QFMA Issues the “Financial Services Rulebook”
As a part of developing the regulations to enhance the Qatari capital markets sector and regulate doing businesses related to financial securities, the board of directors of Qatar Financial Markets Authority "QFMA" issued Decision No. 5 of 2019 concerning the new "Financial Services Rulebook".
The Rulebook promotes to perform the financial services activities set out in Article (4) thereof, after obtaining the required license from the QFMA. The Rulebook obliges all concerned entities subject to the QFMA's jurisdiction to implement it.
The Rulebook provides less requirements than the previous one regarding the capital required for performing such activities, in order to enhance financial liquidity at Qatar Stock Exchange, attract and encourage foreign and local investment for better competitiveness. It will also improve the quality of the financial services provided to participants and investors of the capital market, which would in turn increase the competitiveness of Qatar's economy and increase economic growth rate in line with Qatar National Vision "QNV" 2030.
According to the Rulebook, for granting a license to perform financial services activities, the applicant shall meet a number of requirements, including what related to the paid up capital which is a minimum of QR 3 million for the executive broker, QR10 million for clearing brokers, and QR 20 million for comprehensive brokers. For other financial services companies licensed to perform all financial services activities (excluding margin trading, securities' lending and borrowing, execution of securities purchase and sale's orders for a third party, own securities' trading, market maker and liquidity provider), the minimum paid up capital shall be QR 25 million.