Corporate collective investment vehicles

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A new company structure, the corporate collective investment vehicle (CCIV), is now reality, and will be included in the Corporations Act 2001 (Corporations Act) from 1 July 2022.

What should superannuation funds, along with other participants in the funds management industry, know about the new CCIV structure and what implications will it have for the future regulation of financial services?

Despite a lengthy gestation period which commenced with a worthy recommendation from the Johnson Report on Australia as a Financial Services Centre in 2009, a new law received royal assent on 22 February 2022, establishing the company structure known as a corporate collective investment vehicle (CCIV).

The creation of the CCIV structure aims to enhance Australia's funds management industry by introducing a more globally recognisable investment structure, focusing on Australia as a regional financial services hub.  The CCIV was born from the concern that offshore investors may perceive the traditional trust-based structure of our domestic managed investment schemes as 'inappropriate for large-scale funds management'.

The CCIV is therefore an alternative investment vehicle to managed investment schemes, with proponents suggesting that the familiarity of the 'corporate' fund structure to many foreign investors, will attract more offshore investment into Australian funds.

The new law will insert a new Chapter 8B in the Corporations Act containing the core provisions outlining the establishment of CCIVs and their operational and regulatory requirements.

Funds management businesses can begin registering their proposed CCIVs with the Australian Securities and Investments Commission (ASIC) from 1 July 2022.