Allens

Corporate Collective Investment Vehicle

News alerts

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.

Legislation

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:

View the Federal Government's draft legislation and explanatory materials about the CCIV:

CCIVs and managed investment schemes – comparative table

Requirement Registered managed investment scheme Unregistered managed investment scheme (trust) CCIV (retail)1 CCIV (wholesale)
Must register with ASIC yes no yes yes
Operator must hold an AFSL yes yes yes yes
Operator has statutory liability for acts of agents yes no yes yes
Statutory restrictions on appointment and removal of Operator yes no yes yes
Statutory provisions for transfer of rights and liabilities on change of Operator yes no yes yes
Statutory authority to establish legally separate sub-funds no no yes yes
Required to have an independent, third party asset-holder with obligation to supervise Operator no no yes no
Restrictions on issue price for interests yes no no no
Restrictions on redemptions – based on liquidity yes no yes no
Restrictions on redemptions – based on solvency no no yes yes
Prohibitions on: financial assistance to acquire interests; self-acquisition of interests; and taking security over interest no no yes yes
Rules for what must be in the constitution and statutory restrictions on amending the constitution yes no yes no
Statutory duties imposed on Operator and directors, officers and employees of Operator yes no yes no
Statutory rules about number of external directors of Operator yes no yes no
Required to have a compliance plan (and plan audited) yes no yes no
Footnote
  1. 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.

Submissions

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.

News

  • 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.