Oman’s Financial Sector Transforms, Introduces Financial Services Authority
The Sultan of Oman, after perusal of the Basic Statute of the State, has established the Financial Services Authority (FSA) under Royal Decree 20/2024 (RD), signaling a significant shift in regulatory oversight within the Sultanate’s financial sector.
Effective from 25 March 2024, the RD mandates the complete replacement of the Capital Market Authority by the newly formed FSA.
Under Article III of the RD, all assets, rights, obligations, and holdings of the Capital Market Authority are transferred to the Financial Services Authority. Moreover, Article VII stipulates the replacement of all references to the “Capital Market Authority” in other laws and royal decrees.
The Ministry of Commerce, Industry, and Investment Promotion’s regulatory authority over the accounting and auditing profession is also transferred to the FSA as per the RD.
The specifics of the FSA’s roles, responsibilities, and operational guidelines are anticipated to be delineated in implementing regulations expected to be released on 31 March 2024. Digital Assets regulations are included as well.
This transition marks a pivotal moment in Oman’s financial landscape, necessitating careful observation from market participants engaged in transactions overseen by the Capital Market Authority.
Of particular interest will be how the FSA navigates its expanded supervisory role, including potential oversight of emerging sectors like virtual currencies and crypto assets.
The establishment of the FSA comes amidst broader legislative changes in Oman, including amendments to the Criminal Procedures Law and the promulgation of the Sultan Qaboos University System under Royal Decrees No 18/2024 and No 19/2024 respectively.
The creation of the FSA reflects Oman’s commitment to modernizing its regulatory framework, aligning it with international best practices, and fostering a conducive environment for financial market development.
As the regulatory landscape evolves, businesses operating within Oman’s financial sector are urged to stay informed and seek guidance from experienced professionals to navigate the implications effectively.
For further information and assistance, interested parties are encouraged to reach out to our team of experts specializing in Oman’s financial markets and regulatory framework.
