The enactment of “Law no.13” on 2 Dec, forms part of wider measures in Qatar aimed at preventing unauthorised firms from soliciting business in the state.
According to advisers based in Qatar, the new law should stop the practice of IFAs “tripping in” to the country to sell financial products without a licence, or at least act as a deterrent to them and to life offices accepting the business.
Additionally, IFAs operating in the Qatar Financial Centre were last year informed by the QFC Regulatory Authority that by February 2014 they must hold a level four adviser qualification from the Qualifications and Credit Framework. But any advisers new to the state have been required to have this level of qualification since September last year.
It is the same level required for advisers working in the UK now that the RDR has been implemented. If advisers fail to hold this level of qualification by February 2014, their licence will be revoked.
David Russell, chief executive of Guardian Wealth Qatar, one of three advisory firms operating from the QFC, said the qualification threshold is a clear positive for the wider industry in Qatar.
“The country is clearly starting as it means to go on,” he said. “The QFCRA has been tasked with taking Qatar up to a level where it is really seen on a global stage as, if not better than, at least equivalent to predecessors such as the FSA and the SEC in the US.
“Despite the QFCRA only having been running since 2005 they are not hanging around – they want to get right up to speed, right away.”
Brian Rose, chief executive of International Financial Services in Qatar, meanwhile argues that the introduction of the new qualification requirement and Law no.13 will level the playing field.
Russell added that the 18 months advisers have been given is a “perfectly sufficient” amount of time for them to study for and pass the qualification so that they will be able to operate in the country.
