A. In accordance with the powers given to it pursuant to the provisions of Articles 41 and 50 of Decree Law No. (23) of 1973 (the "BMA Law"), the Bahrain Monetary Agency (the "Agency") shall supervise and regulate all collective investment schemes (the "schemes") established and/or marketed in any manner whatsoever in the State of Bahrain ("Bahrain"). In this Regulation, the term "scheme" shall include any scheme, regardless of the form thereof (including, but not limited to, a mutual fund investment company with fixed or variable capital), the sole object of which is the collective investment in transferable securities (or other investments disclosed to, and agreed by, the Agency) of capital raised from the public, which operates on the principle of risk-spreading and the holdings or interests in which are, at the request of the investors in such schemes (the "scheme participants"), repurchased, redeemed, reimbursed or otherwise repaid, directly or indirectly, out of the assets of the scheme.

B. Only banking firms or financial institutions (herein jointly referred to as "institutions") operating in/from Bahrain and licensed by the Agency shall be entitled to apply to establish and/or market schemes in/from Bahrain. No scheme shall be established and/or marketed in/from Bahrain without the express prior written authorisation and approval of the Agency.

C. The authorisation and/or approval of a scheme by the Agency shall not constitute a warranty as to the performance of a scheme and the Agency shall not be liable for the performance or default of a scheme.