Corporate Collective Investment Vehicle - tranche three

Overview

The Government has released for public consultation the third tranche of the Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018 and related explanatory materials. 

The CCIV is an investment vehicle with a corporate structure, with the additional consumer protection of a depositary for retail funds which is responsible for the oversight of crucial administrative functions undertaken by the fund. A single CCIV can offer multiple products and investment strategies within the same vehicle.

The Government previously released two tranches of the draft Bill for public consultation. Consultation on Tranche 1 was held from 13 June to 18 July 2018. Consultation on Tranche 2 was held from 19 July to 10 August 2018.  

The tranche 3 exposure draft includes:

• the independence requirement for the depositary - whose responsibility it is to safeguard the fund's assets and oversee some of the activities of the fund;
• arrangements and reconstructions, receivership and winding up;
• deregistration of sub-funds and CCIVs;
• takeovers, compulsory acquisitions and buy-outs, and disclosure requirements; and
• other consequential amendments to the Asia Region Funds Passport, Chapter 9 (Miscellaneous provisions), the ASIC Act and the Personal Property and Securities Act 2009 to accommodate the new CCIV regime.