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  • CIU-1.9 CIU-1.9 Valuation and Record-keeping

    • Valuation

      • CIU-1.9.1

        The administrator appointed by a Bahrain domiciled retail CIU (under Rule CIU-1.4.9 above) must ensure an independent, fair and regular valuation of all the CIU's assets, by appropriately qualified persons.

      • CIU-1.9.2

        The valuation principles to be applied must be laid down in the CIU's rules or instruments of incorporation (as appropriate), and details of these provided in the CIU's prospectus.

      • CIU-1.9.3

        The detailed methods and frequency of the valuation of assets must be documented in a valuation policy drawn up by the administrator and agreed with the CBB.

      • CIU-1.9.4

        The CBB would expect the valuation policy to reflect 'good practice' industry standards. Amongst other things, the CBB would expect wherever possible that valuations be based on multiple and independent price sources. Where unavoidable, valuations based on trader, broker or pricing model input should be sufficiently tested and controlled, and declared, such that conflicts of interest are minimised. Procedures should be developed to identify stale prices or illiquid assets. Valuations should normally be undertaken at least weekly, in the case of exchange traded financial instruments, and at least monthly in all other cases.

    • Record Keeping

      • CIU-1.9.5

        Bahrain domiciled retail CIUs must make and retain for 5 years such records that enable:

        (a) The CIU and its relevant persons, as appropriate, to comply with the rules in this Module; and
        (b) The CIU to demonstrate at any time that such compliance has been achieved.

      • CIU-1.9.6

        The obligation under Rule CIU-1.9.5 is additional to any record-keeping requirements that may apply as a result of applicable laws (such as the commercial companies law), and any regulatory requirements that may apply to relevant persons that are licensed institutions (such as the CBB's record-keeping requirements applicable to CBB licensees).

      • CIU-1.9.7

        Bahrain domiciled retail CIUs must arrange for a register of holdings in the CIU to be maintained, containing the names of CIU participants and their holdings, as well as the sale, issue, repurchase, redemption and cancellation of holdings. The register must be kept up to date.

      • CIU-1.9.8

        Rule CIU-1.9.7 may normally be satisfied by an independent registrar being appointed to maintain such a register on behalf of the Bahrain domiciled retail CIU.

      • CIU-1.9.9

        Bahrain domiciled retail CIUs must arrange for the CIU's operator or any other institution offering its holdings to investors to comply with applicable anti-money laundering and combating the financing of terrorism ('AML/CFT') requirements. It is the responsibility of the Bahrain domiciled retail CIU to ensure that copies of required AML/CFT identification documentation are retained as part of the register specified in Rule CIU-1.9.7. Alternatively, they may be kept by the institution(s) offering the CIU's holdings, provided the documentation may be accessed by the Bahrain domiciled retail CIU and the CBB on request.