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Blog / August 3rd, 2018

Public consultation on Tranche 2 of the Corporate Collective Investment Vehicle has been released

Background

The Corporate Collective Investment Vehicle (“CCIV”) scheme creates a new type of investment vehicle, which will allow Australian funds managers to pursue overseas investment opportunities through a company structure. We covered the proposed features of CCIV’s in our previous blog post here.

Tranche 1 established the regulatory framework for how CCIV’s will operate. Submissions for Tranche 1 closed on 18 July 2018

Tranche 2

The Tranche 2 exposure draft builds on the regulatory framework for CCIVs in Tranche 1 to cover:

  • external administration of a CCIV in a winding up situation;

  • the application of Chapter 7 of the Corporations Act 2001 (Cth) financial services regime to CCIVs; and

  • the liability of the corporate director of a CCIV for contraventions of the law by the CCIV.

The explanatory materials include a detailed description of the proposed penalties framework for CCIVs, the approach to takeovers, compulsory acquisitions and buy-outs of a CCIV. The provisions for these aspects of the draft legislation are under development.

Consultation on Tranche 2 closes on 10 August 2018.

If you have any questions about CCIV scheme, please contact Hillary Ray or someone from our Financial Services Team.