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					          Form Q02
          Application for regulated activities authorisation

          Firm name


          Date application made




Please submit this form to:
QFC Regulatory Authority
                                                     For Regulatory Authority Use
Regulatory Services
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 61
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;

Q02-VER4-May08                                                               Page 2 of 61
       insurance and reinsurance business of all categories;

       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.



Q02-VER4-May08                                                                Page 3 of 61
       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.

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.




Q02-VER4-May08                                                                 Page 4 of 61
How will information supplied in this form be used?

Information 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 5 of 61
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                          36
                    10   Management and control                        38
                    11   Financial crime                               46
                    12   Human and technical resources                 49
                         Checklist for attachments                     52




Q02-VER4-May08                                                     Page 6 of 61
                 Section 1
                  Core details




Q02-VER4-May08                   Page 7 of 61
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 8 of 61
2      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 9 of 61
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




Q02-VER4-May08                                                                 Page 10 of 61
3.12   Website address, if applicable



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).

       Yes
       No

        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


Q02-VER4-May08                                                               Page 11 of 61
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)



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



Q02-VER4-May08                                                               Page 12 of 61
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)



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 13 of 61
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 14 of 61
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 15 of 61
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 16 of 61
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 17 of 61
                  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




                                                                                                                                                                                                                                                                                                                                                                                                                                            Islamic finance business
                                                                                                                                                                                                                                                                                                                                                                                              (general insurance only)
                                                                                                                                                                                     Contract for differences




                                                                                                                                                                                                                                                                                                                                                                                              Commercial customer
                                                                                                                                                                                                                              Rights in investments

                                                                                                                                                                                                                                                                   Contract of long term




                                                                                                                                                                                                                                                                                                                                                  Market counterparty
                                                                                                                                                                                                                                                                                               Contract of general




                                                                                                                                                                                                                                                                                                                                                                          Business customer
                                                                                                      Unit in a collective
                                                                                Securities receipt




                                                                                                                                                                                                                                                                                                                                                                                                                         (insurance only)
.
                                                                                                      investment fund
                                                   Debt instrument




                                                                                                                                                                                                                                                                                                                                                                                                                         Retail customer
                                                                                                                                                                                                                                                                                                                     Credit facility
                                                                                                                                                                                                                                                                   insurance


                                                                                                                                                                                                                                                                                               insurance
                                                                     Warrants




                                                                                                                                                                                                                                                                                                                                       Deposits
                                                                                                                                 Options


                                                                                                                                                      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
                                                                                                                                                                                                                                                                                                                             Please note that the shaded areas are
                                                                                                                                                                                                                                             Commercial customer




                                                                                                                                                                                                                                                                                                                             currently deactivated as at present these
                                                                                                                                                               Market counterparty


                                                                                                                                                                                                          Business customer




                                                                                                                                                                                                                                                                                                                             combinations of regulated activities and
                                                                                  Captive (Class 1)


                                                                                                             Captive (Class 2)


                                                                                                                                  Captive (Class 3)
                                Direct Insurance




                                                                                                                                                                                                                                                                                                                             specified products are not available.
                                                                                                                                                                                                                                                                             Retail customer
                                                   Reinsurance


                                                                      Takaful




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 18 of 61
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 19 of 61
                 Section 2
       Business risks and controls section




Q02-VER4-May08                          Page 20 of 61
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             Approved             Duration
                            agreement           lender




Q02-VER4-May08                                                              Page 21 of 61
       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 $)



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




Q02-VER4-May08                                                              Page 22 of 61
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




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 23 of 61
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 24 of 61
       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 25 of 61
       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 26 of 61
Financial resources statement

6.16    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 27 of 61
       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)




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.



Q02-VER4-May08                                                                Page 28 of 61
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 29 of 61
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 30 of 61
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

Q02-VER4-May08                                                             Page 31 of 61
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)



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 32 of 61
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)


Q02-VER4-May08                                                             Page 33 of 61
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)


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)




Q02-VER4-May08                                                             Page 34 of 61
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)

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.




Q02-VER4-May08                                                           Page 35 of 61
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)



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

Q02-VER4-May08                                                             Page 36 of 61
       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)

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)



Q02-VER4-May08                                                              Page 37 of 61
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 38 of 61
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:

Q02-VER4-May08                                                               Page 39 of 61
       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)




8.57   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.


Q02-VER4-May08                                                               Page 40 of 61
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.




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 41 of 61
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)




Q02-VER4-May08                                                               Page 42 of 61
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)



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 43 of 61
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 44 of 61
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




Q02-VER4-May08                                                                Page 45 of 61
10.17 Please detail, or attach an organisation chart showing the compliance
      department’s reporting lines, staffing levels, experience and responsibilities
      (see notes)



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




Q02-VER4-May08                                                           Page 46 of 61
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



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)


Q02-VER4-May08                                                            Page 47 of 61
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




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




Q02-VER4-May08                                                            Page 48 of 61
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.



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.


Q02-VER4-May08                                                               Page 49 of 61
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

Q02-VER4-May08                                                           Page 50 of 61
       Yes
       No




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 51 of 61
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 52 of 61
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


Q02-VER4-May08                                                              Page 53 of 61
11.16 Is that country a member of FATF?

       Yes        (please go to question 11.18)
       No

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 54 of 61
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 55 of 61
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




Q02-VER4-May08                                                             Page 56 of 61
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



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 57 of 61
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 58 of 61
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 59 of 61
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 60 of 61
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 (CRO 1)
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 61 of 61

				
DOCUMENT INFO
Description: Qatar Investment Authority Financial Statements document sample