His Highness Sheikh Tamim bin Hamad Al Thani Emir of the State of Qatar Contents

2 Foreword 6 Executive Summary 10 Challenges and Opportunities 16 Mission, Vision and Values 20 Key Objectives

22 Strategic Goal 1: Enhancing regulation Strengthening risk-based regulation Banking Insurance Capital markets Promoting Islamic financial institutions and markets Improving governance and transparency Corporate governance Strengthening transparency Reinforcing disclosure practices

24 Strategic Goal 2: Expanding macro-prudential oversight Financial Stability and Risk Control Committee (FSRCC) Identifying and monitoring the sources of systemic risk Developing macro-prudential policy instruments Undertaking research and analysis Promoting the role of the Qatar Credit Bureau

26 Strategic Goal 3: Strengthening market infrastructure Enhancing payment system resilience Strengthening the payments and settlements system Expanding participation in the payments and settlements system Permanent Constitution

Developing the debt market Government debt market The corporate debt market Broadening investor participation Implementing a deposit protection regime Financing small and medium-sized enterprises (SMEs) The State shall guarantee freedom of

28 Strategic Goal 4: Protecting consumers and investors economic enterprise on the basis of Developing standards of conduct Addressing regulatory gaps in Qatar social justice and balanced cooperation Protecting credit information Raising public awareness between private and public activity

30 Strategic Goal 5: Promoting regulatory cooperation in order to achieve socio-economic Building greater cooperation Aligning with international standards and harmonising regulation development, increase in production, Comprehensive approach to enforcement Strengthening cooperation within the GCC achieve public welfare, raise the Increasing involvement with the Basel Committee, IAIS and IOSCO standards of living, and provide job 32 Strategic Goal 6: Building human capital Developing policies to attract, retain and develop people opportunities in accordance with the Developing and nurturing talent Strengthening policies to increase Qatarisation provision of the law.

34 Appendix: Core objectives and action points Strategic Goal 1: Enhancing regulation Strategic Goal 2: Expanding macro-prudential oversight Strategic Goal 3: Strengthening market infrastructure Strategic Goal 4: Protecting consumers and investors Strategic Goal 5: Promoting regulatory cooperation Strategic Goal 6: Building human capital

1 Foreword

2 Foreword

The aim of Qatar National Vision 2030 (QNV 2030) is to transform the State of Qatar into an advanced country by the year 2030 and it foresees a vibrant and prosperous Qatar, sustaining its development and providing a high standard of living for all its people.

QNV 2030 rests on four pillars which are Human, Social, Economic, and Under the wise leadership of H.H. The Emir, Sheikh Tamim Bin Hamad Al Thani, Qatar’s Environmental Development. The financial sector has an important role economy has continued to exhibit strong growth. This has resulted in the banking sector to play in realising the goals of QNV 2030. In this regard, the State has expanding year on year, thus a priority for the coming years is to strengthen the regulatory set a series of targets, to be achieved in five year periods, known as the framework for banks and capital markets. Qatar National Development Strategies (QNDS). QNDS 2011 – 2016 has identified programs and projects for implementation as part of QNV 2030. The most important asset of any organisation is its people. Qatar strives to become a knowledge-based economy and the development of human capital is one of the four The Qatar Central Bank (QCB), working closely with the Qatar Financial Centre Regulatory pillars of the Qatar National Vision 2030. The leadership of the three regulatory authorities Authority (QFCRA) and the Qatar Financial Markets Authority (QFMA), has been developing is fully committed to developing the quality of the financial regulation professionals in the the Strategic Plan that is to be implemented from 2013 – 2016, thus allowing the State of State, and special attention has been given to this vital area in the Strategic Plan. Qatar’s regulatory authorities to be in line with both QNDS 2011 – 2016 and QNV 2030. The Strategic Plan is also consistent with the requirements of two recently enacted laws Going forward, the three regulatory authorities will continue to work closely together; therefore impacting the financial sector regulatory framework of the State: Law number (13) of 2012 - effective co-operation between the three agencies is essential. To this end, the College of Law of the Qatar Central Bank and the Regulation of Financial Institutions, and Law number Supervisors, which includes senior managers from the QCB, QFCRA, and the QFMA, was

(8) of 2012 on the Qatar Financial Market Authority. Enactment of these laws is in pursuance recently set up to harmonise regulations and enhance co-operation. The Strategic Plan also FOREWORD of the objective of building a resilient financial sector for the State of Qatar that operates examines ways to further boost the collaboration between the three regulatory authorities. to the highest international standards of regulation and supervision. The Strategic Plan for Qatar’s regulatory authorities is the comprehensive and wide-ranging culmination of the Ultimately, we must remain true to our values. In this era of unprecedented change and hard work of the three regulatory authorities as well as extensive analysis, consultations, economic growth, the opportunities in the State of Qatar are limitless but we must be benchmarking and is also based on best practices in financial regulation. careful and prudent when charting our path over the coming years.

The lessons learnt from the financial crisis of 2008 – 2009 have proven to be a catalyst for The Qatar Central Bank would like to extend sincere thanks and express gratitude to H.H. international standards bodies, as well as organisations such as the IMF, to review their entire The Emir Sheikh Tamim Bin Hamad Al Thani, and to H.E. The Prime Minister and Interior approach to regulation. We in the State of Qatar were cognisant of this when preparing the Minister Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani for their continued support. The Strategic Plan, which includes increasing the involvement of Qatar’s regulatory agencies in Qatar Central Bank would also like to thank government entities, banks and other financial the work of international standard setters in this period of change. institutions operating in Qatar.

Thank you for taking the time to read the Strategic Plan.

Abdulla Bin Saoud Al Thani Governor of Qatar Central Bank

4 5 Executive Summary

6 8 ok ln wti ec o te euaoy uhrte i ln wt ter respective their with line in statutory objectives. authorities regulatory the of each within plans work and strategies specific by supported be will goals the of Achievement andbest practice. standards international meets that infrastructure regulatory financial a these goals,theregulatoryIn establishing authoritiesare committedtodeveloping 6. 5. 4. 3. 2. 1. THE STRATEGICPLANCONTAINSSIXCRITICALGOALS: 2012 of (8) (the QFMAlaw)ontheQatarFinancialMarketAuthority. No. Law and Institutions, Financial of Regulation the and Bank Central financial sector regulatory framework of the State: Law No. (13) of 2012 on the Qatar Plan 2011–2016. It is underpinned by two recent revisions to the legal structure of the 2030andtheQatarNationalDevelopmentStrategy of theQatarNationalVision objectives overall the of context the within prepared been has Plan Strategic The in thefinancialsectormore broadly. development initiativesinthethree regulatory authoritiesand Building humancapitalthrough trainingandprofessional cooperation. authorities andstrengthening localandinternational Promoting regulatory cooperationamongthethree regulatory and raisingpublicawareness andeducation. standards andcodesofconduct,protecting credit information Enhancing consumerandinvestorprotection bydeveloping initiatives todevelopthedebtmarket. enhancements tothepaymentsandsettlementssystem Strengthening financialmarketinfrastructure through bestpractice. macro-prudential frameworkinlinewithinternational Expanding macro-prudential oversightbybuildinga developments andbyimproving disclosure practices. micro-prudential frameworkinlinewithglobalregulatory Enhancing regulation bydevelopingaconsistentrisk-based fostering stableandrobusteconomic growth. Financial CentreRegulatory Authority have Financial Markets Authority andtheQatar that willunderpinacoordinatedapproach the mission,vision,values andobjectives jointly developed thefirstStrategic Plan to strengtheningthefinancialsectorand authorities. TheStrategicPlan provides for theStatefinancialsectorregulatory The QatarCentralBank,the Executive SummaryExecutive 9

EXECUTIVE SUMMARY Challenges and opportunities

10 12 growth and its role in the international community. growth anditsrole intheinternational time, thecountry continues secureto implementimportantthatwill initiatives itscontinued same the At investment. infrastructure significant standards,and living rising rapidly stability, political from benefiting is It prosperity. economic outstanding of period a enjoying is Qatar Diversifying the Qatari economy considerations and regional The global hs nlds h ojcie f ainlsn te ucin ad roles and functions the ministriesandagenciesinamanner that improves of Government rationalising of objective the includes This an integratedandcoordinated framework. within significance national of decisions are together changes bring to The designed 2011-2016. Strategy Development National its of objective, part as initiated be will that reforms of number a this identified has Qatar achieve To sector. hydrocarbon the on dependent less is that economy diversified and competitive a build to important In order for Qatar to build sustainedeconomic prosperity, itis develop orderly resolution mechanisms. and institutions financial important systemically identify to sought and given also have increased emphasis authorities to regulatory cooperation Regulatory and information-sharing; infrastructure. financial and markets financial institutions, financial risk- regulating to a approach developing based on placed been has emphasis Key governance. things, standards forcapitaladequacy,liquiditymanagementand havebeenaimedatstrengthening, amongother The reforms of SecuritiesCommissions(IOSCO). Organization International Association of Insurance Supervisors (IAIS) and the the International standard setters: the Basel Committee on Banking Supervision (BCBS), in the international standards established by the international financial recent years. The global financial crisis prompted major amendments The global regulatory framework has undergone significant changes in environmental development. development, social development, economic development and ambitious identified has human – Vision National the of pillars four the of support in objectives Qatar 2011-2016, Strategy Development Through 2030and both the the Qatar Qatar National National Vision developments financial Broader sector in the ntttos n re t ass te i udraig rdt evaluations credit and credit worthinessassessments. undertaking in them assist financial to order and in banks institutions with it share and information, credit maintain the QatarCreditThe QCBestablished Bureauto collect and in2011 regulator ofbanksandfinancialinstitutionsinsidetheState. the QatarMonetaryAgency. Since then, it hasbecome theprimary The QCB wasestablishedin 1993 and inherited the responsibilities of bestpractice. system bytheQFCRAthatmeetsinternational This investors. anddomestic firms initiative wasaccompaniedbythe development of a regulatory by international sector financial The in2005to QFC wasalsoestablished promote investment in the over thecapitalmarkets. enforcement and oversight regulatory exercise to empowered is it and Qatar of State the from or in activities services financial conduct as an independent regulatory authority for firms that are authorised to and expansion in the past decade. The QFMA was established in 2005 The regulatory system in Qatar has witnessed noticeable development of initiativesinanumberareas. should not be underestimated and will necessitate the development objective this achieve to required innovation and willbe entrepreneurship generations thecoming so that less vulnerable to the boom and bust of energy price cycles. The investment encourage economy diversified and a jobs in create to the efforts tosupporting Government’s is critical sector financial strong a broadly, More and resiliency inthefinancialsector. strength builds that framework regulatory sound and effective more QFCRA are committedto supporting this strategybyimplementing a accountability, planningandservicedelivery.TheQCB,QFMA Challenges andopportunities 13

CHALLENGES AND OPPORTUNITIES 14 Recent changes to theQCBLaw and QFMALaw (4) (3) (2) (1) of Qatar. These responsibilities and obligations areState based on four the pillars: in markets capital the monitor and supervise to obligations The new QFMA law gives the QFMA wider responsibilities and activities withouttherequired licences. financial Islamic of disputes, and sanctions for persons who conduct financial services of regulation confidentiality, settlement institutions, information, financial of acquisition and merger institutions, customer credit and of protection protection consumer businesses, specific also introduced Law provisions addressing the licensing andsupervisionof insurance QCB The in Qatar. markets and services financial financial of supervision and control with regulation, the 2030, to Vision National Qatar the responsibilityfor the designandimplementationofpoliciesrelating of context the in authority, supreme competent the as QCB the established Law QCB new The and bestpractice. sector financial policies and and financial infrastructure in Qatar’s line with international standards coordinated harmonise a to manner in supportive together mutually working been have QFCRA and respectively. Following enactment of the new laws, the QCB, QFMA and repealed were 2005 replaced of by QCB Law 33 No. (13) of No. 2012 and QFMA Law Law No. (8) of QFMA 2012, and 2006 of 33 No. in framework Law QCB 2012: regulatory in replaced and repealed the were laws key Qatar,two enhance and strengthen to order In of theQFCRABoard andtheQFMABoard in2012. of theQCB,wasnamedasChairman Saoud AlThani,theGovernor Bin Abdulla Sheikh Excellency His authorities, regulatory the between In asteptowardscloser cooperation establishingandharmonisation conduct affecting financial productsconduct affecting andservices anddeceptive prohibitions onmisleadinginformation as awareness andmarketsintegrity, transparency, professionalism andefficiencyaswell fair andefficientfinancialmarkets, protection ofinvestors framework Financial stability The core objectivesandactionpointsare setoutintheAppendix. Overthe resources toachieve theseobjectives. markets. financial and coming years, institutions the organisations will develop a work plan and devote financial Qatar’s in key goals that are critical to building greater resiliency and efficiency financial sector regulation in Qatar. They have identified a number of QFMA and QFCRA have developed a common vision for enhancing QCB, the frameworks, legislative their in out set regulation financial for objectives clear the and 2030 Vision National Qatar’s by Guided *** financial sector regulation. best practice, as welladdressing regulatory gaps in international in amannermandatesand that isconsistentwiththeirlegislative stability involve the regulatory authorities aligning policiesandprocedures financial strengthen to serve will and minimiseoverlapbetween the regulatory authorities. This will FSRCC the of work The supervision offinancialservicesbusinessesandmarkets. and control regulation, to related policies proposing in the (iii) and State; authorities regulatory financial the of work the coordinating (ii) risks; such mitigate and manage to solutions recommending and markets and sector financial the to risks assessing and identifying (i) for: responsible is FSRCC the Law, QCB the of 116 Article with line In QFMA andtheQFCRA. the of Officers Executive Chief the and (Vice-Chairman) Governor and Stability the Financial H.E. of the QCB and its membership includes H.E. the Deputy Governor by chaired the is FSRCC The establishing (FSRCC). Committee Control by Risk Qatar macro-prudential the in to focus framework expanded an gives Law QCB The Challenges andopportunities 15

CHALLENGES AND OPPORTUNITIES Mission, Vision and Values

16 18 Values Vision • • • • • • framework withinwhichdecisionsandactionsare taken.Thevaluesare: to establishtheculture thatsupportsachievementofthemission,andprovide a The regulatory authorities haveestablished a shared set of values. These values help • • • • particular emphasistothesefundamentalelements: give authorities regulatory the Plan, Strategic the of objectives the undertaking In community theyserve. a common set ofvaluesthat underscore their obligations to each other and to the vision. Additionally,the regulatory authorities are committed to upholding uniform Implementing the Strategic Plan willrequire acommon approach, philosophy and the international diversityof its residents the international Respect -recognising theculture, customsandvaluesofQatar Teamwork -workingcooperativelyandcollaborativelywithstakeholders implementing actionsinatimelymanner Accountability -makingclearandconsistentdecisions Fairness -beingimpartialandindependentinexercising authority Integrity Excellence -strivingtobeinnovativeandforward-looking professionalism, innovationandknowledgewithintheregulatory authorities Organisational excellence-maintaininghighstandards of consumers offinancialservicesandtoinvestorsinthecapitalmarkets Consumer andinvestorprotection 2030 efficiency inthefinancialsectorconsistentwithQatarNationalVision Sustainable economicdevelopment financial sector regulation Leadership -positioningQatarasaleaderintheregion on -applyingthehighestethicalstandards - providing strong protection to -fosteringgrowth, stabilityand prosperity andfinancialstabilityisaligned regulatory frameworkthatsupportseconomic To deliver arobustandefficientfinancial with internationalbestpractice. MISSION Mission, vision andvalues 19

MISSION, VISION AND VALUES Key Objectives

20 aligned with international bestpractice. aligned withinternational also and risk-based demanding, more be to need will Supervision supervision. of expense financial the at on regulation, heavily global too focusing of risk aligned The the underscored crisis be standards. will international Regulations with markets. capital and insurance banking, for framework supervisory based effective more regulation that provide includes to strengthening the be risk- will aim The risks. unexpected to the abilityofeachindividualinstitutiontorespond and system stability financial the of the components individual of on focuses regulation Micro-prudential (a) Strengtheningrisk-basedregulation the followingareas: application andcommonfocuson purpose. Theywill they will do so in a manner that ensures consistency of As each regulatory authority strengthens its regulations, this importantsector. be strengthenedwill toencourage thedevelopmentof finance Islamic for framework regulatory The practice. best regulations alsothatare inlinewithinternational the QCB implement insurance of theQFC,andQCBwill the gives Law QCB mandate for regulating insurance companies outside new the addition, In and disclosure practicesinthefinancialservicessector. be also will There increased focusonpoliciesthatimprove risks. transparency related reduce and stability based approach to regulation as wellto maintain risk- the enhance Qatar.to in imperative framework is It and QFCRAaimtostrengthen further the regulatory financial institutions of and capital markets. Similarly, supervision the QCB, QFMA and regulation strengthening has supervisory standards andmostcountrieshavebeen there crisis, financial global been afundamentalreviewof globalregulatory and the to response In Enhancing regulation Strategic Goal1: 22 responsiblefor thelicensingand supervisionofinsurance standards and group supervision. The QFCRA remains prudential give increased emphasistogovernance, insurance IAIS Insurance Core Principles.The revised principles for framework be aligned withtherecentlyin Qatarwill revised regulatory the Secondly, supervise insurers andinsuranceserviceproviders. the involve development ofanewdepartment in theQCBto also will require work This will framework. Law) supervisory QCB new the the implementation of new regulations and anew under QCB the to developments. two by Firstly, theresponsibility for insurance regulation (given influenced be will years few next the in sector insurance State the of regulation The Insurance mitigation ofsuchrisks. the for scores these to linked be will risk action supervisory the Accordingly, monitoring. characterise effective for to banks scores of profile risk of design the by Lastly, risk-based supervision will be further strengthened financial the to risks system. inherent pose can that banking entities shadow of account take will regulation and and of primeimportance. Moreover, thescopeofoversight assessing for framework regulating systemically important domestic banks is also effective an Building reporting standards (IFRS). Principles, Basel III standards and international financial framework for banks will be aligned with the Basel Core sector regulation andsupervision,theregulatory financial strengthen to order In approach. systematic will be conducted on a regular basis and will follow a assessments Risk risks. its to bank a of oversight of level A risk-based approach to supervision involves linking the Banking debt andequitymarkets. which will pavethewayforfurther developmentofIslamic instruments, Sukuk of issuance the in leader customer base. Moreover, Qatar has emerged as a and activity of volume their both in expanded have banks Islamic Qatar, of case the In individuals. and corporationsdramatically andincludegovernments, customers ofIslamicfinancialserviceshavegrown conventional financial institutions and markets. In turn, almost theentire product rangeprovided by products hasbecomeavailable,andnowcovers decade. Abroader rangeofShari’acompliant past the over significantly expanded have markets Islamic financial institutions and Islamic financial (b) PromotingIslamicfinancialinstitutionsandmarkets for equities,debtandrelated financialinstruments. markets liquid and deep of development the support Moreensure generally,theQFMAwill thatitsregulations regulation. market towards approach to holistic and a adopt markets of fairness and stability the to threats non- of risks the identify compliance, torefocus rulestoward dealingwiththe to steps take will QFMA The the to approach risk-based regulation andsupervisionofmarkets. a developing on focus of services.Inrecent years,there hasbeenarenewed delivery regulations and design efficient and information financial turn, In that provides transparency to participants, reliabilityof efficiently. way a in framed be should markets financial governing allocated being economies are highly dependent on capital Modern Capital markets bestpractice. with international consistency betweentheir respective regimes, inline QFCRA will coordinate closelyto ensure that there is the and QCB The QFC. the from and in operating firms practice in line with international bestpractice. practice inlinewithinternational ensure ofcorporategovernance further harmonisation to steps take and frameworks governance and IOSCO.Theregulatory authoritieswillreview their suchastheOECD,BIS,IAIS organisations international based ontheglobalstandards andrequirements of improved standards forcorporategovernance Each oftheregulatory authoritieshasinitiated integrity. response to greater demands for accountability and on Boards ofDirectors and seniormanagement in standards thathavebeenplaced international strengthened across the region in line with the higher standards continue to be Corporate governance Corporate governance are stakeholders inthefinancialsector. institutions financial inamannerthat ensures protection ofthe governed that therefore essential availabilityanddissemination.Itis information perform firms better inanenvironment ofaccurateandtimely addition, that In markets. organisations capital other access and institutions for both financial sector, financial the of transparency and underpins the integrity Good corporate governance (c) Improvinggovernanceandtransparency and supervisorypractices. regulatory approach tolegalissuesandharmonise three regulatory authoritieswilldevelopacommon the finance, Islamic of development continued the foster therefore to order are In regulations. QFMA and to subject Exchange also Qatar the on are banks listed Islamic Some QFCRA. the and QCB the regulatoryregimes:two under operate banks Islamic Key ObjectivesKey 23

KEY OBJECTIVES obtained by external auditorswillbereviewed. obtained byexternal oncompanies current practicefordisclosinginformation the Moreover, risks. and disclosure product regarding rules of the enforcement active more regard,undertake will QFMA this In risks. and valuations to regard with disclosure practices, particularly standards governing This willbefacilitatedbythe establishment of rigorous standards are essential. disclosure and transparency greater flows, information orderthe problems toalleviate arisingoutofasymmetric In outcomes. market efficient hinders which information Financial markets are often characterised by asymmetric Reinforcing disclosure practices and addressed. detected is confidence investor to detrimental is which culture is promoted at firms, and that any market activity regulatory the best practice, that a robust compliance international by taken be authorities toensure thatstandards are alignedwith will steps Appropriate result in mispriced risk or inappropriate product selection. and put their interests ahead of their clients. This can asymmetries information of advantage take to entities regulated encourage can incentives Misaligned profits. that are linked to the durability and long-term viability of payments aswellanyperformance available publicly regulated entities,compensationstructures shouldbe In order tobetter align theinterests ofinvestorsand made inaclear, accessibleandusablemanner. the and transparency Any public disclosure must be quality of information. practices, disclosure market and comprehensive rulesandprocedures guiding clear have should regulators financial objectives, these themto for provide and make timely informed decisions. In order to support order in should to investors equity and information sufficient on securities debt of impact Issuers markets. significant have that activities disclosurecover all will The regulations governing Strengthening transparency 24 complement the micro-prudential policy already in will place. initiatives resource-based and policy macro-prudential Qatar’s Robust system, economy. of financial challenges the and its trends recognises in thecyclical developments to structural relating risks key identifies that framework macro-prudential a build to risks. aims financial Qatar of set unique own its faces country Every Identifying andmonitoringthesourcesofsystemicrisk (b) regulatory authorityforactionandimplementation. any recommendations oftheFSRCCtorelevant proceedings. The Secretariat will alsocommunicate issues for discussion, whilemaintainingarecord of all manage the agenda andhighlight information, to support its work. The Secretariat will collate all relevant each regulatory authority and aSecretariat will beconstituted from executives senior the from representation developed further be will with as necessary.TheFSRCChasbeenestablished and Law QCB new the in The role andresponsibilitiesof theFSRCCare setout FinancialStabilityandRiskControlCommittee(FSRCC) (a) macro-prudential support to oversight andregulation through thefollowinginitiatives: aims Plan Strategic The proposals tomitigatesuchrisks. policy out setting and whole a as sector financial the objective of studying emerging and potential risks within Stability and Risk Control Committee (FSRCC) with a key The newQCBlawhasaccordingly created theFinancial mitigates systemicrisk. that framework macro-prudentialrobust a for need the demonstrated has experience This whole. a as system flaws of without institutions sufficientthe attention being financial paid to analysis of the individual financial regulating on exposed crisis regulatory systems where financial too much emphasis isplaced global The macro-prudential oversight Strategic Goal2:Expanding investment decision-making. sophisticated, market behavior is necessary institutions for effective and informed and financial complex greater of analysis trends andresearch studies on and increasingly instruments become financial As (d) Undertakingresearchandanalysis andcomprehensivelycan beeffectively addressed. system financial the to risk potential of sources that coordinated approach tobedevelopedensure heads oftheregulatory authorities,thiswillenablea to and investorbehaviour. AstheFSRCCincludes the posed risks mitigate consumer and to structures market institutions, financial FSRCC the by used be be crucialtoidentifythemainpolicytoolsthatmay From anoverallregulatory perspective,itwilltherefore by theQCBinrecent years. shocks on the banking system, such as that undertaken proactive a role in order to play mitigate the adverse impact of external to needs policy macro-prudential which originateabroad. Insuchcircumstances, shocks, financial to vulnerable are economies Open (c) Developingmacro-prudentialpolicyinstruments as wellassessmentsofindividualbanks. indicators quantitative including risk, systemic analysing from a wide range of sources when use information be coordinatedwill through the FSRCC.TheFSRCCwill reportingand effective structure, where information risk profile of the financial system. This will include a timely that is clear, consistent and captures non-linearity in the framework assessment risk agreed mutually a develop acumulative have and cascadingimpact,theregulatory authorities will typically risks system financial As within thefinancialsector. of studyingemergingand potentialrisks Committee (FSRCC)withakeyobjective the FinancialStabilityandRiskControl The newQCBlawhasaccordinglycreated confidentiality. whileprotecting customer sharing ofcredit information Credit Bureaupromote will its role inregulating the Qatar the Additionally, banks. between competition more and transparency greater achieving of benefit as a comparable. This will alsohave the is internationally system financial evaluation processes that provide credit datathat the for whole. This requires the Qatar Credit Bureau to use credit monitor to important is it perspective, macro-prudential a From (e) PromotingtheroleofQatarCreditBureau decision-makingbyinvestors. support informed to individuals and entities licensed of background the regarding attention, and (iv) provide timely information encourage those areas thatwillbethefocusofregulatory (iii) issues, publication of annual reports on key findings, identifying compliance industry-wide understanding in participants regulatory market and the audits, authorities assist (ii) to compliance trends, surveys and these industry-wide self-assessments with periodic associated initiate risks and issues emerging and trends important identifies researchthat promote (i) to: steps take will authorities regulatory The Key ObjectivesKey 25

KEY OBJECTIVES financial market infrastructures call for objective, risk- forobjective, call infrastructures market financial standards for settlements system. The international and payments efficient and resilient a develop to way will stakeholders other work together in a coordinated and and mutually supportive QFCRA QFMA, QCB, The Strengthening thepaymentsandsettlementssystem paymentsystems. and government remittances of paymentsystemssuchasinternational aspects different regarding guidance also specific has issued Bank World The 2012. in published (IOSCO) ofSecuritiesCommissions Organization International of PaymentsandSettlementsSystems(CPSS) infrastructures (the24Principles)thattheCommittee the new international standards for the financial market standards. One important benchmark for Qatar will be and settlements system in line with international reinforce the resilience and efficiency of the payments to steps take will QFCRA the and QFMA the QCB, The (a) Enhancingpaymentsystemresilience different riskprofiles andmaturities. it addition, In with to awiderrangeofassets investor access allows revenues. hydrocarbon on exclusively diversify fundingsources andmoveawayfrom relying sector development. It willenablebusinessesinQatarto financial overall for prerequisite important an is market debt well-developed A markets. debt liquid and deep Another area offocuswillbethe development of for and settlementfinality. processes and clearance, centralcounterparties, trade repositories systems efficient payments, centralsecuritiesdepositories, and requires sector reliable financial robust A system. settlements infrastructure. market financial An important area of focus will be the payments and the enhancing from broadening and benefit will sector financial Qatar’s market infrastructuremarket Strategic Goal3:Strengthening 26 lengthening of the maturity profile of debt issuance debt of profile maturity the of lengthening The market. debt the of development the support to debtisnonethelessnecessary issuance ofgovernment to mobilise resources, regularfor a government imperative fiscal any finances of absence the In development. transmission, market financial promotes market and projects policy infrastructure securities monetary government liquid facilitates and deep A debtmarket Government reduce thecostofborrowing. companies to diversify their sources of funding and allow also will market debt well-developed A country. allocation process and therefore retain capital in the incentive forlocalinvestorstobettermanagetheirasset investors to the State, and provide an important infrastructure in Qatar. It will helpto attract institutional the financial deepening in benefits far-reaching have The development of an active debt market in Qatar will (b) Developingthedebtmarket and minimiseliquidityrisk. sector financial Qatar’s of development the underpin the in participants will system settlements and payments the in banks QFC direct yet not payments andsettlements system. Closer integration of are banks QFC settlements system Expanding participationinthepaymentsand in theState. minimise systemic risk in financial institutions and markets and implement monetarypolicy,manageliquidity stability, financial strengthen to QCB the help objectives also will and goals clear with supervision effective and a safe regulatory environment, good governance embodies that framework infrastructure market sound fairandopen access. Developinga which permit based, andpubliclydisclosedcriteria for participation, term resources. In this regard, regulatoryterm initiatives have be short- also mobilise companies help to order in will encouraged funds mutual market money and market Concurrently, thedevelopmentof acommercialpaper Qatari companies. encourage corporate debt instruments issuance by to general guidelinesandpolicies be toestablish will on foreign funding. An important initiative in this context raise to companies funds from Qatari domestic sources andreduce their reliance encourage to is markets One of the primary goals of developing Qatar’s financial The corporatedebtmarket currency, structure andcredit ratingsofQatar. rate, debt overall the interest improving (v) and risks; liquidity and managing (iv) agencies; standards ofcreditors, investors,andcredit rating the to adhering (iii) servicing; debt effective for flows strategies cash framing analysing (ii) cost; least at (i) debt of financing for of: functions is the office debt with The Qatar.vested in up set and been Policies has of Credit Debt, Management for Office the office, debt independent an strategy, management debt aviewtoestablishinganeffective With of announcement while auction results wouldenhancemarkettransparency. calendar auction market facilitated by public release of an advance primary Coverage Liquidity Ratio. Regular issuance of debt instruments can be III Basel the under regulatory the requirements with comply to banks enabling while additional toolstotheQCBforliquiditymanagement Moreover, debtinstrumentsprovide government instruments. financial other of risk-free pricing the the in helps rate turn, benchmark In structure. term the across curve yield risk-free a of emergence the encourage also will secondary marketforQatari debtinstruments. in the funds couldbecomeimportant players wealth sovereign non-Qatari example, for – markets role indevelopinganddeepening domesticcapital Moreover, foreign investors can also playan important operation, bestpractices. schemes reflect international marketing, the that regulation and supervision of collective investment ensuring (iii) and sector;insurance life the of growth the facilitating (ii) fund; pension public the for strategy and framework (i) supportingareview oftheassetmanagement taken: be will steps following the sector, investment In order tofacilitatethegrowth oftheinstitutional important source of demand for longer-term securities. companies (thelifeinsurancesegment) a particularly income instruments, with pensionfundsandinsurance fixed of holders major the among are investors These investment schemes (mutual/investment funds). funds, insurancecompaniesandcollective Institutional investorsgenerallyencompasspension institutional investors. long-term including by market secondary the in base In motives. trading this regard, there is aneed to widen the participant and preferences, oftime risk terms in horizons, base investor diversified a have to essential is it market, debt vibrant a have to order In Broadening investorparticipation and oversight. licensing their for regulations and rules of framework developing aregulatoryrating agenciesandis Qatar is in the process of establishing domestic credit Sukuk andBonds. of Listing & Offering the for rules issued has QFMA the example for outcome, their facilitate to taken been Key ObjectivesKey 27

KEY OBJECTIVES provide accessorincentivestofunding forSMEs. other departmentsinpromoting that policies and government Bank Development Qatar the of initiatives development oftheSMEsector through supportforthe The regulatory authorities will also contribute to the the venture capitalmarket. from resources mobilise and banks from credit access This wouldhelpto reduce barriers for SMEs who wish to institutions. financial across SMEs of definition uniform a an importantprerequisite istoidentifyandagree upon sector.purpose, non-hydrocarbon this the For in growth of drivers key are they as essential, is (SMEs) enterprises non-hydrocarbon entrepreneurialthrough initiatives small andmedium the developing sector as theengine of future growth. Supporting and resources diversification by reducing the reliance on hydrocarbon supports economic 2030 The QatarNationalVision (d) Financingsmallandmedium-sizedenterprises(SMEs) the Islamicbankingsector. a as required consequence of the increasing scale of operations of be may (Takaful) principles Shari’a on based framework insurance deposit Islamic an Finally, risk-based premium mechanism. be giventodeveloping a later stage,considerationwill providesparticipants. Ata equalopportunitiesforall enhances consumer and investorawareness and that best practicedepositinsurancepromotes transparency, suggests experience International Law. QCB a the implement to taken be depositor protection scheme in Qatar as required by will steps forward, Going bank part) in inability tomeetitsobligations. or fully bank’sa by caused be can that fromlosses (either depositors protect to countries stability. financial promotes Deposit insurancehasbeenimplementedinmany that net financial a safety of system component one is insurance Deposit (c) Implementingadepositprotectionregime 28

consumers andinvestors Strategic Goal4:Protecting the website of the regulatory authorities. In addition, on publication ofconsumerand investorinformation be increased through education initiativesand same time,consumerand investorawareness will procedures formediationofcomplaints. Atthe consumer and investor complaints and (ii) devising QCB, the QFMA and the QFCRA for (i) addressing policieswillbeestablishedinthe Consistent internal and toconsumer relating investor protection. institutions financial for An important stepinthisregard istoprepare regulations customers. potential among mechanism market the in confidence reinforce can authorities outcome, contracts are bindingandenforceable. Byensuringthis A market economy can only function efficiently if legal (a) Developingstandardsofconduct willbeclearlyspeltout. of information-sharing also needs to be maintained and the rules information customer of Confidentiality law. the strict of through enforcement providers service financial unlicensed investors will also be protected from unauthorised and of adepositinsurancemechanism.Consumersand protection willbeenhancedthrough theintroduction and in a timely manner. Consumer and investor as adequatesystemstoresolve disputesconstructively better understandtheneedsoftheircustomers,aswell financial that ensure to them help that processes place in put firms services will authorities regulatory The especially thosewhoare mostvulnerable. every consumerandinvestormustbetreated fairly, economy, and the regulatory authorities agree that investors is a vital element of a well-functioning market protected. Appropriate protection ofconsumersand is authorities regulatory to ensure thatconsumersandinvestorsare suitably the of objective primary A the three regulatory authorities. with and institutions financial among information of credit exchange (iii) protection; data and confidentiality services; (ii) conduct of business, reporting requirements, relatinglicensing criteriaforcredit to(i) information Moreover, there is aneedto develop regulations circumstances disclosed. be can information confidential which under the specifying and Law QCB new the inlinewiththerequirements of customer information protecting by strengthened financial be will rules Existing system. the in confidence underpinning to critical is information customer of confidentiality the Maintaining (c) Protectingcreditinformation service providers inQatar. financial unlicensed and unauthorised deter to order Vigorous enforcement of the law will be undertaken in that services toconduct. licensed institutionsare permitted financial those specify will regulatory authorities the and defined, clearly be will Qatar in perimeter for financial services and providers operating regulatory The authorities. regulatory the of focus key gaps thatallowunlicensedentitiestooperateisa investors andconsumers.Addressing theregulatory risk to a pose providers service financial Unlicensed (b) AddressingregulatorygapsinQatar policiesoffinancial serviceproviders. governance most vulnerable,mustbeanimportantcomponentof consumers and investors, especially those who are without imposing unreasonable costs. Protection of manner efficient and timely a in addressed be must of consumerdisputesandcomplaints.Complaints the handlingempowered to coordinate and harmonise three regulatory authorities will be reinforced and consumer andinvestorcomplaintsdivisionsinthe suitably protected. that consumersandinvestors are regulatory authoritiesistoensure A primaryobjective ofthe and conductsoundfinancialtransactions. decisions investment informed make to investors and Over time, programs suchasthiswillassistconsumers ontheirwebsites. consumer andinvestorinformation through literacy financial education outreachand publishing initiatives increasing on focus also and corporate interest issues.Theregulatory authoritieswill governance of conflicts managing (iv) and institutions; financial of standards prudential (iii) innovation; service and product conduct, business (ii) planning; financial products, and discipline/culture financial investment (i) as such topics on awareness to developprogramsinterest thatraisepublic and agreed have authorities regulatory The priority. key a issues relating to finance and the economy in Qatar is public awareness, education and public discourse on of thelevel Raising economy. market by efficient an of products financial of consumers and investorsisanimportant element understanding sound A (d) Raisingpublicawareness Key ObjectivesKey 29

KEY OBJECTIVES regulatory concern andtodatehasbeenfocusedon regulatory concern on aregular basistoaddress areas of common TheCollegeofSupervisors meets and harmonisation. QFMA and QFCRA will efficiently enhance cooperation QCB, the of executives senior the comprising College theestablishment ofaSupervisory Furthermore, strategy development. noted earlier willfurther strengthen cooperation in framework FSRCC the of inauguration The exchange. (MOU) Understanding that supports enhanced cooperation and information of Memorandum tri-partite a the QCB,QFMA,andQFCRAsigned In August2012 (a) Buildinggreatercooperation sound regulatory frameworkinQatar. IOSCO securing a of development the at support further will - membership succeeding QFMA the example bodies–for Greater involvementwithinternational attractive toforeign investors. greater competitiveness and to making the region more to lead can regulation sector financial to related issues Enhanced cooperation between GCC countries on cooperation. economic and financial of objective the members can work more closely together with a view to founded in 1981, provides the framework within which its The GulfCooperation Council (GCC),whichwas ofeachauthority. Chairman role asthree regulators are alignedbytheGovernor’s the cooperation. Indeed,atthelevelofgovernance, and substance of their to strengthening the form committed are and together working of importance The regulatory authorities in Qatar recognise the authorities thatoperatewithinthesamecountry. cooperationbetweenregulatoryclose andeffective There isaclearrecognition oftheimportance regulatory cooperation Strategic Goal5:Promoting 30 on various issues related to capital markets such as as such markets inthecapitalmarkets. greater participationofQFCfirms capital to permit related to framework regulatory respective their enhancing issues various on The QFCRAandtheQFMAwill alsocontinuetocollaborate and (AML/CFT). laundering anti-money State the in regime terrorism of financing the countering the to, enhancements overall resilience of, and on identifying appropriate best international practice. TheCommitteewillcontinuetofocusonthe with aligned Qatar keeping in work significant undertaken has committee This Terrorism. of Financing the Combating and Laundering Anti-Money on 2010 of (4) No. Law AML/CFT State the to according and Terrorism FinancingCommitteewhichwasestablished closely together is in working the National Anti-Money Laundering authorities regulatory the of example Another insurance of bestpractice. international area the their regulations are consistentwitheachother and with in is regulation, where the QCB and QFCRA will ensure that Qatar in framework regulatory harmonised a developing of example One regulatory oversightandeliminatesregulatory arbitrage. will create anenvironment thatavoidsduplicationof standards. Theseinitiatives aligned withinternational witheachotherinadditiontobeing can beharmonised of a number areas where theregulations andrulesofeachorganisation identified have authorities regulatory The harmonising regulations (b) Aligningwithinternationalstandardsand respective the three regulatory jurisdictions. their under that operate across jurisdictions, and (iii) financial firms activities services financial respective approaches tosupervision,(ii)aggregate dataon their (i) of: respect in information sharing banking andcapitalmarkets supervisionintheregion. provide supporttotheGCCSecretariat inharmonising involvement intheregulatory activities oftheGCCand in Qatar will actively coordinate and promote Qatar’s authorities regulatory three The developments. market capital and banking of areas the in cooperation and committees havebeenestablishedtodevelopdialogue In thepursuitofcooperationwithinGCC,several (d) StrengtheningcooperationwithintheGCC standards. the highestinternational to adherence and information of exchanges effective regulators andother national regulators toensure the another, but also to work more closely with international one with closely work to efforts enhance only not to be A final but important consideration for the authorities will financial sector. the in confidence public provide to and transgressions of enforcement actions can serve to deter future informed public the Keeping non-compliance. of areas decisiveness and are proportionate in addressing and regulatory authorities act withdetermination fair and transparent. This is bestachievedwhen the that of businessconduct. Enforcementmust be policies procedures and important equally tomaintaininghighstandardsis policies of support andreinforce the culture ofcompliance framework The sector andthereputation ofQatar. to address anyconduct that maycausedamagetothe financial the in sector in Qatar, working and will move quickly and appropriately companies and individuals to maintainingthehigheststandards ofbehaviourfor appropriate or regulations. Theregulatory authorities are committed takes regime enforcement action when there are breaches of rules regulatory effective An (c) Comprehensiveapproachtoenforcement f rs-odr uevsr clee ta share that supervise financial institutions that operate as a group. colleges supervisory andcooperate in order to effectively information cross-border of banking groups.encourages Thisinitiativetheformation cross-border of supervisors host and home recently provided greater guidance on the role of bodieshave topics ofmutualinterest. International contacts will be developed outsideof the region on bilateral strong of relations withregulators intheGCC,strengthened network broad a Underpinning attend meetingsintheregion. initiatives to host regional outreach meetings and corresponding undertaken has Qatar and outreach of program active an undertakes organisations these standard-setters – the Basel Committee, IAIS andIOSCO.Eachof financial international three the of work the support to sought actively has It standards. national bestpractice andharmonise international that initiativesdevelop the support of international Qatar aspiresan activeleadershiprole toplay in IAISandIOSCO (e) IncreasedinvolvementwiththeBaselCommittee, Key ObjectivesKey 31

KEY OBJECTIVES as afurtherdevelopmenttool. facilitate secondments and mobilitybetween regulators competencies across theregulatory authorities,and training and develop common regulatory to harmonise used efficiently more be can resources framework, development common this Using planning. career and a common approach to recruitment, development, competency framework for human resources; including The Strategic Plan focuseson implementing ashared develop andretain thebesttalent. that the QCB, QFCRA, and QFMA continue to attract, it iscritical practice and to drive regulatory reform, To support the implementation of regulatory best people (a) Developingpoliciestoattract,retainanddevelop capital through thefollowinginitiatives: of human to supportthebuilding The StrategicPlanaims training, developingandsupportingQatarinationals. be giventoeducating, and aparticularfocuswill training anddevelopmentintheregulatory authorities, Appropriate focusandresourcesbe allocatedfor will financial services regulators and in the broader industry. the within both working employees skilled highly upon financial strengthen stability. These critical contributions are dependent and development, economic 2030 by helping to diversify the economy, support VisionroleNational key Qatar a the play in will industry and dedication of its employees. The financial services experience skills, the on rests change implement and The ability of any organisation to achieve its objectives Building human capital Strategic Goal6: 32 considering this type of framework, it is also important also is it framework, of type this considering succeed andbettermeettheircustomers’needs. In aframework with to elevate the level of talent inthe industry, helpthem employees their and firms provide These standards. best practice, confirm guidelines, based upon international clearly and achievement clearly of be training and competency regimes which incentivise Standards can inQatar. skill communicated bytheregulatory authoritiesthrough technical and skills professionalism services financial of and industry providing tools and assistancefor the development services financial the in professionalism The regulatory authorities are committed to enhancing (b) Developingandnurturingtalent talent canbeattractedandretained. compensation strategytoensure thatappropriate services and strategic industry provides for an informed financial the in remuneration benchmarking model operating efficient as asource of competitive advantage. Additionally, and professional highly a practices attheregulators. Thesepracticesprovide best practice in employment embedding international The Human Resources strategyalsofocuseson careers, particularlyforQatarinationals. rewardingsustainable employmentmodeloffering careers inregulation contributestodevelopinga talent at anearlyageand providing visibility of clarity aboutpossibleregulatory careers. Engaging talent pipeline of engagedemployees and provides a develop helps also plan career well-articulated A strengthen financialstability. economic development, and to diversify theeconomy,support National Vision 2030byhelping will playakeyroleintheQatar The financialservicesindustry rotation, andsponsored study. job secondment, through opportunities and resources approach enables the regulators to share development address to order common objectives and opportunities. A collaborative in stakeholders, key with dialogue escalation ofthenationalisationagendaandopen also focuses on high quality nationalisation through for Qatari nationals. The Human Resources strategy opportunities employment and learning value-added long lastingvaluetotheStateisfoundedinproviding The sustainabilityoftheregulators andtheirabilitytoadd (c) StrengtheningpoliciestoincreaseQatarisation of the State through a FinancialServicesTraining Centre. identify to ways to meet the future financial services seeks training needs Plan Strategic the perspective, term long- a Adopting State. the in available are resources to ensuretraining anddevelopment thatsuitable Key ObjectivesKey 33

KEY OBJECTIVES Appendix: Core objectives and action points

34 Appendix: Core objectives and action points

Strategic Goal 1: Enhancing regulation Strategic Goal 2: Expanding macro-prudential oversight

CORE OBJECTIVES ACTION POINTS CORE OBJECTIVES ACTION POINTS

a) Strengthen the • Align the regulatory framework for banks with the Basel Core Principles and a) Provide strong focus • Develop an organisational framework in the regulatory authorities to risk-based supervisory Basel III standards to the work of the new support the work of the Financial Stability and Risk Control Committee framework for banks • Build an effective framework for assessing and regulating systemically important Financial Stability and (FSRCC) domestic banks Risk Control Committee • Establish the terms of reference, role and responsibilities of the • Ensure oversight and regulation takes account of risks arising from shadow FSRCC as set out in the new QCB Law banking • Enhance risk-based regulation by designing risk scores and link supervisory action to these scores b) Strengthen the • Build a Qatar-specific macro-prudential framework that identifies the key • Ensure that prudential reporting standards are aligned with Basel requirements framework for risks relating to cyclical trends and structural developments and IFRS identifying and • Develop an agreed framework for assessing systemic risks that is clear, monitoring the sources consistent and captures non-linearity • Design a timely and effective reporting structure to the FSRCC of systemic risks b) Develop the • Create an effective mechanism for the transition of licensing of insurance firms regulatory framework to the QCB • Establish QCB insurance regulations that are in line with international standards for insurance companies • Identify the main policy tools that may be used by the FSRCC to mitigate • Develop an effective and harmonised authorisation and supervision framework c) Build consensus on operating under the risks in financial institutions, market structures and consumer and investor for insurance firms the macroprudential QCB policy instruments that behavior can mitigate systemic • Develop processes that facilitate the rapid use of existing instruments or new instruments, as required, in addressing systemic risks risks c) Enhance the risk- • Strengthen the processes used to identify and address risks of non-compliance based approach to the by market participants regulation of capital • Refocus existing rules and policies to a risk-based approach d) Conduct studies, • Undertake research to identify important trends, emerging issues and markets • Address compliance issues on an industry-wide basis • Promote the diversification of financial products and services in Qatar collect information and associated risks statistics on financial • Initiate periodic industry-wide compliance audits, self-assessments and markets and publish surveys to assist regulatory authorities and market participants to understand industry-wide compliance issues d) Strengthen the • Enhance the licensing criteria for Islamic financial institutions in line with Shari’a relevant reports standards • Commence the production of annual reports on key findings, identifying regulatory framework for those areas that will be the focus of regulatory attention Islamic finance • Strengthen corporate governance standards, the role of the Shari’a Board, and APPENDIX: CORE OBJECTIVES AND ACTION POINTS conduct of business requirements for Islamic financial institutions • Provide public and timely information regarding the background of licensed • Enhance prudential standards and reporting on capital adequacy, solvency and entities and individuals to support informed decision-making by investors. liquidity • Develop the framework for liquidation of Islamic institutions e) Promoting the role of • Enhance credit evaluation process of the Qatar Credit Bureau the Qatar Credit Bureau • Review existing operations and procedures of the Qatar Credit Bureau in alignment with the new QCB Law e) Unify corporate • Harmonise and update governance guidelines of the QCB, QFCRA & QFMA. governance standards − Expand the coverage of corporate governance standards to all financial for banks and financial institutions institutions − Adopt a detailed corporate governance framework by building on the approach used by the QCB

f) Reinforce disclosure • Enhance enforcement of rules regarding product disclosure and risks practices in financial • Establish increased standards governing disclosure practices, institutions and issuers particularly with regards to valuations and risks • Review the practices for disclosing information on companies obtained by the external auditors

36 37 Appendix: Core objectives and action points

Strategic Goal 3: Strengthening market infrastructure

CORE OBJECTIVES ACTION POINTS CORE OBJECTIVES ACTION POINTS

a) Strengthen resiliency, • Conduct a self-assessment of the current national payments system against e) Design policies • Establish mechanisms for fair and transparent price discovery safety and efficiency in international standards and best practices for large value payments systems that broaden investor • Streamline the registration process and broaden the range of primary offering methods the payments, clearing • Develop a strategy to strengthen efficiency and innovation in the retail payment system participation in the • Widen the participant base in the secondary market by including long-term and settlements system • Assess Qatar’s compliance with World Bank and CPSS principles for the handling primary and secondary institutional investors (insurance companies, pension and mutual funds) in alignment with of international remittances markets the CPSS and IOSCO • Undertake an assessment of the clearing, settlements and trade repository functions Principles for Financial currently in place in Qatar against the standards set by the Basel Committee on Market Infrastructure Payment and Settlement Systems and the aspirations of Qatar in developing a world f) Design and • Develop regulations, supervisory approach and rulebook for the deposit protection class financial infrastructure. implement a deposit regime established by the new QCB Law that is aligned with international best practice • The QCB, the QFMA and the Qatar Exchange will work together to implement a protection regime in • Envisage the development of a risk-based mechanism for setting premiums for use at strengthened centralized securities depository Qatar a later stage • Promote transparency, consumer awareness and equal opportunities for participants in the deposit insurance scheme b) Develop guidelines • Design prudent operating requirements for QFC entrants • Develop Islamic deposit insurance (Takaful) framework according to Shari’a principles governing participation • Expand the existing tripartite MOU to include oversight of all aspects of the payments by QFC banks in the and settlements system payments, clearing • The QCB and QFCRA shall take the following steps: g) Develop policies that • Agree on a uniform definition of SMEs across financial institutions promote the financing • Reduce barriers to bank lending and access to the venture capital market for SMEs and settlement systems − Assess the current state of QFC banks’ operational readiness and identify gaps of small and medium- • Support the Qatar Development Bank in developing an action plan for promoting the and custody − Outline access standards and operating requirements for QFC entrants sized business growth of the SME sector − Draft a Clearing Account and Payments Systems Access Agreement for QFC Banks • The QFCRA and QFMA will coordinate in the same manner to accomplish the above mentioned Core Objective.

c) Develop the • Support the Ministry of Finance in establishing a debt management strategy government debt • Develop greater transparency by establishing an issuance calendar at the beginning market of each year • Provide transparency on auction outcomes and participation APPENDIX: CORE OBJECTIVES AND ACTION POINTS • Build out the government yield curve through the regular issuance of longer dated government bonds

d) Develop the • Establish policies to facilitate corporate debt instruments issuance by Qatari companies corporate debt market • Develop policies that encourage the development of a commercial paper market and money market funds • Promote the growth of domestic credit rating agencies by developing a regulatory framework for their licensing and oversight

38 39 40 Strategic Goal4:Protecting consumers andinvestors mechanisms and disputeresolution to consumerprotection and standards inrelation a) Developrequirements CORE OBJECTIVES markets interest insecurities public awareness and d) Take stepstoraise information protection ofcredit secrecy lawandthe ofbank effectiveness c) Ensure the Qatar services tooperatein providers offinancial allow unlicensed regulatory gapsthat b) Address the ACTION POINTS • • • • • • • • • • •

Establish consistent internal policiesintheQCB,QFMAandQFCRAforcustomer Establish consistentinternal Prepare regulations forfinancialinstitutions relating toconsumerprotection Managing conflicts of interest and corporate governance issues. Managing conflictsofinterest andcorporategovernance and complianceculture − − − − in securitiesmarketsontopicssuchas: Develop programs thatraisepublicinterest, educationandawareness QCB andfinancialinstitutions − Exchange of credit information between financial institutions and between the data protection − − Develop regulations relating to: Develop appropriate systemsandcontrols toprotect clientinformation heldbyfinancialinstitutionscanbedisclosed when suchinformation andspecifythecircumstances Strengthen therulesprotecting clientinformation providers inQatar Undertake more vigorous enforcement againstunauthorisedfinancialservices financial services which can only be provided by financial institutions licensed in Qatar Establish theregulatory perimeterforfinancial servicesinQataroutliningthose in Qatar consumerdisputeresolution mechanismforthefinancialsector Build aharmonised Establish consumereducationinitiativesandpublicationofconsumerinformation complaints andescalationprocedures formediationofcomplaints Business conduct,product andserviceinnovation,riskmanagement Financial products, investmentdiscipline/culture andfinancialplanning Capital requirements andprudential standards ofinvestmentdealers The Qatariandglobalfinancialsystemtheirinterconnectedness Conduct ofbusiness,reporting requirements anddutiesofconfidentiality services Licensing criteriaforcredit information Strategic Goal5:Promoting regulatory cooperation IAIS andIOSCO the BaselCommittee, authorities intheworkof of Qatar’sregulatory e) Increase theinvolvement markets insurance andcapital topics related tobanking, Council countries(GCC)on within theGulfCooperation d) Strengthen cooperation three regulatory authorities to enforcement amongthe comprehensive approach c) Buildaconsistentand standards international authorities inlinewith of thethree regulatory b) Aligntheregulations regulatory authorities between thethree exchange information cooperation and a) Buildgreater CORE OBJECTIVES

Appendix: Core objectives andaction points • • • • • • • • • • • • • • ACTION POINTS Financial StabilityBoard, AAOIFI andotherIslamicfinancialorganisations The regulatory authoritieswill coordinate theirsupportoftheIslamic bodies provided tovariousinternational The regulatory authoritieswill ensure thatacoordinated response is activities oftheFinancialStabilityBoard areas ofinvolvementwiththeBIS,IAISandIOSCO,aswell The QCB,theQFMAandQFCRAwillcooperatetoidentify thekey capital marketsupervisionandcontrol instructionsintheregion bankingand bytheGCCSecretariatSupport efforts toharmonise Qatar’s involvementintheregulatory activitiesoftheGCC The QCB,theQFMAandQFCRAwillcoordinate andpromote andcooperateonenforcement issues information Establish ataskforce amongtheregulatory authoritiesto exchange three regulatory authorities Develop aconsistentandtransparent enforcement policy amongthe requirements ofthenewQCBLawandcontinuetomeetFATF standards Ensure thattheregulations withregard toAML/CFTcomplywiththe bestpractice to international regulations ineachoftheregulatory authoritiesbenchmarked Harmonise their respective regulator indicatorsthatfinancialinstitutions report to Develop asetofuniform Develop minimumstandards forinformation among thethree regulatory authoritiesinareas ofmutualinterest sharing Establish mechanismsforregular discussionand information the CollegeofSupervisors Enhance andexpandregulatory cooperationthrough theactivitiesof in addressing areas ofoverlapandgapsintheregulatory framework Strengthen cooperationbetweentheQCB,QFMAandQFCRA 41

APPENDIX: CORE OBJECTIVES AND ACTION POINTS Appendix: Core objectives and action points

Strategic Goal 6: Building human capital

CORE OBJECTIVES ACTION POINTS

a) Develop policies • Establish a competency framework for the jobs in each of the three within the regulatory regulatory authorities authorities to attract, • Link critical HR processes to the competency framework retain and develop (recruitment, performance management, and rewards) human resources • Create, document, and communicate career paths • Harmonise training and development programs, sharing and collaborating on annual training plans • Create a shared training programme to start building a common set of core skills • Benchmark compensation at the regulatory authorities to the market to ensure competitive (separate) compensation systems

b) Develop and nurture • Create a training and competency regime outlining the minimum skills and talent in financial knowledge requirements for employees in specific roles markets • Establish policy guidelines and incentives for firms to invest in staff training and development (targets, requirements, minimum standards) • Support the development of a centralised training institute to meet the future training needs of the regulators and firms

c) Strengthen policies to • Create an industry group (composed of regulators and supervised firms) increase Qatarisation in to identify training needs, coordinate the training activities of the firms, the financial sector and promote Qatarisation • Create a secondment programme across the regulators to develop Qatari nationals and identify job opportunities • Provide input to the Ministry of Labour about how Qatarisation in the financial services sector can be improved and enhanced • Develop a focused financial services talent development programme for Qatari nationals, i.e. a post-graduate programme offered through the training institute

The most important asset of any organisation is its people. Qatar strives to become a knowledge-based economy – the development of human capital is one of the four pillars of the Qatar National Vision 2030.

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