On 19 July 2018, the Government released the second tranche of the Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018 for public consultation. Tranche 2 of the Bill further complements the Asia Region Funds Passport Bill, which was passed by the Government on 28 June 2018.
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
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.