ID :
311074
Mon, 12/16/2013 - 18:29
Auther :

Qatar National Day/ QFMA Enhanced Role in Regulating and Supervising the Financial Markets

Doha, December 16 (QNA) - Developing the legislations, the legal systems, licensing and the control of financial markets as well as increasing the investment awareness, disseminating the knowledge and enhancing regional and international cooperation are the most important pillars of the Qatar Financial Markets Authority (QFMA) s mission, which since its establishment has been working actively towards their implementation into reality on the ground. QFMA has proceeded within the framework of a road map aimed at implementing this vision to develop a vision for a new organizational structure allowing it to implement and enforce its Strategic Plan 2013 - 2017, in favor of expanding its terms of reference, giving it greater flexibility to Regulate, supervise, and control financial markets. The celebration of the National Day this year witnesses the issuance of a number of laws and legal systems, such as the Law No. (8) Of 2012 on the organization and the management, Authority as well as providing liquidity, lending and borrowing securities, margin trading, and other operations, services and activities. QFMA has also adopted the new listing and IPO rules, which include various chapters related to definitions, IPO and listing requirements, disclosure rules, suspension, cancellation and re-listing of companies. It also participated in the development of a new mechanism for cooperation and coordination with regulators of other financial sector including Qatar Central Bank (QCB) and the Qatar Financial Centre Regulatory Authority (QFCRA) in the areas of legislation, regulation, supervision and control, through the Financial Stability and Risk Control Committee control established under the Article No. (115) of the Law No. (13) of 2012 of the Qatar Central Bank and the Regulation of Financial Institutions. QFMA has also completed a number of draft projects with respect to the acquisition and merging as well as the regulation and licensing of the Qatar Central Security Depositary, the rules of margin trading and the listing of real estate investment funds, corporate governance rules for companies listed on markets as well as licensing and regulating the activity of the credit rating of securities. As part of its efforts aimed at promoting investment awareness and dissemination of knowledge, QFMA launched in February 2012 the Academic Program for Financial Services Professionals subject To Licensing in cooperation with the Chartered Institute for Securities & Investment "CISI" and the Qatar Finance and Business Academy (QFBA). It has also issued the first annual report on the Authoritys activities and the developments of domestic financial markets during the year 2012. In this context, QFMA has organized with the Union of Arab Securities Commissions (UASA) in collaboration with the U.S. Securities Commission (SEC) a training program entitled "Effective Oversight and Development of Capital Markets Program," held from 23 until September 27, 2012, where sheds light on how to deal with irregularities in the financial markets, and look at the various methods regulatory oversight around the world, as well as provide concrete examples about deficiencies and irregularities purpose of detecting regulatory tools and additional legal needed regulators. Concerning the issuance and the inclusion of securities of the listed shareholding companies or those interested in listing to the Qatar Stock Exchange, QFMA has approved the procedures for the completion of four acquisitions of joint stock companies listed on the stock exchange and six capital increase operations of some listed companies, in addition to approving three requests for the inclusion of bonus shares, distributed by some companies to the existing shareholders. Five requests for acquisitions were made by companies listed on the stock exchange to QFMA, which are still under review. Five IPO requests, two listing requests of new companies as well as a number of listing requests for treasury bills issued monthly were submitted to the Authority during the year 2012-2013, . On the control of financial services companies or their employees and the listed joint-stock companies' disclosures, QFMA is closely following up the compliance with the terms of the license granted to any of them by asking for data and documents on the company's activities and its financial position, such as the financial solvency weekly reports. QFMA also monitors the trading on the stock exchange to maintain the market integrity and the compliance with the legislation in force, as well as the follow-up of listed companies' disclosures in the local newspapers and on the Qatar Exchange website through a daily review of newspapers and verification of disclosures received in order to enhance the level of transparency. It also reviews the corporate governance reports issued by the companies listed on the Qatar Exchange and prepares statistics on their compliance with the corporate governance code for public listed entities, issued by the Authority. The Authority also received 12 complaints during the fiscal year 2012-2013 and conducted 30 investigations into the irregularities attributed to financial services companies or their employees and the listed companies. It also referred seven violations to the Audit Bureau. On the local, regional and international cooperation, QFMA has gained full membership of the International Organization of Securities commissions (IOSCO), took part in its 37th meeting and hosted the 6th meeting of the Council of the Union of Arab Securities Commissions. The Union presidency moved to the State of Qatar in 2012. QFMA plans to review and update the systems relating to the disclosure of listed companies, complete the XBRL system for the preparation of the financial reports of listed companies and develop corporate performance management and technology. (QNA)

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