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  • Exemptions

    • CIU-2.1.5

      Bahrain domiciled expert CIUs must comply with all the requirements contained in Chapter CIU-1, subject to the exemptions specified below in Rule CIU-2.1.6. References to Bahrain domiciled retail CIU(s) in Chapter CIU-1 should be read as also applying to Bahrain domiciled expert CIUs.

    • CIU-2.1.6

      Expert CIUs may avail themselves of the following exemptions:

      (a) They may utilize higher aggregate and individual exposure limits, as specified in Appendix D;
      (b) They may invest in a wider range of asset classes, as specified in Appendix D;
      (c) They may borrow up to 30% of the CIU's assets, instead of the 20% limit applied to Bahrain domiciled retail CIUs (see Rule CIU-1.7.1); and
      (d) They may enter into stock lending arrangements of up to 30% of the CIU's net asset value, instead of the 20% limit applied to Bahrain domiciled retail CIUs.

    • CIU-2.1.7

      Bahrain domiciled expert CIUs are, in short, subject to mostly the same requirements applicable to Bahrain domiciled retail CIUs. In return to being limited to expert investors, however, they are subject to fewer investment restrictions and can utilize more liberal borrowing and stock-lending limits. The looser investment restrictions allow them, amongst other things, to invest in additional asset classes (such as real estate and commodities, unlisted securities, and to offer funds of hedge funds).