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Appendix B — Prospectus

The prospectusG of the CIUG must contain the following minimum information:

(a) Constitution of the CIUG :
(i) Name
(ii) Registered address
(iii) Nature of corporate form
(iv) If it is a company, particulars of its capital structure
(v) Date of creation
(vi) Place of creation
(vii) Indication of duration if limited
(b) Governing law of the CIUG :
(c) Details of any tax levied on the income and capital of the CIUG , including tax deducted on distributions to participantsG (if applicable)
(d) Investment objectives and restrictions:
(i) Details of investment objectives and policy;
(ii) A summary of the different asset classes that may be held, and the extent to which derivatives, borrowings and stock lending may be undertaken;
(iii) A summary of the risk management policy, processes and limits structure to be applied; and
(iv) An assessment of the risks that the CIUG may incur, and its overall risk profile.
(e) OperatorG and principals:
(i) Names and registered addresses of the following parties (where applicable) and any additional information as stated:
a. The Directors or trustees (as appropriate) of the CIUG , including a summary of their professional experience and other positions held;
b. The operatorG , managerG , administratorG and custodianG , plus
i. Nature of their corporate form;
ii. If a subsidiary, the name of their ultimate holding company and the country or territory where the holding company is incorporated;
iii. The address of their registered offices;
iv. A description of their principal business activity;
v. The nature of any licenses held, and their lead regulators; and
vi. A summary of any material provisions, if applicable.
c. The investment advisor (if applicable)
i. Their function
ii. Whether or not it is the holder of a license
iii. If it is body corporate in a group of which the operatorG or administratorG is a member
iv. If the advisor's principal activity is not providing services as an investment advisor, what the principal activity is
v. Main terms of any agreement or arrangement between the advisor and the operatorG
d. The Kingdom of Bahrain representative
e. The Kingdom of Bahrain distribution company, if different from d.
f. The auditors
g. The registrar
(f) Characteristics of holdingsG :
(i) Minimum investment and subsequent investment requirements (if any).
(ii) A description of the different types of holdingsG , including their currency of denomination, their nominal value and any applicable requirements for minimum level of holdingsG .
(iii) In relation to each available class of holdingG , the entitlement of the holder to participate in the assets of the CIUG and its income.
(iv) The voting rights that are exercisable at meetings of participantsG by the participantsG and, if different rights attach to different classes of holdingsG , what those rights are.
(v) Form of certification.
(g) Valuation:
(i) How frequently and at what time of day in a specified country or territory the assets of the CIUG will be valued for the purpose of determining prices at which units in the CIUG may be sold or repurchased.
(ii) The method of valuation of assets and liabilities of the CIUG and the method of pricing and determination of investment returns of the CIUG .
(iii) The circumstances under which the method of valuation and pricing may change for a CIUG .
(h) Seed Capital:
(i) The amount of any seed capital invested in the CIUG (if any), who by, and the investor's proposed intention regarding retaining the seed capital in the CIUG or redeeming it. Also, a statement must be included that any redemption of seed capital is subject to the CBB's prior approval.
(i) Application and redemption procedures:
(i) Names of any Bahraini daily newspapers in which prices will be published, and details of other sources where prices may be published (e.g. website), as applicable.
(ii) Procedure for subscribing/redeeming holdingsG .
(iii) The maximum interval between the request for redemption and the dispatch of the redemption proceeds
(iv) A summary of the circumstances under which dealings in holdingsG may be deferred or suspended.
(v) A statement that no money will be paid to any financial intermediary in the Kingdom of Bahrain who is not licensed or registered.
(j) Distribution policy:
(i) The distribution policy and the approximate dates on which dividends (if any) will be paid (if applicable).
(k) Fees and charges:
(i) The level of all fees and charges payable by a participantG , including all charges levied on subscription, redemption and conversion.
(ii) The level of all fees and charges payable by the CIUG , including management fees, administration fees, custodianG fees and start up expenses.
(iii) The notice period for fee increases.
(l) Reports and accounts:
(i) The date of the CIU'sG financial year.
(ii) Particulars of what reports will be sent to participantsG and when.
(iii) When annual and half yearly reports will be published.
(m) Warnings:
(i) The following statement should be predominantly displayed in the offering document as follows:
"Important — if you are in any doubt about the contents of this prospectus, you should seek independent professional financial advice. Remember that all investments carry varying levels of risk and that the value of your investment may go down as well as up. Investments in this collective investment undertaking are not considered deposits and are therefore not covered by the Kingdom of Bahrain's deposit protection scheme. The fact that this collective investment undertaking has been authorised by the Central Bank of Bahrain, does not mean that the CBB takes responsibility for the performance of these investments, nor for the correctness of any statements or representations made by the operator of this collective investment undertaking."
(n) General information:
(i) A list of the documents constituting the CIUG and an address in the Kingdom of Bahrain where they can be inspected free of charge.
(ii) The date of publication of the offering document.
(iii) A statement that the directors or trustees (as appropriate) of the CIUG , together with the CIU'sG operatorG , accept responsibility for the information contained in the offering document as being accurate at the date of publication.
(iv) A statement that participantsG will be notified, at least 14 calendar days before the changes take effect, in the following circumstances:
a. Any changes in the investment policy;
b. Any changes in the operatorG , managerG , administratorG or custodianG of the CIUG ;
c. The merger, division or termination of the CIUG ; and
d. Any major issues that may affect the participantsG of the CIUG .
(vi) Details of the documentation to be provided by participantsG in order to satisfy applicable AML/CFT requirements.
(o) Termination of CIUG :
(i) A summary of circumstances in which the CIUG can be terminated.
 Versions
(1 Version)
 
Jun 1 2007 onwards
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