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  • 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.