The Corporate Collective Investment Framework and Other Measures Bill 2021 has passed signalling the introduction of the Corporate Collective Investment Vehicle (CCIV) framework on 1 July 2022
A CCIV is an investment vehicle with a corporate structure, with the additional consumer protection of an independent depositary (for retail funds) responsible for the oversight of certain administrative functions undertaken by the fund.
A single CCIV can offer multiple products and investment strategies within the same vehicle. Each CCIV:
- Is company limited by shares
- Must have a single corporate director, which must be a public company, with an Australian Financial Services Licence (AFSL) and may not have any other officers
- Must register with ASIC and meet certain basic requirements – including at the time of registration, it must have at least one sub-fund, which has at least one member.
- Can have one or more sub-funds established within, but each sub-fund’s registration with ASIC is a ‘standalone’ process
- Must register as retail or wholesale. If even one investor is retail, the CCIV must register as retail, and must comply with additional regulatory requirements designed to protect retail investors.
Given the CCIV is a corporate structure, it will generally be subject to the ordinary rules under the Corporations Act, with some special provisions. Most of the powers, rights, duties and characteristics of a company will apply.