FSA
Reviews Features of Executive Regulations of Securities Law

Muscat,
23 Sep 2026 (ONA) — The Financial Services Authority (FSA) reviewed today,
during a press conference, the features of the executive regulations of the
Securities Law, its components, characteristics, and targeted regulatory
objectives, alongside preparing entities subject to its provisions to be familiarized
with the new regulatory requirements and implementation mechanisms during the
compliance period.

Abdullah
Salim Al Salmi, CEO of the Financial Services Authority, emphasized that the regulatory
clauses contained in the executive regulations of the Securities Law serve to
explain the regulatory rules included in the law issued by Royal Decree No.
(46/2022). He noted that they aim to build a more efficient and competitive
market that contributes to achieving the targets of Oman Vision 2040.

He
explained that the Securities Law focused on establishing the legal umbrella
that contributes to facilitating the optimal utilization of national wealth and
assets, providing protection and a suitable investment environment for market
participants by enabling capital market institutions and entities operating in
the field of securities to fulfill their role in serving, supporting, and
developing the national economy. This is achieved through creating appropriate
financing means and alternatives to utilize savings and direct them toward
funding existing productive and service projects or new ventures within the
national economic ecosystem, thereby contributing to generating job opportunities
for Omani youth.

The
CEO of the FSA stated that the executive regulations of the law represent the
cornerstone for the upcoming phase of capital market development in the
Sultanate of Oman, as they combine investor protection, diversification of
financial products, encouragement of innovation, and enhancement of the
market’s role in financing projects. He noted that great attention was accorded
to providing alternative and innovative financing options characterized by
sufficient flexibility to accommodate the needs of the economic growth movement
witnessed by the Sultanate of Oman amidst rapid changes driven by financial
technology and regional and international market developments. This contributes
to attracting local and foreign capital through the capital market sector to
support economic activities and enhance investor confidence by consolidating
the principles of fairness, integrity, and transparency.

He
pointed out that the regulations strengthened the rules governing the
segregation of client investments and funds from the funds and assets of
entities operating in the securities field, protecting them from the effects of
bankruptcy and liquidation, and requiring regulatory reports that enable the
Authority to verify the proper segregation of traders’ funds and assets, as
updates in this regard enable the Authority to continuously verify the
integrity of the segregation of market participants’ funds and assets.

Al
Salmi affirmed that the development of the capital market cannot be achieved without
active institutions practicing investment banking activities, capable of
fulfilling their role in supporting market growth, enhancing its efficiency,
and providing appropriate financing solutions and alternatives. He noted that
this regulatory step is important as it contributes to enhancing the
institutional and operational separation between banking activity and
investment activities associated with securities, limiting conflicts of
interest and risk transmission, and more clearly defining the scope of
regulatory and supervisory jurisdiction of the Financial Services Authority.

He
explained that the regulations allowed licensed entities to practice investment
banking activities and provide a number of activities related to securities, represented
in investment manager activity, product structuring activity, securities
portfolio management activity, research and advice activity related to
investing in listed securities, and issuance management activity. He added that
the legislator also permitted investment banks to perform the duties of
underwriters for issuances approved by the Authority.

Al
Salmi pointed out that the regulations expanded the types of collective
investment funds by regulating eleven types of funds, in addition to allowing
the Board of Directors of the Financial Services Authority to license other
types of funds.

Regarding
risk-based supervision, Al Salmi affirmed that it includes provisions that
enhance the principle of forward-looking risk-based supervision, represented in
capital adequacy reports and risk management plans of licensed entities,
including business continuity plans and other regulatory requirements. The
regulations defined the regulatory objectives and operational risks of
institutions that should be addressed and the entities subject to its
provisions, allowing them to take the necessary measures to achieve these
objectives and avoid risks that might affect safe and profitable operation and
the protection of related parties.

In
pursuit of encouraging innovation in financial technology for non-banking
sectors, the CEO of the FSA indicated that through regulating the regulatory
sandbox environment, the regulations added a fast track for such technologies,
complementing what the Authority’s system issued under Royal Decree No.
(20/2024) provided in terms of temporary licenses. The regulations were keen to
provide the appropriate legal environment to stimulate the market, permitting
the Authority to grant licenses to practice services and activities associated
with modern financial technologies and innovative financial instruments for
which no regulating legislation exists.

He
emphasized that this step would support the National Program for Digital
Economy and the National Strategy for Financial Technology, thereby
contributing to attracting investments, particularly in financial technology
related to the securities field, keeping pace with technical developments in
the sector while maintaining market integrity and stability, and enhancing
trader protection.

The
press conference also focused on the most prominent changes contained in the
new regulations, which represent about 37 percent of its total provisions
between introduction or amendment. These are structural updates that
transformed the capital market beyond a trading platform into an integrated
ecosystem focusing on market liquidity management and enhancing access and
permeability through multiple activities, most notably asset management,
investment banking, market making, product structuring, credit rating, and
various types of collective investment funds.

Furthermore,
the regulations established a more detailed regulatory framework for capital
market institutions as they have become entities licensed by the Authority.
This framework covers capital adequacy, governance, technical and operational
systems, business continuity, and risk management, alongside periodic financial
and operational reports, which collectively contribute to enabling the
Authority to conduct continuous follow-up and early intervention upon the
appearance of indicators that may affect the safety of the institution or
financial stability.

—Ends/AG