Corporate Collective Investment Vehicle Guidance

ASIC released Fact Sheet 272 (INFO 272) and Report 728 (REP 728) on the eve of the launch of the Collective Corporate Investment Vehicle (CCIV).

With the effective date for CCIVs being July 1, 2022, ASIC today released 7 regulatory guides relating to registration and licensing requirements for CCIVs. We describe the main characteristics of CCIVs in our previous update. INFO 272 provides much-needed clarification on how the CCIV itself and its initial sub-fonds should be registered.

To register a CCIV and the initial compartment(s), the proposed corporate officer must:

  1. obtain an Australian Financial Services License (AFS License) which authorizes them to operate a CCIV (this may be a variation of an existing licence);

  2. ensure that the CCIV meets the requirements for registration with the CCIV;

  3. prepare the registration file for the CCIV; and

  4. file the application for registration with ASIC and pay the filing fee.

In REP 728, ASIC highlights key questions and ASIC’s response to submissions to the consultation process. The key points identified in the report are:

  • ASIC will accept the filing of certain supporting documents used for recent license applications, but will always apply a reasonable degree of scrutiny to applications from company directors, even if they already hold an Australian financial services license. (AFS) authorized to act as Responsible Entity;

  • ASIC will generally not impose a single bucket limit on directors of wholesale CCIV companies;

  • an AFS licensee who is both manager and corporate officer:

However, these will no longer be separate obligations on top of the obligations imposed on responsible entities as ASIC had proposed.

ASIC said it would prioritize AFS license applications from future company directors for an initial period of at least the first six months following the start of the CCIV regime.

ASIC said it will soon update other key regulatory guides and issue new legislative instruments to help those adopting the new CCIV fund structure.

Copyright 2022 K&L GatesNational Law Review, Volume XII, Number 194

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