MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Bahrain / Kuwait
Exchange Traded Funds
Questions Bahrain Kuwait
communicated and understood by its
investors.
What is the level of supervision required over a custodian in your jurisdiction? Custodians are required to be domiciled in Bahrain and licensed by the CBB under CBB To be licensed and supervised by CMA
in compliance with the provisions of
Rulebook Volume 1 (for conventional CMA law 7/2010
banks), Volume 2 (for Islamic banks) and
Volume 4 (for investment business
licensees). They are also subject to ongoing
supervision by the CBB.
Fund Exemption
Can fund be exempt from regulation? Bahrain domiciled exempt funds regime
exists with a lighter touch regulatory regime.
Bahrain domiciled PIUs are only subject to
registration requirements, but are not subject
to on-going supervisory requirements.
Marketing
Marketing restrictions Advertisements in respect of Bahrain
domiciled retail and expert CIUs must be:
(a) Fair and not misleading;
(b) Clear and self–explanatory (describing
the nature or type of CIU
to which the advertisement relates);
(c) State any assumptions on which claims
in advertisements are
based;
(d) Include risk warnings, including the
potential for loss, that are prominently
presented and not obscured or disguised;
(e) Not describe CIUs as “guaranteed”
unless there is a legally
No
As stated in CMA law 7/2010 no party
can set up funds outside Kuwait or
market funds inside Kuwait without CMA
pre approval
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