The Sultanate Joins MMoU
The Sultanate has joined the MoU. The Multilateral Memorandum of Understanding (MMoU) Concerning Consultation and Co-operation and the Exchange of Information with the International Organization of Securities Commissions (IOSCO), was signed by the Capital Market Authority yesterday, just prior to the 37th IOSCO annual meeting in Beijing. Joining the MMoU gives the Sultanate the capacity to benefit from deeper consultation, cooperation and information exchange.
This is extremely significant for the Sultanate. According to the Capital Market Authority’s CEO, Abdullah bin Salim al Salmi, the Sultanate’s capital market sector will now be able to take advantage of a better developed legislative and regulatory framework, while gaining global recognition and regulatory credibility that the Authority has approved. In addition, the region has every chance of becoming a hotspot for international investment which can benefit from globally-approved high quality audit. Further, it will be much more attractive to outside investors as it will be seen as having the capacity to provide a safe financial working environment for them, that it has, until now, somewhat been lacking. In addition, it will be much easier to access data on regulatory bodies in the member’s countries as well as how they undertake investigative work vis-à-vis market manipulation.
Indeed, the strength of the MMoU is being hailed as extremely impressive. It is being regarded as a new standard for global enforcement cooperation and information-sharing. To date, it has anyway provided tools to combat cross-border fraud and misconduct that in general is able to sever the strength of global markets, which of course has a domino effect of undermining confidence from outside investors. Thus, the Sultanate’s move is only going to be beneficial and encouraging for investors.
As well, there is now the possibility for the investigation of cross-border cases, that, prior to the MMoU, was not possible. With such checks and balances in place in the Sultanate and the economy looking attractive for investment options, there should be fewer concerns about using this region to make a business investment.