Ahead of the commencement of the new corporate collective investment vehicle (CCIV) framework on 1 July 2022, ASIC released Consultation Paper 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime yesterday seeking feedback on its proposed licensing requirements for CCIVs.
The new CCIV regime heralds a new investment vehicle designed to increase the competitiveness of Australia’s managed funds industry internationally to attract offshore investment and offer flow-through tax treatment. You can read about the key features of the CCIV regime and some of its benefits and drawbacks in our recent article by partner Langton Clarke.
ASIC is seeking feedback from fund managers and other stakeholders on how it will—
- assess AFS licence applications from corporate directors seeking to operate a CCIV
- assess AFS licence applications from persons seeking to provide financial product advice on and/or deal in CCIV securities, and
- administer the licensee obligations that will apply to corporate directors.
What is proposed?
Some of the key proposals ASIC is requesting feedback on are as follows:
Two key CCIV authorisations are proposed – operating a retail CCIV and operating a wholesale CCIV.
It is also proposed ‘named’ and ‘kinds of’ CCIV authorisations be granted similar to those for responsible entities.
- Operational competence
Operating registered or unregistered schemes experience may be taken into account to support the equivalent CCIV authorisations (as well as similar overseas experience).
- Financial requirements
For retail CCIV operators, it is proposed similar financial requirements imposed on responsible entities will apply to the corporate director (eg a minimum of $150,000 NTA provided a qualified external custodian holds the CCIV’s assets).
For wholesale CCIV operators, it is proposed no ‘tailored’ financial requirements be imposed on the corporate director. This can be distinguished from a wholesale licensee authorised to provide custodial services. This means, for example, a wholesale corporate director will not be required to hold a minimum amount of NTA – irrespective of who holds the assets.
Submissions close on 14 April 2022.
What should you do next?
Contact us if you have queries about making a submission or if you need to understand more about how CCIVs will be used, the regulatory and policy requirements of the new framework, or for assistance with preparing a CCIV product.