• High Level Standards

    • ARR ARR Authorisation / Registration Requirements

      • AU-A AU-A Introduction

        • ARR-A.1 ARR-A.1 Purpose

          • Executive Summary

            • ARR-A.1.1

              This Module sets out the Central Bank of Bahrain's (CBB) approach to authorising, registering and acknowledging filing of CIUs in the Kingdom of Bahrain. It also outlines the CBB fees for CIUs.

              Amended: July 2015
              April 2012

          • Legal Basis

            • ARR-A.1.2

              This Module contains the CBB's Directive and Resolution (as amended from time to time) regarding authorisation, registration and filing requirements applicable to collective investment undertakings and is issued under the powers available to the CBB under Articles 38 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). Module ARR includes the requirements contained in Resolution No (1) of 1987 with respect to determining fees payable to the CBB by CIUs.

              Amended: July 2015
              April 2012

            • ARR-A.1.3

              For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

              April 2012

        • ARR-A.2 ARR-A.2 Module History

          • Evolution of Module

            • ARR-A.2.1

              This Module was first issued in April 2007, as part of the initial release of the contents of Volume 6 (Capital Markets); it was given an effective date of 1 June 2007, with a one-year transition for existing CIUs.

              April 2012

            • ARR-A.2.2

              The Module was subsequently revised in April 2012, by the addition of several sections catering for the role and responsibilities of relevant persons, the registration and authorisation requirements, corporate governance, and other relevant Chapters and has been reissued as Volume 7.

              April 2012

            • ARR-A.2.3

              A list of recent changes made to this Module subsequent to the April 2012 revision is provided below:

              Module Ref. Change Date Description of Changes
              ARR-2.3, ARR-3.3, ARR-4.3 07/2013 Amended due date and collection process for annual fee.
              ARR-2.3.6, ARR-3.3.6, ARR-4.3.6 10/2013 Amended to allow payment of fee by way of wire transfer.
              ARR-A.1.1, ARR-A.1.2, ARR-1.1.2, ARR-1.1.6, ARR-1.1.7, ARR-1.1.9, ARR-5.1.2, ARR-5.1.4, ARR-5.2 07/2015 Amended to reflect the process for filing for exempt and expert CIUs.
              ARR-1.1.2; ARR-1.1.3; ARR-1.1.4; ARR-1.1.6; ARR-5.1.2; ARR-5.1.3 07/2017 Deleted 'resident' with respect to investors.
              ARR-2.2.4; ARR-3.2.4; ARR-4.2.5 07/2017 Amended paragraphs.
              ARR-2.2.5; ARR-3.2.5; ARR-4.2.6 07/2017 Amended paragraphs to reflect application validity deadline.
              ARR-2.2.6; ARR-3.2.6; ARR-4.2.7 07/2017 Deleted paragraphs.
              ARR-1.1.7, ARR-2.2.1, ARR-3.2.1, ARR-4.2.1, ARR-5.2.5 01/2020 Amended Paragraphs to reflect online forms/applications.

          • Superseded Requirements

            • ARR-A.2.4

              This Module supersedes the following provisions contained in circulars or other regulatory instruments:

              Circular / other reference
              Volume 6 Module CIU
              April 2012

            • ARR-A.2.5

              Further guidance on the implementation and transition to Volume 7 (Collective Investment Undertakings) is given in Module ES (Executive Summary).

              April 2012

      • ARR-B ARR-B Definitions

        • ARR- B.1 ARR- B.1 Definitions

          • ARR-B.1.1

            Collective investment undertakings ('CIUs') are undertakings:

            (a) The sole object of which is the collective investment of capital raised from the public or through private placement, including investments seeded by the operator, in financial instruments and other assets and which operates on the basis of risk-spreading as appropriate; and
            (b) The holdings of which may be re-purchased or redeemed out of those undertakings' assets, as appropriate.
            April 2012

          • ARR-B.1.2

            For the purposes of this Module, holdings mean the unit of measurement of the beneficial interest of participants in a CIU, by whatever name it is called (including 'units' and, in the case of investment trusts or companies, in the form of shares or units). Each holding (which may be in fractions of a holding) represents a right to the assets of the CIU.

            April 2012

          • ARR-B.1.3

            The definition recognises both open-ended funds and closed-ended funds: unit trusts, investment trusts, mutual funds, SICAV and collective investment schemes are all examples of CIUs. As further specified in Paragraph ARR-B.1.8, CIUs may be constituted under contract law (as common funds managed by management companies); trust law (as unit trusts); or under statute (as investment companies).

            April 2012

          • ARR-B.1.4

            Closed-ended funds are CIUs with a limited number of holdings. Where the fund vehicle is a company, holdings can take the form of shares. New holdings are rarely issued after the fund is launched and are not normally redeemable until the fund is liquidated. Typically, an investor can acquire or dispose of holdings in a closed-ended fund by buying or selling them on a secondary market, from a market intermediary or another investor, rather than by dealing with the CIU itself.

            April 2012

          • ARR-B.1.5

            The following arrangements do not fall within the definition given in Rule ARR-B.1.1 above:

            (a) A contract of insurance, insurance linked investment products or investments managed as part of a takaful contract of insurance;
            (b) Unrestricted investment accounts offered by Islamic bank licensees;
            (c) Restricted investment accounts offered by Islamic bank licensees prior to the effective date of Volume 7;
            (d) Unilateral arrangements to hold or manage assets on a discretionary basis;
            (i) For a licensee to hold or manage assets on a discretionary basis; and
            (ii) To hold or manage assets on behalf of a client on a non-discretionary basis (i.e. at the discretion of the client and not the bank or other licensees).
            (e) Arrangements entirely between bodies corporate who are members of the same group, or entirely between family members;
            (f) Pension, annuity and other employee benefit products, organised and managed for the benefit of employees or for another corporate body, which are governed by separate laws of the Kingdom of Bahrain (e.g. GOSI);
            (g) Structured products;
            (h) Cash savings schemes;
            (i) Special Purpose Vehicles used to issue debt securities; and
            (j) The issue of securities by companies whether publicly or by private placements for the purpose of raising their own capital.
            April 2012

          • ARR-B.1.6

            Where a person is in any doubt as to whether a particular product or structure falls within the definition of a CIU given in Rule ARR-B.1.1, such matter must be referred to the Directorate of Financial Institutions Supervision at the CBB.

            April 2012

          • ARR-B.1.7

            Bahrain domiciled CIUs are undertakings where:

            (a) The legal form of the CIU is established under the laws of the Kingdom of Bahrain; and
            (b) The CIU documents and contractual agreements are governed by the Laws of the Kingdom of Bahrain, unless otherwise agreed with the CBB.
            April 2012

          • ARR-B.1.8

            Bahrain domiciled CIUs may be constituted either as:

            (a) Common CIUs, established under the law of contract;
            (b) Trusts, established under the Financial Trusts Law; or
            (c) Corporates established under the Bahrain Commercial Companies Law.
            April 2012

          • ARR-B.1.9

            Each Bahrain domiciled CIU must have its separate legal vehicle.

            April 2012

          • ARR-B.1.10

            Bahrain domiciled CIUs are classified as retail CIUs, expert CIUs or exempt CIUs. Specific definitions of each classification may be found in this Module.

            April 2012

          • ARR-B.1.11

            Overseas domiciled CIUs are undertakings that are established in and regulated by:

            (a) Recognised jurisdictions listed under Chapter ARR-6; or
            (b) Other jurisdictions acceptable to the CBB.
            April 2012

          • Retail CIUs

            • ARR-B.1.12

              Retail CIUs are CIUs that may be offered to all types of investors.

              April 2012

            • ARR-B.1.13

              The requirements in Volume 7 are framed such that retail CIUs are subject to relatively detailed requirements, including restrictions on the types of financial instruments or other assets that may be held by the CIU, in order to limit risks to the general investor.

              April 2012

          • Expert CIUs

            • ARR-B.1.14

              Expert CIUs are CIUs that may be offered only to expert investors, and impose a minimum initial investment of USD10,000 (or its equivalent in any other currency).

              April 2012

            • ARR-B.1.15

              Expert CIUs are subject to less restrictive requirements than retail CIUs: specifically, expert CIUs have greater investment flexibility, notably in terms of asset classes and risk concentration limits. They therefore potentially offer higher risks and are only suitable for expert investors, who are better able to assess those risks than less sophisticated investors.

              April 2012

            • ARR-B.1.16

              The minimum initial investment requirement specified in Rule ARR-B.1.14 means that the first payment made by an investor into the CIU must be at least USD 10,000 (or its equivalent in any other currency). Subsequent investments may be for smaller amounts.

              April 2012

            • ARR-B.1.17

              Expert investors are:

              (a) Individuals holding financial assets (either singly or jointly with their spouse) of USD100,000 or more;
              (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD100,000; or
              (c) Governments, supranational organisations, central banks or other national monetary authorities, local authorities and state organisations.
              April 2012

          • Exempt CIUs

            • ARR-B.1.18

              Exempt CIUs are lightly regulated CIUs that may be offered only to accredited investors, and impose a minimum initial investment of USD 100,000 (or its equivalent in any other currency).

              April 2012

            • ARR-B.1.19

              Exempt CIUs are only regulated to the extent that:

              (a) They must be registered with the CBB prior to being offered to investors;
              (b) May only be offered to accredited investors; and
              (c) Are subject only to high-level disclosure and reporting requirements.

              They are not subject to any restrictions on their investment policies, as a result of which they may exhibit high risk characteristics, such as high levels of leverage and the taking of large speculative positions. As such, exempt CIUs may only be offered to a highly restricted investor base (i.e. those defined as accredited investors).

              April 2012

            • ARR-B.1.20

              The minimum initial investment requirement specificed in Rule ARR-B.1.18 means that the first investment made by an investor into the CIU must be at least USD 100,000 (or its equivalent in any other currency). Subsequent investments may be for smaller amounts. Subsciptions on commitment basis must be at the least of USD100,000 (or its equivalent in any other currency).

              April 2012

            • ARR-B.1.21

              Accredited investors are:

              (a) Individuals holding financial assets (either singly or jointly with their spouse) of USD1,000,000 or more;
              (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD1,000,000; or
              (c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest in financial instruments (such as state pension funds).
              April 2012

            • ARR-B.1.22

              Note that the definition of accredited investors, compared to that of expert investors, not only imposes higher liquid asset thresholds, but also prevents local authorities, as well as state organisations whose main activity is not related to investing in financial instruments, from investing in exempt CIUs. Investors that satisfy the definition of accredited investor also satisfy the definition of expert investor.

              April 2012

      • ARR-1 ARR-1 General Requirements

        • ARR-1.1 ARR-1.1 General Requirements

          • ARR-1.1.1

            No person may establish a Bahrain domiciled CIU, unless the CIU is either authorised or registered, as required under this Module.

            April 2012

          • ARR-1.1.2

            No person may offer CIU holdings to investors in the Kingdom of Bahrain, unless the CIU concerned is either authorised, registered or filed, as required under this Module.

            Amended: July 2017
            Amended: July 2015
            April 2012

          • ARR-1.1.3

            For the purposes of this Module, 'offering' CIU holdings means, by way of business, soliciting investors to purchase holdings, by whatever means. (These may include, but are not limited to, advertising in print or other media, or use of the telephone, face-to-face contact, e-mail or internet). Such activity would be viewed as offering holdings to investors in Bahrain, where it could reasonably be viewed as addressed to investors in Bahrain (e.g. advertising in Bahrain print media, or addressing communications to investors in Bahrain).

            Amended: July 2017
            April 2012

          • ARR-1.1.4

            The activity of offering CIU holdings to investors resident in Bahrain is a regulated activity (that of dealing in financial instruments). As such, it requires the appropriate CBB license to be held (see CBB Rulebook Volumes 1, 2 and 4). It is therefore not possible to offer CIU holdings to investors in Bahrain, on a 'cross-border' basis from outside Bahrain. Where an overseas operator of a CIU wishes to offer an overseas domiciled CIU to investors in Bahrain, they must themselves hold the appropriate CBB license or appoint an appropriate CBB licensee as their distributor.

            Amended: July 2017
            April 2012

          • ARR-1.1.5

            Bahrain domiciled retail CIUs and Bahrain domiciled expert CIUs must be authorised by the CBB prior to being established. Bahrain domiciled exempt CIUs are required only to register with the CBB.

            April 2012

          • ARR-1.1.6

            Overseas domiciled CIUs must be authorised by the CBB prior to being offered to investors in the Kingdom of Bahrain, unless they are domiciled in a recognised jurisdiction, in which case retail CIUs are required to register with the CBB, and expert CIUs are required to be filed with the CBB. Overseas domiciled exempt CIUs domiciled in recognised jurisdictions are required to be filed with the CBB, while those domiciled in other jurisdictions are required to be registered with the CBB.

            Amended: July 2017
            Amended: July 2015
            April 2012

          • ARR-1.1.7

            Applicants for authorisation/registration or filing of CIUs must fill in either Application Form 1 (CIU Application Form) or Application Form 3 (ODC Filing Form), as applicable, online on the CBB website under E-services/online Forms. Forms, other than Form 1 and Form 3, must be submitted under cover of a letter signed by an authorised signatory of the applicant, marked for the attention of the Director of Financial Institutions Supervision Directorate of the CBB.

            Amended: January 2020
            Amended: July 2015
            Added: April 2012

          • ARR-1.1.8

            The CBB expects the authorised signatory of the applicant to be the CEO or a person of similar standing.

            April 2012

          • ARR-1.1.9

            Form 1 CIU Application Form and Form 3 ODC Filing Form are available under Authorisation Forms, Part B of Volume 7 (Collective Investment Undertakings) of the CBB Rulebook.

            Amended: July 2015
            April 2012

      • ARR-2 ARR-2 Bahrain Domiciled Retail CIUs

        • ARR-2.1 ARR-2.1 Authorisation Requirements

          • ARR-2.1.1

            Bahrain domiciled retail CIUs must be authorised by the CBB prior to being offered to investors.

            April 2012

          • ARR-2.1.2

            An application for authorisation may only be made by the operator of the CIU.

            April 2012

          • ARR-2.1.3

            An applicant may appoint a representative — such as a law firm to prepare and submit the application. An applicant may also appoint the CIU's proposed fund administrator/custodian or a professional consultant to prepare and submit the application, in which case the application has to be reviewed by a professional law firm or internal legal councel, prior to submision to the CBB. In all cases, the applicant retains full responsibility for the accuracy and completeness of the application, and is required to certify the application form accordingly. The CBB also expects to be able to liaise directly with the applicant during the authorisation process, when seeking clarification for any issues.

            April 2012

          • ARR-2.1.4

            In the cases where the operator is not a CBB licensee, an application for authorisation under Rule ARR-2.1.1 will only be considered if:

            (a) The operator:
            (i) Is duly authorised to operate similar CIUs in its home jurisdiction;
            (ii) Is supervised by an overseas regulatory authority acceptable to the CBB;
            (iii) Has a sound track record and/or experienced management team;
            (iv) Is financially sound according to home country regulatory requirements; and
            (v) Is a reputable financial institution.
            (b) The operator has identified appropriate institutions licensed by the CBB, with which it would enter into service agreements in order to satisfy the administration and custody requirements; and
            (c) The operator has submitted an acceptably worded undertaking to the CBB, stating that it will abide by the CBB Law and the provisions of Volume 7.
            April 2012

          • ARR-2.1.5

            Operators are expected to maintain the criteria listed in Paragraph ARR-2.1.4 on an ongoing basis. Operators who are CBB licensees are also expected to maintain the applicable criteria listed in Paragraph ARR-2.1.4.

            April 2012

        • ARR-2.2 ARR-2.2 Authorisation Process

          • ARR-2.2.1

            Applicants for authorisation under Rule ARR-2.1.1 must fill in the Application Form 1 (CIU Application Form) online, available on the CBB website under E-services/online Forms. The applicant must upload scanned copies of supporting documents as directed by the CBB.

            Amended: January 2020
            Added: April 2012

          • ARR-2.2.2

            The application for authorisation must identify a representative in their capacity as the person responsible for submitting the application for the CIU. This person must be:

            (a) An officer of the operator of the CIU; and
            (b) An individual capable of being contacted by the CBB by post, telephone, fax and/or e-mail.
            April 2012

          • ARR-2.2.3

            In addition to the operator's contact details, an alternative contact may be provided, such as the the lawyer in-charge of submitting the application.

            April 2012

          • ARR-2.2.4

            The CBB will acknowledge applications made under Rule ARR-2.1.1 within 5 business days of receipt and provide formal feedback on the application within 20 business days of receipt of full set of documents. This feedback will confirm whether the application is complete, or whether further information/documents are required.

            Amended: July 2017
            April 2012

          • ARR-2.2.5

            The Validity of the application will be for 120 days from the date of the CBB's acknowledgement letter, failing which the CBB reserves the right to cancel the application and request the submission of a new one.

            Amended: July 2017
            April 2012

          • ARR-2.2.6

            [This Paragraph was deleted in July 2017].

            Deleted: July 2017
            April 2012

          • ARR-2.2.7

            If the CBB confirms the application has been satisfactorily completed, then the CBB will take a final decision within 10 business days of the CBB's confirmation that the application is complete.

            April 2012

          • Granting of Authorisation

            • ARR.2.2.8

              To be granted authorisation, an applicant must demonstrate compliance with the applicable requirements of Module BDR of Volume 7. Should an authorisation be granted, the CBB will notify the applicant in writing of the fact. The authorisation may be subject to additional conditions being met.

              April 2012

            • ARR.2.2.9

              The CIU must be launched within a period not exceeding 6 months from the date of authorisation.

              April 2012

            • ARR.2.2.10

              Subsequent to granting authorisation, the operator is required to submit the following:

              (a) The final prospectus (and simplified prospectus, if applicable) together with all the signed contractual agreements of the CIU, and the authenticated Memorandum and Articles of Association of the fund company (if applicable), or any other constitutional documents, within one month from the date of authorisation; and
              (b) A written confirmation to the CBB stating that the CIU has been launched, within a period not exceeding 6 months from the date of authorisation.
              April 2012

            • ARR.2.2.11

              Should for any reason the CIU not be launched within the specified timeframe of 6 months, the operator must seek the CBB's approval for an extension to launch the CIU and confirm in writing to the CBB once the CIU is launched.

              April 2012

            • ARR.2.2.12

              The CBB will normally only exempt a CIU from the above 6 months rule if exceptional unforeseen circumstances have intervened and delayed the start of the CIU's operations, (for instance, due to a sudden downturn in markets), provided that this would not prejudice the interests of potential investors.

              April 2012

          • Refusal of Authorisation

            • ARR.2.2.13

              The CBB may refuse to grant authorisation if in its opinion:

              (a) The requirements of this Module are not met;
              (b) False or misleading information has been provided to the CBB, or information which should have been provided to the CBB has not been so provided; or
              (c) The CBB believes it necessary in order to safeguard the interests of potential investors.
              April 2012

            • ARR.2.2.14

              Where the CBB proposes to refuse an application for authorisation, it must give the applicant written notice to that effect. Applicants have 30 calendar days from the date of the written notice to appeal the decision. The application for appeal must be made to an Executive Director or more senior official of the CBB.

              April 2012

        • ARR-2.3 ARR-2.3 CBB Fees

          • Application Fees

            • ARR-2.3.1

              Each application for authorisation made under Rule ARR-2.1.1 must be accompanied by a non-refundable BD 100 processing fee at the time of submitting the formal application to the CBB.

              April 2012

          • Annual Fees

            • ARR-2.3.2

              Each Bahrain domiciled retail CIU authorised by the CBB is subject to an annual fee of BD 2,000. In the case of umbrella funds, each sub-fund is also charged BD 2,000 a year. The fee is payable on the 15th January of the year for which the annual fee is due.

              Amended: July 2013
              April 2012

            • ARR-2.3.3

              For newly authorised CIUs, the first annual license fee is payable when the authorisation letter is issued by the CBB. The amount payable is the annual fee of BD 2,000 on a monthly prorata basis as determined by the CBB.

              April 2012

            • ARR-2.3.4

              Where authorisation is revoked, (whether at the initiative of the operator or the CBB), no refund will be paid for any months remaining in the calendar year in question.

              April 2012

            • ARR-2.3.5

              All annual fees are collected by direct debit and all operators/trustees of CIUs must ensure that they submit to the CBB the completed Direct Debit Authorisation Form (available under Part B of Volume 7) by 15th October prior to the year for which the fees are due.

              Amended: October 2013
              Amended: July 2013
              April 2012

            • ARR-2.3.6

              If a CIU or newly established CIU does not have a bank account within the Kingdom of Bahrain, it may remit the annual fee on or before the due date of 15th January by wire transfer and inform the CBB when the payment has been made:

              Beneficiary Name: Central Bank of Bahrain
              Bank Name: National Bank of Bahrain, Head Office
              Account No: 99572265
              Swift Code: NBOBBHBM
              IBAN: BH83 NBOB 0000 0099 5722 65

              The amount transferred to the CBB should cover the full amount of the fee. Any other charges must be borne by the CIU.

              Added: October 2013

      • ARR-3 ARR-3 Bahrain Domiciled Expert CIUs

        • ARR-3.1 ARR-3.1 Authorisation Requirements

          • ARR-3.1.1

            Bahrain domiciled expert CIUs must be authorised by the CBB prior to being offered to investors.

            April 2012

          • ARR-3.1.2

            An application for authorisation may only be made by the operator of the CIU.

            April 2012

          • ARR-3.1.3

            An applicant may appoint a representative — such as a law firm to prepare and submit the application. An applicant may also appoint the CIU's proposed fund administrator/custodian or a professional consultant to prepare and submit the application, in which case the application has to be reviewed by a professional law firm or internal legal councel prior to submission to the CBB. In all cases, the applicant retains full responsibility for the accuracy and completeness of the application, and is required to certify the application form accordingly. The CBB also expects to be able to liaise directly with the applicant during the authorisation process, when seeking clarification for any issues.

            April 2012

          • ARR-3.1.4

            In cases where the operator is not a CBB licensee, an application for authorisation under Rule ARR-3.1.1 will only be considered if:

            (a) The operator:
            (i) Is duly authorised to operate similar CIUs in its home jurisdiction;
            (ii) Is supervised by an overseas regulatory authority acceptable to the CBB;
            (iii) Has a sound track record and/or experienced management team;
            (iv) Is financially sound according to its home regulatory requirements; and
            (v) Is a reputable financial institution.
            (b) The operator has identified appropriate institutions licensed by the CBB, with which it would enter into service agreements in order to satisfy the administration and custody requirements; and
            (c) The operator has submitted an acceptably worded undertaking to the CBB, stating that it will abide by the CBB Law and the provisions of this Module.
            April 2012

          • ARR-3.1.5

            Operators are expected to maintain the criteria listed in Paragraph ARR-3.1.4 on an ongoing basis. Operators who are CBB licensees are also expected to maintain the applicable criteria listed in Paragraph ARR-3.1.4.

            April 2012

        • ARR-3.2 ARR-3.2 Authorisation Process

          • ARR-3.2.1

            Applicants for authorisation under Rule ARR-3.1.1 must fill in the Application Form 1 (CIU Application Form) online, available on the CBB website under E-services/online Forms. The applicant must upload scanned copies of supporting documents as directed by the CBB.

            Amended: January 2020
            Added: April 2012

          • ARR-3.2.2

            The application for authorisation must identify a representative in their capacity as the person responsible for submitting the application for the CIU. This person must be:

            (a) An officer of the operator of the CIU; and
            (b) An individual capable of being contacted by the CBB by post, telephone, fax and/or e-mail.
            April 2012

          • ARR-3.2.3

            In addition to the operator's contact details, an alternative contact may be provided, such as the lawyer in-charge of submitting the application.

            April 2012

          • ARR-3.2.4

            The CBB will acknowledge applications made under Rule ARR-3.1.1 within 5 business days of receipt and provide formal feedback on the application within 20 business days of receipt of full set of documents. This feedback will confirm whether the application is complete, or whether further information/documents are required.

            Amended: July 2017
            April 2012

          • ARR-3.2.5

            The Validity of the application will be for 120 days from the date of the CBB's acknowledgement letter, failing which the CBB reserves the right to cancel the application and request the submission of a new one.

            Amended: July 2017
            April 2012

          • ARR-3.2.6

            [This Paragraph was deleted in July 2017].

            Deleted: July 2017
            April 2012

          • ARR-3.2.7

            If the CBB confirms the application to be satisfactorily completed, then the CBB will take a final decision within 10 business days of the CBB's confirmation that the application is complete.

            April 2012

          • Granting of Authorisation

            • ARR-3.2.8

              To be granted authorisation, an applicant must demonstrate compliance with the applicable requirements in Module BDE of Volume 7. Should authorisation be granted, the CBB will notify the applicant in writing of the fact. The authorisation may be subject to additional conditions being met.

              April 2012

            • ARR-3.2.9

              The CIU must be launched within a period not exceeding six months from the date of authorisation.

              April 2012

            • ARR-3.2.10

              Subsequent to granting authorisation, the operator is required to submit the following:

              (a) The final prospectus (and simplified prospectus, if applicable) together with the all signed contractual agreements of the CIU, and the authenticated Memorandum and Articles of Association of the fund company (if applicable), or any other constitutional documents, within one month from the date of authorisation; and
              (b) A written confirmation to the CBB stating that the CIU has been launched, within a period not exceeding 6 months from the date of authorisation.
              April 2012

            • ARR-3.2.11

              Should for any reason the CIU not be launched within the specified timeframe of 6 months, the operator must seek the CBB's approval for an extension to launch the CIU and confirm in writing to the CBB once the CIU is launched.

              April 2012

            • ARR-3.2.12

              The CBB will normally only exempt a CIU from the above 6 months rule if exceptional unforeseen circumstances have intervened and delayed the start of the CIU's operations, (for instance, due to a sudden downturn in markets), provided that this would not prejudice the interests of potential investors.

              April 2012

          • Refusal of Authorisation

            • ARR-3.2.13

              The CBB may refuse to grant authorisation if in its opinion:

              (a) The requirements of this Module are not met;
              (b) False or misleading information has been provided to the CBB, or information which should have been provided to the CBB has not been so provided; or
              (c) The CBB believes it necessary in order to safeguard the interests of potential investors.
              April 2012

            • ARR-3.2.14

              Where the CBB proposes to refuse an application for authorisation, it must give the applicant written notice to that effect. Applicants have 30 calendar days from the date of the written notice to appeal the decision. The application for appeal must be made to an Executive Director or more senior official of the CBB.

              April 2012

        • ARR-3.3 ARR-3.3 CBB Fees

          • Application Fees

            • ARR-3.3.1

              Each application for authorisation made under Rule ARR-3.1.1 must be accompanied by a non-refundable BD100 processing fee at the time of submitting the formal application to the CBB.

              April 2012

          • Annual Fees

            • ARR-3.3.2

              Each Bahrain domiciled expert CIU authorised by CBB is subject to an annual fee of BD2,000. In the case of umbrella funds, each sub-fund is also charged BD2,000 a year. The fee is payable on the 15th January of the year for which the annual fee is due.

              Amended: July 2013
              April 2012

            • ARR-3.3.3

              For newly authorised CIUs, the first annual license fee is payable when the authorisation letter is issued by the CBB. The amount payable is the annual fee of BD2,000 on a monthly prorata basis as determined by the CBB.

              April 2012

            • ARR-3.3.4

              Where authorisation is revoked, (whether at the initiative of the operator or the CBB), no refund is paid for any months remaining in the calendar year in question.

              April 2012

            • ARR-3.3.5

              All annual fees are collected by direct debit and all operators/trustees of CIUs must ensure that they submit to the CBB the completed Direct Debit Authorisation Form (available under Part B of Volume 7) by 15th October prior to the year for which the fees are due.

              Amended: October 2013
              Amended: July 2013
              April 2012

            • ARR-3.3.6

              If a CIU or newly established CIU does not have a bank account within the Kingdom of Bahrain, it may remit the annual fee on or before the due date of 15th January by wire transfer and inform the CBB when the payment has been made:

              Beneficiary Name: Central Bank of Bahrain
              Bank Name: National Bank of Bahrain, Head Office
              Account No: 99572265
              Swift Code: NBOBBHBM
              IBAN: BH83 NBOB 0000 0099 5722 65

              The amount transferred to the CBB should cover the full amount of the fee. Any other charges must be borne by the CIU.

              Added: October 2013

      • ARR-4 ARR-4 Bahrain Domiciled Exempt CIUs

        • ARR-4.1 ARR-4.1 Registration Requirements

          • ARR-4.1.1

            Bahrain domiciled exempt CIUs must be registered with the CBB prior to their being offered to investors.

            April 2012

          • ARR-4.1.2

            Bahrain domiciled exempt CIUs are not subject to the CBB's authorisation or on-going supervisory requirements. The registration requirement is to allow the CBB to monitor developments in the financial services sector.

            April 2012

          • ARR-4.1.3

            An application for registration may only be made by the operator of the CIU.

            April 2012

          • ARR-4.1.4

            An applicant may appoint a representative — such as a law firm to prepare and submit the application. An applicant may also appoint the CIU's proposed fund administrator/custodian or a professional consultant to prepare and submit the application, in which case the application has to be reviewed by a professional law firm or internal legal councel prior to submision to the CBB. In all cases, the applicant retains full responsibility for the accuracy and completeness of the application, and is required to certify the application form accordingly. The CBB also expects to be able to liaise directly with the applicant during the registration process, when seeking clarification of any issues.

            April 2012

          • ARR-4.1.5

            In cases where the operator is not a CBB licensee, an application for registration under Rule ARR-4.1.1 will only be considered, if:

            (a) The operator:
            (i) Is duly authorised to operate similar CIUs in its home jurisdiction (if applicable);
            (ii) Is supervised by an overseas regulatory authority acceptable to the CBB (if applicable);
            (iii) Has a sound track record and/or experienced management team;
            (iv) Is financially sound according to its home regulatory requirements; and
            (v) Is a reputable financial institution.
            (b) The operator has identified appropriate institutions licensed by the CBB, with which it would enter into service agreements in order to satisfy the administration and custody requirements contained in this Module; and
            (c) The operator has submitted an acceptably worded undertaking to the CBB, stating that it will abide by the CBB Law and the provisions of this Module (if applicable).
            April 2012

          • ARR-4.1.6

            Operators are expected to maintain the criteria listed in Paragraph ARR-4.1.5 on an ongoing basis. Operators who are CBB licensees are also expected to maintain the applicable criteria listed in Paragraph ARR-4.1.5.

            April 2012

        • ARR-4.2 ARR-4.2 Registration Process

          • ARR-4.2.1

            Applicants for registration under Rule ARR-4.1.1 must fill in the Application Form 1 (CIU Application Form) online, available on the CBB website under E-services/online Forms. The applicant must upload scanned copies of supporting documents as directed by the CBB.

            Amended: January 2020
            Added: April 2012

          • ARR-4.2.2

            The application for registration must identify a representative in their capacity as the person responsible for submitting the application for the CIU. This person must be:

            (a) An officer of the operator of the CIU; and
            (b) An individual capable of being contacted by the CBB by post, telephone, fax and/or e-mail.
            April 2012

          • ARR-4.2.3

            In addition to the operator's contact details, an alternative contact may be provided, such as the lawyer in-charge of submitting the application.

            April 2012

          • ARR-4.2.4

            The CBB's review of applications for registration are mainly limited to satisfying itself that the exemption conditions specified in the Bahrain domiciled exempt CIUs Chapter of this Module are likely to be complied with. CBB does not review the proposed structure or operations in detail, although it reserves the right to seek appropriate confirmations or additional information from the applicant.

            April 2012

          • ARR-4.2.5

            The CBB will acknowledge applications made under Rule ARR-4.1.1 within 5 business days of receipt and provide formal feedback on the application within 15 business days of receipt of full set of documents. This feedback will confirm whether the application is complete, or whether further information/documents are required.

            Amended: July 2017
            April 2012

          • ARR-4.2.6

            The Validity of the application will be for 120 days from the date of the CBB's acknowledgement letter, failing which the CBB reserves the right to cancel the application and request the submission of a new one.

            Amended: July 2017
            April 2012

          • ARR-4.2.7

            [This Paragraph was deleted in July 2017].

            Deleted: July 2017
            April 2012

          • ARR-4.2.8

            If the CBB confirms the application to be satisfactorily completed, then the CBB will take a final decision within 10 business days of the CBB's confirmation that the application is complete.

            April 2012

          • Granting of Registration

            • ARR-4.2.9

              To be registered, an applicant must demonstrate compliance with the exemption conditions specified in Module BDX of Volume 7. Should the application for registration be accepted, the CBB will notify the applicant in writing of the fact. The registration may be subject to additional conditions being met.

              April 2012

            • ARR-4.2.10

              The CIU must be launched within a period not exceeding six months from the date of registration.

              April 2012

            • ARR-4.2.11

              Subsequent to registration, the operator is required to submit the following:

              (a) The final prospectus (and simplified prospectus, if applicable) together with all the signed contractual agreements of the CIU, and the authenticated Memorandum and Articles of Association of the fund company (if applicable), or any other constitutional documents, within one month from the date of registration; and
              (b) A written confirmation to the CBB stating that the CIU has been launched, within a period not exceeding 6 months from the date of registration.
              April 2012

            • ARR-4.2.12

              Should for any reason the CIU not be launched within the specified timeframe of 6 months, the operator must seek the CBB's approval for an extension to launch the CIU and confirm in writing to the CBB once the CIU is launched.

              April 2012

            • ARR-4.2.13

              The CBB will normally only exempt a CIU from the above 6 months rule if exceptional unforeseen circumstances have intervened and delayed the start of the CIU's operations, (for instance, due to a sudden downturn in markets), provided that this would not prejudice the interests of potential investors.

              April 2012

          • Refusal of Registration

            • ARR-4.2.14

              The CBB may refuse to register a Bahrain domiciled exempt CIU, if in its opinion:

              (a) The exemption requirements in the Bahrain domiciled exempt CIU Chapter of this Module are unlikely to be met;
              (b) False or misleading information has been provided to the CBB, or information which should have been provided to the CBB has not been so provided; or
              (c) The CBB believes it necessary in order to safeguard the interests of potential investors.
              April 2012

            • ARR-4.2.15

              Where the CBB proposes to refuse an application for registration, it must give the applicant written notice to that effect. Applicants have 30 calendar days from the date of the written notice to appeal the decision. The application for appeal must be made to an Executive Director or more senior official of the CBB.

              April 2012

        • ARR-4.3 ARR-4.3 CBB Fees

          • Application Fees

            • ARR-4.3.1

              Each application for registration made under Rule ARR-4.1.1 must be accompanied by a non-refundable BD100 processing fee at the time of submitting the formal application.

              April 2012

            • ARR-4.3.2

              Each Bahrain domiciled exempt CIU registered by CBB is subject to an annual fee of BD2,000. In the case of umbrella funds, each sub-fund is also charged BD2,000 a year. The fee is payable on the 15th January of the year for which the annual fee is due.

              Amended: July 2013
              April 2012

            • ARR-4.3.3

              For newly registered CIUs, the first annual license fee is payable when the registration letter is issued by the CBB. The amount payable is the annual fee of BD2,000 on monthly prorata basis as determined by the CBB.

              April 2012

            • ARR-4.3.4

              Where the CIU is de-registered, (whether at the initiative of the operator or the CBB), no refund is paid for any months remaining in the calendar year in question.

              April 2012

            • ARR-4.3.5

              All annual fees are collected by direct debit and all operators/trustees of CIUs must ensure that they submit to the CBB the completed Direct Debit Authorisation Form (available under Part B of Volume 7) by 15th October prior to the year for which the fees are due.

              Amended: October 2013
              Amended: July 2013
              April 2012

            • ARR-4.3.6

              If a CIU or newly established CIU does not have a bank account within the Kingdom of Bahrain, it may remit the annual fee on or before the due date of 15th January by wire transfer and inform the CBB when the payment has been made:

              Beneficiary Name: Central Bank of Bahrain
              Bank Name: National Bank of Bahrain, Head Office
              Account No: 99572265
              Swift Code: NBOBBHBM
              IBAN: BH83 NBOB 0000 0099 5722 65

              The amount transferred to the CBB should cover the full amount of the fee. Any other charges must be borne by the CIU.

              Added: October 2013

      • ARR-5 ARR-5 Overseas Domiciled CIUs

        • ARR-5.1 ARR-5.1 Classification of Overseas Domiciled CIUs

          • ARR-5.1.1

            The CBB classifies overseas domiciled CIUs as retail, expert or exempt, based on the risk profile of the CIU. As a result of the classification, the CBB may impose a higher minimum investment amount than that prescribed in the offering memorandum.

            April 2012

          • Overseas Domiciled Retail/Expert CIUs

            • ARR-5.1.2

              Overseas domiciled retail CIUs and Overseas Domiciled expert CIUs, domiciled in a recognised jurisdiction, (see Chapter ARR-6), are required to be registered/filed with the CBB, respectively, prior to being offered to investors in the Kingdom of Bahrain.

              Amended: July 2017
              Amended: July 2015
              April 2012

            • ARR-5.1.3

              Overseas domiciled retail CIUs and Overseas Domiciled expert CIUs, which are not domiciled in a recognised jurisdiction, (see Chapter ARR-6), must be authorised by the CBB prior to being offered to investors in the Kingdom of Bahrain.

              Amended: July 2017
              April 2012

          • Overseas Domiciled Exempt CIUs

            • ARR-5.1.4

              Overseas domiciled exempt CIUs are required to be registered with the CBB, unless they are domiciled in a recognised jurisdiction, in which case exempt CIUs are only required to be filed with the CBB.

              Amended: July 2015
              April 2012

        • ARR-5.2 ARR-5.2 Authorisation, Registration and Filing Process

          • ARR-5.2.1

            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 — Categories 1 and 2 only), may offer overseas domiciled CIUs in Bahrain.

            April 2012

          • ARR-5.2.2

            Applications for authorisation, registration or filing may only be made by the CBB licensee that is proposing to offer the CIU to investors in Bahrain.

            Amended: July 2015
            April 2012

          • ARR-5.2.3

            In authorising, registering or acknowledging filing of overseas domiciled CIUs which are Shari'a compliant, the CBB expects such CIUs to meet the requirements outlined in Module SCC of Volume 7.

            Amended: July 2015
            April 2012

          • ARR-5.2.4

            Alternatively, the CBB may accept other specific arrangements as having equivalent effect for purposes of Paragraph ARR-5.2.3.

            Amended: July 2015
            April 2012

          • ARR-5.2.5

            Applicants for registration or authorisation of an overseas domiciled CIU must fill in the Application Form 1 (CIU Application Form) online, available on the CBB website under E-services/online Forms. Likewise, an application for filing of an overseas domiciled expert or exempt CIU from a recognised jurisdiction must fill in the Application Form 3 (ODC Filing Form) online, available on the CBB website under E-services/online Forms. The applicants must upload scanned copies of supporting documents as directed by the CBB. 

            Amended: January 2020
            Amended: July 2015
            Added: April 2012

          • ARR-5.2.6

            The application for authorisation, registration or filing must identify a representative in their capacity as the person responsible for submitting the application. This person must be:

            (a) A senior officer at the CBB licensee that is proposing to offer the CIU to investors in Bahrain; and
            (b) An individual capable of being contacted by the CBB by post, telephone, fax and/or e-mail.
            Amended: July 2015
            April 2012

          • ARR-5.2.7

            The CBB's review of applications for registration is mainly limited to satisfying itself that the applicant satisfies the conditions specified in the relevant Rules pertaining to the category of scheme it falls under (i.e. retail CIU, expert CIU or exempt CIU). This may require seeking confirmation of the CIU's regulatory status from its home regulator, and reviewing the CIU's documentation (such as promotional material and its prospectus). The CBB does not however review the proposed structure or operations in detail, although it reserves the right to seek appropriate confirmations or additional information/documentation from the applicant.

            April 2012

          • ARR-5.2.8

            The CBB's review of applications for authorisation is mainly limited to satisfying itself that the CIU for which authorisation is sought has an equivalent structure to Bahrain domiciled CIUs falling under the same category. The CBB reserves the right to seek appropriate confirmations or additional information/documentations from the applicant.

            April 2012

          • ARR-5.2.8A

            The CBB's review of applications for filing is mainly limited to satisfying itself that the applicant has done its due diligence to ensure the suitability of the CIU to the profile of the targeted investors (i.e. expert or accredited investors). The supporting documents are submitted to the CBB for filing purposes only. The CBB rely solely on the due diligence process undertaken by the applicants, however, the CBB reserves the right to seek appropriate confirmations or additional information/documentation from the applicant.

            Added: July 2015

          • ARR-5.2.9

            The CBB expects the CBB licensee applying for authorisation, registration or filing of an overseas domiciled CIU to satisfy itself that the CIU's operator is a licensed and/or authorised entity eligible to undertake the activity of operating CIUs. The CBB reserves the right to seek information pertaining to the operator's regulatory status, including requesting a copy of its license and/or authorisation.

            Amended: July 2015
            April 2012

          • ARR-5.2.10

            The CBB provides feedback on an authorisation/registration application within 15 business days of the application being received by the CBB. The feedback will confirm whether the application is complete, or whether further information/documents are required.

            Amended: July 2015
            April 2012

          • ARR-5.2.11

            Should further information/documents be required, then the applicant has 45 calendar days from the date of the CBB's feedback in which to complete the authorisation/registration application, failing which the CBB reserves the right to cancel the application.

            Amended: July 2015
            April 2012

          • ARR-5.2.12

            When all outstanding information/documents are submitted, the CBB will provide a formal feedback on the submitted information/documents within 15 business days of receipt.

            April 2012

          • ARR-5.2.13

            If the CBB confirms the authorisation/registration application to be complete, then the CBB will take a final decision within 10 business days of the CBB's confirmation that the application is complete.

            Amended: July 2015
            April 2012

          • ARR-5.2.13A

            The CBB provides feedback on a filing application within 3 business days of the application being received by the CBB. The feedback will confirm whether the application is complete, or whether further information/documents are required.

            Added: July 2015

          • ARR-5.2.13B

            Should further information/documents be required, then the applicant has 5 business days from the date of the CBB's feedback in which to complete the filing application, failing which the CBB reserves the right to cancel the application.

            Added: July 2015

          • ARR-5.2.13C

            When all outstanding information/documents are submitted, the CBB will provide a formal feedback on the submitted information/documents within 3 business days of receipt.

            Added: July 2015

          • ARR-5.2.13D

            If the CBB confirms the filing application to be complete, then the CBB will take a final decision within 2 business days of the CBB's confirmation that the application is complete.

            Added: July 2015

          • Granting of Registration or Authorisation/Acknowledging Filing

            • ARR-5.2.14

              To be authorised, registered or acknowledged, an applicant must demonstrate that it will comply with the conditions specified in Module ODC of Volume 7 pertaining to the category of scheme it falls under (i.e. retail CIU, expert CIU or exempt CIU). Should the application be accepted, the CBB will notify the applicant in writing of the fact. The authorisation, registration or acknowledgement of filing may be subject to additional conditions being met.

              Amended: July 2015
              April 2012

          • Decision to Refuse Authorisation, Registration of Filing

            • ARR-5.2.15

              The CBB may refuse to authorise, register or acknowledge filing of an overseas domiciled CIU, if in its opinion:

              (a) The conditions in the relevant Rules (as appropriate) are not met;
              (b) False or misleading information has been provided to the CBB, or significant information which should have been provided to the CBB has not been so provided; or
              (c) The CBB believes it necessary in order to safeguard the interests of potential investors.
              Amended: July 2015
              April 2012

            • ARR-5.2.16

              Where the CBB proposes to refuse an application for authorisation, registration or filing it must give the applicant written notice to that effect. Applicants have 30 calendar days from the date of the written notice to appeal the decision.

              Amended: July 2015
              April 2012

      • ARR-6 ARR-6 Recognised Jurisdictions

        • ARR-6.1 ARR-6.1 Recognised Jurisdictions

          • ARR-6.1.1

            Recognised jurisdictions for the purposes of this Module are:

            Jurisdiction Fund Type
            Australia A retail fund established and registered under the Managed Investment CIU provisions of the Corporations Act (Chapter 5 C) 2001 where the Australian Securities and Investments Commission ('ASIC') has approved the constitution of the CIU.
            Bermuda An "investment fund" authorised by the Bermuda Monetary Authority as defined under section 3 of the Investment Funds Act 2006.
            Canada A mutual fund which has been authorised by any of the 13 respective Canadian provincial regulatory authorities in accordance with National Instrument 81-101 and National Instrument 81-102 issued by the Canadian Securities Administrators (CSA).
            Cayman Islands A mutual fund that is licensed by the Cayman Islands Monetary Authority under the Mutual Funds Law (2003 Revision) and the Mutual Funds (Amendment) Regulations 2006.
            European Economic Area A UCITS compliant fund or CIU, authorised by the relevant EEA State's regulator as a UCITS fund or CIU. EEA Member States are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.
            GCC Countries Any fund incorporated in a GCC member state, authorised and supervised by the central bank or other appropriate regulatory authority, to a standard equivalent to those in this Module. GCC Member States (besides Bahrain) are Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
            Guernsey Any authorised CIU (within the meaning of the Collective Investment CIUs (Class A) Rules 2002, as amended by the Collective Investment CIUs (Class A) Rules 2000 (Amendment) Rules 2003), managed in and authorised under the law of Guernsey.
            Ireland The following CIUs, in addition to any UCITs compliant fund or CIU (see EEA Member States above): non-UCIT funds licensed by the Financial Regulator under the Investment Funds, Companies and Miscellaneous Provisions Act 2005.
            Isle of Man Any CIU which is an authorised CIU within the meaning of the Financial Supervision Act 1988 (an Act of Tynwald) (as last amended by the Corporate Service Providers Act 2000), where the CIU is managed in and authorised under the law of the Isle of Man.
            Jersey Any CIU which is a recognised fund within the meaning of the Collective Investment Funds (Recognised Funds) (Rules) (Jersey) Order 2003, managed in and authorised under the law of Jersey.
            Luxembourg The following CIUs, in addition to any UCITs compliant fund or CIU (see EEA Member States above): (a) Undertaking for Collective Investments (UCIs) as registered under Part II of the Law of 1988 Relating to Undertakings for Collective Investment; and (b) Funds registered under the Law Of 13th February, 2007 Relating To Specialised Investment Funds.
            New Zealand A unit trust authorised under the Unit Trusts Act 1960 and in accordance with the interpretation of section 2 of that act.
            Singapore A collective investment CIU authorised by the Monetary Authority of Singapore under section 286 of the Securities and Futures Act, and whose units may be offered to the general public.
            South Africa A collective investment CIU which is registered with the Financial Services Board under the Collective Investment CIUs Control Act (Act 45 of 2002) of 2002 ("CISCA").
            Switzerland A securities fund which corresponds to a UCITs fund in accordance with the Swiss Investment Fund Act and where the manager is licensed by the Swiss Federal Banking Commission.
            United Kingdom The following CIUs, in addition to any UCITs compliant fund or CIU (see EEA Member States above):
            (a) Unit trust CIUs authorised under section 243 of the Financial Services and Markets Act 2000 (FSMA), authorised open ended investment companies incorporated by virtue of regulations made under section 262 of FSMA in respect of which an authorisation order is in force; and
            (b) Authorised Qualified Investor CIUs whether in the form of a unit trust or an investment company with variable capital.
            United States of America A collective investment CIU registered under the Investment Company Act of 1940, which has also registered the offering of its securities under the Securities Act of 1933 and where the registration statement has become effective in accordance with the Securities and Exchange Commission's Regulations and the Operator is registered with the SEC.
            April 2012

    • RP RP Relevant Persons

      • RP-A RP-A Introduction

        • RP-A.1 RP-A.1 Purpose

          • Executive Summary

            • RP-A.1.1

              This Module sets out the requirements of the Central Bank of Bahrain's (CBB) with respect to the combination, appointment and responsibilities of Relevant Persons to CIUs.

              April 2012

          • Legal Basis

            • RP-A.1.2

              This Module contains the CBB's Directive (as amended from time to time) regarding relevant persons under Volume 7 of the CBB Rulebook. It is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). This Directive is applicable to all CBB licensees that are relevant persons.

              April 2012

            • RP-A.1.3

              For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

              April 2012

        • RP-A.2 RP-A.2 Module History

          • Evolution of Module

            • RP-A.2.1

              This Module was first issued in April 2007, as part of the initial release of the contents of Volume 6 (Capital Markets); it was given an effective date of 1 June 2007, with a one-year transition for existing CIUs.

              April 2012

            • RP-A.2.2

              The Module was subsequently revised in April 2012, by the addition of several sections catering for the role and responsibilities of relevant persons, the registration and authorisation requirements, corporate governance, and other relevant Chapters and has been reissued as Volume 7.

              April 2012

            • RP-A.2.3

              A list of recent changes made to this Module subsequent to the April 2012 revision is provided below:

              Module Ref. Change Date Description of Changes
              RP-12.4.1 07/2015 Amended to reflect the process for filing for exempt and expert CIUs.
              RP-12.6.2 07/2015 Added requirement for placement agent to retain supporting documentation ensuring suitability of the CIU for the targeted category of investors.
              RP-3.6.5 10/2016 This paragraph has been deleted in October 2016.
              RP-1.1.1; RP-1.3.7; RP-12.1.1; RP-12.2.1 07/2017 Deleted 'resident' with respect to investors.
              RP-1.2.4 01/2020 Amended Paragraph.

          • Superseded Requirements

            • RP-A.2.4

              This Module supersedes the following provisions contained in circulars or other regulatory instruments:

              Circular / other reference
              Volume 6 Module CIU
              April 2012

            • RP-A.2.5

              Further guidance on the implementation and transition to Volume 7 (Collective Investment undertakings) is given in Module ES (Executive Summary).

              April 2012

      • RP-1 RP-1 Appointment of Relevant Persons

        • RP-1.1 RP-1.1 General Requirements

          • RP-1.1.1

            A relevant person for the purpose of Volume 7, is the:

            (a) Operator;
            (b) Trustee (if applicable);
            (c) Fund Manager;
            (d) Custodian;
            (e) Fund Administrator;
            (f) Registrar/Transfer Agent;
            (g) Placement Agent;
            (h) Investment Advisor (if applicable);
            (i) External Auditor; and
            (j) CBB Licensee acting as a Placement Agent offering overseas domiciled CIU holdings to investors in the Kingdom of Bahrain.
            Amended: July 2017
            April 2012

          • RP-1.1.2

            Throughout this Module, reference to relevant persons (a) to (i) is made in relation to Bahrain domiciled CIUs. Reference to relevant person (j) is made in relation to overseas domiciled CIUs; however, the CBB expects overseas domiciled CIUs to have in place relevant persons similar to (a) to (i) appointed in their home jurisdiction.

            April 2012

          • Combination of Relevant Persons

            • RP-1.1.3

              Where relevant persons functions are combined and the CIU is structured as a Common CIU or Corporate, the following combination of relevant persons must be observed:

              Relevant Person Operator Fund Manager Custodian Fund Admin. Registrar/Transfer Agent Placement Agent Inv. Advisor External Auditor
                (a) (c) (d) (e) (f) (g) (h) (I)
              Operator   yes no no no yes yes no
              Fund Manager yes   no no no yes no no
              Custodian no no   yes yes no no no
              Fund Admin. no no yes   yes no no no
              Registrar/Transfer Agent no no yes yes   no no no
              Placement Agent yes yes no no no   yes no
              Investment Advisor yes no no no no yes   no
              External Auditor no no no no no no no  
              April 2012

            • RP-1.1.4

              Where relevant persons functions are combined and the CIU is structured as a trust, the following combination of relevant persons must be observed:

              Relevant Person Trustee Fund Manager Custodian Fund Admin. Registrar/Transfer Agent Placement Agent Inv. Advisor External Auditor
                (b) (c) (d) (e) (f) (g) (h) (i)
              Trustee   no yes yes yes no no no
              Fund Manager no   no no no yes no no
              Custodian yes no   yes yes no no no
              Fund Admin. yes no yes   yes no no no
              Registrar/Transfer Agent yes no yes yes   no no no
              Placement Agent no yes no no no   yes no
              Investment Advisor no no no no no yes   no
              External Auditor no no no no no no no  
              April 2012

            • RP-1.1.5

              In applying Rules RP-1.1.3 and RP-1.1.4 above, relevant persons who are related parties or from the same group will not be considered independent from each other, and as such will not be permitted to act in the capacity intended.

              April 2012

            • RP-1.1.6

              Bahrain domiciled CIUs must appoint separate entities to act as each of the relevant persons listed under Rule RP-1.1.1, as appropriate.

              April 2012

            • RP-1.1.7

              The appointment of relevant persons (a), (c), (d), (e), (f), (g) and (i) is mandatory for Bahrain domiciled CIUs. In the case of CIUs structured as trusts, the appointment of relevant person (b) in place of (a) is mandatory in addition to (c), (d), (e), (f), (g) and (i). The appointment of relevant person (h) is optional for all Bahrain domiciled CIUs.

              April 2012

        • RP-1.2 RP-1.2 Operator/Trustee

          • RP-1.2.1

            The initial appointment of the operator/trustee of a Bahrain domiciled CIU will be approved by the CBB as part of the process of authorisation/registration outlined in Module ARR.

            April 2012

          • RP-1.2.2

            The list of documents required to be submitted along with the initial appointment are listed in Form 1 CIU Application Form.

            April 2012

          • RP-1.2.3

            Termination of the approved operator/trustee is not permitted by the CBB, without obtaining for the proposed replacement, the necessary prior written approval of the CBB and submitting the documents listed under Rule RP-1.2.4.

            April 2012

          • RP-1.2.4

            The documents that must be submitted to the CBB in support of an application for a subsequent appointment of an operator/trustee include, but are not limited to, the following:

            (a) Board Resolutions from the BODs of the existing and proposed operator/trustee satisfying the Rule RP-1.2.3;
            (b) A copy of the license certificate of the proposed operator/trustee (if a non CBB Licensee);
            (c) A 'no-objection' letter from the home regulatory authority of the proposed operator/trustee (if a non CBB Licensee);
            (d) The audited financial statements of the proposed operator/trustee for the last 3 years (if a non CBB Licensee); and
            (e) A Form 1 CIU Application form, duly completed by the proposed operator/trustee.
            Amended: January 2020
            Added: April 2012

        • RP-1.3 RP-1.3 Other Relevant Persons

          • RP-1.3.1

            All relevant persons of a Bahrain domiciled CIU must be appointed by the operator/trustee of the CIU, after it conducts an assessment and is satisfied as to the suitablitly of the relevant person to undertake that role, prior to entering into an agreement with the operator/trustee of the CIU.

            April 2012

          • RP-1.3.2

            The CBB will consider the suitability of the relevant persons of a CIU initially, as part of the registration/authorisation process.

            April 2012

          • RP-1.3.3

            The list of documents required to be submitted along with the initial appointment are listed in Form 1 CIU Application Form.

            April 2012

          • RP-1.3.4

            Appointments subsequent to granting authorisation of a Bahrain domiciled retail CIU or Bahrain domiciled expert CIU must be approved by the CBB, prior to the termination of the agreement with the existing relevant person.

            April 2012

          • RP-1.3.5

            The documents that must be submitted to the CBB in support of an application for a subsequent appointment of a relevant person include, but are not limited, to the following:

            (a) A Board Resolution from the BOD of the CIU approving the appointment;
            (b) The draft contractual agreement with the relevant person;
            (c) The draft amendment to the prospectus;
            (d) A copy of license certificate for non-CBB licensee relevant persons; and
            (e) The audited financial statements for the last 3 years for the fund manager only, in case the fund manager is a non-CBB licensee.
            April 2012

          • RP-1.3.6

            Appointments subsequent to granting approval for registration of a Bahrain domiciled exempt CIU must be notified to the CBB 3 months prior to the effective termination date of the agreement with the existing relevant person.

            April 2012

          • RP-1.3.7

            Overseas domiciled CIUs must appoint an eligible CBB licensee to offer their holdings to prospective investors in Bahrain.

            Amended: July 2017
            April 2012

      • RP-2 RP-2 Market Conduct of Relevant Persons

        • RP-2.1 RP-2.1 General Requirements

          • RP-2.1.1

            Relevant persons must maintain proper standards of market conduct, in relation to their role with respect to a CIU, in addition to any applicable legal and regulatory requirements, such as those imposed on them by virtue of their license and/or authorisation.

            April 2012

          • RP-2.1.2

            To demonstrate compliance with Rule RP-2.1.1 above, relevant persons must, in relation to their role with respect to a CIU:

            (a) Observe high standards of integrity and fair dealing, including being honest and straightforward in their dealings with clients;
            (b) Take all reasonable steps to identify, and prevent or manage, potential or actual conflicts of interest that could harm the interests of CIU participants (such steps must include, wherever appropriate, declaring such conflicts);
            (c) Act with due skill, care and diligence;
            (d) Act impartially and refrain from any action which may be to the advantage of one CIU and/or its participants, at the expense of another CIU and/or its participants;
            (e) Observe in full any obligations of confidentiality, including with respect to client information. This requirement does not override lawful disclosures;
            (f) Observe proper standards of market conduct, and avoid action that would generally be viewed as improper;
            (g) Take reasonable care to safeguard the assets of the CIU for which they are responsible, and ensure that those assets are kept separate from their own assets and are separately identifiable from the assets of other CIUs with which they are involved;
            (h) Pay due regard to the legitimate interests and information needs of the clients and communicate with them in a fair and transparent manner;
            (i) Act in an open and co-operative manner with the CBB and other regulatory/supervisory bodies under whose authority they come under. They should take reasonable care to ensure that their activities comply with the requirements of Volume 7, all applicable Laws and Regulations (including the Commercial Companies Law), the prospectus of the CIU, and the provisions of the contractual agreements signed with the CIU;
            (j) Take all reasonable steps to rectify any failure to comply with the obligations specified in Sup-paragraph (i), and to notify the CBB of such a breach as soon as it becomes aware of the fact;
            (k) Maintain adequate human, financial and other resources sufficient to run the CIU in an orderly manner;
            (l) Keep accurate accounts and records for each CIU for which it holds assets;
            (m) Take reasonable care to ensure that their affairs are managed effectively and responsibly, with appropriate systems and controls in relation to the size and complexity of their operations. Their systems and controls, as far as is reasonably practical, should also be sufficient to manage the level of risk inherent in their business; and
            (n) Ensure that when outsourcing functions, such outsourcing is properly controlled and that ultimate responsibility for the proper discharge of those functions is retained by the relevant person concerned.
            April 2012

          • RP-2.1.3

            Bahrain domiciled CIUs must, in their terms of engagement with all relevant persons, provide for them to report to the CBB in writing without delay, if they become aware of any of the following:

            (a) The information provided to the CIU's participants or the CBB does not truly reflect the financial situation of the CIU;
            (b) There has been a material breach of the requirements of this Volume 7, the CIU documents, or any directions issued by the CBB;
            (c) There exist circumstances that may materially affect the ability of the CIU to fulfill its obligations to the CIU participants;
            (d) There are material defects in the financial systems, controls or accounting records of the CIU;
            (e) There are material inaccuracies in any reporting provided to the CBB; or
            (f) In the case of the external auditor, if they are likely to qualify any opinion they are to provide in relation to the financial statements of the CIU.
            April 2012

          • RP-2.1.4

            A relevant person of a Bahrain domiciled CIU is presumed by the CBB to be liable for losses suffered by a participant because of that relevant person's unjustifiable failure to perform their/its obligations required under the CIU documents or Volume 7. CBB rules do not permit relevant persons to rely on disclaimers (written or otherwise) that have the effect of restricting their liability beyond what is reasonable and customary in the fund management industry

            April 2012

          • RP-2.1.5

            All relevant persons of Bahrain domiciled CIUs must act in an open and co-operative manner with the CBB and provide it with any information/documentation upon the CBB's request.

            April 2012

      • RP-3 RP-3 Operator

        • RP-3.1 RP-3.1 Definition

          • RP-3.1.1

            An operator of a CIU is the person undertaking the functions of establishing, operating, including full oversight of the corporate governance on the CIU, or winding up of a CIU.

            April 2012

        • RP-3.2 RP-3.2 Required Country of Domicile

          • RP-3.2.1

            Operators must be domiciled in a reputable jurisdiction acceptable to the CBB.

            April 2012

          • RP-3.2.2

            In the case that the operator is not a CBB licensee, it must appoint a locally domiciled CIU representative, being the custodian or the fund administrator, to act as a liaison with the CBB and the CIU participants. Such appointment must be stated in the prospectus.

            April 2012

        • RP-3.3 RP-3.3 Required Type of License

          • RP-3.3.1

            The operator of a Bahrain domiciled CIU must be acceptable to the CBB.

            April 2012

          • RP-3.3.2

            Operators must hold an appropriate license from the CBB or from a regulatory authority, acceptable to the CBB and permitting the entity to establish and operate CIUs.

            April 2012

        • RP-3.4 RP-3.4 Duties

          • RP-3.4.1

            The minimum duties of operators of CIUs authorised or registered under Module ARR, which must be executed through the appointed Board of the CIU, as appropriate, include but are not limited to the following:

            (a) Take all steps as may reasonably be required for the purposes of registering/authorising, establishing, operating and winding up the CIU;
            (b) Maintain all the documents pertaining to the CIU, consistent, current and updated, in line with applicable laws and regulations, and as approved by or notified to the CBB, as appropriate;
            (c) Make available to the CIU participants, on a prompt basis, copies of the following documents, including but not limited to:
            (i) The instrument;
            (ii) The prospectus or equivalent document;
            (iii) All contractual agreements related to the CIU; and
            (iv) All annual and semi-annual financial reports issued by the CIU.
            (d) Ensure compliance of the CIU with the requirements of Volume 7, the instrument constituting the CIU, and its prospectus;
            (e) Take all reasonable steps to rectify any failure to comply with the obligations specified above, and to notify the CBB of any breach as soon as it becomes aware of the fact;
            (f) Not withdraw as operator of the CIU except upon the appointment of a new operator and subject to the prior approval of the CBB;
            (g) Ensure compliance of the relevant persons with the terms and conditions of the contractual agreements signed with the CIU;
            (h) Ensure that all applicable anti-money laundering laws are complied with;
            (i) Liaise with the CBB as necessary from time to time for the purposes of its general oversight of the CIU;
            (j) Be diligent in appointing directors who are fit and proper and approved by the CBB;
            (k) Ensure that proper corporate governance is in place for the CIU in line with Module CG;
            (l) Avoid any conflict of interest in all aspects and address any conflict of interest among the other relevant persons to the CIU;
            (m) Consider whether CIU participants should be given voting and/or other participatory rights; and
            (n) Ensure that all reports submitted to the CBB and CIU participants, by relevant persons are accurate and submitted on a timely basis. Such reports include but are not limited to:
            (i) The semi-annual and annual financial statements of the CIU(s) for each financial year;
            (ii) In case of CIUs structured as corporate/contractual, the annual financial statements of the fund company(ies) for each financial year; and
            (iii) Form CIU (QS), Quarterly Statistical Return.
            April 2012

        • RP-3.5 RP-3.5 Reporting Requirements

          • RP-3.5.1

            The operator of a Bahrain domiciled CIU is responsible for all reporting requirements to the CBB and to other parties, as required in Module CRR. Such reporting requirements include but are not limited to:

            (a) Reporting any breach to the requirements of Volume 7, the CIU documents, or any directions issued by the CBB; and
            (b) Reporting any material amendments to the CIU documents on a timely basis.
            April 2012

        • RP-3-6 RP-3-6 Other Requirements

          • RP-3.6.1

            Operators must promptly provide the CBB, upon request, with any additional information relevant to the CIU.

            April 2012

          • RP-3.6.2

            Operators of Bahrain domiciled retail CIUs and Bahrain domiciled expert CIUs must obtain the CBB's prior written approval for any additional investment in the CIU, other than the seed capital prescribed in the prospectus.

            April 2012

          • RP-3.6.3

            Operators of Bahrain domiciled retail CIUs and Bahrain domiciled expert CIUs who have introduced seed capital/investment into a CIU authorised under Module ARR must not seek partial redemption, full redemption or buy back the seed capital/investment without the prior written approval of the CBB.

            April 2012

          • RP-3.6.4

            Operators of Bahrain domiciled exempt CIUs must notify the CBB prior to committing to any additional investment in the CIU, other than the seed capital prescribed in the prospectus.

            April 2012

          • RP-3.6.5

            [This Paragraph has been deleted in October 2016].

            Deleted: October 2016
            April 2012

          • RP-3.6.6

            Operators of Bahrain domiciled exempt CIUs must keep the seed capital/investment invested in the CIU for at least a one year period, prior to seeking redemption of the same. In case of Bahrain domiciled exempt CIUs with no redemption windows, the invested seed capital/investment must be maintained for the duration of the CIU.

            April 2012

          • RP-3.6.7

            Operators of Bahrain domiciled exempt CIUs who have introduced seed capital/investment into a CIU registered under Module ARR must not seek partial redemption, full redemption or buy back the seed capital/investment without the prior written notification to the CBB.

            April 2012

          • RP-3.6.8

            Operators of Bahrain domiciled CIUs who have made investments into a CIU, other than the investment prescribed in the prospectus, or have partially redeemed, fully redeemed or bought back the seed capital/investment, must notify CIU participants of the fact, on a timely basis.

            April 2012

          • RP-3.6.9

            Operators of Bahrain domiciled CIUs must seek CBB's prior approval as soon as reasonably practicable as to any intention to merge, transfer or wind-up a CIU.

            April 2012

          • RP-3.6.10

            Operators of Bahrain domiciled CIUs must notify the CBB immediately upon deciding to suspend / resume dealings in a CIU.

            April 2012

      • RP-4 RP-4 Trustee

        • RP-4.1 RP-4.1 Definition

          • RP-4.1.1

            The trustee is the entity to whom the legal title of the trust property/assets is transferred to, in order for the trustee to exercise the duties and powers specified in the trust instrument with a view to achieving the purpose of the trust and protecting the rights of the investors.

            April 2012

        • RP-4.2 RP-4.2 Required Country of Domicile

          • RP-4.2.1

            The trustee must be domiciled in the Kingdom of Bahrain.

            April 2012

        • RP-4.3 RP-4.3 Required Type of License

          • RP-4.3.1

            Trustees must hold an appropriate Trust Service Providers License from the CBB under CBB Rulebook Volume 5, or CBB Rulebook Volumes 1, 2 or Volume 4 provided that they have specific approval from the CBB to undertake such activity.

            April 2012

          • Form of Appointment

            • RP-4.3.2

              The agreement appointing the trustee must be in the form of a Trust Deed/Instrument.

              April 2012

        • RP-4.4 RP-4.4 Duties

          • RP-4.4.1

            The minimum duties of trustees of CIUs authorised or registered under Module ARR include but are not limited to the following:

            (a) Take all steps as may reasonably be required for the purposes of registering/authorising, establishing, operating and winding up the CIU;
            (b) Maintain all the documents pertaining to the CIU, consistent, current and updated, in line with applicable laws and regulations, and as approved by or notified to the CBB, as appropriate;
            (c) Make available to the CIU participants, on prompt basis, copies of the following documents, including but not limited to:
            (i) The instrument;
            (ii) The prospectus or equivalent document;
            (iii) All contractual agreements related to the CIU; and
            (iv) All annual and semi-annual financial reports issued by the CIU;
            (d) Ensure compliance of the CIU with the requirements of Volume 7, the instrument constituting the CIU, and its prospectus;
            (e) Take all reasonable steps to rectify any failure to comply with the obligations specified above, and to notify the CBB of any breach as soon as it becomes aware of the fact;
            (f) Not withdraw as trustee of the CIU except upon the appointment of a new trustee and subject to the prior approval of the CBB;
            (g) Ensure compliance of the relevant persons with the terms and conditions of the contractual agreements signed with the CIU;
            (h) Ensure that all applicable anti-money laundering laws are complied with;
            (i) Liaise with the CBB as necessary from time to time for the purposes of its general oversight of the CIU;
            (j) Be diligent in appointing Directors, who are fit and proper and approved by the CBB;
            (k) Ensure that proper corporate governance is in place for the CIU in line with Module CG;
            (l) Avoid any conflict of interest in all aspects and address any conflict of interest among the other relevant persons of the CIU;
            (m) Ensure that the legal title of any assets belonging to the CIU are transferred under its ownership; and
            (n) Ensure that all reports submitted to the CBB and CIU participants, by relevant persons are accurate and submitted on a timely basis. Such reports include but are not limited to:
            (i) 'The semi-annual and annual financial statements of the CIU(s) for each financial year;
            (ii) 'In case of CIUs structured as corporates/contractual, the annual financial statements of the fund company(ies) for each financial year ; and
            (iii) 'Form CIU (QS), Quarterly Statistical Return.
            April 2012

        • RP-4.5 RP-4.5 Reporting Requirements

          • RP-4.5.1

            The trustee of Bahrain domiciled CIU is responsible for all reporting requirements to the CBB and to other parties, as required in Module CRR. Such reporting requirements include but are not limited to:

            (a) Reporting any breach to the requirements Volume 7, the CIU documents, or any directions issued by the CBB; and
            (b) Reporting any material amendments to the CIU documents on a timely basis.
            April 2012

        • RP-4.6 RP-4.6 Other Requirements

          • RP-4.6.1

            Trustees must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

          • RP-4.6.2

            Trustees of Bahrain domiciled CIUs must seek CBB's prior approval as soon as reasonably practicable as to any intention to merge, transfer or wind-up a CIU.

            April 2012

          • RP-4.6.3

            Trustees of Bahrain domiciled CIUs must notify the CBB immediately upon deciding to suspend/resume dealings in a CIU.

            April 2012

      • RP-5 RP-5 Fund Manager

        • RP-5.1 RP-5.1 Definition

          • RP-5.1.1

            A fund manager is a person mandated to allocate and/or manage financial instruments and any other assets held by a CIU.

            April 2012

        • RP-5.2 RP-5.2 Required Country of Domicile

          • RP-5.2.1

            Fund managers must be domiciled in any reputable jurisdiction acceptable to the CBB.

            April 2012

        • RP-5.3 RP-5.3 Required Type of License

          • RP-5.3.1

            The fund manager of a Bahrain domiciled CIU must be acceptable to the CBB.

            April 2012

          • RP-5.3.2

            Fund managers must hold an appropriate license or equivalent from the CBB or from a regulatory authority acceptable to the CBB and permitting the entity to manage financial instruments and any other assets held by a CIU.

            April 2012

          • RP-5.3.3

            Subsequent to the operator's review and assessment of the suitability of fund managers, the CBB will take into account an institution's financial soundness, relevant experience with respect to CIUs, and regulatory track record.

            April 2012

          • Form of Appointment

            • RP-5.3.4

              The agreement appointing the fund manager must be signed between the fund manager and the fund company or trustee, as appropriate.

              April 2012

        • RP-5.4 RP-5.4 Duties

          • RP-5.4.1

            The minimum duties of fund managers of CIUs authorised or registered under Module ARR include but are not limited to the following:

            (a) Manage and/or allocate the investments and re-investments of the assets in accordance with the investment objectives and strategy, adhering to all limitations set out in fund management agreement and prospectus;
            (b) Continuously carry out and review the investment objectives of the CIU, and advise the directors of the CIU's investment program, strategy and overall performance on a prompt and regular basis;
            (c) If required, the fund manager may appoint suitable investment advisors to assist in certain areas where the fund manager lacks the relevant expertise;
            (d) If required, the fund manager may appoint suitable advisers to assist the CIU in any legal, regulatory, financial or other matters that require professional advice or assistance in managing the CIU or administering the affairs of the CIU;
            (e) Negotiate all borrowing arrangements in line with the prescribed Rules in Volume 7, observing the limits prescribed in the prospectus of the CIU and supervising the implementation of such arrangements;
            (f) Select brokers and dealers for execution of portfolio transactions;
            (g) Determine how any voting rights of securities held by the CIU should be exercised;
            (h) Give instructions to the custodian of the CIU concerning any acquisition, disposal of or other dealing in any investments or other assets of the CIU; and
            (i) Ensuring that all investments carried out on behalf of Shari'a Compliant CIUs are in line with Shari'a principles and vetted by the Shari'a Supervisory Board/Advisors.
            April 2012

        • RP-5.5 RP-5.5 Reporting Requirements

          • RP-5.5.1

            Fund managers must comply with all reporting requirements stipulated in the relevant legal agreements.

            April 2012

        • RP-5.6 RP-5.6 Other Requirements

          • RP-5.6.1

            Fund managers must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

      • RP-6 RP-6 Custodian

        • RP-6.1 RP-6.1 Definition

          • RP-6.1.1

            A custodian is a person mandated to hold and safeguard financial instruments and other assets for the account of a CIU.

            April 2012

        • RP-6.2 RP-6.2 Required Country of Domicile

          • RP-6.2.1

            For Bahrain domiciled CIUs, the custodian must be domiciled in the Kingdom of Bahrain.

            April 2012

          • RP-6.2.2

            In applying Rule RP-6.2.1, the CBB will allow 'hub and spoke' arrangements, provided that:

            (a) A suitably licensed office is maintained in Bahrain, through which the CBB can access the CIU's records;
            (b) The overseas office belongs to the same group as the Bahrain custodian, and regulated by a reputable regulatory authority acceptable to the CBB;
            (c) The custodian retains ultimate responsibility for the CIU's assets; and
            (d) Suitable outsourcing arrangements have been put in place.
            April 2012

        • RP-6.3 RP-6.3 Required Type of License

          • RP-6.3.1

            A custodian must hold an appropriate license from the CBB permitting it to provide custody services, in accordance with the CBB Rulebook.

            April 2012

          • Form of Appointment

            • RP-6.3.2

              The agreement appointing the custodian must be signed between the custodian and the fund company or trustee, as appropriate.

              April 2012

        • RP-6.4 RP-6.4 Duties

          • RP-6.4.1

            The minimum duties of the custodian of CIUs authorised or registered under Module ARR include, but are not limited to the following:

            (a) To open, maintain, and control CIU subscription and trading cash accounts with licensed banks in all relevant markets;
            (b) To open and maintain CIU securities accounts with authorised institutions;
            (c) To ensure that all assets belonging to a CIU, including cash accounts, are segregated from other accounts of the custodian or its clients;
            (d) To directly collect and receive all income and other payments, distributions and entitlements pertaining to a CIU;
            (e) To make all payments and settlements on behalf of and for the interest of the CIU, in line with the scheme documents, including the prospectus;
            (f) To safeguard all of the assets belonging to a CIU;
            (g) To ensure that all assets belonging to a CIU are held in the name of the CIU or, where relevant market practices and/or legal requirements dictate, held on behalf of the CIU, provided that proper legal arrangements are in place;
            (h) To execute any corporate actions;
            (i) To maintain all records and documentation relating to all transactions made on behalf of the CIU; and
            (j) To reconcile the CIU records pertaining to assets held, with statements obtained from sub-custodians, brokers and agents, on a regular and timely basis.
            April 2012

        • RP-6.5 RP-6.5 Reporting Requirements

          • RP-6.5.1

            Custodians must comply with all reporting requirements as stipulated in the relevant legal agreements.

            April 2012

          • RP-6.5.2

            Custodians must report to the CBB immediately when they become aware of any breach of the CIU's prospectus.

            April 2012

          • RP-6.5.3

            Custodians must provide the fund manager and fund administrator with a statement of assets pertaining to the CIU, on intervals, as agreed between the parties.

            April 2012

        • RP-6.6 RP-6.6 Other Requirements

          • RP-6.6.1

            Custodians must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

          • RP-6.6.2

            Custodians must not be participants in a Bahrain domiciled CIU to which they are contractually engaged to offer custody services to.

            April 2012

          • RP-6.6.3

            Custodians may not engage in stock lending of CIU assets unless permitted by the prospectus.

            April 2012

      • RP-7 RP-7 Fund Administrator

        • RP-7.1 RP-7.1 Definition

          • RP-7.1.1

            Fund administrators are persons who undertake the administration of financial instruments and other assets held by a CIU. Their activities include but are not limited to the following:

            (a) Fund accounting services;
            (b) Client enquiries;
            (c) Valuation and pricing (including tax returns);
            (d) Regulatory compliance monitoring;
            (e) Record keeping for issuance and redemption of units in a CIU; and
            (f) General record-keeping.
            April 2012

        • RP-7.2 RP-7.2 Required Country of Domicile

          • RP-7.2.1

            Fund administrators must be domiciled in the Kingdom of Bahrain.

            April 2012

        • RP-7.3 RP-7.3 Required Type of License

          • RP-7.3.1

            Fund administrators must hold an appropriate license from the CBB permitting the entity to administer the books and records of financial instruments and any other assets held by a CIU.

            April 2012

          • RP-7.3.2

            In applying Rule RP-7.3.1, the CBB will allow 'hub and spoke' arrangements, provided that:

            (a) A suitably licensed office is maintained in the Kingdom of Bahrain, through which the CBB can access the CIU's records;
            (b) The overseas office belongs to the same group as the Bahrain fund administrator, and regulated by a reputable regulatory authority acceptable to the CBB;
            (c) The fund administrator retains ultimate responsibility for the CIU's administration activities; and
            (d) Suitable outsourcing arrangements have been put in place.
            April 2012

          • Form of Appointment

            • RP-7.3.3

              The agreement appointing the fund administrator must be signed between the fund administrator and the fund company or trustee, as appropriate.

              April 2012

        • RP-7.4 RP-7.4 Duties

          • RP-7.4.1

            The minimum duties of the fund administrators of CIUs authorised or registered under Module ARR, include but are not limited to the following:

            (a) Fund accounting services for the CIU and fund company (if applicable);
            (b) Handling of client enquiries;
            (c) Valuation and pricing (including tax returns);
            (d) Regulatory compliance monitoring, including but not limited to the CIU's compliance with the investment strategy and guidelines provided in the prospectus when calculating the Net Asset Value (NAV);
            (e) Record-keeping services;
            (f) Calculation of the NAV at each valuation point;
            (g) Preparation of semi-annual and annual accounts for the CIU, and the annual accounts of the fund company (if applicable);
            (h) Calculation of dividends, service providers' fees, performance fees (if any), and other distributions;
            (i) Liaising with the CIU's external auditor in finalising the audit and review procedure;
            (j) Preparing the Quarterly Statistical Report(Form CIU-QS); and
            (k) Maintaining records of meetings of the CIU's Board of Directors.
            April 2012

        • RP-7.5 RP-7.5 Reporting Requirements

          • RP-7.5.1

            Fund administrators must comply with all reporting requirements as stipulated in the relevant contractual agreements. Such reports should include but are not limited to the following:

            (a) Reporting of the NAV to the operator, fund manager and registrar, as prescribed in the prospectus;
            (b) Reporting of the CIU's annual financial statements (within 4 months of the financial year-end of the CIU) and semi-annual financial statements (within 2 months of the relevant 6-month period) to the operator, fund manager, and registrar and to the CBB;
            (c) Reporting of the fund company's annual financial statements (within 3 months of the financial year-end of the CIU) to the operator, fund manager and CBB;
            (d) Reporting of all necessary reports of the CIU, including but not limited to the NAV report, cash accounts statements, assets valuation reports, foreign exchange profit and loss report, dividend report and trial balance, to the fund manager;
            (e) In the case retail CIU or expert CIUs, report to the CBB, fund manager and operator, if:
            (i) The NAV per unit falls below 60% of the initial value per unit, at any valuation date.
            (ii) The total NAV falls below 60% of the total NAV reported in the last audited financials of the CIU; or
            (iii) The total NAV falls below 50% of the total NAV of the CIU relative to the previous valuation day.
            (f) Report to the CBB any case in which the investment strategy limits / guidelines are breached;
            (g) Report to the CBB Form CIU (QS) within the deadline required in Module CRR;
            (h) Report to the CBB immediately, any suspension in the determination of the NAV of the CIU, the reasons for this suspension, and tentative time to recommence determination of the NAV; and
            (i) Meet any reporting requirement as required by the MOIC in accordance with the Bahrain Commercial Companies Law.
            April 2012

          • RP-7.5.2

            Fund administrators must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

        • RP-7.6 RP-7.6 Other Requirements

          • RP-7.6.1

            Fund administrators must not be participants in a Bahrain domiciled CIU to which they are engaged to offer fund administration services to.

            April 2012

      • RP-8 RP-8 Registrar/Transfer Agent

        • RP-8.1 RP-8.1 Definition

          • RP-8.1.1

            The registrar/transfer agent is an entity engaged by the CIU to maintain the CIU participants' records, including purchases, sales and account balances.

            April 2012

        • RP-8.2 RP-8.2 Required Country of Domicile

          • RP-8.2.1

            The registrar/transfer agent must be domiciled in the Kingdom of Bahrain.

            April 2012

        • RP-8.3 RP-8.3 Required Type of License

          • RP-8.3.1

            A registrar/transfer agent must be acceptable to the CBB and must hold an appropriate license permitting the entity to provide registry services to a CIU, in accordance with the CBB Rulebook.

            April 2012

          • Form of Appointment

            • RP-8.3.2

              The agreement appointing the registrar/transfer agent must be signed between the registrar/transfer agent and the fund company or trustee, as appropriate.

              April 2012

        • RP-8.4 RP-8.4 Duties

          • RP-8.4.1

            The minimum duties of the registrar/transfer agent of a CIU authorised or registered under Module ARR, include but are not limited to the following:

            (a) Maintain a register of the CIU participants of a CIU;
            (b) Preserve the confidentiality of the register at all times;
            (c) Facilitate the issuance, transfer, execute the allotment, redemption, conversion and/or redemption of holdings in a CIU;
            (d) Record in the register of a CIU the following information:
            (i) Name of the CIU participant;
            (ii) Official identification of the CIU participant (including the type and number);
            (iii) Address and contact details of the CIU participant;
            (iv) Number of units held by the CIU participant;
            (v) Number(s) of the certificate(s) issued to each CIU participant;
            (vi) Date of issuance or transfer of units to the CIU participant;
            (vii) Record of redemption of units; and
            (viii) Record of cancellation of units.
            (e) Obtain confirmation from the custodian and fund administrator that they have received all payments from all applicants, before facilitiating the issuance of units;
            (f) Execute the issuance and dispatching of certificates (or confirmations) as appropriate; and
            (g) Obtain and safe-keep all signed application forms, along with "know your client" documents for each CIU participant, in original form or in the form of a certified copy, at the office in Bahrain, in line with applicable Laws and Regulations.
            April 2012

        • RP-8.5 RP-8.5 Reporting Requirements

          • RP-8.5.1

            Registrars/Transfer Agents must report the NAV to the CIU participants, as prescribed in the prospectus.

            April 2012

          • RP-8.5.2

            Registrars/Transfer Agents must make available the CIU's annual financial statements (within 4 months of the financial year-end of the CIU) and semi-annual financial statements (within 2 months of the relevant 6-month period) to the CIU participants.

            April 2012

          • RP-8.5.3

            Registrars/Transfer Agents are required to notify the CIU participants of the following events:

            (a) When the fund manager shifts from investments into cash and cash equivalents, together with the reason and the expected time by which the stipulated limits will be met; and
            (b) Once the CIU resumes investing in accordance with the investment limits stipulated in the prospectus.
            April 2012

          • RP-8.5.4

            Registrars/Transfer Agents must comply with all reporting requirements stipulated in the relevant legal agreements.

            April 2012

        • RP-8.6 RP-8.6 Other Requirements

          • RP-8.6.1

            Registrars/Transfer Agents must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

      • RP-9 RP-9 Placement Agent

        • RP-9.1 RP-9.1 Definition

          • RP-9.1.1

            A placement agent is an entity that acts as agent on behalf of the CIU in placing units of the CIU.

            April 2012

        • RP-9.2 RP-9.2 Required Country of Domicile

          • RP-9.2.1

            A placement agent must be based in a reputable jurisdiction acceptable to the CBB.

            April 2012

        • RP-9.3 RP-9.3 Required Type of License

          • RP-9.3.1

            Placement agents placing units in/from the Kingdom of Bahrain must hold an appropriate license from the CBB under CBB Rulebook Volumes 1, 2, or 4 (Categories 1 and 2 only).

            April 2012

          • RP-9.3.2

            Where the placement agent is not a CBB licensee, it must appoint a sub-placement agent licensed by the CBB, in line with the requirements in Rule RP-9.3.1, to market the CIU in Bahrain.

            April 2012

          • RP-9.3.3

            Placement agents based in a jurisdiction outside the Kingdom of Bahrain and placing units in other jurisdictions, must be appropriately licensed and/or authorised by a regulatory authority, acceptable to the CBB, permitting the entity to market financial instruments in those jurisdictions.

            April 2012

          • Form of Appointment

            • RP-9.3.4

              The agreement appointing the placement agent must be signed between the placement agent and the fund company or trustee, as appropriate.

              April 2012

        • RP-9.4 RP-9.4 Duties

          • RP-9.4.1

            The minimum duties of the placement agent of CIUs authorised or registered under Module ARR include but are not limited to the following:

            (a) To ensure that all investors wishing to subscribe for the units of a CIU are eligible to subscribe for such units;
            (b) To ensure that all investors of a Bahrain domiciled expert CIU meet the definition of expert investors as defined in Volume 7;
            (c) To ensure that all investors of a Bahrain domiciled exempt CIU meet the definition of accredited investors as defined in Volume 7;
            (d) To provide a copy of the prospectus and subscription forms of a CIU to potential investors;
            (e) To ensure that investors submit duly completed subscription forms, together with all required documentation;
            (f) To obtain written confirmation from each CIU participant, stating that they satisfy the definition of an expert investor or accredited investor (as appropriate) and confirming that they understand the higher risks involved in an expert CIU or exempt CIU;
            (g) To ensure that a CIU is marketed by qualified individuals who are able to clearly explain to investors the risks and rewards associated with investing in the CIU, in a manner that is clear, fair and not misleading;
            (h) To ensure compliance with all applicable local Laws and Regulations of the jurisdictions where the units of the CIU are being placed, including but not limited to Laws and Regulations relating to public and private offerings of units and securities laws and regulations of those jurisdictions;
            (i) To comply at all times with all the Laws of the Kingdom of Bahrain and the Regulations and directives issued by the CBB from time to time, including those set to prevent and prohibit money laundering and the financing of terrorism;
            (j) To comply with all applicable anti money laundering and "know your client" Laws and Regulations in the jurisdictions where the units of the CIU are placed; and
            (k) Where placement agents appoint sub-placement agents, such sub-agents must be eligible to undertake this activity, notwithstanding that the placement agent will be held accountable for such appointment.
            April 2012

        • RP-9.5 RP-9.5 Reporting Requirements

          • RP-9.5.1

            Placement agents must comply with all reporting requirements stipulated in the relevant legal agreements.

            April 2012

          • RP-9.5.2

            A placement agent must report to the fund company's Board of directors/trustees, any issues related to anti-money laundering and terrorist financing.

            April 2012

        • RP-9.6 RP-9.6 Other Requirements

          • RP-9.6.1

            Placement agents must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

      • RP-10 RP-10 Investment Advisor

        • RP-10.1 RP-10.1 Definition

          • RP-10.1.1

            An investment advisor is the person undertaking the function of advising the fund manager on the merits of buying, selling, or subscribing for a particular asset or exercising any right conferred by the asset.

            April 2012

        • RP-10.2 RP-10.2 Required Country of Domicile

          • RP-10.2.1

            Investment advisors must be based in any reputable jurisdiction acceptable to the CBB.

            April 2012

        • RP-10.3 RP-10.3 Required Type of License

          • RP-10.3.1

            For investments advisors providing services to CIUs investing in financial instruments, the investment advisor must hold an appropriate license from the CBB, or equivalent from a regulatory authority recognised by CBB, permitting the entity to engage in investment advisory activities.

            April 2012

          • RP-10.3.2

            For CIUs investing in assets other than financial instruments, the investment advisor need not be a regulated entity provided that it has relevant expertise in the asset class the fund is investing into.

            April 2012

          • Form of Appointment

            • RP-10.3.3

              The agreement appointing the investment advisor must be signed between the investment advisor and the fund company, trustee, or fund manager, as appropriate.

              April 2012

        • RP-10.4 RP-10.4 Duties

          • RP-10.4.1

            The minimum duties of the investment advisor of CIUs authorised or registered under Module ARR include, but are not limited to the following:

            (a) Provide independent/prudent advice as required, to the fund manager with respect to the investments of the CIU, after conducting the appropriate due diligence; and
            (b) Refrain from participating in the investment decision-making process of the CIU.
            April 2012

        • RP-10.5 RP-10.5 Reporting Requirements

          • RP-10.5.1

            Investment advisors must comply with any reporting requirements stipulated in the relevant legal agreements.

            April 2012

        • RP-10.6 RP-10.6 Other Requirements

          • RP-10.6.1

            Investment advisors must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

      • RP-11 RP-11 External Auditor

        • RP-11.1 RP-11.1 Definition

          • RP-11.1.1

            An external auditor is the entity responsible for the audit of the books and records of the CIU and fund company (if applicable).

            April 2012

        • RP-11.2 RP-11.2 Required Country of Domicile

          • RP-11.2.1

            External auditors must be Bahrain-based entities.

            April 2012

        • RP-11.3 RP-11.3 Required Type of License

          • RP-11.3.1

            The external auditor must be acceptable to the CBB, and separate and independent from all other relevant persons.

            April 2012

          • Form of Appointment

            • RP-11.3.2

              The agreement appointing the external auditor must be in the form of an engagement letter between the external auditor and the fund company/trustee (as appropriate).

              April 2012

        • RP-11.4 RP-11.4 Duties

          • RP-11.4.1

            The minimum duties of the external auditor of a CIU authorised or registered under Module ARR include but are not limited to the following:

            (a) To audit the books and records of the CIU, including the annual financial statements of the CIU, in accordance with IFRS or AAOIFI (as appropriate);
            (b) To review the semi-annual financial statements of the CIU;
            (c) If the CIU is structured as a contractual or corporate CIU, to audit the annual financial statements of the fund company; and
            (d) To review the calculation of the NAV in line with the frequency stipulated in the prospectus but not less than once a year.
            April 2012

        • RP-11.5 RP-11.5 Reporting Requirements

          • RP-11.5.1

            External auditors must comply with all reporting requirements stipulated in the relevant legal agreements.

            April 2012

          • RP-11.5.2

            External auditors must report any material weaknesses in accounting and internal control systems that come to their notice, to the Board of Directors of the fund company/trustees and to the CBB, in a timely and on a prompt basis.

            April 2012

        • RP-11.6 RP-11.6 Other Requirements

          • RP-11.6.1

            External auditors must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

      • RP-12 RP-12 Placement Agent for Overseas Domiciled CIUs

        • RP-12.1 RP-12.1 Definition

          • RP-12.1.1

            A placement agent offering overseas domiciled CIU holdings to investors in the Kingdom of Bahrain is an entity that acts as agent on behalf of the CIU in placing units of the CIU.

            Amended: July 2017
            April 2012

        • RP-12.2 RP-12.2 Required Country of Domicile

          • RP-12.2.1

            Placement agents offering overseas domiciled CIU holdings to investors in the Kingdom of Bahrain must be domiciled in the Kingdom of Bahrain.

            Amended: July 2017
            April 2012

        • RP-12.3 RP-12.3 Required Type of License

          • RP-12.3.1

            Placement agents must hold an appropriate license from the CBB under CBB Rulebook Volumes 1, 2, or 4 (Categories 1 and 2 only), permitting them to market financial instruments.

            April 2012

          • Form of Appointment

            • RP-12.3.2

              The agreement appointing the placement agent must be signed between the placement agent and the fund manager of the overseas domiciled CIU, or an agent representing the overseas domiciled CIU, as appropriate. However, it is the duty of the placement agent to ensure that the contractual agreement is signed with the appropriate entity, notwithstanding that a binding agreement must be in place with the issuer of the overseas domiciled CIU.

              April 2012

        • RP-12.4 RP-12.4 Duties

          • RP-12.4.1

            The minimum duties of the placement agent of overseas domiciled CIUs authorised, registered or filed under Module ARR include, but are not limited to the following:

            (a) To ensure that the CIU is regulated in its home jurisdiction, and is legally separate from its operator;
            (b) To ensure that the CIU's operator and fund manager are eligible regulated entities;
            (c) To ensure that the CIU has in place relevant persons appointed in their home jurisdiction, similar to those listed in under Rule RP-B.2.1;
            (d) To ensure that all investors wishing to subscribe for the units of a CIU are eligible to subscribe for such units;
            (e) To ensure that all investors of an overseas domiciled expert CIU meet the definition of expert investors as defined in this Module;
            (f) To ensure that all investors of an overseas domiciled exempt CIU meet the definition of accredited investors as defined in this Module;
            (g) To obtain written confirmation from each CIU participant, stating that they satisfy the definition of an expert investor or accredited investor (as appropriate) and confirming that they understand the higher risks involved in an expert CIU or exempt CIU;
            (h) To provide a copy of the prospectus and the subscription agreement of the CIU to potential investors;
            (i) To ensure that investors submit duly executed subscription forms, together with all required documentation;
            (j) To ensure that a CIU is marketed by qualified individuals who are able to clearly explain to investors the risks and rewards associated with investing in the CIU, in a manner that is clear, fair and not misleading;
            (k) To be responsible for addressing any client complaints and/or enquiries and to provide any such other information supplementary to the prospectus as may be reasonably required by existing or potential investors;
            (l) To ensure that the units subscribed for by clients are appropriately identified as clients' holdings in the books and records of the issuer; and
            (m) To comply at all times with all the laws of the Kingdom of Bahrain and the regulations and directives issued by the CBB from time to time, including those set to prevent and prohibit money laundering and the financing of terrorism.
            Amended: July 2015
            April 2012

        • RP-12.5 RP-12.5 Reporting Requirements

          • RP-12.5.1

            Placement agents must comply with any reporting requirements to the CIU participants, stipulated in the relevant legal agreements.

            April 2012

          • RP-12.5.2

            Placement agents must ensure that the CIUs' prospectus (and simplified prospectus where applicable) are kept up-to-date. Most recent copies of the prospectus (and simplified prospectus where applicable) must be circulated to existing investors and made available to the CBB within 30 calendar days of any revision.

            April 2012

          • RP-12.5.3

            Placement agents must distribute to investors the annual reports of CIUs and any other reports specified in the CIUs' prospectus, within the time scales specified by their home regulator and in accordance with the accounting standards acceptable by the home regulator.

            April 2012

          • RP-12.5.4

            Placement agents must notify the CBB and the CIU participants in a timely manner of any intention to merge, transfer, wind up or suspend dealings in an overseas domiciled CIU.

            April 2012

          • RP-12.5.5

            Placement agents must file with the CBB Form CIU (QS), the CIU Quarterly Statistical Return, within the deadline specified on the return.

            April 2012

        • RP-12.6 RP-12.6 Other Requirements

          • RP-12.6.1

            Placement agents must provide the CBB, upon request, with any additional information relevant to overseas domiciled CIUs, on a prompt basis.

            April 2012

          • RP-12.6.2

            The placement agent must keep all documents supporting the due diligence process undertaken to ensure suitability of the CIU to the targeted category of investors within its premises. Such documents must be available to the CBB upon request.

            Added: July 2015

    • CG CG Corporate Governance

      • CG-A CG-A Introduction

        • CG-A.1 CG-A.1 Purpose

          • Executive Summary

            • CG-A.1.1

              Bahrain domiciled CIUs must maintain an adequate framework for the governance and operation of the CIU to ensure that the CIU is governed effectively and in the best interests of the CIU's participants.

              April 2012

            • CG-A.1.2

              The main aim of the framework should be to ensure that when faced with a conflict of interest, the CIU respects all applicable rules and contractual obligations from an objective perspective, without favouring CIU insiders (including relevant persons) at the expense of the interests of the CIU's participants.

              April 2012

          • Legal Basis

            • CG-A.1.3

              This Module contains the CBB's Directive (as amended from time to time) regarding corporate governance applicable to collective investment undertakings and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law').

              April 2012

            • CG-A.1.4

              For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

              April 2012

        • CG-A.2 CG-A.2 Module History

          • Evolution of Module

            • CG-A.2.1

              This Module was first issued in April 2007, as part of the initial release of the contents of Volume 6 (Capital Markets); it was given an effective date of 1 June 2007, with a one-year transition for existing CIUs.

              April 2012

            • CG-A.2.2

              The Module was subsequently revised in April 2012, by the addition of several sections catering for the role and responsibilities of relevant persons, the registration and authorisation requirements, corporate governance, and other relevant Chapters and has been reissued as Volume 7.

              April 2012

            • CG-A.2.3

              A list of recent changes made to this Module subsequent to the April 2012 revision is provided below:

              Module Ref. Change Date Description of Changes
                   
                   
                   
                   
                   
              April 2012

          • Superseded Requirements

            • CG-A.2.4

              This Module supersedes the following provisions contained in circulars or other regulatory instruments:

              Circular / other reference
              Volume 6 Module CIU
              April 2012

            • CG-A.2.5

              Further guidance on the implementation and transition to Volume 7 (Collective Investment Undertakings) is given in Module ES (Executive Summary).

              April 2012

      • CG-1 CG-1 Governing Body

        • CG-1.1 CG-1.1 General Requirements

          • CG-1.1.1

            The governing body of a Bahrain domiciled CIU is the Board of Directors, appointed by the operator or trustee, as appropriate.

            April 2012

          • CG-1.1.2

            Bahrain domiciled CIUs are in addition required to comply with any legal requirements imposed by virtue of the legal form used to create the CIU.

            April 2012

          • CG-1.1.3

            The Board is responsible for oversight of the management and performance of the CIU, however, ultimate accountability for ensuring that proper and continued corporate governance is in place for the CIU, must remain with the operator/trustee of the CIU, as appropriate.

            April 2012

          • CG-1.1.4

            The Board must not delegate its oversight responsibilities.

            April 2012

      • CG-2 CG-2 Members of the Board of Directors

        • CG-2.1 CG-2.1 Appointment and Removal of Directors

          • CG-2.1.1

            The operator/trustee of the CIU must obtain the CBB's prior approval before a person is formally appointed to the Board. The request for CBB approval must be made by submitting to the CBB a Form 2 CIU Board Member Form with a covering letter, and enclosing the following documentation:

            (a) A board resolution from the operator/trustee ratifying the appointment;
            (b) A current CV of the proposed board member; and
            (c) A certified and valid passport copy of the proposed board member.
            April 2012

          • CG-2.1.2

            The operator/trustee must be diligent in verifying that all the information contained in the submitted documents, including previous experience, is accurate.

            April 2012

          • CG-2.1.3

            The operator/trustee must immediately notify the CBB in case of any material change to the information provided in the request for appointment of a board member.

            April 2012

          • CG-2.1.4

            The operator/trustee must immediately notify the CBB when it becomes aware of any of the following events, affecting one of the board members:

            (a) The conviction by a court, whether in Bahrain or elsewhere, for a crime affecting honesty;
            (b) A declaration of bankruptcy by a court;
            (c) A court ruling that the board member's legal capacity is totally or partially impaired; or
            (d) A sanction by a professional body of a fine, suspension, expulsion or censure.
            April 2012

          • CG-2.1.5

            The operator/trustee of the CIU must immediately notify the CBB when a board member resigns from his position, or if his membership is terminated, together with an explanation as to the reasons why.

            April 2012

          • CG-2.1.6

            The operator/trustee must ensure that the Memorandum and Articles of Association or Trust Deed, as appropriate, of Bahrain domiciled CIUs, adequately set out procedures for the appointment, removal and retirement of directors.

            April 2012

          • CG-2.1.7

            These should, amongst other things, include procedures for removing directors in case of non-attendance or other failure to discharge properly their responsibilities as directors. The CBB expects board members who fail to attend at least three-quarters of all board meetings in any twelve-month period to step down, unless the board is able to satisfy the CBB that there are valid reasons for the director concerned to remain a board member.

            April 2012

        • CG-2.2 CG-2.2 Fit and Proper Criteria

          • CG-2.2.1

            As individuals, directors on the board of a Bahrain domiciled CIU must hold qualifications and have relevant experience to undertake this function.

            April 2012

          • CG-2.2.2

            The acceptable level of qualifications and experience will be considered by the CBB on a case by case basis.

            April 2012

          • CG-2.2.3

            The operator/trustee must ensure that the board of directors of a CIU demonstrate that it has, when taken as a whole, the necessary expertise required to fulfil the functions of the board.

            April 2012

          • CG-2.2.4

            In assessing the fit and proper criteria for directors, the operator/trustee should take into account the following:

            (a) The relevant experience needed to demonstrate sound business decision-making;
            (b) A good understanding of the industry and its regulatory environment;
            (c) Holding of a relevant professional qualification; and
            (d) A minimum length of service (at least 5 years at director or senior management level) in the industry.
            April 2012

      • CG-3 CG-3 Board Composition and Meetings

        • CG-3.1 CG-3.1 Composition of the Board of Directors

          • CG-3.1.1

            Except as provided under Paragraph CG-3.1.2, the board of a CIU must comprise at least 3 members at all times, appointed from and representing the operator.

            April 2012

          • CG-3.1.2

            If the CIU is structured as a trust, the board must comprise of at least 3 members at all times, to be appointed by the trustee, of which the majority must be from and representing the trustee. The remaining members must be nominated by the fund manager.

            April 2012

          • CG-3.1.3

            The members of the board of a CIU:

            (a) Must hold senior positions at the operator/trustee;
            (b) Must be senior in position to individual members managing the CIU; and
            (c) Must not be involved in the investment management function of the CIU.
            April 2012

          • CG-3.1.4

            The board must ensure that collectively it has sufficient expertise to understand the important issues relating to the nature, operation and control of the CIU.

            April 2012

          • CG-3.1.5

            To fulfil its responsibilities outlined in Chapter CG-5, the board must periodically assess its composition, size and members' contribution to the CIU.

            April 2012

        • CG-3.2 CG-3.2 Meetings and Attendance

          • CG-3.2.1

            The board of a Bahrain domiciled CIU must meet at regular intervals, but not less than four times a year, taking into account the CIU's size and complexity, to review the performance and operations of the CIU and to discharge its responsibilities effectively.

            April 2012

          • CG-3.2.2

            Board members must attend as a minimum three quarters of all board meetings called for a CIU and attendance by proxy will not be permitted.

            April 2012

          • CG-3.2.3

            Participation in board meetings by means of video or telephone conferencing is regarded as attendance and may be recorded as such.

            April 2012

          • CG-3.2.4

            Board rules must require members to step down if they are not actively participating in board meetings.

            April 2012

        • CG-3.3 CG-3.3 Meeting of CIU Participants

          • CG-3.3.1

            If the CIU participants have a right to call for a general meeting of CIU participants, the instrument constituting the CIU must state how the meeting may be convened, and the board must call for such meeting at the CIU participants' request.

            April 2012

          • CG-3.3.2

            If a general meeting of CIU participants is called, the board must ensure that:

            (a) Each CIU participant is given at least 14 calendar days written notice before the meeting;
            (b) The notice specifies the place, day and time of the meeting; and
            (c) The terms and resolutions to be proposed, as well as a copy of the notice, are sent to the CIU's fund administrator, custodian and to the CBB.
            April 2012

      • CG-4 CG-4 Record Keeping Requirements

        • CG-4.1 CG-4.1 Record of Board Meetings

          • CG-4.1.1

            The board must maintain adequate records of its meetings, such that key decisions and how they are arrived at can be traced. Such records must be maintained by the CIU fund administrator.

            April 2012

      • CG-5 CG-5 Roles and Responsibilities of the Board

        • CG-5.1 CG-5.1 General Requirements

          • CG-5.1.1

            The board must establish and maintain a statement of its responsibilities, defining its functions and tasks. This statement must be clearly communicated to board members.

            April 2012

          • CG-5.1.2

            The board must have effective policies and processes in place, in line with the requirements of the Commercial Companies Law, to prevent, avoid and manage its members' potential or actual conflicts of interest, including matters such as:

            (a) Related party transactions;
            (b) The misuse of assets belonging to the CIU; and
            (c) The use of privileged information for personal advantage (including insider trading).
            April 2012

          • CG-5.1.3

            Board members should also absent themselves from any discussion or decision-making that involves a subject where they are incapable of providing objective advice, or which involves a subject, transaction or proposed transaction where there is a potential conflict of interest.

            April 2012

          • CG-5.1.4

            The board and its members must act with honesty, integrity, due skill, care and diligence, and in the best interests of the CIU and CIU participants.

            April 2012

          • CG-5.1.5

            In assessing compliance with Rule CG-5.1.4, the CBB will take into account all actions of the board and its members. The interest of the CIU includes the CIU's continued compliance with all relevant rules and regulations. The interest of CIU participants includes the current and future value of the assets of a CIU, transparency, disclosure of information and ensuring that the CIU fulfils its obligations under its prospectus and treats all participants fairly and pays equal regard to the interests of all CIU participants.

            April 2012

          • CG-5.1.6

            The board must ensure that it is supplied with information in a timely manner in a form and of a quality appropriate to enable it to discharge its duties.

            April 2012

          • CG-5.1.7

            There should also be agreed upon procedures by the board, for directors to take independent advice if necessary at the CIU's expense.

            April 2012

        • CG-5.2 CG-5.2 Approval and Review of Prospectus and Constitutional Documents

          • CG-5.2.1

            The board is responsible for the correctness of the information contained in the CIU prospectus.

            April 2012

          • CG-5.2.2

            The board must collectively approve the CIU's prospectus, the subscription documents, the CIU's documents and its material contracts.

            April 2012

          • CG-5.2.3

            The approval referred to in Paragraph CG-5.2.2 will usually be given at the initial board meeting of the CIU.

            April 2012

          • CG-5.2.4

            The board is responsible for committing the CIU to any obligations under the various material contracts entered into by the CIU.

            April 2012

          • CG-5.2.5

            The board must clearly set out and review on a regular basis the authority of directors to commit the CIU to its contractual obligations. In doing so, the Board must:

            (a) Stipulate in writing which directors (or which combination of directors) can commit the CIU to its contractual obligations; and
            (b) Ensure that there are always at least two directors (or two combinations of directors, not dependent on each other) who have the requisite authority to commit the CIU to a contractual obligation.
            April 2012

          • CG-5.2.6

            In order to fulfil the responsibility outlined above, the board is expected to conduct reviews on a periodic basis and whenever material changes or revisions are made, of the CIU's prospectus and subscription documents and of the material contracts, to ensure that they are up to date.

            April 2012

        • CG-5.3 CG-5.3 Monitoring Adherence to the Overall Investment Policy and Restrictions

          • CG-5.3.1

            The board must periodically monitor the CIU's compliance with its investment policies and restrictions, stated in the prospectus.

            April 2012

          • CG-5.3.2

            In fulfilling the requirements of Paragraph CG-5.3.1, the CBB expects that the board requests from the fund manager, reports on the CIU's compliance with its investment policies and restrictions as stated in the prospectus. The frequency and format of such reports should be pre-agreed with the fund manager and reviewed at each board meeting.

            April 2012

          • CG-5.3.3

            The board must ensure that the fund manager has systems and procedures in place to detect and remedy investment policy breaches. Such systems and procedures must include provisions for timely reporting of breaches to the board and the CBB, and prompt rectification.

            April 2012

        • CG-5.4 CG-5.4 Review of Investment Performance

          • CG-5.4.1

            The board must regulary review the performance of the fund manager and the investment performance of the CIU, and compare the performance of the CIU to its investment objectives, stated in the prospectus.

            April 2012

          • CG-5.4.2

            In fulfulling the requirements of Paragraph CG-5.4.1, the CBB expects that the board requests copies of all relevant investment reports from relevant persons on a timely basis. Such reports should explain how the performance was achieved and what risk profile was adopted to generate returns.

            April 2012

        • CG-5.5 CG-5.5 Monitoring NAV Calculation Process

          • CG-5.5.1

            The board must have the ultimate responsibility for monitoring the valuation of the CIU assets, which must be undertaken by the fund administrator or an acceptable valuator who is expert in the asset class, as appropriate.

            April 2012

          • CG-5.5.2

            The board is responsible for the oversight of the entire NAV calculation process, including but not limited to the pricing of illiquid and exotic instruments.

            April 2012

          • CG-5.5.3

            The board must ensure that there is adequate segregation of duties in the NAV determination process.

            April 2012

          • CG-5.5.4

            In complying with the Rule CG-5.5.3, the board must delegate the calculation, determination and production of the NAV to a suitable independent, competent and experienced fund administrator.

            April 2012

          • CG-5.5.5

            The board must establish robust controls to manage conflicts of interest in the NAV evaluation process, if they arise.

            April 2012

          • CG-5.5.6

            The board must approve any documented valuation procedures, including valuation practices and controls, in advance of the CIU's launch and on a regular basis thereafter. Such procedures must be disclosed in the CIU's prospectus.

            April 2012

          • CG-5.5.7

            Valuation procedures should clearly explain the role of each party in the valuation process, identify the sources for pricing of each instrument type and address the management and reporting of exceptions.

            April 2012

          • CG-5.5.8

            The board must set procedures for reporting any issues that may arise in connection to the valuation (for example, stale pricing, liquidity, difficult trading markets, illiquid assets).

            April 2012

          • CG-5.5.9

            The board is responsible for the decision to suspend and resume the NAV calculation. However, any such decision must be satisfactorily supported by relevant documentation.

            April 2012

        • CG-5.6 CG-5.6 Monitoring Marketing and CIU Participant Relations

          • CG-5.6.1

            The board must request and review the plans set by the fund manager with respect to promoting the CIU, the target client base, the existing client base and its break-down by type of investor, the legal capacity of the CIU, the restrictions (if any) on marketing the CIU in certain jurisdictions.

            April 2012

          • CG-5.6.2

            In fulfulling this responsibility, the CBB expects that the board requests a quarterly report from the fund manager, summarizing the following:

            (a) Gross and net subscriptions, to monitor the size of the CIU against its theoretical capacity; and
            (b) A summary of CIU participants correspondence, highlighting key issues being raised such as concerns about performance or administration.
            April 2012

          • CG-5.6.3

            The board must ensure that the prospectus or trust deed of a CIU, as appropriate, does not allow any discretionary waivers with respect to a CIU, and that all CIU participants are treated equally and fairly.

            April 2012

        • CG-5.7 CG-5.7 Anti-Money Laundering (AML) Responsibilities

          • CG-5.7.1

            The board must understand the nature of the AML regulations which apply with respect of the CIU and must establish and regularly review procedures to monitor the AML measures for a CIU.

            April 2012

          • CG-5.7.2

            The board must obtain regular feedback from the placement agent(s), or sub-placement agent(s) to ascertain that formal AML procedures in place are being adhered to, and that any suspicious findings were raised and investigated accordingly. All suspicious findings and the results of the subsequent investigation must be promptly reported to the board and to the concerned authority.

            April 2012

          • CG-5.7.3

            The board must be responsible for the following with respect to the AML policies and procedures:

            (a) The AML policies and procedures adopted by the placement agent(s) or sub-placement agent(s) must be in compliance with the AML laws and regulations which apply to the CIU; and
            (b) Any changes in the applicable AML laws and regulations are promptly addressed and suitable procedures are adopted.
            April 2012

          • CG-5.7.4

            The board must ensure that the following procedures are applied with respect to CIU subscriptions and redemption monies:

            (a) The AML policy must ensure that, until the AML procedures are completed satisfactorily, any new subscription monies remain in the subscriptions bank account and are not transferred into the CIU's account;
            (b) The AML policy must ensure that the prospectus requires that redemptions are paid into the account from which the original investment was wired. In the event that the redeeming investor requests that redemption proceeds be paid into an account different from that which the investment was paid, the redeeming investor would normally be asked to confirm in writing reason(s) for the request; and
            (c) In the event that a subscription has been accepted without receipt of the full AML documentation, the custodian must retain the subscription proceeds until the outstanding documentation has been completed and provided.
            April 2012

        • CG-5.8 CG-5.8 Review of the Appointment and Performance of Other Service Providers

          • CG-5.8.1

            The board must regularly review the performance of the relevant persons of a CIU to ensure that they carry out their roles and responsibilities towards the CIU effectively.

            April 2012

          • CG-5.8.2

            In fulfulling the requirements of Paragraph CG-5.8.1, the CBB expects the Board to ensure that there is no conflict of interest among the relevant persons of a CIU and that each relevant person adheres to its responsibilities with respect to the CIU in accordance with the prospectus and in the best interest of CIU participants.

            April 2012

        • CG-5.9 CG-5.9 Provision of Information to CIU Participants

          • CG-5.9.1

            The board must oversee the process of disclosure of information to all CIU participants.

            April 2012

          • CG-5.9.2

            The board must ensure that all information, including that which the CIU's prospectus states, be provided to CIU participants in a fair, transparent, comprehensive and timely manner.

            April 2012

        • CG-5.10 CG-5.10 Compliance with Listing Rules and Continuing Obligations

          • CG-5.10.1

            The board must ensure that in the case that a CIU is listed on a licensed exchange, the CIU is compliant with the requirements and regulations of that exchange.

            April 2012

        • CG-5.11 CG-5.11 Reporting to the CBB

          • CG-5.11.1

            The board must be aware of any material breach that may affect the overall operation of the CIU, including but not limited to any breach to the investment policy of a CIU and report it to the CBB on a prompt and timely manner, in writing.

            April 2012

          • CG-5.11.2

            The board must report to the CBB, on a prompt basis, any event that may directly or indirectly impact the CIU.

            April 2012

          • CG-5.11.3

            In the event that the fund manager foresees, due to adverse market conditions, that it is in the best interest of CIU participants to shift from investments into cash and cash equivalents, the board is required to:

            (a) Immediately notify the CBB and the registrar stating the reason and the expected time by which the stipulated limits will be met; and
            (b) Immediately notify the CBB and the registrar once the CIU resumes investing in accordance with the investment limits stipulated in the prospectus.
            April 2012

          • CG-5.11.4

            The board must provide the CBB, upon request, with any additional information relevant to the CIU, on a prompt basis.

            April 2012

    • LDR LDR Liquidation/De-Registration

      • LDR-A LDR-A Introduction

        • LDR-A.1 LDR-A.1 Purpose

          • Executive Summary

            • LDR-A.1.1

              This Module sets out the Central Bank of Bahrain's (CBB) approach to liquidation/De-registration of CIUs. Furthermore, it distinguishes between the voluntary liquidation/De-registration of a CIU and instances where the CBB may revoke an authorization or registration of a CIU.

              April 2012

          • Legal Basis

            • LDR-A.1.2

              This Module contains the CBB's Directive (as amended from time to time) regarding liquidation/de-registration requirements applicable to collective investment undertakings and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law').

              April 2012

            • LDR-A.1.3

              For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

              April 2012

        • LDR-A.2 LDR-A.2 Module History

          • Evolution of Module

            • LDR-A.2.1

              This Module was first issued in April 2007, as part of the initial release of the contents of Volume 6 (Capital Markets); it was given an effective date of 1 June 2007, with a one-year transition for existing CIUs.

              April 2012

            • LDR-A.2.2

              The Module was subsequently revised in April 2012, by the addition of several sections catering for the role and responsibilities of relevant persons, the registration and authorisation requirements, corporate governance, and other relevant Chapters and has been reissued as Volume 7.

              April 2012

            • LDR-A.2.3

              A list of recent changes made to this Module subsequent to the April 2012 revision is provided below:

              Module Ref. Change Date Description of Changes
                   
                   
                   
                   
                   
                   
              April 2012

          • Superseded Requirements

            • LDR-A.2.4

              This Module supersedes the following provisions contained in circulars or other regulatory instruments:

              Circular / other reference
              Volume 6 Module CIU
              April 2012

            • LDR-A.2.5

              Further guidance on the implementation and transition to Volume 7 (Collective Investment Undertakings) is given in Module ES (Executive Summary).

              April 2012

      • LDR-1 LDR-1 Voluntary Liquidation of a CIU

        • LDR-1.1 LDR-1.1 General Requirements

          • LDR-1.1.1

            A Bahrain domiciled CIU must continue to meet its contractual and regulatory obligations to CIU participants and creditors, throughout the process of liquidation.

            April 2012

          • LDR-1.1.2

            A Bahrain domiciled CIU must continue to comply with all applicable CBB requirements, until such time as it is formally notified by the CBB that it has been formally removed from the CBB's register of authorised/registered CIUs. Such requirements include the settlement of CBB annual fees once they fall due, in case the liquidation process is not fully concluded by the end of 31st December of the year of liquidation.

            April 2012

          • LDR-1.1.3

            The CBB reserves the right, to impose any further directions, it considers necessary to effect the fair and orderly liquidation of a CIU.

            April 2012

        • LDR-1.2 LDR-1.2 Notification

          • LDR-1.2.1

            Any intention to liquidate a Bahrain domiciled CIU must first be notified to the CBB by the operator together with reasons for having such intent. Notification must be made before entering into any other legally binding commitment to liquidate.

            April 2012

          • LDR-1.2.2

            Following its receipt and acknowlegment of the notification referred to in Paragraph LDR-1.2.1, the operator may then seek the formal approvals needed from any person(s) other than the CBB, as required by law, before the liquidation process can be commenced.

            April 2012

        • LDR-1.3 LDR-1.3 Prior Approval

          • LDR-1.3.1

            Upon finalising the decision to liquidate, the operator of a Bahrain domiciled CIU must seek in writing, the CBB's prior written approval to liquidate. The liquidation must be subject to the terms of the instrument constituting the CIU and any other applicable laws.

            April 2012

          • LDR-1.3.2

            The formal request referred to in Paragraph LDR-1.3.1 must be supported by a Board Resolution ratifying the decision, subject to CBB approval.

            April 2012

          • LDR-1.3.3

            The operator may not undertake any step amounting to actual liquidation of the CIU until it has received a final written approval from the CBB.

            April 2012

          • LDR-1.3.4

            CBB approval in response to a request to liquidate a Bahrain domiciled CIU will normally be given in the following circumstances:

            (a) The CIU was not able to operate within 6 months from the CBB's authorisation/registration date (refer to Module ARR);
            (b) The purpose of the CIU cannot be accomplished;
            (c) The constitutional documents of the CIU stipulate a specific maturity date;
            (d) The NAV of the CIU has fallen below a certain size, where the board believes it is not feasible to continue operating the CIU; or
            (e) A resolution of a duly convened meeting of the CIU participants has been passed to liquidate the CIU.
            April 2012

        • LDR-1.4 LDR-1.4 Process

          • LDR-1.4.1

            Bahrain domiciled CIUs must simultaneously give at least one month's written notice, as a minimum, to CIU participants of their intention to liquidate the CIU, together with an explanation for such intention. A copy of this notice must be provided to the CBB at the time it is issued to CIU participants.

            April 2012

          • LDR-1.4.2

            Bahrain domiciled CIU must comply with all applicable laws and directions issued by the CBB, throughout the liquidation process.

            April 2012

          • LDR-1.4.3

            Subsequent to obtaining CBB approval for the liquidation, the board must hold an Extraordinary General Meeting (EGM) to resolve the following:

            (a) The date upon which the operations of the CIU and fund company (if applicable) will cease and the final accounts will be prepared;
            (b) The appointment of a liquidator, acceptable to the CBB, responsible for liquidating the CIU and fund company (if applicable); and
            (c) The appointment of an external auditor, acceptable to the CBB, responsible for preparing the final accounts of the CIU.
            April 2012

          • LDR-1.4.4

            Additionally, the CBB expects the determination of the timeframe whereby the proceeds of the CIU will be fully distributed to all CIU participants, to be ratified at the EGM.

            April 2012

          • LDR-1.4.5

            The appointments of the liquidator and the external auditor are subject to CBB approval.

            April 2012

          • LDR-1.4.6

            Upon completion of the liquidation process, the operator must submit the following to the CBB:

            (a) The final report from the liquidator confirming the completion of the liquidation process and the final audited accounts of the CIU and fund company (if applicable);
            (b) Evidence that the Commercial Registration of the fund company, provided by the Ministry of Industry and Commerce has been cancelled (if applicable);
            (c) An independent verification by the external auditor that the CIU's assets have been distributed to CIU participants in accordance with the instrument constituting the CIU. For non-operational CIUs, the audit verification must confirm that the CIU has not operated; and
            (d) A request for the CIU to be removed from the CBB's register of authorised/registered CIUs.
            April 2012

          • LDR-1.4.7

            By virtue of its authorisation/registration with the CBB, the Bahrain domiciled CIU acknowledges the authority of the CBB to request the CIU to undergo liquidation or to de-register a CIU at any time and/or, acting by way of Directive, order its compulsory liquidation. Such powers shall be exercised reasonably. The CIU also acknowledges that the courts of Bahrain have the authority to order the compulsory liquidation of Bahrain domiciled CIUs.

            April 2012

      • LDR-2 LDR-2 Revocation of Authorisation

        • LDR-2.1 LDR-2.1 CBB Revocation of Authorisation Powers

          • LDR-2.1.1

            The CBB may revoke authorisation of a Bahrain domiciled CIU in the following cases:

            (a) If the CIU is not in operation within 6 months from the date of its authorisation (Refer to Module ARR);
            (b) If any of the applicable requirements contained in Volume 7 are not met;
            (c) If false or misleading information has been provided to the CBB, or significant information which should have been provided to the CBB has not been so provided; or
            (d) If the CBB believes it necessary in order to safeguard the interests of potential investors or the CIU's participants.
            April 2012

          • LDR-2.1.2

            An authorisation may be revoked by the CBB, subsequent to the ruling of a competent authority, such as a court that has issued an order to liquidate the CIU.

            April 2012

          • LDR-2.1.3

            In the case that the CIU did not operate within 6 months from the date of its authorisation, the CIU must return back any monies collected from potential CIU participants together with all subscription fees charged, and confirm the same in writing to the CBB.

            April 2012

          • LDR-2.1.4

            Where the CBB proposes to cancel a CIU's authorisation, it will give the CIU concerned a written notice of its intention to do so and the reasons for such action. The CIU has 30 calendar days from the date of the written notice to appeal the decision.

            April 2012

      • LDR-3 LDR-3 Revocation of Registration

        • LDR-3.1 LDR-3.1 CBB Revocation of Registration Powers

          • LDR-3.1.1

            The CBB may revoke registration of a Bahrain domiciled exempt CIU in the following cases:

            (a) If the CIU is not in operation within 6 months from the date of its registration (Refer to Module ARR);
            (b) If any of the applicable requirements contained in Volume 7 are not met;
            (c) If false or misleading information has been provided to the CBB, or significant information which should have been provided to the CBB has not been so provided; or
            (d) If the CBB believes it necessary in order to safeguard the interests of potential investors or the CIU's participants.
            April 2012

          • LDR-3.1.2

            A registration may be revoked by the CBB, subsequent to the ruling of a competent authority, such as a court that has issued an order to liquidate the CIU.

            April 2012

          • LDR-3.1.3

            In the case that the CIU did not operate within 6 months from the date of its registration, the CIU must return back any monies collected from potential CIU participants together with all subscription fees charged, and confirm the same in writing to the CBB.

            April 2012

          • LDR-3.1.4

            Where the CBB proposes to cancel a CIU's registration, it shall give the CIU concerned a written notice of its intention to do so and the reasons for such action. The CIU has 30 calendar days from the date of the written notice to appeal the decision.

            April 2012