MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Regulatory Trends
Recent Regulatory Developments
Bahrain 1
Central Bank of Bahrain (CBB) released Volume 7 (Collective Investment Undertakings),
a new Volume forming part of CBB Rulebook. The new volume provides comprehensive
rules and regulations pertaining to the authorization / registration and supervision of
mutual funds domiciled and/or offered for sale in Bahrain. The introduction of Volume 7
followed an industrywide consultation that took place in October 2011 and incorporates
the comments and feedback received.
The amount of detail that has been added to the existing CIU regulations, and the fact
that the area of mutual funds is increasingly attracting regional and international interest
from specialized financial institutions that are actively involved in the structuring of
mutual funds products, necessitated the issuance of the revamped regulations within a
separate Volume and the new regulatory framework is aimed at enabling fund
sponsors/managers and service providers to capitalize on the opportunities that best
serve investors’ needs.
When markets began to slowly recover after the financial crisis, investors immediately
identified investment opportunities in the region and there was instant demand for new,
innovative investment products. This, coupled by the fact that the mutual funds industry
in Bahrain had matured to a certain extent, made it necessary for the CBB to undergo
the exercise of revamping the regulatory framework of mutual funds, to keep pace with
the current international and regional developments and best market practice.
The CBB recognized the importance of expanding key areas such as the corporate
governance framework, and the role and responsibilities of each relevant party to a fund.
It also expands the variety of funds that can be established in Bahrain, by introducing
rules and regulations governing Bahrain Real Estate Investment Trusts (B-REITs), in line
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The section on Bahrain has been authored by Mazen Jawad, Compliance, MLRO &
Internal Control Officer at National Bank of Abu Dhabi - Bahrain branch.
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