ASIC released new and updated guidance for corporate collective investment vehicles (CCIVs) on 23 June. The requirements come into effect on 1 July 2022, when the CCIVs regime commences.
The guidance sets out how ASIC will implement the “day one” licensing requirements for CCIVs.
In response to submissions from the FSC and other industry participants on a number of key issues, ASIC has changed its position in relation to certain key areas in order to make take up of the new CCIV regime more attractive for industry, notably:
- Organisational competence proof B1 and fit and proper persons documents: ASIC will accept re-lodgement of these documents by a licensee in its licensee variation application where they were recently assessed by ASIC and the licensee confirms they remain up to date;
- Limit on the number of sub-funds operated by new corporate directors: ASIC have decided not to impose a limit of a single sub-fund on corporate directors of wholesale CCIVs (which now aligns their approach with that taken regarding wholesale managed investment schemes);
- PI insurance requirements for corporate directors: ASIC has dropped the proposal to require separate professional indemnity insurance for corporate directors even where thy already had this insurance in place for operating a managed investment scheme.
Further information is contained in Report 728: Response to submissions on CP 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime (REP 728). This report highlights the key issues from, and ASIC’s response to, submissions to ASIC’s consultation on the new regime’s licensing (see CP 360) which the FSC and members have previously provided input on.
Industry will also be interested in new Information Sheet 272 How to register a corporate collective investment vehicle and sub-fund (INFO 272). INFO 272 provides guidance on CCIV and initial sub-fund registration requirements, the application process (including how ASIC will assess applications for CCIVs and initial sub-funds), CCIV Constitution and compliance plan requirements, and the application process for registering further sub-funds.
In addition, we also note that the following existing regulatory guides have been updated to support the implementation of the CCIVs regime:
- RG 1 AFS Licensing Kit: Part 1 – Applying for and varying an AFS licence
- RG 2 AFS Licensing Kit: Part 2 – Preparing your AFS licence or variation application
- RG 3 AFS Licensing Kit: Part 3 – Preparing your additional proofs
- RG 104 AFS licensing: Meeting the general obligations
- RG 105 AFS licensing: Organisational competence
- RG 132 Funds management: Compliance and oversight
- RG 133 Funds management and custodial services: Holding assets
ASIC stated that they will release a new legislative instrument and issue updated versions of further regulatory guides shortly.
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