FSA to enhance integrity of financial services sector
At every stage, the Sultanate of Oman has witnessed the establishment of economic and financial institutions and their upgrade to specialised organisations in providing services and following up on issues of concern to investors and customers.
From this standpoint came the issuance of Royal Decree No. 20/2024 establishing the Financial Services Authority (FSA).
The new decree decided to transfer the affiliation of accounting and auditing offices to the latest body, in addition to its other previous tasks, including supervision of insurance companies, since the affiliation of accounting and auditing offices was under the responsibility of the Ministry of Commerce,
Industry and Investment Promotion before that.
Accounting and auditing offices are an exceptionally large sector in the country, numbering 196 offices, most of which are managed by international accounting and auditing companies, in addition to some Omani companies that prepare annual financial reports for companies, private institutions, government companies and others. There is no doubt that this revamp will enable the FSA to follow up and supervise the conditions of companies and institutions to a greater extent, especially since most of the financial reports that it issues belong to public joint-stock companies listed on the Muscat Stock Exchange and other joint, family and individual companies as we know. There are concerns that those who work in some accounting and auditing companies either cover up for their clients or, on the other hand, fail to maintain confidentiality of key data relating to public jointstock companies.
This can lead to the exploitation of buying and selling opportunities for shares of companies listed on the MSX by some people before all customers and investors know about them.
This causes harm to some investors in the market.
The presence of the Financial Services Authority will enhance the tasks of accounting and auditing companies to carry out their tasks correctly and complement the rest of the other sectors included in this authority
. In the coming period it will prepare an executive plan to inventory accounting and auditing offices, and reconsider the law regulating them, according to Shaikh Abdullah bin Salem al Salmi, Executive President of the Financial Services Authority.
The issuance of the Royal Decree establishing this authority will enhance the integrity and independence of the financial sector in Oman, and expand its various businesses and sectors, in addition to greater supervision and control of the accounting and auditing profession.
This work also paves the way for the issuance of special legislation, laws, and regulations for each sector in a manner commensurate with its nature and organisational structure, with the aim of enhancing the Authority’s role in providing the appropriate investment environment to achieve economic diversification, encourage investment, develop the private sector, work, and employment initiatives and enhance international cooperation.
We do not forget that the presence of this body will enable, qualify and build the national capabilities of Omanis in the presence of such a large number of them in the field of accounting who are graduates of Sultan Qaboos University and national and foreign universities and in specializations of interest to accounting, auditing companies.
The presence of the new authority will work to enhance the protection of the rights of investors, in addition to enhancing confidence in the financial markets, encouraging investment, and achieving the economic inclusiveness that we aim to achieve.