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  • Promotion

    • CIU-3.1.1

      Bahrain domiciled exempt CIUs may only be offered to accredited investors (as defined in Rule CIU-B.5.10), when offered within the Kingdom of Bahrain. They may not be promoted through mass communication channels (such as the press, radio or television).

      Amended: July 2007

    • CIU-3.1.2

      Bahrain domiciled exempt CIUs, if offered to non-resident investors, are 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-3.1.1.

    • CIU-3.1.3

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

    • CIU-3.1.4

      To help demonstrate compliance with Rule CIU-3.1.3, Bahrain domiciled exempt CIUs should be able to provide a written confirmation from each participant, stating that they satisfy the definition of an accredited investor and confirming they understand the higher risks involved in an exempt CIU. The CBB also expects supporting documentation to be kept, demonstrating that the minimum financial asset threshold specified in Rule CIU-B.5.10 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