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  • Restrictions

    • CIU-2.1.1

      Bahrain domiciled expert CIUs may only be offered to expert investors (as defined in Rule CIU-B.5.6), when offered within the Kingdom of Bahrain.

    • CIU-2.1.2

      Bahrain domiciled expert CIUs, if offered to non-resident investors, are also required to comply with any applicable local laws and regulations in the jurisdiction concerned. These may be more or less restrictive than the restriction contained in Rule CIU-2.1.1.

    • CIU-2.1.3

      A Bahrain domiciled expert CIU must be able to demonstrate that each of its participants falls within the definition of an expert investor. They should also be able to demonstrate that the additional risks potentially represented by an expert CIU have been clearly communicated and understood by their participants.

    • CIU-2.1.4

      To help demonstrate compliance with Rule CIU-2.1.3, Bahrain domiciled expert CIUs should be able to provide a written confirmation from each participant, stating that they satisfy the definition of an expert investor and confirming they understand the higher risks involved in an expert CIU. The CBB also expects supporting documentation to be kept, demonstrating that the minimum financial asset threshold specified in Rule CIU-B.5.6 has been satisfied, such as a copy of a bank or broker's statement. Where the investor’s initial investment matches or exceeds the financial asset threshold, this may by itself be taken as evidence that the client meets the minimum financial asset threshold.

      Amended: July 2007