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CIU-1.5.7

Past version: Effective from 01 Apr 2022 to 31 Mar 2022
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The CIU operator may appoint another entity to act as investment manager of the CIU, provided there are no conflicts of interests (See also Paragraph CIU-1.5.15). The CBB as a matter of principle has no objection to such an arrangement provided that the operator has the ability to terminate the arrangement and also ensures that such arrangements are legally binding on the parties involved. In particular, the CIU operator must confirm to the CBB that:

(a) The operator can demonstrate that the investment manager has the capabilities and resources to carry out its functions;
(b) The arrangement does not prevent the CBB from effective supervision or access to the operator;
(c) The arrangement does not prevent the operator from acting, or the CIU from being managed, in the best interests of the CIU participants;
(d) In case of retail CIUs, the investment managers must be authorised to undertake asset management whether in the Kingdom of Bahrain or in overseas jurisdictions;
(e) Where under the requirements of this Module, the CIU requires a custodian or a fund administrator who is independent of the operator of the CIU, such person (i.e. custodian or fund administrator) must not also act as the investment manager for that CIU.
Added: April 2022