Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.Find out more
We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
Financial Consumer Protection Regulatory Framework
As announced last year, the Central Bank of Oman’s (“CBO”) Financial Consumer Protection Regulatory Framework (“FCPRF”) comes into force next year and licensed banks and finance and leasing companies (“Licensed Entities”) will be required to disclose the status of financial consumer protection in their 2023 annual reports.
Actions to be Taken
Under the FCPRF, Licensed Entities must conduct an impact analysis and submit a board-approved plan of action to ensure its structures, policies, procedures, practices and systems comply with the FCPRF to the CBO. Subject to the outcome of the analysis, the Licensed Entities are subsequently required to ensure compliance within eighteen months of the FCPRF’s issuance (i.e., by 29 June 2023).
Since the application of, and compliance with, the FCPRF is the responsibility of the board of directors of Licensed Entities, Licensed Entities are encouraged to form separate board-level committees to oversee the application of the FCPRF and, at a minimum, include the FCPRF in the terms of reference of existing board-level committees.
Failure to Comply
The CBO will take any necessary regulatory actions where the standards of the FCPRF are not being met. Violations may be subject to penalties and other measures the CBO deems appropriate.
Key Learnings from the UAE
While every jurisdiction within the GCC has its own particular considerations, one cannot ignore the recent implementation of a very similar consumer protection regime in the UAE. It marked a fundamental change to the financial industry in the UAE and can provide useful lessons during the transition in Oman.
The UAE Consumer Protection Regulation (“CPR”) was issued on 31 December 2020 and became ‘live’ on 1 January 2022 after a 12 month transitional period. Al Tamimi & Company has been instrumental in working with many financial institutions in the UAE to ensure compliance with the CPR. Key learnings during the course of overhauling the documentation and internal processes include the following:
How can we help?
Al Tamimi & Company’s Banking & Finance team can help clients navigate compliance requirements and the actions required under the FCPRF. For any queries in Oman, please don’t hesitate to contact the lawyers below.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.