Qatar Approves Amendments to Financial Markets Authority Law and Refers Them to Shura Council

The Qatari Cabinet approved a draft law amending certain provisions of Law No. 8 of 2012 regarding the Qatar Financial Markets Authority, and decided to refer it to the Shura Council. The regular meeting of the Cabinet was chaired by Deputy Prime Minister and Minister of State for Defence Sheikh Saoud bin Abdulrahman bin Hassan Al Thani.

The Authority prepared the draft law in coordination with relevant entities, as part of developing the legislative system for financial markets to keep pace with rapid developments in financial products and instruments. The draft expands the scope of the Authority's work to include digital securities and over-the-counter activities.

The draft unifies the regulation of investment funds and collective investment activities under the supervision of the Authority, enhances its tools for dealing with violations, and reorganizes penalties established for financial market crimes. It also aims to enhance investor protection and establish principles of disclosure, transparency, and fair trading.

The amendments aim to keep pace with rapid developments in financial products and instruments, and expand oversight to include over-the-counter activities. Following the draft's referral to the Shura Council, the text moves to the legislative approval stages before coming into force.

What do these terms mean?

Digital Securities: Financial instruments recorded and traded electronically, such as tokens or digital bonds, and are typically subject to oversight by the market regulator.

Investment Funds: Vehicles that pool funds from multiple investors to invest in a portfolio of stocks, bonds, or other assets, managed by a specialized company.

Shura Council: An advisory council in Qatar responsible for discussing draft laws and offering opinions on them before their enactment.