Bahrain’s Central Bank has issued updated investment fund operation directives.
They have done so following a comprehensive review of the rules governing the work of these entities as part of its plan to carry out a comprehensive review of the entire legislative system related to the financial sector.
The amendments focus on dividing investment funds into two categories.
The first category of funds relates to small investors and contain details of the nature of investment in the funds and require approval from the Bank first.
The second category of funds relates to investors with high financial solvency and experience. Those in this category only have to notify the Bank of the fund marketer.
The updated rules take the rapid and continuous changes in the investment fund sector into account.
They are aimed at reducing administrative procedures and facilitating approvals for the establishment and marketing of investment funds in order to create an environment to enable the sector to grow with appropriate regulations in place.
This will improve the competitiveness of investment fund operators and investment managers. For full story, click here.
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