As many readers will be aware, the Federal Government is currently legislating to create the Corporate Collective Investment Vehicle (CCIV) that will serve as an internationally recognisable investment vehicle which can be readily marketed to foreign investors, including through the Asia Region Funds Passport. This will be targeted specifically at nations who are not familiar with investment arrangements involving trusts and may, therefore, be hesitant to invest in Australia via a managed investment trust.

Following the release of the first tranche of legislation, discussed in detail in our earlier publication, on 19 July 2019 the Federal Government released the second tranche of the Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018(CCIV Bill) for public consultation.

With submissions closing on 10 August 2018, the second tranche of the CCIV Bill covers:

  • external administration of a CCIV in a winding up situation
  • the application of the Chapter 7 financial services regime to CCIVs and
  • the penalties framework and the liability of the corporate director of a CCIV for contraventions of the law by the CCIV.

The explanatory materials also discuss the proposed approach to takeovers, compulsory acquisitions and buy-outs of CCIVs, as well as the proposed penalties framework that are currently under development and will presumably be released in future tranches.