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  • Relevant Persons

    • CIU-1.4.9

      Bahrain domiciled retail CIUs must delegate the administration and safe-keeping of their assets to an administrator/custodian (with the two functions either undertaken by a single institution or two separate institutions). These functions must be undertaken by one or more CBB licensees acceptable to the CBB for the role. The administrator/custodian must:

      (a) Be independent of the CIU's operator;
      (b) Act solely in the interests of the CIU's participants;
      (c) Have sufficient financial and other resources in order to undertake properly its function as administrator /custodian of the CIU; and
      (d) Accept liability to the CIU and its participants, for any loss suffered by them as a result of its unjustifiable failure to perform its obligations adequately.

    • CIU-1.4.10

      In applying Rule CIU-1.4.9 above, the CBB will allow 'hub and spoke' arrangements, whereby actual operations of the administrator/custodian are undertaken outside of Bahrain, providing a suitably licensed office is maintained in Bahrain, through which the CBB can access the CIU's records, and providing the overseas operations are undertaken in reputable jurisdictions by regulated entities that belong to the same group as the Bahrain administrator/custodian. Also, Rule CIU-1.4.9 does not prevent the custodian from appointing sub-custodians, providing the custodian retains ultimate responsibility for the CIU's assets, and providing suitable outsourcing arrangements have been put in place (equivalent to the standards applied by the CBB — see for instance Chapter OM-2 in Volume 1 of the CBB Rulebook.

    • CIU-1.4.11

      The operator and manager (if different) of a Bahrain domiciled retail CIU must be acceptable to the CBB.

    • CIU-1.4.12

      In applying Rule CIU-1.4.11 above, the CBB will take into account an institution's financial soundness, relevant experience with respect to CIUs, and regulatory track record. See also Chapter CIU-5.