(2) If an INMA firm has recalculated its annual operating expenditure in accordance with subrule (1), it must submit the recalculation to the Regulatory Authority within 7 days of doing so, and must seek approval for it from the authority. The authority may object to the recalculation within 30 days of receiving it and may direct the firm to revise its net liquid assets requirement accordingly. 3.3.8 Application of rule 3.3.4 to financial groups (1) If an INMA firm is part of a financial group, the financial group must comply with rule 3.3.4 on a consolidated basis. (2) The of an INMA firm is made up of: financial group (a) the firm; (b) any subsidiary (direct or indirect) of the firm, if the subsidiary belongs to a sector of the financial industry; and (c) any entity that the Regulatory Authority directs the firm to include. The instructions for preparing returns divide the financial industry into Note the following sectors: banking, non-life insurance, life insurance, financial services, equity investments and non-equity investments. (3) An INMA firm may apply to the Regulatory Authority for approval to exclude an entity from its financial group. The authority will grant such an approval only after the firm satisfies the authority that inclusion of the entity would be misleading or inappropriate for the purposes of supervision. Guidance The Regulatory Authority would consider a range of factors when requiring an INMA firm to treat another entity as part of its financial group. These factors would include regulatory risk factors, including direct and indirect participation,
(2) If an INMA firm has recalculated its annual operating expenditure in accordance with subrule (1), it must submit the recalculation to the Regulatory Authority within 7 days of doing so, and must seek approval for it from the authority. The authority may object to the recalculation within 30 days of receiving it and may direct the firm to revise its net liquid assets requirement accordingly. 3.3.8 Application of rule 3.3.4 to financial groups (1) If an INMA firm is part of a financial group, the financial group must comply with rule 3.3.4 on a consolidated basis. (2) The financial group of an INMA firm is made up of: (a) the firm; (b) any subsidiary (direct or indirect) of the firm, if the subsidiary belongs to a sector of the financial industry; and (c) any entity that the Regulatory Authority directs the firm to include. Note The instructions for preparing returns divide the financial industry into the following sectors: banking, non-life insurance, life insurance, financial services, equity investments and non-equity investments. (3) An INMA firm may apply to the Regulatory Authority for approval to exclude an entity from its financial group. The authority will grant such an approval only after the firm satisfies the authority that inclusion of the entity would be misleading or inappropriate for the purposes of supervision. Guidance The Regulatory Authority would consider a range of factors when requiring an INMA firm to treat another entity as part of its financial group. These factors would include regulatory risk factors, including direct and indirect participation,
QFCRA_9583_VER3.docx