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  • Relevant Persons

    • CIU-3.1.7

      Bahrain domiciled exempt CIUs must delegate the administration and safe-keeping of their assets to an administrator/custodian (with the two functions either undertaken by a single institution or two separate institutions). These functions must be undertaken by one or more licensed institutions acceptable to the CBB for the role. The administrator / custodian must:

      (a) Be independent of the CIU's operator;
      (b) Act solely in the interests of the CIU's participants;
      (c) Have sufficient financial and other resources in order to undertake properly its function as administrator / custodian of the CIU; and
      (d) Accept liability to the CIU and its participants, for any loss suffered by them as a result of its unjustifiable failure to perform its obligations adequately.

    • CIU-3.1.8

      The CBB would normally expect the administrator/custodian required under Rule CIU-3.1.7 to be a CBB licensee (although 'hub and spoke' arrangements are allowed — see Paragraph CIU-1.4.10). However, with respect to Bahrain domiciled exempt CIUs, the CBB may additionally consider allowing non-CBB licensees to be used, on a case-by-case basis, where there is a strong rationale for doing so (e.g. prime broking arangements for hedge funds).