• 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