 providing advice and support to the senior managers about firm’s compliance issues. Division 4.1.D Internal audit function 4.1.7 Which authorised firms must have internal audit function? (1) The senior management of a QFC insurer (other than a QFC captive or QFC bank must establish and maintain an internal audit insurer) function. and are defined in the glossary. Note QFC insurer QFC bank (2) An authorised firm that is not required by subrule (1) to have an internal audit function must establish and maintain such a function if appropriate because of the nature, scale and complexity of its business. (3) The Regulatory Authority may direct an authorised firm to establish and maintain an internal audit function. (4) An authorised internal audit function must be appropriate to: firm’s (a) the nature, scale and complexity of the business; and firm’s (b) its risk profile and legal status. As a general rule, QFC banks and QFC insurers (other than Note QFC are not required to have individuals approved to captive insurers) exercise the internal audit function until 1 January 2014—see r 3.2.5. 4.1.8 What makes up an authorised internal audit firm’s function? (1) An authorised is made up of: internal audit function firm’s (a) internal auditor (if any); and firm’s (b) any other allocated to the function; and employees
 providing advice and support to the firm’s senior managers about compliance issues. Division 4.1.D Internal audit function 4.1.7 Which authorised firms must have internal audit function? (1) The senior management of a QFC insurer (other than a QFC captive insurer) or QFC bank must establish and maintain an internal audit function. Note QFC insurer and QFC bank are defined in the glossary. (2) An authorised firm that is not required by subrule (1) to have an internal audit function must establish and maintain such a function if appropriate because of the nature, scale and complexity of its business. (3) The Regulatory Authority may direct an authorised firm to establish and maintain an internal audit function. (4) An authorised firm’s internal audit function must be appropriate to: (a) the nature, scale and complexity of the firm’s business; and (b) its risk profile and legal status. Note As a general rule, QFC banks and QFC insurers (other than QFC captive insurers) are not required to have individuals approved to exercise the internal audit function until 1 January 2014—see r 3.2.5. 4.1.8 What makes up an authorised firm’s internal audit function? (1) An authorised firm’s internal audit function is made up of: (a) firm’s internal auditor (if any); and (b) any other employees allocated to the function; and
QFCRA_9107_VER4.docx