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  • CIU-1.1 CIU-1.1 Authorisation

    • Authorisation Requirement

      • CIU-1.1.1

        Bahrain domiciled retail CIUs must be authorised by the CBB prior to being offered to investors.

      • CIU-1.1.2

        An application for authorisation may only be made by one of the following:

        (a) The operator of the CIU; or
        (b) The directors or trustees of the CIU (as appropriate).

      • CIU-1.1.3

        An applicant may appoint a representative — such as the CIU's proposed administrator/custodian, or a law firm or professional consultancy — to prepare and submit the application. However, the applicant retains full responsibility for the accuracy and completeness of the application, and is required to certify the application form accordingly. The CBB also expects to be able to liaise directly with the applicant during the authorisation process, when seeking clarification of any issues.

      • CIU-1.1.4

        An application for authorisation under Rule CIU-1.1.1 involving an overseas operator will only be considered if:

        (a) The overseas operator is duly authorised to operate similar CIUs in its home jurisdiction and is supervised by an overseas financial services authority acceptable to the CBB; and
        (b) The overseas operator has identified an appropriate institution licensed by the CBB, with which it would enter into service agreements in order to satisfy the administration and custody requirements contained in Rule CIU-1.4.9.

    • Authorisation Process

      • CIU-1.1.5

        An application for authorisation under Rule CIU-1.1.1 must be made using a Form CIU(A) (Application for Authorisation of a CIU), submitted under a formal cover letter signed by two authorised signatories of the applicant, together with all supporting documentation requested.

      • CIU-1.1.6

        The application for authorisation must identify an individual, for approval by CBB as an approved person, in their capacity as the person responsible for the CIU. This person must be:

        (a) An officer of a CBB licensee;
        (b) Resident in Bahrain; and
        (c) An individual capable of being contacted by the CBB by post, telephone, fax and/or e-mail.

      • CIU-1.1.7

        The CBB will acknowledge applications made under Rule CIU-1.1.5 within 7 calendar days of receipt and provide formal feedback on the application within 21 calendar days of receipt. This feedback will confirm whether the application is complete, or whether further information is required.

      • CIU-1.1.8

        Should the application be deemed complete, then a final decision on the application will be issued within 30 calendar days of its receipt by the CBB. Should further information be required, then the applicant has 90 calendar days from the date of the CBB's feedback in which to complete the application, failing which the application will be cancelled by the CBB and a new one will need to be submitted. If all outstanding information is submitted and the CBB confirms the application to be complete, then the CBB will take a final decision within 30 calendar days of the CBB's confirmation that the application is complete.

    • Granting or Refusal of Authorisation

      • CIU-1.1.9

        To be granted authorisation, an applicant must demonstrate compliance with the applicable requirements of this Module. Should an authorisation application be granted, the CBB will notify the applicant in writing of the fact. The authorisation may be subject to additional conditions being met.

      • CIU-1.1.10

        The CBB may refuse to grant authorisation if in its opinion:

        (a) The requirements of this Module are not met;
        (b) False or misleading information has been provided to the CBB, or information which should have been provided to the CBB has not been so provided; or
        (c) The CBB believes it necessary in order to safeguard the interests of potential investors.

      • CIU-1.1.11

        Where the CBB proposes to refuse an application for authorisation, it must give the applicant written notice to that effect. Applicants have 30 calendar days from the date of the written notice to appeal the decision, as per the appeal procedures specified in the notice.

    • Fees Payable to CBB

      • CIU-1.1.12

        Each application for authorisation made under Rule CIU-1.1.1 must be accompanied by a BD 100 processing fee. This fee is non-refundable.

      • CIU-1.1.13

        Each Bahrain domiciled retail CIU authorised by CBB is subject to an annual fee of BD 2,000. In the case of umbrella funds, each sub-fund is also charged BD 2,000 a year.

      • CIU-1.1.14

        Where the fee specified in Rule CIU-1.1.13 is paid, it exempts those Bahrain domiciled retail CIU wishing to list on the Bahrain Stock Exchange ('BSE') from having to pay the listing fee normally levied by the BSE.

    • Revocation of Authorisation

      • CIU-1.1.15

        The CBB may revoke authorisation of a Bahrain domiciled retail CIU if the CIU is not in operation within 6 months of the date of its authorisation.

      • CIU-1.1.16

        The CBB will normally only exempt a CIU from the above 6 months rule if exceptional unforeseen circumstances have intervened and delaying the start of the CIU's operations would not prejudice the interests of potential investors (for instance, due to a sudden downturn in markets).

      • CIU-1.1.17

        The CBB may also revoke authorisation of a Bahrain domiciled retail CIU if in its opinion:

        (a) Any of the applicable requirements contained in Module CIU are not met;
        (b) False or misleading information has been provided to the CBB, or significant information which should have been provided to the CBB has not been so provided; or
        (c) The CBB believes it necessary in order to safeguard the interests of potential investors or the CIU's participants.

      • CIU-1.1.18

        Where the CBB proposes to cancel a CIU's authorisation, it shall give the CIU concerned a written notice of its intention to do so and the reasons for such action. The CIU has 30 calendar days from the date of the written notice to appeal the decision, as per the appeal procedures specified in the notice.

    • CBB Powers

      • CIU-1.1.19

        Part 9 of the CBB Law provides the CBB with various investigative and administrative powers to help discharge its regulatory and supervisory functions. These include the right to appoint investigators (Article 121), to assist overseas authorities (Article 122), to demand information (Article 123), and to compel access to premises or information (Article 124).

      • CIU-1.1.20

        The CBB aims to achieve an open, constructive and cooperative relationship with those persons it regulates, but will resort to more formal enforcement powers where cooperation is not forthcoming.