CBB Volume 6: Contents
If a Bahrain domiciled retail CIUG has different classes of holdingsG , the instrument constituting the CIUG must clearly set out the different features of each class of holdingG , including their respective rights; the allocation of expenses and fees; and how the proportion of the value of the assets of the CIUG and the proportion of income available for allocation attributable to each such class is to be calculated.
For the purposes of this Module, the interest of the CIU participantsG in a Bahrain domiciled retail CIUG (by whatever name these interests are called), are deemed to consist of holdingsG (including fractions of a holding), each holdingG representing one undivided share of the entitlement in the CIU'sG assets.
The instrument constituting the CIUG may provide for different classes of holdingsG to be issued in an authorised CIUG and, in the case of umbrella CIUsG , may provide that different classes of holdingsG may be issued for each sub-CIUG .
Issue, Purchase and Redemption
HoldingsG may not be created or issued unless the equivalent of the net issue price is paid into the assets of the Bahrain domiciled retail CIUG within the usual time limits. This shall not preclude the distribution of bonus holdingsG .
CIU-1.3.5(a) Issued with registered certificates evidencing title to holdingsG , in a form and substance satisfactory to the CBB; or(b) Provided with written confirmation of entry in a register for such holdingsG which shall be kept current and up-to-date at all times and shall contain full details of the names and addresses of the CIU participantsG , the number of holdingsG held by them, and the date of acquisition of such holdingsG .
HoldingsG in a CIUG (except for those in closed-end fundsG ), must be redeemed, repurchased, reimbursed or repaid (as may be appropriate) at the request of the CIU participantsG and in accordance with the Bahrain domiciled retail CIU'sG documents.
HoldingsG may only be created, issued or sold, and redeemed, repurchased, reimbursed or repaid (as may be appropriate), in accordance with the prospectusG constituting the Bahrain domiciled retail CIUG and at a price arrived at by dividing the net asset value of the CIUG by the number of holdingsG outstanding, after taking into account any charges as agreed in advance with the CBB.
The prospectusG constituting the Bahrain domiciled retail CIUG must clearly state the frequency and basis for calculation of the issue price, repurchase price and other appropriate prices of the holdingsG in the CIUG .