Muscat – Al Shabiba
The CEO of the Capital Markets Authority has confirmed that the issuance of the Securities Act in accordance with Royal Decree no. future requirements in the light of the technical revolution, and the legal treatments it imposes to regulate financial technology and create a legal umbrella for innovative financing instruments, which emphasized its happiness that the law protected the primary traders in the Omani capital market and providing a financing environment with multiple options and a high capacity to attract local and foreign capital by enhancing public confidence by providing a fair investment environment based on integrity and transparency and a market with requirements And tools that provide adequate protection for the owners of capital.
His Excellency Sheikh Abdullah bin Salem Al-Salmi, CEO of the Capital Markets Authority, indicated that the issuance of a new security law contributes to achieving the strategic priorities of Oman 2040 vision, which is to support initiatives that contribute to economic diversification and financial sustainability, as well as support for the private sector, investment and international cooperation, in addition to providing a competitive and investment-attractive business environment in which the government plays the regulatory role associated with successful administrative efficiency, in addition to transparency and firm institutional disclosure that guarantees the right of access to information, and the articles of law have translated the strategy put forward by the government to improve the performance of the capital market sector as a key driver in economic development.
On the most prominent features of the law, His Excellency indicated that the new Security Act contributes to the creation of an independent law regulating the security industry in the Sultanate of Oman in accordance with the requirements of the current and future stage of development, as it is flexible enough is. defining general principles and leaving the details for decisions and the executive regulations that the authority will issue successively and within a period of time. , and the law gives the government better opportunities in the field of regulation, development and control of the pace of the sector to achieve the desired goals and aspirations.
Al-Salmi added that the law keeps pace with the developments brought about by the technical revolution, as it provides a legal umbrella related to the regulation of the requirements of financial technology known as Fintech, which contributes to the provision of financial support to economic sectors by using innovative financial solutions. , as the law empowers the Capital Markets Authority to regulate innovative financing Approval of the application of technology and digital virtual investments. The law also allows for the expansion of financing options by regulating new products and services such as warehouse receipts, derivatives, futures and others.
On the other hand, His Excellency indicated that the Security Act supports special programs and initiatives to finance small and medium-sized enterprises, given the economic importance of this type of enterprise, whose financing needs are of a particular nature, which is one of the main challenges facing entrepreneurs of small and medium enterprises face.
His Excellency explained that the law created the necessary legislative structure to ensure the independence of the Muscat Stock Exchange from the government and to move forward to be a self-regulating institution, and allowed the stock exchange to provide brokerage activities, market creation and marginal financing regulate, and the law also allowed the government to license the establishment of a stock exchange for small and medium enterprises. The articles of law also focus on achieving the principle of justice and protection for traders in the capital market in the Sultanate of Oman by drafting many global determinants and practices, including those adopted by the International Organization of Security Supervisors ( ISCO) has been issued. The law also provided the necessary legislative coverage to address the shortcomings included in a rating report compiled by the Thomas Morey Foundation on the Muscat Clearing and Depository Company, which would improve the company’s classification to higher levels that it position among his peers.
His Excellency spoke on Article 9, which obliges the government, when exercising its powers, to encourage competition and innovation in services and products provided by the entities subject to the provisions of the law, and to provide access to customers on to facilitate equal footing, and to work to determine the fair costs imposed by the government on the entities subject to the provisions of this Act, in accordance with the benefits that would benefit the traders, in addition to ensuring that a balance is established between the interests of the entities subject to the provisions of this Act and the interests of their clients.
His Excellency indicates that the law has addressed an important point that will contribute to the development of the capital market, namely to encourage the establishment of independent institutions involved in investment banking activities, involved in the provision of advisory services related to financing options , acquisitions, control. and other services.
In order to improve the investor protection system involved in the Security Act, His Excellency emphasized that the law empowers the Government to establish a fund to protect traders, which is aimed at compensating traders in the event of losses that may occur. to their assets held. with the company. His Excellency explained that the fund does not cover losses arising from a change in value. It does not cover the losses associated with the assets that borrowers or provided as guarantees to an entity in the field of securities under an agreement between them.
In the context of strengthening the investor protection system, the law gave clients who lost their assets to any of the licensed entities subject to liquidation the first rank among creditors. Where Article (52) indicates that the Authority must appoint a liquidator if it finds that any of the members of the Merchant Protection Fund have declared bankruptcy, and if the assets of the clients are not specified, it is divided in equal proportions, and the Clients who have lost their assets with the licensed entity that is the subject of liquidation are first among the creditors.