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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Mutual Fund Investment Company Established in, and Marketed in/from, Bahrain

6. A scheme in the form of a mutual fund investment company established in, and marketed in/from, Bahrain shall (at all times) have an initial paid-up share capital which is acceptable to the Agency. Unless the Agency expressly agrees otherwise in writing, the net asset value of the scheme must reach US$5 million (or equivalent) no later than 6 months after the commencement of the scheme (as agreed with the Agency and specified in the scheme documents). In the event that the net asset value fails to reach this amount within this six month period, or falls below this amount at any time thereafter, the Agency may require the scheme to be wound up, or require other action to be taken, in accordance with its instructions. The Agency may, at its discretion, require a scheme in a form other than a mutual fund investment company to meet similar requirements in this context.
7. A scheme in the form of a mutual fund investment company shall include the words "investment company" on all documentation and instruments, and may, from time to time and if so authorised by its constitutive documents, (i) issue (and redeem) redeemable preference shares, and/or (ii) repurchase its own shares.
8. The directors of the mutual fund investment company shall be knowledgeable and experienced in the area of collective investment schemes generally, and shall be fully conversant and acquainted with all aspects of the instant scheme in particular, bearing in mind their liabilities to the scheme and scheme participants.
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