Back Custom print Link Text Only Rich Text Print

  • CIU-3 CIU-3 Overseas Domiciled CIUs

    • CIU-3.1 CIU-3.1 General Requirements

      • CIU-3.1.1

        Overseas domiciled retail CIUs are subject to authorisation by the CBB prior to being offered to investors in the Kingdom of Bahrain. The authorisation application will be processed within 5 working days. Overseas domiciled exempt CIUs may only be offered to investors following a notification 5 days prior to offering the CIU to investors. Depending on the CIU category, applicants must fill in Form 1 (Retail CIU Application Form) or Form 2 (Exempt CIU/PIU Notification Form) online, available on the CBB website under E-services/online Forms. (Overseas domiciled PIUs are covered under Chapter CIU-2).

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

      • CIU-3.1.2

        Overseas domiciled CIUs must only be distributed by placement agents who hold an appropriate CBB license under CBB Rulebook – Volumes 1, 2, or 4 (Categories 1, 2 and 4 only), permitting them to market financial instruments and who are domiciled in the Kingdom of Bahrain.

        Added: April 2022

      • CIU-3.1.3

        For overseas domiciled retail CIUs, the following requirements apply:

        (a) The operator of the CIU must be regulated in a jurisdiction acceptable to the CBB and the CIU must be capable of being sold to retail investors in the home jurisdiction;
        (b) Laws and practices of the jurisdiction which govern the CIU provide safeguards to investors in a manner acceptable to the CBB; and
        (c) The CBB is satisfied that the terms and conditions contained in the offering documents, and the roles, responsibilities and compliance obligations of the overseas fund manager or operators provide safeguards to investors in a manner acceptable to the CBB.
        Added: April 2022

      • CIU-3.1.4

        For the purposes of Paragraph CIU-3.1.3, overseas domiciled retail CIUs that comply with reputable regulatory frameworks such as CIUs compliant with the European Undertaking Collective Investment in Transferable Securities (UCITS) Directive will be subject to simplified and fast track registration process.

        Added: April 2022

      • CIU-3.1.5

        The placement agent is required to report the following to the CBB:

        (a) The Quarterly Statistical Return (Form CIU-QS, Part B of the CBB Rulebook – Volume 7) within 30 days of each quarter end; and
        (b) The following information as soon as reasonably practicable but no later than 30 calendar days, in the event of any
        a. Breaches of terms and conditions of the offering including breaches in investment limits;
        b. Any suspension or deferral of issuance or redemption;
        c. Any legal claims or disputes involving the CIU;
        d. Any material changes in relation to the CIU which would impact the accuracy of the information provided to the CBB including a change in any relevant persons of the CIU;
        e. Any non-compliance with the CIU’s AML/CFT obligations; and
        f. Details of unresolved customer complaints involving the CIU.
        Added: April 2022

      • CIU-3.1.6

        The placement agent is required to notify the CBB if it ceases to offer any overseas domiciled CIUs. The notification must include the name of the CIU, the date on which it ceased offering the CIU 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

      • CIU-3.1.7

        The placement agent should establish policies and processes to ensure that clients are made aware of risks of investing in overseas domiciled exempt CIUs and the risks of investing in CIUs that are not regulated in their home jurisdictions. The placement agent should also ensure that the policies and procedures require such CIUs to be offered to only accredited investors.

        Added: October 2022