ASIC Releases New and Updated Guidelines for Corporate Collective Investment Vehicles

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ASIC today released a series of documents in support of the licensing and other requirements for corporate collective investment vehicles (CCIVs). The requirements come into effect on July 1, 2022, when the CCIV regime comes into effect.

Report 728: Response to Submissions on CP 360 Corporate Collective Investment Vehicles: Preparing for the Start of the New Regime (REP 728) highlights key issues and ASIC’s response to submissions to the public consultation. ASIC on the licensing of the new regime (see CP 360).

Respondents to CP 360 generally supported ASIC’s proposals for licensing enterprise administrators to operate a CCIV. The main issues raised by respondents in REP 728 related to Australian Financial Services (AFS) license or amendment applications for company directors, insurance arrangements for company directors and financial resource requirements for licensees who are directors of responsible companies and entities.

ASIC has also published Fact Sheet 272 How to Register a Corporate Collective Investment Vehicle and Sub-Fund (INFO 272). INFO 272 provides guidance on:

  • Registration requirements at the CCIV and the initial compartment
  • the application process, including how ASIC will assess applications for initial CCIVs and sub-funds
  • Constitution of the CCIV and requirements of the compliance plan
  • the process of applying for registration of other compartments.

In addition, the document released today by ASIC will provide guidance to entities on how to become a corporate director as well as registering and operating CCIV and sub-funds.

ASIC Vice President Karen Chester said, “We are committed to supporting the implementation of the new CCIV regime. Going forward, ASIC will be responsible for licensing corporate directors and registering CCIVs. Our new and updated guidance will help company directors comply with their licensee obligations and other requirements under the Companies Act.

As required for the start of the CCIV regime, ASIC has updated a number of key regulatory guides. ASIC will soon publish a new legislative instrument that prescribes financial resource requirements for directors of retail CCIV companies.

ASIC will also continue to assess whether other regulatory guides and their associated legislative instruments need to be amended to reflect the CCIV regime and update them accordingly.

Background

A CCIV is a collective investment vehicle in the form of a new type of public limited company. The corporate director of a CCIV is responsible for the operation of the business and the conduct of the affairs of the CCIV. CCIVs share similar characteristics with some other internationally recognized investment structures and are designed to increase the international competitiveness of the Australian managed fund industry.

The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 implements the CCIV legislative regime 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 advice to help corporate directors comply with their licensee obligations and other requirements under company law.

To download

  • Report 728 Response to Submissions on CP 360 Corporate Collective Investment Vehicles: Preparing for the Entry into Force of the New Regime (REP 728)
  • Information sheet 272 How to register a corporate collective investment vehicle and sub-fund (INFO 272)

Advice updates:

The following existing regulatory guides have been updated to support the implementation of the CCIV regime:

ASIC will soon publish a new legislative instrument and publish updated versions of the following regulatory guides:

/Public release. This material from the original organization/authors may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author or authors. See in full here.
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