Back Custom print Link Text Only Rich Text Print

  • CIU-B.2 CIU-B.2 Relevant Persons

    • CIU-B.2.1

      A relevant person, for the purpose of Module CIU, is any person:

      (a) Acting as the operator, manager, administrator, or custodian of a CIU subject to this Module; or
      (b) Offering CIU holdings to investors resident within the Kingdom of Bahrain.

    • CIU-B.2.2

      CIUs subject to this Module are those defined in Rule CIU-B.1.1, namely, CIUs that are:

      (i) Domiciled in the Kingdom of Bahrain (irrespective of the jurisdiction in which they are offered); and
      (ii) Domiciled in an overseas jurisdiction, and offered to investors resident in Bahrain.

    • CIU-B.2.3

      Note that relevant persons undertaking in Bahrain the activity of an operator, manager, administrator or custodian, are also required to hold an appropriate CBB license, in addition to complying with the requirements contained in this Module. These licensing requirements can be found in CBB Rulebook Volumes 1, 2 and 4 (which deal, respectively, with conventional bank licensees, Islamic bank licensees, and investment firm licensees).

    • CIU-B.2.4

      Conversely, relevant persons undertaking outside Bahrain the activity of an operator, manager, administrator or custodian are not required to hold a CBB license, in addition to complying with the requirements contained in this Module. However, to be authorised, Bahrain domiciled retail CIUs and Bahrain domiciled expert CIUs must satisfy the administration and custody requirements prescribed in this Module (see Section CIU-1.4).

    • CIU-B.2.5

      The activity of offering CIU holdings to investors resident in Bahrain is a regulated activity (that of dealing in financial instruments). As such, it requires the appropriate CBB license to be held (see CBB Rulebook Volumes 1, 2 and 4). It is therefore not possible to offer CIU holdings to investors resident in Bahrain, on a 'cross-border' basis from outside Bahrain. Where an overseas operator of a CIU wishes to offer an overseas domiciled CIU to investors resident in Bahrain, they must themselves hold the appropriate CBB license or appoint an appropriate CBB licensee as their distributor — see also Rule CIU-4.1.5.