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The standing items that were reviewed included the annual budget, the audited financial statements, the quarterly financial reports, the annual review of the Enterprise Risk Management process and the monthly management report to the Board. The Board also reviewed the semi- annual macro-prudential supervisory report.
The Board was kept informed
of developments in relation to regulatory coordination amongst Qatar’s financial regulators including progress made by
the Financial Stability and Risk Control Committee. They were briefed on the initiatives in process and proposed by the Regulatory Authority to advance the strategic goals set forth in the Strategic Plan for Financial Sector Regulation.
Committees of the Board
The Board is empowered
to establish committees to undertake and advise on certain areas of responsibility. The Governance Resolution
of the Board provides for the establishment of an Audit and Risk Committee as well as a Nominations and Remuneration Committee and sets out the nature and membership of these committees. The committees review matters under their
Terms of Reference and make recommendations and provide reports to the Board.
Governance Framework
The Board
Under the Qatar Financial Centre Law, the Board may have a maximum of six members appointed by the Council of Ministers. Board members are required to have significant expertise in the regulation of financial services. The Chairman and other Directors on the Board were appointed by the Council of Ministers for a three-year
term on 8 March 2012 and their terms were renewed for a further three years from 8 March 2015. The Board reports annually to the Council of Ministers on the discharge by the Board of the Regulatory Authority’s functions; the extent to which, in its opinion, the Regulatory Authority’s objectives have been met; and other matters required by law.
Board Meetings
The Board met four times during 2015 with full attendance by
all Board members. The Board approved a number of new rules and rule amendments, considered various regulatory policies, and reviewed a number of standing items.
The rule and policy amendments decided by the Board in 2015 included the Miscellaneous Amendments Rules 2015 which came into effect on 1 July
2015, and the Islamic Banking Business Prudential Rules 2015 and Conduct of Business Amendments Rules 2015, both of which became effective on 1 January 2016.
Audit and Risk Committee
The Audit and Risk Committee (ARC) comprises Mr Robert O’Sullivan (ARC Chairman) and Mr Jean-François Lepetit. The principal focus of the ARC is to monitor and oversee:
1. the effectiveness of the Regulatory Authority’s policies, procedures and internal controls including those for financial reporting;
2. compliance with legal and other requirements;
3. the performance of the internal audit function and the external audit firm appointed by the Regulatory Authority;
4. the effectiveness of the internal controls framework; and
5. business continuity and disaster recovery plans.
The ARC met four times
during 2015, supplemented
by exchanges of information between meetings. The Head of Internal Audit, the Chief Financial Officer/Managing Director Corporate Services, the Head
of Information Technology, the Managing Director, Supervision and Authorisation and other executives attended ARC meetings by invitation. The ARC reviewed quarterly updates
on the status of the Regulatory Authority’s risk register.
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