BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



Location: Central Bank of Bahrain Volume 6—Capital Markets > Archive > Part A > Collective Investment Undertakings > CIU — Collective Investment Undertakings > CIU-4 Overseas Domiciled CIUs > CIU-4.2 Requirements
  • CIU-4.2 Requirements

    • Promotion and Advertising of Overseas Domiciled CIUs

      • CIU-4.2.1

        The CBB licenseeG responsible for distributing an overseas domiciled retail CIUG or overseas domiciled expert CIUG must ensure that the CIU'sG prospectusG (and simplified prospectusG where applicable) are kept up-to-date. A most recent copy of the prospectusG (and simplified prospectusG where applicable) must be made available to the CBB within 30 calendar days of any revision.

      • CIU-4.2.2

        The CBB licenseeG responsible for distributing an overseas domiciled retail CIUG or overseas domiciled expert CIUG must always make available a copy of the CIU's most recent prospectusG (and simplified prospectusG where applicable) free of charge to any person on request.

      • CIU-4.2.3

        The CBB licenseeG responsible for distributing an overseas domiciled retail CIUG or overseas domiciled expert CIUG must provide explanations and such other information supplementary to the prospectusG as may be reasonably required by a potential investor.

      • CIU-4.2.4

        The CBB licenseeG responsible for distributing an overseas domiciled expert CIUG and overseas domiciled exempt CIUG must be able to demonstrate that each of its participantsG falls within the definition of an expert investorG or accredited investorG (as appropriate). They should also be able to demonstrate that the additional risks potentially represented by an expert CIUG or exempt CIUG have been clearly communicated and understood by their participantsG .

      • CIU-4.2.5

        To demonstrate compliance with Rule CIU-4.2.4, the CBB would expect to see a written confirmation from each participantG , stating that they satisfy the definition of an expert investorG or accredited investorG (as appropriate) and confirming they understand the higher risks involved in an expert CIUG or exempt CIUG . The CBB also expects supporting documentation to be kept, demonstrating that the minimum financial assets threshold specified in Rules CIU-B.5.6 and CIU-B.5.10 (as appropriate) has been satisfied, such as copies of bank or broker statements. Where the investor’s initial investment matches or exceeds the threshold, this may by itself be taken as evidence that the client meets the minimum financial asset threshold.

        Amended: July 2007

      • CIU-4.2.6

        Overseas domiciled CIUsG may not be offered directly to investors in Bahrain, by non-resident persons. Only CBB licenseesG that are licensed either as conventional bank licenseesG (Volume 1 of the CBB Rulebook), Islamic bank licenseesG (Volume 2) or investment firm licenseesG (Volume 4), may offer overseas domiciled CIUsG to investors in Bahrain.

      • CIU-4.2.7

        Advertisements in respect of overseas domiciled retail CIUsG and overseas domiciled expert exempt CIUsG must comply with the requirements applicable to their Bahrain domiciled equivalents, as specified in Section CIU-1.11.Overseas domiciled exempt CIUsG must comply with the restrictions on promotions applied to Bahrain domiciled exempt CIUsG (see Rule CIU-3.1.1).

        Amended: July 2007

    • Reporting to CIU Participants

      • CIU-4.2.8

        Overseas domiciled retail CIUsG and overseas domiciled expert CIUsG must publish and distribute to their Bahrain resident participantsG at least two reports in respect of each financial year. Annual reports and accounts prepared in accordance with local accounting standards must be published and distributed to Bahrain resident participantsG within the time scales specified by their home jurisdiction.

      • CIU-4.2.9

        Overseas domiciled retail CIUsG and overseas domiciled expert CIUsG must distribute to their Bahrain resident participants any other reports (such as valuation reports), where these are specified in the CIU'sG prospectusG .

    • CBB Reporting

      • CIU-4.2.10

        The CBB licenseeG responsible for distributing an overseas domiciled retail expert CIUG and overseas domiciled expert CIUG must file copies of the reports required under Rule CIU-4.2.8 with the CBB, within the same time periods.

        Amended: July 2007

      • CIU-4.2.11

        The CBB licenseeG responsible for distributing an overseas domiciled exempt CIUG must file with the CBB all annual and interim reports produced by the CIUG (within the time scales specified in Rule CIU-4.2.8).

      • CIU-4.2.12

        The CBB licenseeG responsible for distributing an overseas domiciled CIUG must notify the CBB in a timely manner of any intention to merge, transfer, wind up or suspend dealings in the CIUG .

      • CIU-4.2.13

        The CBB licenseeG responsible for distributing an overseas domiciled CIUG must file with the CBB Form CIU (QS), the CIU Quarterly Statistical Return, within the deadline specified on the return.

Back to top