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22-050MR ASIC consults on financial services licensing requirements for corporate collective investment vehicles
ASIC today released a consultation paper seeking industry feedback on its proposed licensing requirements for corporate collective investment vehicles (CCIVs).
The licensing requirements will come into effect on 1 July 2022 when the CCIV regime commences.
Consultation Paper 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime (CP 360) contains proposals on a range of licensing-related matters, including how ASIC will:
- assess Australian financial services (AFS) licence applications from corporate directors seeking to operate a CCIV
- assess AFS licence applications from persons seeking to provide financial product advice on and/or deal in CCIV securities, and
- administer the licensee obligations that will apply to CCIV corporate directors.
CP 360 also includes proposed updates to five licensing-related regulatory guides. ASIC intends to release the updated regulatory guides before 1 July 2022 in order to allow entities adequate time to prepare for the provision of CCIV-related financial services before the new regime commences.
'ASIC is committed to supporting the effective implementation of the CCIV regime. Ensuring the regulatory guidance is up-to-date and fit-for-purpose when the new regime comes into effect is part of that commitment,' ASIC Deputy Chair, Karen Chester said.
ASIC is inviting feedback on CP 360 from fund managers, industry bodies and other interested stakeholders. Submissions close on 14 April 2022.
A CCIV is a collective investment vehicle in the form of a new type of company limited by shares. The corporate director of a CCIV is responsible for operating the business and conducting the affairs of the CCIV.
CCIVs share similar characteristics to some other internationally recognised investment structures and are designed to increase the international competitiveness of Australia's managed funds industry.
The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 implements the legislative regime for CCIVs through amendments to the Corporations Act 2001, the Australian Securities and Investments Commission Act 2001 and the Personal Property Securities Act 2009. The CCIV regime will commence on 1 July 2022.
ASIC will be responsible for licensing corporate directors and registering CCIVs as well as providing guidance to assist corporate directors to comply with their licensee obligations and other requirements in the Act.
- Consultation Paper 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime
- Draft Regulatory Guide 2 AFS Licensing Kit: Part 2 — Preparing your AFS licence or variation application
- Draft Regulatory Guide 3 AFS Licensing Kit: Part 3 — Preparing your AFS licence or variation application
- Draft Regulatory Guide 105 AFS licensing: Organisational competence
- Draft Regulatory Guide 126 Compensation and insurance arrangements for AFS licensees
- Draft Regulatory Guide 166 AFS licensing: Financial requirements