At a press conference, Oman Financial Services Authority Executive President Abdullah bin Salim Al Salmi outlined the main requirements and implementation of the recently issued Executive Regulation of the Securities Law. The regulation expands investment products and financing options while strengthening investor protection, institutional oversight and market conduct rules. Around 37% of its provisions introduce new or amended requirements, supporting a broader capital market ecosystem that includes investment banking, asset management, market making, product structuring and credit ratings. Investor protection measures require licensed entities to segregate client funds and assets from their own holdings, protect those assets in bankruptcy or liquidation and submit supervisory reports demonstrating compliance. Portfolio managers must follow agreed investment objectives, provide periodic performance statements and avoid using portfolios or information to advance their own interests. The regulation also introduces investment banking as a regulated activity, separates most securities activities from commercial banking and permits banks to retain custody, trust and underwriting services. It further establishes 11 collective investment fund categories, including private equity, venture capital, green and sustainable funds. The framework strengthens risk-based supervision through capital adequacy reporting, risk management and business continuity requirements. It also prohibits manipulative practices such as wash trading, front-running, non-genuine orders and artificial price influence, while providing an accelerated regulatory sandbox pathway for financial technology services and instruments not covered by existing legislation. Entities subject to the regulation must regularize their status by the close of business on January 27, 2027, while banking institutions conducting regulated securities activities have up to three years to comply with the separation requirements.

Original source