Financial Trust Law
The Financial Trust Law was promulgated on 15 August 2006 issued by Royal Decree no. (23) of 2006. It contains comprehensive regulations and rules to govern the establishment and management of financial trusts.
The Financial Trust Law is characterised by offering high levels of confidentiality needed to conduct this type of activity. It will contribute in increasing the scope of specialized services offered by financial institutions and the development of conventional and Islamic investment products which can be offered through trust mechanism, such as real-estate trusts and private pension funds.
The Standard Conditions aim to facilitate the establishment of occupational saving schemes as trusts under the Financial Trust Law (Law No. 23 of 2006) and are hereby issued as a Directive pursuant to the Governor’s powers under Article 38 of the Central Bank of Bahrain and Financial Institutions Law. The Standard Conditions are applicable to all CBB Licensees holding an appropriate license under CBB Rulebook Volumes 1, 2 or 4 (Category 1 and 2).