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  • CIU-2 CIU-2 Private Investment Undertakings

    • CIU-2.1 CIU-2.1 Private Investment Undertaking

      • CIU-2.1.1

        PIUs are CIUs that are offered only to ultra-high net worth investors. The operator of a Bahrain domiciled PIU must be a CBB licensee (who is authorised to undertake the regulated activity of acting as a CIU operator) or an overseas operator/fund manager regulated in a reputable jurisdiction and in a manner acceptable to the CBB. Overseas domiciled PIUs may only be marketed by a Bahrain based placement agent who is authorised by the CBB to undertake such activity and has the necessary legally binding arrangements with the overseas operator/fund manager.

        Added: April 2022

      • CIU-2.1.2

        For PIUs, the role of the CBB is limited to obtaining statistical information for the purpose of monitoring developments in the financial sector. PIUs are not subject to CBB’s on-going supervision.

        Added: April 2022

      • CIU-2.1.3

        Operators of Bahrain domiciled PIUs or the placement agents of overseas domiciled PIUs must submit the PIU notification form. Applicants must fill in Form 2 (Exempt CIU/PIU Notification Form) online, available on the CBB website under E-services/online Forms. Bahrain domiciled PIUs are subject to an application fee of BD100 and an annual fee of BD 2,000 payable each year before 31 March.

        Amended: July 2023
        Amended: October 2022
        Added: April 2022

      • CIU-2.1.4

        The operator of a Bahrain domiciled PIU must establish a structure for the PIU which ensures safeguards for the CIU participants with regards to governance, investment management, custody arrangements, administration and disclosures to CIU participants.

        Added: April 2022

      • CIU-2.1.5

        The operator of a Bahrain domiciled PIU, or where relevant, the placement agent of an overseas domiciled PIU must ensure the following:

        (a) Disclose that the PIU is only suitable for those who fall within the definition of ultra-high net worth investors;
        (b) Obtain a written statement from the investor expressly agreeing that:
        a. he falls within the definition of ultra-high net worth investors and accept the reduced regulatory requirements accordingly;
        b. he is wholly responsible for ensuring that all aspects of the PIU are acceptable to him;
        c. he understands that an investment in a PIU may involve special risks that could lead to a loss of all or a substantial portion of such investment and unless he understands the potential risks, he will not invest in the PIU; and
        d. he acknowledges that the PIU is not subject to the CBB’s ongoing supervision.
        Amended: October 2022
        Added: April 2022

      • CIU-2.1.6

        The operator of a Bahrain domiciled PIU, or where relevant, the placement agent of an overseas domiciled PIU must report to the CBB, 30 calendar days of each quarter end, the total net asset value of the PIU with details as follows:

        (a) Resident institutions;
        (b) Resident individuals;
        (c) Non-resident institutions; and
        (d) Non-resident individuals.
        Amended: October 2022
        Added: April 2022

      • CIU-2.1.7

        The placement agent is required to notify the CBB if it ceases to offer any overseas domiciled PIUs. The notification must include the name of the PIU, the date on which it ceased offering the PIU to investors and a confirmation that there are no outstanding obligations to CIU participants. The notification must be provided within 10 working days from the date when all obligations to CIU participants have been discharged.

        Added: October 2022