CBB issues regulations on new license category for fund managers

Manama, September 16 / BNA / The Central Bank of Bahrain has introduced a new license category for investment companies under the rule book issued by the Central Bank of Bahrain, Volume IV – Investment Business.

The new license category caters to the business models of specialized fund managers who manage/manage/market Collective Investment Undertakings (CIUs), i.e. funds that target ‘accredited investors’ only (i.e. investors with a net worth of US$1 million and above and not offered to ‘accredited investors’) Individuals” as defined under the Central Bank of Bahrain regulations).

Examples of such funds include private equity funds, hedge funds, structured funds, real estate funds, venture capital funds, and other alternative investment funds.

The CBB is aware of the unique risks posed by fund managers given their business models and an evolving investor base.

The new regulations maintain high standards of business conduct, include measures to protect client funds/assets and require disclosure standards to investors in line with international best practice.

Commenting on the new regulations, Ms. Sherine Karim Al-Sayed, Director – Regulatory Policy Unit said: “The Central Bank of Bahrain is constantly working to enhance its regulatory framework in line with developments in the financial markets.

The introduction of the investment firm’s Class 4 license and related regulations will create an environment conducive to further growth of the asset management industry within the appropriate regulatory framework.

The new regulations can be found on the Central Bank of Bahrain website – www.cbb.gov.bh.


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