Regulatory Alerts2012-04-18
Restricted Investment Accounts
The Central Bank of Bahrain requires banks to restructure new profit-sharing arrangements as Collective Investment Undertakings rather than Restricted Investment Accounts, effective July 2012. Existing accounts may continue but cannot accept new funds unless they qualify for targeted exemptions covering short-term interbank placements, discretionary asset management, and employee savings schemes. This regulatory update strengthens investor protection and corporate governance while permitting banks to maintain their trustee or mudarib functions under the revised framework.
Share