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  • CIU-4.2 CIU-4.2 Requirements

    • Promotion and Advertising of Overseas Domiciled CIUs

      • CIU-4.2.1

        The CBB licensee responsible for distributing an overseas domiciled retail CIU or overseas domiciled expert CIU must ensure that the CIU's prospectus (and simplified prospectus where applicable) are kept up-to-date. A most recent copy of the prospectus (and simplified prospectus where applicable) must be made available to the CBB within 30 calendar days of any revision.

      • CIU-4.2.2

        The CBB licensee responsible for distributing an overseas domiciled retail CIU or overseas domiciled expert CIU must always make available a copy of the CIU's most recent prospectus (and simplified prospectus where applicable) free of charge to any person on request.

      • CIU-4.2.3

        The CBB licensee responsible for distributing an overseas domiciled retail CIU or overseas domiciled expert CIU must provide explanations and such other information supplementary to the prospectus as may be reasonably required by a potential investor.

      • CIU-4.2.4

        The CBB licensee responsible for distributing an overseas domiciled expert CIU and overseas domiciled exempt CIU must be able to demonstrate that each of its participants falls within the definition of an expert investor or accredited investor (as appropriate). They should also be able to demonstrate that the additional risks potentially represented by an expert CIU or exempt CIU have been clearly communicated and understood by their participants.

      • CIU-4.2.5

        To demonstrate compliance with Rule CIU-4.2.4, the CBB would expect to see a written confirmation from each participant, stating that they satisfy the definition of an expert investor or accredited investor (as appropriate) and confirming they understand the higher risks involved in an expert CIU or exempt CIU. The CBB also expects supporting documentation to be kept, demonstrating that the minimum financial assets threshold specified in Rules CIU-B.5.6 and CIU-B.5.10 (as appropriate) has been satisfied, such as copies of bank or broker statements. Where the investor’s initial investment matches or exceeds the threshold, this may by itself be taken as evidence that the client meets the minimum financial asset threshold.

        Amended: July 2007

      • CIU-4.2.6

        Overseas domiciled CIUs may not be offered directly to investors in Bahrain, by non-resident persons. Only CBB licensees that are licensed either as conventional bank licensees (Volume 1 of the CBB Rulebook), Islamic bank licensees (Volume 2) or investment firm licensees (Volume 4), may offer overseas domiciled CIUs to investors in Bahrain.

      • CIU-4.2.7

        Advertisements in respect of overseas domiciled retail CIUs and overseas domiciled expert exempt CIUs must comply with the requirements applicable to their Bahrain domiciled equivalents, as specified in Section CIU-1.11.Overseas domiciled exempt CIUs must comply with the restrictions on promotions applied to Bahrain domiciled exempt CIUs (see Rule CIU-3.1.1).

        Amended: July 2007

    • Reporting to CIU Participants

      • CIU-4.2.8

        Overseas domiciled retail CIUs and overseas domiciled expert CIUs must publish and distribute to their Bahrain resident participants at least two reports in respect of each financial year. Annual reports and accounts prepared in accordance with local accounting standards must be published and distributed to Bahrain resident participants within the time scales specified by their home jurisdiction.

      • CIU-4.2.9

        Overseas domiciled retail CIUs and overseas domiciled expert CIUs must distribute to their Bahrain resident participants any other reports (such as valuation reports), where these are specified in the CIU's prospectus.

    • CBB Reporting

      • CIU-4.2.10

        The CBB licensee responsible for distributing an overseas domiciled retail expert CIU and overseas domiciled expert CIU must file copies of the reports required under Rule CIU-4.2.8 with the CBB, within the same time periods.

        Amended: July 2007

      • CIU-4.2.11

        The CBB licensee responsible for distributing an overseas domiciled exempt CIU must file with the CBB all annual and interim reports produced by the CIU (within the time scales specified in Rule CIU-4.2.8).

      • CIU-4.2.12

        The CBB licensee responsible for distributing an overseas domiciled CIU must notify the CBB in a timely manner of any intention to merge, transfer, wind up or suspend dealings in the CIU.

      • CIU-4.2.13

        The CBB licensee responsible for distributing an overseas domiciled CIU must file with the CBB Form CIU (QS), the CIU Quarterly Statistical Return, within the deadline specified on the return.