The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
The Central Bank of Oman (the “CBO”) issued the Financial Consumer Protection Regulatory Framework (“FCPRF”) for licensed banks and finance and leasing companies (the “Licensed Entities”) in December 2021 which covers all products and services offered by Licensed Entities to individual consumers and small and medium enterprises.
The FCPRF introduces five principles that shall apply to all Licensed Entities, consistent with international best practices of financial consumer protection. The five principles under the FCPRF are as follows:
The application of, and compliance with, the FCPRF is the responsibility of the board of directors of Licensed Entities. In this regard, local Licensed Entities are encouraged to form separate board level committees to oversee the application of the FCPRF, and at a minimum, all Licensed Entities must include the FCPRF in the terms of reference of existing board level committees.
Licensed Entities will be required to disclose the status of financial consumer protection in their annual reports from the financial year ending of 2023 (details of such disclosure will be conveyed in due course by the CBO).
The FCPRF requires that all Licensed Entities conduct an impact analysis of the FCPRF, and submit to the CBO a board approved plan of action to ensure its structures, policies, procedures, practices and systems comply with the Framework within six months of the issue of the FCPRF. Subject to the outcome of the impact analysis, Licensed Entities are subsequently required to ensure that all rectification actions are completed within eighteen months of issue of the Framework.
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 are the CBO deems to be appropriate.
The CBO shall issue further details regarding the application and implementation of the FCPRF in due course.
The impact of the FCPRF will undoubtedly require Licensed Entities in Oman to apply the regulatory requirements introduced by the FCPRF. Al Tamimi & Company’s Banking & Finance team helps clients navigate compliance requirements and the actions required under the FCPRF. For any queries in Oman, please don’t hesitate to contact the lawyer below.