ASIC has today released a range of documents to support the licensing and other requirements for corporate collective investment vehicles (CCIVs). The requirements come into effect on 1 July 2022, when the CCIVs regime commences.
Report 728: Response to submissions on CP 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime (REP 728) highlights the key issues from, and ASIC’s response to, submissions to ASIC’s consultation on the new regime’s licensing (see CP 360).
Respondents to CP 360 generally supported ASIC’s proposals for the licensing of corporate directors to operate a CCIV. The key issues raised by respondents in REP 728 related to Australian financial services (AFS) licence or variation applications for corporate directors, insurance arrangements for corporate directors, and financial resource requirements for licensees that are corporate directors and responsible entities.
ASIC has also published Information Sheet 272 How to register a corporate collective investment vehicle and sub-fund (INFO 272). INFO 272 provides guidance on:
- CCIV and initial sub-fund registration requirements
- the application process, including how ASIC will assess applications for CCIVs and initial sub-funds
- CCIV Constitution and compliance plan requirements
- the application process for registering further sub-funds.
Additionally, the material ASIC has released today will provide guidance to entities about becoming a corporate director as well as registering and operating the CCIV and sub-funds.
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ASIC Deputy Chair Karen Chester said, ‘We are committed to supporting the implementation of the new CCIVs regime. Going forward, ASIC will be responsible for licensing corporate directors and registering CCIVs. Our new and updated guidance will assist corporate directors to comply with their licensee obligations and other requirements under the Corporations Act.’
As required for the commencement of the CCIVs regime, ASIC has updated a number of key regulatory guides. ASIC will shortly release a new legislative instrument that prescribes the applicable financial resources requirements for corporate directors of retail CCIVs.
ASIC will also continue to assess whether other regulatory guides and their associated legislative instruments need to be amended to reflect the CCIVs regime and update these accordingly.
A CCIV is a collective investment vehicle in the form of a new type of company limited by shares. The corporate director of a CCIV is responsible for operating the business and conducting the affairs of the CCIV. CCIVs share similar characteristics to some other internationally recognised investment structures and are designed to increase the international competitiveness of Australia’s managed funds industry.
The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 implements the legislative regime for CCIVs through amendments to the Corporations Act 2001, the Australian Securities and Investments Commission Act 2001 and the Personal Property Securities Act 2009.
ASIC will be responsible for licensing corporate directors and registering CCIVs as well as providing guidance to assist corporate directors to comply with their licensee obligations and other requirements under the Corporations Act.