MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Bahrain
CBB Rulebook Volume 6 was issued. In April 2012, the CBB released the CIU module
as a separate volume (Volume 7) which provided an extensive set of ‘best of class’ rules.
Q/ What are salient features of volume 7 of the CBB rule book released in April
2012 compared to the previous CIU module?
A/ In Bahrain, we have come a long way in terms of regulations and we appreciate the
efforts the CBB has put in developing new regulations to bring them in line with
international standards. The salient features of Volume 7 are:
• Modules which govern the authorisation/registration of Private Investment
Undertakings (PIU) and Real Estate Investment Trusts (REITs) have been included.
• A complete section on “Corporate Governance” has been included in the
regulations. This new module provides details on criteria, selection and role of the board
members.
• A “Relevant Persons Module” has been included in the new regulations which
provide clarity on roles and responsibilities of operator, trustee, fund manager, custodian,
fund administrator, registrar and transfer agent, placement agent, investment advisor,
external auditor, et cetera.
• A module has been added on “CBB Reporting Requirements”. This module
aims to increase the clarity for reporting requirements for all counterparties including the
administrator, custodian, investment manager, and the operator.
• Last, but not least, a complete section is devoted to
“Liquidation/Deregistration”. This provides detailed information on how to close a fund,
should that be needed.
Q/ What is the impact of new regulations?
A/ First, the new regulations with regard to REITs and PIUs will enable regional fund
managers to setup these structures within the region. A PIU is a loosely regulated
product for high net worth individuals/ institutions.
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