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  • CIU-1.12 CIU-1.12 Mergers and Transfers, Suspension and Winding-Up

    • Mergers and Transfers

      • CIU-1.12.1

        A Bahrain domiciled retail CIU must seek prior written approval from the CBB in order to merge with, or else transfer its assets to another CIU. The Bahrain domiciled retail CIU concerned must set out in writing the reasons for the proposed merger or transfer, the alternatives available to CIU participants (including redemption and if possible a right to redeem or switch without charge into another authorised CIU), the estimated costs of the merger or transfer, and information on who is expected to bear these.

      • CIU-1.12.2

        In all cases, a merger or transfer of a Bahrain domiciled retail CIU must be in accordance with the instrument constituting the CIU and all applicable laws.

    • Suspension

      • CIU-1.12.3

        A Bahrain domiciled retail CIU may only suspend the issue and cancel the sale and redemption of its holdings with the prior written approval of the CBB. Such approval will only be given in exceptional circumstances and when in the interest of the CIU's participants.

      • CIU-1.12.4

        Resumption of dealing in holdings may only take place with the prior written approval of the CBB. Once dealing is restarted, the CIU must confirm this to the CBB.

      • CIU-1.12.5

        The circumstances in which dealing in holdings may be suspended must be specified in the CIU's prospectus.

    • Winding-Up

      • CIU-1.12.6

        A Bahrain domiciled retail CIU may only initiate winding-up procedures with the prior written approval of the CBB, and subject to the terms of the instrument constituting the CIU and any applicable laws.

      • CIU-1.12.7

        CBB approval in response to a request to wind-up a retail CIU will normally be given in the following circumstances:

        (a) The purpose of the CIU cannot be accomplished;
        (b) The constitutional documents of the CIU provide for a termination;
        (c) The NAV of the CIU has fallen below US$ 5 million (or some other threshold agreed by CBB); or
        (d) A resolution of a duly convened meeting of the CIU participants has been passed to wind-up the CIU.

      • CIU-1.12.8

        A CIU may also be wound up under a directive of the CBB or other competent authority, such as a court that has issued an order to liquidate the CIU. See also Rules CIU-1.1.17 and CIU-1.1.18 regarding the revocation of authorisation by the CBB.

      • CIU-1.12.9

        Bahrain domiciled CIUs must give at least one months' written notice to CIU participants of their intention to wind-up the CIU, together with an explanation for wishing to do so, and the options available to CIU participants (such options to include, if possible, a right to switch without charge into another CIU). A copy of this notice must be provided to the CBB at the time it is issued to CIU participants.

      • CIU-1.12.10

        Winding-up of a Bahrain domiciled retail CIU must comply with all applicable laws and directions issued by the CBB. In all cases, the CBB requires independent verification by auditors that the CIU's assets have been distributed to CIU participants in accordance with the instrument constituting the CIU, or switched into another CIU.

      • CIU-1.12.11

        Once the CIU's assets have been distributed to the CIU's participants, or switched into another CIU, the Bahrain domiciled retail CIU must confirm the fact to the CBB and request that it be taken off the register of authorised CIUs.