Establishment of the Supreme Sharia Supervisory Board at the Capital Market Authority and Its Functioning System

Decision
No. 171/2021
On the Establishment of the Supreme Sharia Supervisory Board at the Capital Market Authority and the Issuance of Its Functioning System Based on the Takaful Insurance Law issued by Oman Sultani Decree No. 11/2016; Based on the approval of the Board of Directors of the Capital Market Authority; and ;Based on the requirements of the Public Interest :The following has been decided
Article 1
The Capital Market Authority shall establish a board named “Supreme Sharia Supervisory Board” .and the attached provisions shall apply to the functioning system thereof
Article 2
The present Decision shall be published in the Official Gazette and shall come into force from the .day following its date of publication .Issued on: 22 Jumada Al-Awwal 1443 H Corresponding to: 27 December 2021 Sultan Bin Salem Bin Saeed Al Habsi Minister of Finance Chairman of the Board of Directors of the Capital Market Authority Functioning System of the Supreme Sharia Supervisory Board at the Capital Market Authority
Article 1
In the implementation of the provisions of the present Functioning System, the following terms :and expressions shall have the meanings assigned thereto unless the context requires otherwise Authority: The Capital Market Authority Board: The Board of Directors of the Authority Supreme Board: The Supreme Sharia Supervisory Board stipulated in Article (5) of the Takaful .Insurance Law Chairman: The Chairman of the Supreme Board
Article 2

The Supreme Board shall be established by a decision of the Board of Directors and shall consist of (5) members including the Chairman, provided that three members at least meet the following :conditions .To hold a bachelor degree at least in the field of Islamic Shariah or its equivalent -1 To be familiar with the jurisprudence of transactions, Islamic Banking, finance, capital market -2 .or insurance To have an experience of (10) years at least in the jurisprudence of financial transactions, -3 .Islamic Banking, finance, capital market or insurance .To have a good conduct and a good reputation -4 The two other members shall have at least (10) years of experience in the fields of economy, .finance, law, commercial operations or others
Article 3
:The Supreme Board shall exercise the following competencies Contribute to the establishment of the Sharia General Policy regulating the work of the -1 .companies subject to the Takaful Insurance Law Express opinion and provide advice to the Authority in Shariah aspects related to the Takaful -2 .Insurance Contribute to the development of the legislation regulating Shariah aspects related to the -3 .Takaful Insurance Express opinions to the Authority about the legitimacy of the products, services, publications -4 .and contracts provided by the Takaful Insurance Companies Decide on jurisprudence controversial matters between the members of the Shariah -5 .Supervisory Committees at the Takaful Insurance Companies Any other functions entrusted thereto by the Board as per the competencies of the Supreme -6 .Board
Article 4
The Supreme Board shall hold two meetings at least per year upon invitation of the Chairman or whomever replaces him. In order for the meeting to be valid, the Chairman or his replacement and the majority of the members shall attend, and it is possible for the Supreme Board to convene upon invitation of the Board or by a request to be submitted by two members of the Supreme Board to the Chairman. The decisions of the Supreme Board shall be issued by a majority vote of the attending members, and in case of equal votes then the Chairman of the session shall have the casting vote. The Supreme Board may seek the assistance of any person from the Authority or outside to attend its meetings and participate in the deliberations without .having the right to vote
Article 5
The Supreme Board shall hold its meetings at the Authority or using the adequate media enabling audio-visual communication. Whenever necessary, the Supreme Board may take any of its decisions by circulation
Article 6
The Supreme Board, at the first meeting, shall select a Deputy-Chairman among its members to

replace the Chairman in his absence or in case there is any obstacle preventing him from .exercising his competencies
Article 7
The Supreme Board shall have a rapporteur to be appointed by a decision of the Board for the :exercise of the following competencies .Invite the members of the Supreme Board to attend meetings -1 Prepare a statement including the matters that shall be submitted to the Supreme Board with -2 a detailed note about every matter, provided that a copy is delivered to the Chairman and the members of the Supreme Board well in advance of the meeting and in case the meeting is not .urgent then it is not necessary to abide by such deadline Register the work of the Supreme Board in a record which shall include a statement of the -3 names of the attending persons and the members who failed to attend, as well as the subject￾matters presented and the deliberations that occurred, in addition to the recommendations and decisions issued. The records shall be signed by the Chairman and members of the Supreme .Board Follow up and implement the decisions of the Supreme Board, and submit a brief summary of -4 .the measures taken in this regard at every meeting
Article 8
The Supreme Board may coordinate with the relevant government entities and the entities subject to the control of the Authority about the products and services provided thereby, .whenever necessary
Article 9
The Authority shall pay all the remunerations of the members of the Supreme Board and the rapporteur, as well as the financial allocations deemed necessary to exercise their competencies. Such allocations and remunerations shall be determined in a decision issued by the Board upon .approval of the Ministry of Finance
Article 10
The membership duration at the Supreme Board shall be (4) years that may be renewed for one .or more similar durations
Article 11
.The Supreme Board shall submit periodic reports to the Board about its work every (6) months
Article 12
:The members of the Supreme Board shall abide by the following Not to carry out any unusual transactions with the entities to which Shariah opinions are -1 .provided unless upon taking the approval of the Board .Keep the work confidential, and work independently and impartially -2 Not to combine membership at the Supreme Board with membership at any Shariah -3 .supervisory entity at the entities subject to the control of the Authority
Article 13

Any member of the Supreme Board may submit a written resignation to the Board, and such resignation shall be deemed accepted one month after the date of its submittal. The Board may .accept the resignation before the lapse of such duration
Article 14
The Board may terminate the membership of any member of the Supreme Board in any of the :following cases .In case of no longer having legal capacity or in case of being subject to insolvency judgement -1 In case of being subject to a final judgement in a felony, or in case of being convicted of a -2 .misdemeanor involving moral turpitude or dishonesty In case of not attending two consecutive meetings of the Supreme Board’s meetings, or three -3 .separate meetings within one year, without an acceptable reason In case of breaching any of the obligations stipulated in Article (12) of the present Functioning -4 .System
Article 15
In case of resignation of any member of the Supreme Board or termination of his membership for any reason, the Board shall appoint a replacement to continue the remaining duration of .membership