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  • BDE-4.5 BDE-4.5 Non-Compliance with and Breaches of Investment Limits

    • BDE-4.5.1

      If the investment limits and risk management policies specified in the prospectus are breached because of a reason other than a market change or movement, the Bahrain domiciled expert CIU must take all necessary steps to remedy the situation immediately, without jeopardizing the interests of CIU participants.

      April 2012

    • BDE-4.5.2

      Any breach of investment limits and risk management policies, that has occurred because of a reason other than a market change or movement, must be reported to the CBB in writing by the board of the CIU, the custodian and the fund administrator, in a timely manner and accompanied by a plan and time-frame whereby the breach would be rectified.

      April 2012

    • BDE-4.5.3

      If the breach occurs as a result of a market change or movement, the Bahrain domiciled expert CIU must take all necessary steps to remedy the situation, if possible, but without jeopardizing the interests of CIU participants, and to notify the CBB of the same.

      April 2012

    • BDE-4.5.4

      The CBB does not consider it a breach 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. In such case, the following notifications must be made:

      (a) The board is required to immediately notify the CBB and the registrar stating the reason and the expected time by which the stipulated limits will be met;
      (b) The board is required to immediately notify the CBB and the registrar once the CIU resumes investing in accordance with the investment limits stipulated in the prospectus; and
      (c) The registrar is required to notify the CIU participants of the information above.
      April 2012