Oman’s Financial Services Authority approved the executive regulations for the Securities Law on Sunday, in a move aimed at updating the regulatory framework of the capital market and strengthening the sector’s readiness to keep pace with developments in financial technology and innovative investment tools.
The authority said the regulations, which will take effect the day after their publication in the official gazette, serve as the executive framework for the Securities Law issued under Royal Decree No. (46/2022).
The regulations include seven chapters covering the operations of capital market institutions and related entities, credit rating agencies, collective investment funds, issuer obligations, and mechanisms for appealing the authority’s decisions.
According to the decision, capital market institutions and entities operating in securities activities must adjust their status within six months. Licensed banking institutions have been granted up to three years to separate securities activities into independent entities, except for custody, trust, and underwriting services.
Regulatory Transformation
Ahmed Al Maamari, Vice President of the Financial Services Authority, said the regulations represent a structural transformation in capital market regulation by redesigning the regulatory framework and defining requirements for market institutions, including minimum capital requirements and supervisory obligations.
He added that the regulations introduce investment banking activities for the first time as part of securities market operations, enhancing their role in supporting initial public offerings, providing liquidity, and connecting companies with investors.
The regulations also include revisions to crowdfunding rules, aimed at supporting its growth and expanding its role in providing financing solutions for small, medium, and micro enterprises.
Flexible Oversight
Al Maamari said the regulations strengthen risk-based supervision by requiring institutions to meet standards related to capital adequacy, market, credit, and operational risk management, as well as business continuity plans.
He noted that the authority has restructured fees related to capital market services and introduced a framework for licensing and registering local and international credit rating agencies, supporting the development of credit rating systems and improving risk assessment efficiency.
The regulations also allow the authority to license modern financial technology services and innovative financial instruments within a regulatory sandbox environment, using flexible standards designed to encourage innovation, develop digital solutions, attract investment, maintain market stability, and protect investors.
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