[World Corporate Law News] SC And FSA Oman Sign Pact On Capital Market Development

[2025] 178 taxmann.com 405 (Article)

World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 SC, FSA Oman Agree to Enhance Capital Market Development and Capacity Building

On September 10, 2025, the Securities Commission Malaysia (SC) and the Financial Services Authority (FSA) of Oman signed a two-year Joint Programme for Capital Market Development Cooperation in Muscat.

The agreement, signed by SC Chairman Dato’ Mohammad Faiz Azmi and FSA Executive President H.E. Abdullah Salim Al-Salmi, aims to strengthen capacity building, knowledge exchange, and promote Malaysia and Oman as investment destinations.

The Key areas of cooperation include:

(a) Joint cross-market promotion of Malaysian and Omani investment opportunities to investors in both countries;
(b) Assessing the feasibility of having a mutual recognition agreement between the SC and FSA Oman to promote the cross/dual listing of products and listed companies;
(c) Joint development programmes including staff secondment and other training programmes;
(d) Knowledge sharing on published capital market research, policy frameworks, and market development strategies

As part of this cooperation, the SC welcomed the participation of FSA Oman regulators in the Young Regulators Development Programme, organised in collaboration with Durham University, United Kingdom.

The SC Chairman Dato’ Mohammad Faiz Azmi said that the Joint Programme signed today marked another SC milestone engagement with its counterparts in the Gulf Cooperation Council (GCC), particularly the FSA Oman.

“Through this collaboration, we aim to enhance knowledge exchange, promote each market’s unique investment proposition — ultimately driving sustainable growth across both conventional and Islamic capital markets,” he said.

H.E. Sheikh Abdullah bin Salem Al Salmi, Executive President of the FSA said,

“Our partnership with the Securities Commission Malaysia is a bridge between ASEAN and GCC capital markets. With the signing of our joint cooperation programme, we are building on strong foundations and expanding collaboration in areas such as capacity building, sustainable finance and market innovation. Thereby laying the groundwork for resilient, trusted and globally connected financial markets that will benefit both countries and the wider region.”

The SC also held engagements with key stakeholders in Oman this week to showcase Malaysia as an attractive destination for economic collaboration and cross-border investment opportunities.

Discussions also highlighted the role of Islamic capital markets in enabling greater cross-border funding flows and new opportunities in areas such as wealth management family offices.

As of June 2025, Bursa Malaysia recorded 855 Shariah-compliant securities, representing 80.58% of total listed securities. These span across key sectors such as industrial products and services, consumer products and services, technology, and property.

Source – Press Release

1.2 ASIC remakes relief instrument for deposit product disclosure

On September 15, 2025, the Australian Securities and Investments Commission (ASIC) remade its legislative instrument providing relief to authorised deposit-taking institutions (ADIs) from certain disclosure requirements for deposit products.

ASIC Corporations (Deposit Product Disclosure) Instrument 2025/509, which replaces Instrument 2015/683, extends relief until 1 October 2030. ADIs are exempt from including interest rates in Product Disclosure Statements (PDS) and termination values in periodic statements.

The relief aims to reduce administrative burden on industry and encourage beneficial product changes for depositors.

ASIC assessed that the instrument is generally operating effectively and continues to form a useful part of the legislative framework. ASIC will continue to monitor the instrument’s appropriateness and feedback from relevant stakeholders.

Background

Instrument 2025/509 removes the requirement for ADIs to provide a new or supplementary PDS each time interest rates change, which could be costly and possibly discourage beneficial product changes for depositors, such as interest rate increases.

As a condition of the relief, a PDS must clearly explain where depositors can find current product interest rates, and they must be simple and convenient to find.

The instrument also provides relief from ADIs having to include termination values in periodic statements. ADIs must include any restrictions or fees on early terminations in the deposit product PDS.

Instrument 2015/683 was remade on 3 September 2025.
In July 2025, ASIC invited feedback on our proposal to remake Instrument 2015/683, receiving one submission, which supported the proposal.

Source – Official Announcement

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