MCDC launches mechanism for regulating consolidated accounts

Muscat: Muscat Clearing and Depository Company (MCDC) has launched a mechanism for regulating consolidated accounts, enabling investors to access investment opportunities in the Omani capital market for the benefit of more than one beneficial owner.

This step reflects national trends towards enhancing the openness of the capital market and attracting international capital, through organising the legislative and regulatory frameworks for consolidated accounts. The system of rules regulating clearing and deposit operations that were recently adopted and issued also supports the confidence of foreign investors and keeps pace with the best global practices in deposit systems.

This regulation comes in the context of developing the legislative structure of the Omani capital market, where consolidated accounts constitute a key tool used by global investment institutions to manage and safeguard their clients’ assets with high efficiency, while maintaining governance and transparency requirements.

A consolidated account is defined as a securities account in which multiple securities belonging to different clients are collected in a group account held by the consolidated account operator on behalf of some or all of its clients. The consolidated account operator is a licensed entity from the Financial Services Authority, or any other entity, including a foreign entity. The account is opened with Muscat Clearing and Depository Company to manage the holdings of a group of investors within a unified account.

Mohammed bin Said Al Abri, CEO of Muscat Clearing and Depository Company, said that regulating consolidated accounts embodies the balance we are keen on between facilitating procedures for international investors and at the same time maintaining the highest standards of compliance and protecting investors’ rights.

He pointed out that the current regulatory framework is designed to ensure complete legal clarity, especially in exceptional cases such as the operator’s default or restructuring, where investors’ ownership remains defined and separable from the operator’s assets, thus enhancing the level of protection and confidence.

He added in a statement to the Oman News Agency that the customer in the consolidated account has the right to transfer securities to any account in his name registered with Muscat Clearing and Depository Company, or to transfer it to another consolidated account with another operator.

He emphasised the company’s commitment to raising the efficiency of clearing and settlement operations and improving the investor experience. It will also contribute to increasing foreign investment flows, enhancing liquidity and supporting economic diversification goals, in line with Oman Vision 2040 for developing the financial sector and achieving sustainable growth.