Oman Securities Law Executive Regulation 2026: Key Changes for Financial Businesses

Oman’s capital market entered a new regulatory phase in July 2026 with the introduction of the Executive Regulation of the Securities Law. Issued by the Financial Services Authority (FSA), the regulation modernises securities-sector rules, strengthens investor protection and establishes a more comprehensive framework for financial businesses operating in Oman.

For banks, investment firms, fund managers, securities issuers and other regulated entities, the changes directly affect licensing, governance, operational controls and compliance responsibilities. The regulation also introduces new opportunities through investment banking, financial technology, market infrastructure and investment funds.

The Financial Services Authority regulations is essential for businesses that want to maintain regulatory compliance, protect investor interests and operate confidently in Oman’s financial market.

Overview of Oman Securities Law Executive Regulation 2026

The Financial Services Authority issued Decision No. E/11/2026, promulgating the Executive Regulation of the Securities Law. The regulation was published in Oman’s Official Gazette on 26 July 2026 and entered into force on 27 July 2026.

It implements the Securities Law issued under Royal Decree No. 46/2022 and replaces much of the previous executive framework governing Oman’s capital markets.

The regulation establishes detailed requirements for capital market institutions, licensed securities-sector entities, investment funds, credit rating agencies, issuers and market infrastructure providers.

What Does the Executive Regulation Cover?

The regulation contains seven chapters addressing major areas of securities-sector regulation:

• General definitions and provisions
• Capital market institutions and their licensing requirements
• Securities-sector operating entities and regulated activities
• Credit rating agencies
• Collective investment schemes and investment funds
• Issuers, disclosure obligations and market integrity
• Grievances and appeals against FSA decisions

Relationship with Oman Securities Law 2022

The Securities Law, issued under Royal Decree No. 46/2022, provides the primary legislative framework for securities activities in Oman.

The 2026 Executive Regulation translates the law’s general provisions into detailed licensing, operational, governance and compliance requirements.

Financial businesses need to assess both the underlying securities law and its executive regulation. Reviewing the regulation alone does not provide a complete picture of their obligations.

Why Oman Introduced the New Securities Regulation

Oman’s financial sector continues to develop as the country expands investment opportunities and diversifies its economy under Oman Vision 2040.

The new regulation supports this development through a more modern capital market framework.

Strengthening Investor Confidence

Investor confidence depends on transparent markets, effective supervision and clear accountability.

The regulation strengthens protections for investors through improved disclosure, enhanced oversight and requirements concerning the protection and segregation of client funds and assets. These measures establish stronger expectations for financial businesses handling investor money, securities and investment products.

Attracting Domestic and International Capital

Oman aims to expand its capital markets and attract greater participation from domestic and foreign investors.

A modern regulatory framework supports this objective by establishing clearer rules for financial institutions, investment products and market participants. Businesses operating within the securities sector gain a more structured environment for financing, investment and capital market development.

Supporting Financial Innovation

Financial technology continues to introduce new investment products, digital services and financing methods. The regulation establishes a framework for licensing innovative financial activities and instruments, including arrangements through the FSA’s regulatory sandbox.

Key Changes Under the 2026 Executive Regulation

The new regulation introduces significant changes to licensing, governance, investment products, financial technology and capital market infrastructure.

1. Expanded Capital Market Infrastructure Licensing

One of the most important developments is the introduction of a more comprehensive licensing framework for capital market infrastructure institutions.

The regulation addresses institutions involved in:

• Exchanges
• Securities depositories
• Clearing houses
• Settlement systems
• Central counterparties

The updated framework establishes licensing and operational requirements for these activities, creating a stronger foundation for market infrastructure development in Oman.

2. Modernised Licensing Requirements

The regulation introduces more detailed licensing requirements for entities conducting securities-related activities.

Applicants need to demonstrate their operational readiness, financial capability, governance arrangements and compliance systems.

Licensing applications place greater emphasis on:

• Business models and proposed activities
• Financial and operational capacity
• Governance structures
• Internal policies and procedures
• Electronic and technical systems
• Risk management arrangements
• Compliance functions

Financial businesses need to review their existing licence scope and ensure their activities match the permissions granted by the FSA.

3. Stronger Governance and Operational Resilience

The regulation reinforces governance and operational resilience requirements for licensed entities.

Financial businesses need governance arrangements that support accountability, effective supervision and reliable operations.

Key areas include:

• Business continuity planning
• Information security and confidentiality
• Internal controls
• Risk management
• Compliance oversight
• Succession planning
• Board and management responsibilities

4. Separation of Regulated Securities Activities

The regulation establishes stronger separation requirements for activities regulated under the Securities Law.

Licensed entities need to assess whether their securities activities are appropriately separated from other business operations. The separation framework addresses conflicts of interest, operational independence and regulatory accountability.

Banks face a particularly important change. Certain securities activities must be conducted through a separate entity wholly owned by the bank rather than within its commercial banking operations. Custody, trust and underwriting activities are exceptions to the general separation requirement. Banks need to review their existing operating structures and determine which activities require restructuring.

5. Expanded Investment Banking Activities

The Executive Regulation defines investment banking as a distinct regulated activity and identifies five areas:

• Investment management
• Product structuring
• Securities portfolio management
• Research and advisory services relating to listed securities
• Issue management

Financial businesses offering these activities need to assess their licensing position and confirm that their existing permissions cover their services.

The updated framework also supports the development of financing solutions and investment products for businesses and investors in Oman.

6. Wider Range of Collective Investment Funds

The regulation expands the categories of recognised investment funds to include 11 types:

• Securities mutual funds
• Money market funds
• Real estate investment funds
• Debt instrument funds
• Holding funds
• Exchange-traded funds
• Venture capital funds
• Private equity funds
• Waqf funds
• Green funds
• Sustainable purposes funds

7. Stronger Client Asset Protection

Protecting client funds and assets is a central part of the updated regulatory framework.

Licensed securities-sector entities need appropriate arrangements to separate client assets from their own funds and assets.

Businesses handling client money or investment assets need to review their custody arrangements, reconciliation procedures, internal controls and operational policies.

8. Enhanced Credit Rating Agency Regulation

The regulation strengthens the framework governing domestic and international credit rating agencies operating in Oman.

Credit rating agencies need to meet the applicable registration, licensing and operational requirements.

The framework supports more reliable credit assessments, stronger risk evaluation and greater transparency in the capital market.

9. Financial Technology and Innovative Financial Instruments

The regulation provides a framework for the FSA to license financial technology activities and innovative financial instruments that fall within its regulatory scope.

The FSA’s regulatory sandbox supports the testing and development of innovative financial services under defined regulatory conditions.

Financial technology businesses need to assess whether their proposed services fall within the securities law and the FSA’s licensing requirements before launching operations.

How the Regulation Affects Financial Businesses

The new framework affects financial businesses differently depending on their activities, licensing status and regulatory classification.

Banks and Financial Institutions

Banks conducting securities-related activities need to review their existing structures, licensing permissions and operational arrangements.

The separation requirement creates a major implementation consideration for banks offering investment banking and other regulated securities activities.

Banks need to identify affected services, assess restructuring requirements and establish a compliance plan that meets the applicable transition deadline.

Investment Firms and Securities Operators

Investment firms need to review their licensing scope, governance structures, internal controls and operational systems.

Businesses offering investment management, securities portfolio management, product structuring or investment advisory services need to confirm that their activities fall within their authorised permissions.

Fund Managers and Investment Fund Operators

Fund managers need to assess the updated rules governing fund establishment, management, governance and service providers.

The expanded fund categories also create opportunities for new investment products, subject to the applicable licensing and regulatory requirements.

Securities Issuers

Issuers need to review disclosure obligations and market integrity requirements under the regulation. Effective disclosure procedures help ensure that relevant information reaches investors accurately and in accordance with applicable requirements.

Compliance Requirements and Transition Periods

The Executive Regulation establishes a transition period for existing regulated entities to align their operations with the new framework.

Six-Month Compliance Period

Capital market institutions and entities operating in the securities sector generally need to regularise their status within six months from the regulation’s effective date.

With the regulation taking effect on 27 July 2026, affected entities need to complete the required alignment within the applicable six-month period.

This requires a structured review of existing licences, governance arrangements, operational policies and compliance procedures.

Three-Year Transition for Banks

Banks already licensed to conduct relevant securities activities receive a longer transition period of up to three years for the applicable restructuring requirements.

This extended period recognises the organisational and operational changes involved in separating certain securities activities from commercial banking operations.

Banks need to use this period to develop a clear restructuring plan, establish the required legal arrangements and maintain compliance with other applicable obligations during the transition.

Existing Instructions and Regulatory Circulars

The FSA has stated that existing instructions, forms and circulars remain in force until replaced or updated, provided they do not conflict with the Securities Law or its Executive Regulation.

Financial businesses need to review the new regulation alongside applicable FSA instructions and circulars to maintain a complete compliance position.

Practical Steps for Financial Businesses

Financial businesses need a structured implementation plan to meet the new requirements and maintain their regulatory position.

Conduct a Regulatory Gap Analysis

Compare existing operations, licences, policies and procedures against the new regulation.

Identify gaps in licensing, governance, client asset protection, operational resilience and reporting. The gap analysis provides a clear list of required changes and assigns responsibility for implementation.

Review Licensing Scope and Business Activities

Examine the activities currently authorised under the company’s licence. Confirm whether each service remains within the permitted scope and identify activities requiring additional authorisation or restructuring.

Update Governance and Compliance Policies

Review internal policies covering risk management, compliance, conflicts of interest, business continuity, information security and client asset protection. Update governance arrangements to reflect the responsibilities established by the new regulation.

Strengthen Operational Systems

Assess whether existing financial, electronic and operational systems support the new requirements. Businesses need reliable procedures for monitoring activities, protecting client assets, maintaining records and reporting relevant information.

Develop a Transition and Implementation Plan

Create a practical compliance roadmap covering:

• Regulatory requirements
• Required changes
• Responsible departments
• Implementation deadlines
• Documentation and evidence
• Management oversight
• Ongoing monitoring

Challenges of Securities Regulatory Compliance

Implementing the new regulation involves several operational and organisational considerations.

Understanding the Full Regulatory Scope

Financial businesses need to distinguish between general requirements and provisions applicable to their specific activities. A detailed regulatory assessment helps identify the rules that apply to each licence, service and business structure.

Managing Licensing and Structural Changes

The new licensing and separation requirements can affect existing business models. Entities need to assess the legal, operational and financial implications of any restructuring before making changes.

Maintaining Reliable Compliance Documentation

Regulatory compliance depends on documented policies, procedures, controls and evidence of implementation. Businesses need organised records that demonstrate how they meet licensing and operational requirements.

Coordinating Internal Departments

Regulatory implementation involves legal, compliance, finance, IT, operations and senior management. Clear responsibilities and coordinated implementation help businesses address the new requirements efficiently.

Strengthen Regulatory Compliance with Finsoul Network Oman

The Oman Securities Law Executive Regulation 2026 marks a major development in the country’s financial services. Its updated licensing framework, stronger governance requirements, expanded investment fund categories and improved investor protection measures establish new expectations for securities-sector businesses.

Financial institutions, investment firms, fund managers and other regulated entities need to review their existing operations and address the changes within the applicable transition periods. Finsoul Network Oman supports businesses with regulatory compliance and financial consulting services, helping them organise their requirements, strengthen internal processes and prepare for regulatory changes.

FAQs

What is the Oman Securities Law Executive Regulation 2026?

It is the Executive Regulation issued under FSA Decision No. E/11/2026 to implement Oman’s Securities Law, Royal Decree No. 46/2022. It establishes detailed rules covering licensing, capital market institutions, investment funds, issuers, governance and securities-sector operations.

When did the Oman Securities Law Executive Regulation 2026 come into force?

The regulation was published in Oman’s Official Gazette on 26 July 2026 and entered into force on 27 July 2026.

What are the main changes under the 2026 securities regulation?

Major changes include modernised licensing requirements, stronger governance and operational resilience, separation of certain securities activities, expanded investment banking regulation, wider investment fund categories and stronger client asset protection.

Which businesses are affected by the new Financial Services Authority regulations?

The regulation affects capital market institutions, licensed securities-sector entities, investment firms, fund managers, securities issuers, credit rating agencies and other entities operating within its regulatory scope.

What is the compliance deadline for existing securities-sector entities?

Affected capital market institutions and securities-sector entities generally have six months from the regulation’s effective date to regularise their status. Banks conducting relevant securities activities receive a longer transition period of up to three years for applicable restructuring requirements.

Does the regulation require banks to separate securities activities?

Yes. Certain regulated securities activities need to be conducted through a separate entity wholly owned by the bank. Custody, trust and underwriting activities are exceptions to the general separation requirement.

How does the new regulation affect investment funds in Oman?

The regulation recognises 11 categories of collective investment funds and consolidates the rules governing their establishment, management, governance and service providers. Fund operators need to review the applicable licensing and compliance requirements.

How can financial businesses prepare for the new securities regulation?

Businesses need to conduct a regulatory gap analysis, review their licensing scope, update governance and compliance policies, strengthen operational systems and develop an implementation plan covering the applicable transition period.