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  • 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.