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  • Exempt CIUs

    • CIU-B.5.7

      Exempt CIUs are largely unregulated CIUs that may be offered only to accredited investors, and impose a minimum initial investment of USD 100,000 (or equivalent in foreign currency).

    • CIU-B.5.8

      Exempt CIUs are only regulated to the extent that they must register with the CBB prior to being offered to investors; may only be offered to accredited investors; and are subject only to high-level disclosure and reporting requirements. They are not subject to any restrictions on their investment policies, as a result of which they may exhibit high risk characteristics, such as high levels of leverage and the taking of large speculative positions. Because of this, exempt CIUs may only be offered to a highly restricted investor base (i.e. those defined as accredited investors).

    • CIU-B.5.9

      The minimum initial investment requirement specificed in Rule CIU-B.5.7 means that the first payment made by an investor into the CIU must be at least USD 100,000 (or its equivalent in foreign currency). Subsequent investments may be for smaller amounts.

    • CIU-B.5.10

      Accredited investors are:

      (a) Individuals holding financial assets (either singly or jointly with their spouse) of USD 1,000,000 or more;
      (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 1,000,000; or
      (c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest in financial instruments (such as state pension funds).
      Amended: July 2007

    • CIU-B.5.11

      Note that the definition of accredited investors, compared to that of expert investors, not only imposes higher liquid asset thresholds, but also prevents local authorities, as well as state organisations whose main activity is not related to investing in financial instruments, from investing in exempt funds. Investors that satisfy the definition of accredited investor also satisfy the definition of expert investor.