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The Financial Services Authority released the Executive Regulation of the Securities Law under Decision No. E/11/2026 effective July 27 replacing rules from 2009 and implementing Royal Decree No. 46/2022. The framework contains seven chapters addressing licensing capital market institutions collective investment schemes and market integrity measures. FSA officials stated that the updates aim to create a more efficient environment for attracting local and foreign capital while supporting Oman Vision 2040 objectives.
Commercial banks must now conduct most securities activities through legally separate entities with a three-year transition period to complete the shift according to the authority. Custody trust services and underwriting remain exempt from the separation requirement the FSA noted in its September briefing. The change extends to governance reporting compliance and operational structures for affected institutions.
Investment banks gain approval to combine five specific activities under the regulation Zawya reported. These include investment management product structuring securities portfolio management research and advisory services on listed securities as well as issue management and underwriting of approved offerings. Such provisions seek to broaden financing solutions available to companies and growth projects through capital market instruments.
The regulation expands collective investment funds to 11 distinct categories an Oman Observer summary of the FSA presentation showed. Categories encompass mutual funds liquidity funds real estate funds debt instrument funds index funds private equity funds endowment funds green funds sustainability funds and venture capital funds. Officials positioned these vehicles as key tools for asset growth project financing and economic diversification.
Investor protections receive significant attention through stricter rules on segregating client funds and assets from those of licensed entities the authority said. Portfolio managers face explicit obligations to adhere to agreed investment objectives avoid misleading information and refrain from using client portfolios to benefit the licensed firm. Enhanced supervision and periodic reporting will help the FSA monitor compliance and mitigate bankruptcy risks.
Prohibitions on market manipulation form another core element with the regulation banning wash trading transactions lacking genuine ownership changes and orders placed without execution intent according to FSA details. Artificial influence on opening or closing prices is similarly barred to maintain fair supply and demand dynamics on the exchange. The authority indicated that roughly 37 percent of the regulation’s provisions are either newly introduced or substantially amended.
Minimum paid-up capital requirements vary by institution type under Article 18 of the regulation with RO 10 million required for the securities exchange RO 5 million for the depository and RO 4 million for a central counterparty the FSA specified. Other entities have six months from the effective date until January 27 2027 to regularise their positions. In its analysis titled Key provisions in Oman’s new FSA Executive Regulation to Securities Law Addleshaw Goddard LLP highlighted how these measures promote risk-based supervision and improved disclosure across the capital market.
