19 July 2018
Tranche 2 released
Treasury has released tranche 2 of the revised CCIV Bill, covering external administration, the application of the Chapter 7 financial services regime and corporate director liability. Allens is preparing a client alert summarising the changes and will also be preparing a submission ahead of the 10 August 2018 deadline.
9 July 2018
Revised Bill released
Treasury has extended the deadline for providing submissions on the first tranche of the revised exposure draft CCIV legislation to Wednesday, 18 July 2018.
On 19 July 2018, the Federal Government released the second tranche of the revised exposure draft legislation for the new Corporate Collective Investment Vehicle (CCIV), one of the two forms of collective investment vehicle (CIV) that it pledged to develop as part of the 2016-2017 budget, with a new Limited Partnership CIV to follow. This was followed by the release on 31 July by the Australian Securities and Investments Commission (ASIC) of revised and new guidance dealing with funds management, the CCIV and the Asia Region Fund Passport.
This follows on from the 2009 Johnson Report and the Board of Taxation's report on tax arrangements applying to collective investment vehicles, both of which considered that offshore investors are dissuaded from investing in Australian funds because they do not understand unit trusts, and that access to a broader range of CIVs would help Australian fund managers to compete for capital with their offshore counterparts. Allens has been actively tracking the development of the new CIVs since the release of the Board of Taxation's report in 2015, publishing regular updates and analyses. We have been heavily involved in the consultation process and have made detailed submissions on each draft of the CCIV legislation (both in our own name and through our involvement with the Property Council of Australia), and on ASIC's new and revised guidance. The purpose of this microsite is to act as a forum for all things CCIV: draft legislation and materials, submissions, publications and breaking news. We hope you find it useful and, if you have any questions, please feel free to contact one of our team.
View tranche one of the Federal Government's revised draft legislation and explanatory materials (released 13 June 2018) about the CCIV:
View the Federal Government's draft legislation and explanatory materials about the tax framework for the CCIV:
View ASIC's new and updated regulatory guidance in relation to CCIVs, Australian Asia Region Funds Passport vehicles and managed investment schemes:
- Report 582 – Response to submissions on CP 296 Funds management
- Regulatory Guide 131 – Funds management: Establishing and registering a fund
- Regulatory Guide 132 – Funds management: Compliance and oversight
- Regulatory Guide 133 – Funds management and custodial services: Holding assets
- Regulatory Guide 134 – Funds management: Constitutions
- Regulatory Guide 136 – Funds management: Discretionary powers
- Regulatory Guide 137 – Constitution requirements for schemes registered before 1 October 2013
- Regulatory Guide 138 – Foreign passport funds
View the Federal Government's draft legislation and explanatory materials about the CCIV:
|Requirement||Registered managed investment scheme||Unregistered managed investment scheme (trust)||CCIV (retail)1||CCIV (wholesale)|
|Must register with ASIC|
|Operator must hold an AFSL|
|Operator has statutory liability for acts of agents|
|Statutory restrictions on appointment and removal of Operator|
|Statutory provisions for transfer of rights and liabilities on change of Operator|
|Statutory authority to establish legally separate sub-funds|
|Required to have an independent, third party asset-holder with obligation to supervise Operator|
|Restrictions on issue price for interests|
|Restrictions on redemptions – based on liquidity|
|Restrictions on redemptions – based on solvency|
|Prohibitions on: financial assistance to acquire interests; self-acquisition of interests; and taking security over interest|
|Rules for what must be in the constitution and statutory restrictions on amending the constitution|
|Statutory duties imposed on Operator and directors, officers and employees of Operator|
|Statutory rules about number of external directors of Operator|
|Required to have a compliance plan (and plan audited)|
- The test for what will be a retail CCIV is different from the test for when a managed investment scheme must be registered. The current test needs to be amended as it is too broad.
Allens' CCIV submission
We have been actively involved in working with a number of industry bodies, including the Property Council of Australia, to make submissions to Treasury in response to the new CCIV.
In addition to our involvement with industry bodies, Allens has also made submissions to Treasury which can be viewed below.
Submission to Treasury,
Submission to Treasury,
13 June 2018 – Revised Bill released
Treasury has released tranche 1 of the revised CCIV Bill. Allens is preparing a client alert summarising the changes and will also be preparing a submission ahead of the 11 July 2018 deadline.
26 October 2017 – Draft regulatory guides
We understand that ASIC will today issue draft updates to certain regulatory guides, reflecting changes necessitated by the draft CCIV and Asia Region Funds Passport legislation. The draft regulatory guides will be open for consultation until 8 December. Allens will be preparing a client update on the drafts in due course (to be posted here) and will provide comments to ASIC as part of the consultation process.
25 September 2017 – Exposure draft legislation
Allens has made detailed submissions on the draft corporate collective investment vehicle legislation. Our submission is available here.
25 August 2017
The Federal Government has just released exposure draft legislation for the new corporate collective investment vehicle and announced a consultation period. We will be publishing a brief summary and analysis later today, with more detailed analysis and submissions on the draft to follow.