The Corporate Collective Investment Vehicle Bill is an investment vehicle with a corporate structure, with the additional consumer protection of a depositary for retail funds which is responsible for the oversight of crucial administrative functions undertaken by the fund.
A single CCIV will be able to offer multiple products and investment strategies within the same vehicle.
The government has previously released tranche 1,2 and 3 of the draft bill for consultation as well as the tax framework of the regime.
The proposed new laws include a new chapter in the Corporations Act containing the core provisions of establishing a CCIV and its operational and regulatory requirements.
Amendments will also be made to the ASIC Act and the Personal Property Securities Act to support the implementation of the vehicle.
Tax legislation will also be affected to ensure the tax treatment of CCIVs broadly aligns with the existing treatment of attribution management investment trusts.
The CCIV will act as an internationally recognisable investment vehicle which can be readily marketed to foreign investors including through the recently passed Asia Region Funds Passport
The chief executive of APIR Chris Donohoe praised the Asia Region Funds Passport and said the CCIV legislation is the next piece in the puzzle.
“The ARFP is an opportunity for Australian fund managers to expand into Asian growth markets, and for Australian investors to access regional investment expertise.
“Further, when accompanied with the CCIV legislation that is currently in exposure draft for comment, it will bring Australian funds into alignment with globally accepted structures, such as UCITs,” he said.
QMV’s principal consultant of legal and risk Jonathan Steffanoni said that the changes helped strengthen investor protections and that the vehicle would likely grow in prevalence.
“I recommend that the unlisted asset investment management function of superannuation funds becomes familiar with the CCIV structure, as the vehicle is likely to become more prevalent in the future,” he said.
