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

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.

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.

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