The Federal Government opened consultation to industry stakeholders for the first tranche of the Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018.
In August 2017, the Government called for initial consultation on the CCIV regime, which is modelled on the UK's Open-Ended Investment Companies regime.
Under the framework, a company can register as a CCIV if it is limited by shares and operated by a single corporate director; holds an Australian financial services licence; does not have any officers or employees other than the corporate director; operates at least one sub-fund at all times; and adheres to other more specific requirements detailed in the legislation.
The CCIV regime is intended as a response to the Johnson report's findings that Australia requires a framework providing flow-through tax treatment and investor protection while being more "internationally recognisable" than the country's existing managed investment scheme (MIS) trust-based structure.
The amendments released for consultation yesterday include a revised draft of the new chapter in the Corporations Act concerning the operation of CCIVs; changes to meetings rules and members' rights and remedies; and an explanation of the legislative approach to depositary independence.
Commenting on the consultation, Minister for Revenue and Financial Services Kelly O'Dwyer said: "The CCIV vehicle will allow Australian fund managers to market to participating Asian financial markets using a well-recognised corporate structure vehicle - creating access to Asia's expanding middle and upper class."
The Financial Services Council has long supported the introduction of this legislation. At the FSC's 2016 Leaders Summit in Melbourne, chief executive Sally Loane said: "For heaven's sake, move forward with the recommendations of the Johnson Report. It was written in 2009."