APR 13 2024

Last Data Update

APR 12 2024

Violations and Administrative Penalties

Article (55)

CMA employees designated by the competent legal authority, in agreement with the CMA, shall act as Enforcement Officers in the scope of application of the provisions of this law, the regulations and the decisions issued thereunder.

Article (56)

The regulation shall specify the mechanism for receiving reports from whistleblower’s on suspected violation of the provisions of this law, the regulation and the decisions issued thereunder as well as the mechanism for consideration of such reports, and deciding thereon.

Article (57)

The following shall be considered as violations of the provisions of this law:

  • Violation of the decisions, instructions and orders issued for implementation of the provision this this law and the regulation
  • Committing any of the act stipulated in Article (34) of this law
  • Issuer failing to provide material information in a public offering or private placement
  • Failing to provide any books, records or registers or information on the form and time specified in the Regulation or by the CMA
  • Recommending securities or related services or products or professional services unsuitable to the consumer’s financial resources and experience
  • Providing misleading advice or lacking material information or containing conflict of interest.
Article (58)

The Executive President of the CMA shall undertake one or more the following administrative penalties against the persons violating this Law or the regulations or the decisions made thereunder:

  • warning
  • issuance of a public cautioning statement;
  • issuance of a directive requiring the person to correct a violation during the period specified by the CMA;
  • imposition of a monetary penalty not less that RO 1,000 and no more than RO 200,000.
  • Administrative fine not less than (2) times of the illicit gains made or losses avoided.
  • Suspend practicing the activities stipulated in this law or the regulation permanently or temporarily
  • Suspend the license temporarily and order remedy of the violation during a period specified by the CMA.
  • Debar any person from taking up any employment with any regulated entities under this law, for a particular period or permanently.
  • Cancellation of the license.
Article (59)

With reference to the provision of Clause (e) of Article (58) of this law, the CMA may compensate the consumers for their actual losses from the penalty amount collected, if any, as per the conditions and procedures prescribed in the regulation.

Article (60)

The Board shall issue a resolution forming an Appeal Committee comprising of two (2) senior judges from the Primary Court and nominated by the competent judiciary authority. The most senior of them shall chair the committee. In addition, one member specializing or with experience in securities, shall be nominated by the Oman Chamber of Commerce and Industry. The Committee shall hear the appeals made by the parties concerned against the resolutions of the Board or the CMA under this law, the regulation or the decisions made thereunder. The committee is authorized to hear the complaints against resolutions made by the board chairman or CMA, pursuant to the provisions of this law, its regulation and any decisions made to enforce the same. The regulation shall set out the procedures of the Committee.

Article (61)

The Executive President may, by decision recorded with reasons, if proven by evidence that there is irreparable violation that could be detrimental to the consumers or the capital market sector, impose any of the following penalties:

  • Suspend the violator temporarily from practicing specific actions or activities for a period not exceeding thirty (30) days.
  • Suspend dealing in the assets which relates to the subject matter of the violation, for a period not exceeding thirty (30) days.

The concerned persons may appeal the decision imposing any penalty provided for in the previous paragraph to the Appeals Committee stipulated in Article (60) of this law within fifteen (15) days from the date of being informed. The Committee shall decide in the appeal within fifteen (15) days from date of filing. No response to the appeal during the specified term shall be deemed as admission of the appeal.

Article (62)

Notwithstanding the provision of Article (61) of this law, the appeals to the Appeal Committee shall be filed with the Committee, stipulated in Article (60) of this law within sixty (60) days from being aware of the decision. The Committee shall dispose of the appeal within thirty (30) days from the date of appeal and its decision shall be final.