The FSC was very pleased that the CCIV passed Parliament in February and is now law. The FSC welcomed the implementation of this historic reform for financial services.
The CCIV introduces a new structure: a company with flowthrough tax status. This type of structure will be much more familiar to investors in our region.
Australia’s lack of a corporate investment structure has discouraged our exports to the region. While Australia has a large, low cost funds management industry, it is almost all focussed on local investors, with only five percent of the funds managed in Australia comes from offshore.
The CCIV will address this issue, and along with other important reforms should help build on Australia’s strengths in funds management. The FSC is working with the Government on the additional needed reforms, which particularly include the promised rules to facilitate the rollover from existing managed funds into a CCIV.
The FSC has been working on the implementation details of the CCIV with members. The relevant CCIV working group has already provided a submission to Treasury on the CCIV regulations, is working on a submission to the Australian Securities Exchange on CCIV listing rules, and will be working with ASIC on CCIV-related licensing rules and changes to existing ASIC regulatory guidance.
The CCIV commences operation from 1 July.
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