schedule for internal audit review and when it is intended that the first
      review will take place




Employees and training

10.50 Does the applicant have, or intend to have, a staff handbook? If yes, please provide a copy
      with this application. If no, please state how the applicant’s employees will be made aware of
      their obligations
             Yes
              No




10.51 Please name the individual who is, or will be, responsible for human resources issues and
      policy in the applicant, and detail the individual’s reporting lines




10.52 Please detail the applicant’s policy on staff training and describe how such needs are
      identified and addressed and the budget to be allocated




Provision of information to management

10.53 Please provide a schedule of the regular reports that will be provided to senior management
      and the functions and processes they will cover (see notes)




       Q02-VER4-May08                                                                   Page 48 of 58
11 Financial crime
Anti-money laundering procedures

11.1   Please name the individual who will perform the money laundering reporting function (see
       notes)




11.2   Please detail the experience and qualifications of the individual who will perform the money
       laundering reporting function




11.3   Please detail, or attach with this application, a job description for the individual who will
       perform the money laundering reporting function (see notes)




11.4   Please name the individual who will perform the role of deputy MLRO




11.5   Has the applicant performed a gap analysis of its anti-money laundering processes with
       conformity to the Regulatory Authority’s rules? If yes, please detail the main findings. If no,
       please state when the analysis will be carried out (see notes)
              Yes
              No




11.6   Does the applicant have anti money laundering policies and procedures in place? If yes,
       please attach a copy with this application. If no, please state when such policies and
       procedures will be in place and the main areas they will cover (see notes)
             Yes
              No




11.7   Please detail, or attach an organisation chart showing the reporting lines, staffing levels,
       experience and responsibilities of anti-money laundering staff




11.8   Please detail procedures for obtaining and keeping sufficient evidence of the identity of
       clients (see notes)




       Q02-VER4-May08                                                                  Page 49 of 58
11.9   Will anti-money laundering policies, procedures, systems and controls be subject to
       independent review and audit? If yes, please name the individual who will conduct the review
       or audit, the terms under which it will be conducted and with what frequency. If no, please
       explain how these functions will be monitored
              Yes
              No




11.10 Please state what anti-money laundering training will be provided to staff and how
     employees will be made aware of procedures for the internal reporting of suspicious
     transactions




11.11 Please detail procedures for monitoring and detecting suspicious transactions




11.12 Will such suspicious transactions monitoring procedures be automated? If yes, please detail
      the IT resources that will be devoted to the procedures and explain how the system’s
      effectiveness will be tested
              Yes
              No




11.13 Please detail the proposed disciplinary procedure for staff who fail to report promptly to the
      MLRO any suspicious transactions




11.14 Please detail the applicant’s arrangements for ensuring that it obtains and makes proper use
      of findings issued by

             the Government of Qatar or any government departments in Qatar
             the Central Bank of Qatar or the National Committee for Combating Money
              Laundering or the Financial Intelligence Unit (FIU)
             the Financial Action Task Force (FATF)
             the QFCA
             the Regulatory Authority
             the Gulf Co-operation Council




11.15 Please state the country in which the applicant’s head office or parent entity is located




11.16 Is that country a member of FATF?

              Yes       (please go to question 11.18)
              No




       Q02-VER4-May08                                                                   Page 50 of 58
11.17 If no, has the applicant assessed that the country is in compliance with the
      recommendations of FATF? Please detail the assessment process carried out and explain how
      the applicant has compensated for any deficiencies in that country’s compliance with FATF
      recommendations
            Yes
            No




Prevention of market abuse and financial crime

11.18 Please detail what procedures are, or will be, in place to monitor the applicant’s dealing or
      customer facing functions to prevent market abuse




11.19 If e-commerce will be a significant feature of the applicant’s business, please detail the level
      of experience of the staff involved (see notes)




11.20 Please detail the IT security that is, or will be, in place to combat cyber fraud




       Q02-VER4-May08                                                                     Page 51 of 58
12 Human and technical resources
Approved individuals

12.1 Please state who is, or will be, responsible within the applicant for the recruitment of
      individuals to perform controlled functions




12.2   Does the applicant have, or intend to have, a dedicated human resources function?
             Yes
              No

12.3   Please detail how staffing requirements are assessed and monitored on a continuing basis




12.4   Please detail what background checks are carried out on potential approved individuals and
       who is responsible for ensuring these are carried out on a consistent basis (see notes)




12.5   Please detail how the competence and capability of potential approved individuals is assessed
       and who is responsible for making the assessment (see notes)




12.6   Does, or will, the individual performing the compliance oversight function become involved in
       the assessment of the fitness and propriety of potential approved individuals? If yes, please
       describe the compliance oversight function’s input to the process. If no, please explain how
       compliance with the Regulatory Authority’s requirements will be assured (see notes)
              Yes
              No




12.7   Please detail how the continuing competence of approved individuals will be assured (see
       notes)




12.8   Please detail how staff training needs are assessed (if available, please attach a training and
       competence manual)




       Q02-VER4-May08                                                                  Page 52 of 58
IT systems and technical resources

12.9 Please detail the information technology (IT) systems the applicant has, or proposes to have,
      in place and how they will support its activities (see notes)




12.10 Does the applicant have any systems in development or testing? If yes, please name the
      individuals responsible for managing this project, and state the expected schedule for testing
      and the dates on which such systems will become operational.
             Yes
             No




12.11 Please describe, or demonstrate schematically, how the applicant’s IT systems will support
      the transaction flows detailed in your business plan submitted under question 3.13




12.12 Will the applicant’s IT systems interface with another group or parent entity? If yes, please
      describe how such access will be defined
             Yes
             No




Accounting system

12.13 Please detail the accounting system that the applicant uses, or intends to use, the processes
      for recording business transactions and reporting to both customers and the Regulatory
      Authority




      Settlement systems (PIIB Category 4 firms should go to question 12.17)

12.14 Please detail the systems the applicant uses, or intends to use, for physical settlement or
      clearing of transactions with third parties




12.15 Please detail the applicant’s settlement and clearing procedures and controls




12.16 Please detail, or provide an organisation chart showing the individuals responsible for
      overseeing and implementing the back office and accounting operations functions, including
      staffing levels and reporting lines




      Q02-VER4-May08                                                                  Page 53 of 58
Information security

12.17 Does the applicant have an information security policy? If yes, please attach a copy to this
      application. If no, please detail whether such a policy is to be implemented and how the
      applicant will address the issue of IT security
             Yes
             No




12.18 Please detail the individuals responsible for IT security and their reporting lines




       Q02-VER4-May08                                                                       Page 54 of 58
Checklist for attachments - core section

Documents
                                                                                           Included
Board minutes or similar evidence of authority to establish an entity in the QFC
(see declaration in section 1)

Group structure chart (see question 3.18)

Copy of latest financial statements of any proposed controller (see question 3.20)

Copy of the relevant pages of the passports of any individual controllers (see
question 3.22)

Approved individuals form (QFC form Q03) for each individual wishing to become
approved to perform a controlled function (see question 3.36)

Business plan (covering the outlined headings)

(see question 3.13 and separate notes for completing form Q02 for details of what
is expected to be covered under the headings below)

          -   background of the applicant
          -   opportunities identified in the QFC
          -   business planning
          -   organisation in Qatar
          -   additional information (applicable only to firms carrying on insurance
              business)


Checklist for attachments – financial soundness

Documents
                                                                                           Included
Partner’s statement of personal assets and liabilities (see question 6.9)

Copies of documents showing how the financial resources requirements are or will
be met, including:

          -   opening balance sheet
          -   monthly forecasts of profit and loss
          -   forecast closing balance sheet
          -   cash flow forecast

(see questions 6.14 to 6.15)

Financial resources statement using the pro forma provided
(see questions 6.16 to 6.17)

Audited financial statements (management accounts plus bank statements if no
audited financial statements are available)
(see question 6.18)

Other documents




Q02-VER4-May08                                                                     Page 55 of 58
Checklist for attachments – risk management strategy

Documents
                                                                                          Included
Risk management plan or manual (see question 7.5)

Other documents


Checklist for attachments - clients

Documents
                                                                                          Included
Client classification procedures document (see questions 8.1 – 8.3)

Financial communications policies and procedures document (see questions 8.4 –
8.9)

Management and dealing policies and procedures document (see question 8.10)

Procedures for holding client money and client assets document (see questions
8.15, 8.23 and 8.27)

Details of the assessment of suitability the applicant has carried out on any eligible
custodians (see question 8.29)

Copy or draft copy of applicant’s terms of business (see question 8.37)

Copy of applicant’s assessment of the suitability of the independent entity(see
question 8.46)

Independent entity’s procedures for compliance with, the requirements relating to
its oversight functions (see question 8.47)

Other documents


Checklist for attachments - conflicts management

Documents
                                                                                          Included
Applicant’s code of ethics or code of conduct document (see question 9.1)

Conflicts of interest policy or procedures document (see question 9.2)

Investment research policy or procedures document (see question 9.3)

Other documents




Q02-VER4-May08                                                                    Page 56 of 58
Checklist for attachments – management and control

Documents                                                                                  Included

Allocation of responsibilities and reporting lines chart for the applicant as a whole
(see question 10.10)

Job description for compliance oversight function (see question 10.15)

Allocation of responsibilities and reporting lines chart for the compliance function
(see question 10.17)
Compliance plan or manual (see question 10.21)

Complaints procedures document (see question 10.33)

Business continuity procedures document (see question 10.34)

Copies of service level agreements with outsourcers (see question 10.44)

Copy of staff handbook (see question 10.50)

Other documents


Checklist for attachments – financial crime

Documents                                                                                  Included

Copy of job description of MLRO (see question 11.3)

AML policies and procedures document (see question 11.6)

Copy of organisation chart within AML function (see question 11.7)

Other documents


Checklist for attachments – human and technical resources

Documents                                                                                  Included

Training and competence manual (see question 12.8)

Organisation chart of the back office operations function (see question 12.16)

Information security policy document (see question 12.17)

Other documents




Q02-VER4-May08                                                                     Page 57 of 58
Checklist for attachments – CRO forms (all firms must complete and submit one of
the following four CRO forms with the Q02 form)

Documents                                                                                   Included

Application for incorporation of a Limited Liability Company (LLC) in the QFC
(CRO1)

Application for registration of branch by non – QFC Company (CRO 2)

Application for incorporation of a Limited Liability Partnership (LLP) in the QFC
(CRO 3)

Application to register a branch of Limited Liability Partnership not incorporated in
the QFC (CRO 4)




Q02-VER4-May08                                                                      Page 58 of 58

				
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