The Financial Services Authority adopts Executive Regulations of the Securities Law

The Financial Services Authority adopted the executive regulations for the Securities Law, which represent an explanatory legislative framework on the mechanism for implementing the general rules stipulated in the law issued by Royal Decree No. (46/2022), which contributes to achieving adequacy in terms of legislative and technical readiness, to enhance the performance of capital market institutions and entities operating in the field of securities in the Sultanate of Oman, enabling them to keep pace with the rapid changes driven by financial technology and innovative financial instruments.

The regulation came in seven chapters that dealt with various aspects related to the regulation of the capital market sector, starting with the first chapter on definitions and general provisions, passing through the second chapter related to capital market institutions, then the third chapter related to operating entities, and what is related to their licensing, activities and obligations, the fourth chapter related to credit rating companies and the requirements for conducting their business, the fifth chapter related to collective investment funds, the sixth chapter related to issuing entities and their disclosure obligations and the provisions regulating the integrity of the market, up to the seventh chapter related to the Grievance Committee, which regulates the procedures for appealing decisions issued by the Authority or its Chairman of the Board of Directors or its Chief Executive Officer, and the mechanism for considering and deciding on them.

The regulations have given great attention to the issue of providing competitive financing options in the national economy, and enhancing flexibility in a way that contributes to attracting and drawing local and foreign capital to the capital market sector, to support the activities of the national economy, and to enhance investor confidence by establishing the principles of fairness, integrity and transparency.

The decision issued by the Chairman of the Board of Directors of the Authority stipulated that the provisions of the Executive Regulations of the Securities Law shall be implemented on the day following its publication in the Official Gazette, in its issue dated July 26, 2026.

The decision issued by the Chairman of the Board of Directors of the Financial Services Authority directed the Authority’s Chief Executive Officer to issue the necessary instructions, forms, and circulars to implement the provisions of the attached regulations. Until such instructions, forms, and circulars are issued, the existing instructions, forms, and circulars will remain in effect, provided they do not conflict with the provisions of the Securities Law and its implementing regulations. The decision also directed capital market institutions and entities operating in the securities field to adjust their operations within six (6) months of the effective date of the decision. Furthermore, the decision granted licensed banking institutions authorised to conduct activities related to securities activities a grace period of up to three years to adjust their operations to provide these activities through an independent entity, with the exception of custody, trust, and underwriting activities, which banks may combine with their commercial activities, as stipulated in Article Two of the regulations.

Ahmed bin Ali Al Maamari, Deputy CEO of the Capital Market Authority, explained that the issuance of the regulations followed a comprehensive review of the legislative framework governing the Omani capital market sector over the past period. This review aimed to prepare the sector to become a key source of financing for achieving national priorities stemming from Oman Vision 2040. In a statement to the Oman News Agency, he said that the regulations represent a structural transformation of the Omani capital market, as they redesign the market’s regulatory framework by outlining detailed provisions for capital market institutions and securities firms, including, most importantly, their minimum capital requirements and obligations.

He added that the regulation organised the activity of investment banks within the activities of entities operating in the field of securities, which contributes to activating the real role of these institutions, given their pivotal role in stimulating the primary issuance market and providing liquidity, as they are an intermediary and advisor between companies and investors, contributing to matching appropriate financing according to the nature of projects and their time periods, which will contribute to supporting the work of the capital market sector.

He pointed out that the regulations reviewed the current legislation governing crowdfunding activity, based on an assessment of the previous phase of this activity, and in order to support its growth in the next phase, in order to support its contribution to finding innovative financing solutions for small, medium and micro enterprises in the local market.

Ahmed Al-Maamari emphasised that the regulation defined and clarified the regulatory objectives and operational risks for institutions and entities subject to its provisions, and enabled them to take the necessary measures to achieve these objectives and avoid those risks, under the supervision and control of the Authority, through the provisions it included that strengthen the principle of risk-based control, represented in capital adequacy reports, market, credit and operations risk management, business continuity plans, and others.

He added that the regulation, in its new formulation, took into account the fees associated with the services and activities of the capital market sector, by restructuring them in a way that achieves a balance between regulatory requirements and reducing the burdens on operating entities, and enhancing the competitiveness of the market, in addition to creating a framework for regulating and registering local and international credit rating companies in the Sultanate of Oman, which contributes to developing the credit rating system, localising expertise and knowledge in this field, enhancing the reliability of credit ratings in the Omani market, in addition to raising the efficiency of risk assessment and supporting investors and decision-makers.

He stressed that the regulation authorised the Financial Services Authority to license the practice of services and activities related to modern financial technologies and innovative financial instruments, for which there is no legislation regulating their work, under the umbrella of the experimental environment, in accordance with flexible and innovative standards determined by the Authority in accordance with market requirements, and in line with the growth and innovation of these products. He emphasised that this step contributes to encouraging innovation, developing digital solutions, and attracting investments in financial technologies related to the field of securities, while taking into account the safety and stability of the market and the protection of traders.