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  • Operating a Collective Investment Undertaking (i.e. operator)

    • AU-1.4.48

      Operating a collective investment undertaking ('CIU') means operating, managing, establishing or winding up a collective investment undertaking.

      Amended: January 2022
      Amended: July 2010
      Amended: July 2007

    • AU-1.4.49

      For the purposes of Rule AU-1.4.48, a collective investment undertaking is an undertaking the sole object of which is the collective investment of capital raised from the public in financial instruments or other assets and which operates on the basis of risk-spreading; and the holdings of which are re-purchased or redeemed, directly or indirectly, out of those undertakings' assets.

      Amended: July 2010
      Amended: July 2007

    • AU-1.4.50

      A person does not carry on an activity specified in Rule AU-1.4.48 if the activity relates to the person establishing or winding up a collective investment undertaking, and that activity may be reasonably regarded as a necessary in the course of providing legal services or providing accounting services.

      Amended: July 2010

    • AU-1.4.51

      In the case of CIUs whose holdings are listed and traded on a stock exchange (such as a closed-ended fund), actions taken by the CIU to align the stock exchange value of its holdings and its net asset value is taken as equivalent to the repurchase or redemption specified in Rule AU-1.4.49. The definition in Rule AU-1.4.49 thus recognises both open-ended funds and closed-ended funds: unit trusts, investment trusts, mutual funds, SICAV and collective investment schemes are all examples of CIUs. CIUs may also be constituted under contract law (as common funds managed by management companies); trust law (as unit trusts); or under statute (as investment companies).

      Amended: July 2010
      Adopted: July 2007

    • AU-1.4.52

      See Volume 7 (CIU) of the CBB Rulebook, for the rules that apply to CIUs domiciled in Bahrain or domiciled in an overseas jurisdiction, and offered to investors resident in Bahrain. These rules also contain requirements that apply to the operators of such CIUs.

      Amended: October 2012
      Amended: July 2010
      Adopted: July 2007

    • AU-1.4.53

      [Paragraph deleted 07/2006.]

      Amended: July 2010

    • AU-1.4.54

      [Paragraph deleted 07/2006.]

      Amended: July 2010