Bahrain Collective Investment Schemes Regulations: Contents

Regulation Governing Collective Investment Schemes June 2003
Principles of Supervision, Operation and Marketing with respect to Collective Investment Schemes
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Prospectus, Reports and Publication of Information

31. There shall be published, in accordance with these Principles, the scheme documents and the Agency's directions, a dated and current prospectus (regardless of its actual title) for each scheme, which shall include the necessary information to enable the scheme participants to make an informed judgment of the investment proposed to them. The prospectus must be offered to the scheme participants free of charge before the conclusion of any agreement therewith and must be sent, together with any amendments made thereto from time to time, to the Agency.
32. The Agency shall specify which of the scheme documents shall form an integral part of the prospectus and which must be annexed thereto.
33. There shall be published, in accordance with each scheme's scheme documents:
(i) an Annual Report for each financial year within 3 months from the end of such year (prepared in accordance with International Accounting Standards), which report shall contain a balance sheet, a detailed income and expenditure account, a report on the activities of the scheme during the financial year (including the composition of the scheme's portfolio at the year end), as well as any significant information which will enable the scheme participants to make an informed judgment on the development of the activities of the scheme and its results; and
(ii) a half-yearly report covering the first six months of the financial year within 2 months from the end of such period, which report shall contain in summary form the information referred to in (i) above; and
(iii) in each of the above cases, such other information as the Agency may stipulate from time to time.
34. The above reports must (i) be sent to the Agency, (ii) be made available to the scheme participants free of charge before the conclusion of an agreement therewith, (iii) be made available to the public at a place specified in the prospectus, and (iv) be made available to the scheme participants free of charge on request.
35. There shall be submitted to the Agency for its prior approval one pro forma copy of each document (together with any amendments made thereto from time to time) relating to a scheme which is to be made available to, or executed by, the scheme participants including, but not limited to, copies of contracts to be entered into with the scheme participants.
36. If an auditor of a scheme:
(i) has reason to believe that the information provided to the scheme participants or to the Agency does not truly describe the financial situation of a scheme, or
(ii) has reason to believe that there has been some breach of these Principles, the scheme documents and the Agency's directions, or
(iii) has reason to believe that there exist circumstances which are likely to affect materially the ability of the scheme to fulfill its obligations to the scheme participants or to meet any of its financial obligations under these Principles, the scheme documents and the Agency's directions, or
(iv) has reason to believe that there are material defects in the financial systems, controls or accounting records of the scheme, or
(v) has reason to believe that there are material inaccuracies in, or omissions from, any returns of a financial nature made by the scheme and/or, as may be appropriate, any one or more of the relevant persons, to the Agency, or
(vi) proposes to qualify any certificate which he is to provide in relation to the financial statements or returns of the scheme under Bahrain law and these Principles,
he shall report the matter to the Agency in writing, with a copy to the scheme and/or, as may be appropriate, to the relevant persons, without delay.
37. The auditor of a scheme shall, if requested by the Agency, furnish to it, with a copy to the scheme and/or (as may be appropriate) the relevant persons, a report stating whether in his opinion and to the best of his knowledge the scheme has complied with these Principles, the scheme documents and/or any relevant directions of the Agency. The auditor may be requested by the Agency to supply it with information available to him as a result of his audit of the scheme.
38. Subject to the Agency's directions to the contrary, in accordance with the scheme documents there shall be made public the issue, sale, and (as may be appropriate) repurchase, redemption, reimbursement or repayment price of the units in a scheme at least once a month.
39. All publicity comprising an invitation to purchase units of a scheme must indicate that a prospectus exists and include the places where such prospectus may be obtained.
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