The ABCs of New CCIVs
- June 26, 2022
- Posted by: Paul Niederer
- Category: CCIV
Let’s look at the ABCs of New CCIVs. By ABC we mean what are the basics. In a couple of minutes, this overview will give you a good understanding of what the new CCIV structure is about.
- A CCIV is a new type of company limited by shares. The CCIV will be a single legal entity and must have at least one sub-fund.
- Sub-funds will not have separate legal personalities but each sub-fund’s assets and liabilities will be segregated from the assets and liabilities of other sub-funds.
- A CCIV must have a corporate director which, like a responsible entity, must be a public company and must have an appropriate Australian financial services licence with the new CCIV AFSL authorisation will be introduced.
- (MIS) regime Certain features of the existing managed investment scheme will be replicated for CCIVs to ensure regulatory parity between the two frameworks.
- Umbrella Vehicle. In contrast to other types of companies, a CCIV is an umbrella vehicle that is comprised of one or more sub-funds. Each sub-fund is comparable to an individual unit trust which is commonly used under the existing MIS regime.
- The Constitution, The primary governing document for a CCIV is the constitution. Unlike other company types, a CCIV must have a constitution and not rely on the replaceable rules set out in the Corporations Act. Additionally, as in the MIS regime, the constitution of a retail CCIV must make adequate provisions for certain matters (for example, the handling of complaints made by investors). A wholesale CCIV must have a constitution but there are no prescribed contents.
- Retail CCIVs must also have a compliance plan, which meets the legislative requirements (as with the MIS regime, there are only basic prescribed requirements) and a compliance plan auditor.
- Registered with ASIC through a registration process that largely mirrors the existing process in place for other companies but requires a copy of the CCIV’s constitution to be provided to ASIC and, for retail CCIVs, a copy of the compliance plan.
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