The Central Bank of Bahrain (CBB) has released its revised collective investment undertakings (CIU) module of CBB Rulebook Volume 6 dealing with mutual funds, as a consultation paper.

Back in June 2007, the CBB introduced the CIU Module, replacing the CBB's old framework, first issued in 1992.

As a result, the number of mutual funds registered with the CBB rose to 2,819 at the end of June, compared with 2,374 in June 2007. The net asset value of those funds totalled $8.7 billion.

The number of Bahrain-domiciled funds totalled 127 as of June, compared with 108 in June 2007.

Of the total assets of the mutual funds industry, assets of such funds rose to $5.2 billion, up from $3.7 billion in June 2007.

'As the mutual funds industry progressed further, the CBB found it necessary to expand the CU Module so that it addresses in more detail the aspects of corporate governance,' said CBB executive director of financial institutions supervision Abdul Rahman Al Baker.

The revised module is now released for consultation and is expected to be finalised and issued by the end of the first quarter of 2012.

The new framework broadens the range of funds that can be established in Bahrain, by introducing rules and regulations governing Bahrain Real Estate Investment Trusts, in line with best international practices, tailored to serve the needs of the local and regional markets.

It also introduces new rules through which Private Investment Undertakings (PIUs) can be structured.

PIUs are new structures that facilitate private investments, and can only be offered to high net-worth individuals and institutional investors, due to the risk characteristics they may exhibit.-TradeArabia News Service