Manama, Bahrain – 16th September 2021 – The Central Bank of Bahrain (“CBB”) has introduced a new license category of investment firms under the CBB Rulebook Volume 4 – Investment Business. The new license category caters to the business models of specialist fund managers who operate/manage/market Collective Investment Undertakings (“CIUs”) i.e. funds, targeted at ‘accredited investors’ only (i.e. investors with a net worth of USD 1 million and above and not offered to ‘retail investors’ as defined under the CBB 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 recognises the unique risks posed by such fund managers given their business models and sophisticated investor base.
The new regulations maintain high standards of business conduct, include measures to safeguard client money/assets and require disclosure standards to investors in line with international best practices.
Commenting on the new regulations, Mrs. Shireen A.Karim Al Sayed, Director – Regulatory Policy Unit, commented “The CBB is continually enhancing its regulatory framework in line with developments in the financial markets. The introduction of the category 4 investment firm license and related regulations will set a conducive environment for further growth of the asset management industry within the appropriate regulatory framework.
The new regulations can be found on the CBB website – www.cbb.gov.bh.