Establishment of The Financial Services Authority by Royal Decree No. 20/2024

As of 25^th March 2024, the Financial Services Authority (“FSA”) has officially been established with the promulgation of Royal Decree No. 20/2024 establishing the Financial Services Authority and issuing its system (“RD 20/2024”) initiating significant developments in financial regulation space.

In its initiation, the FSA shall consume the Capital Market Authority (“CMA”) it in entirety including all employees and obligations whilst holding its own legal personality and administrative authority to govern its newly established duties. Establishing its new headquarters in Muscat, with potential additional branches to be announced, the FSA is expected to hold the authority to issue regulations and decisions formerly under the authority of the CMA. Additionally, the FSA will assume the authority to regulate on accounting and auditing activities form the Ministry of Commerce and Industry and Investment Promotion (“MOCIIP”) through the establishment of a committee as referred to in the Law Regulating the Profession of Accounting and Auditing. Notably, the establishment of the FSA will ensure the financial sector’s inclusion in the national decision-making process in light of its direct reporting to the Cabinet of Ministers.

The FSA is expected to be highly influential on the development and growth of Oman’s financial market. It is clear that with this development Oman remains committed towards the streamlining of its regulatory policies and authorities. In a statement put forth by an FSA spokesperson on Sunday the 31^st March 2024, the new system aims re-arrange the financial sector by providing structural and operational benefits to the enactment of legislation in their regulated areas. As notably outlined by the FSA outlines under its mission statement, the authority if focused on ensuring that Oman’s financial market becomes an “engine for sustainable economic growth and wealth creation.”

These amendments provide space for the government to establish systems that facilitate new and lucrative development in Oman’s financial sector and business opportunities.

The K&Co team excel in navigating the regulatory frameworks of Oman and its authorities on matters relative to local, regional and international business. We remain available provide insight on any enquiries that may arise with this development. You can contact our team at info@kco.om.