What is a Corporate Collective Investment Vehicle (CCIV)?

A Corporate Collective Investment Vehicle (CCIV) is a corporate fund structure introduced into Chapter 8B of the Corporations Act 2001 from 1 July 2022. It has separate sub-funds with segregated assets and liabilities, managed by a single corporate director that holds an AFSL with CCIV authorisations. CCIVs are intended as a competitive alternative to the managed investment scheme (MIS) regime, particularly for cross-border distribution into Asia.

Does the CCIV replace the managed investment scheme regime?

No. The CCIV regime in Chapter 8B operates alongside the existing managed investment scheme regime in Chapter 5C of the Corporations Act 2001. Fund operators can choose between the two structures based on factors such as distribution strategy, tax considerations and investor familiarity. Existing managed investment schemes can be restructured into a CCIV under the CCIV transitional rules with member approval.

CCIV Regime: Corporate Collective Investment Vehicles from 1 July 2022

Corporate Collective Investment Vehicle (CCIV) regime under Chapter 8B of the Corporations Act 2001: a competitive alternative to managed investment schemes for cross-border distribution.

Statutory framework

The Corporate Collective Investment Vehicle (CCIV) regime is established within Chapter 8B of the Corporations Act 2001 (Cth). This framework was introduced by the Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 and commenced operation on 1 July 2022.

A CCIV is structured as a corporate fund that incorporates separate sub-funds. Each sub-fund operates with segregated assets and liabilities.

The CCIV regime provides a competitive alternative to the existing managed investment scheme (MIS) regime, which is detailed in Chapter 5C of the Corporations Act. It is important to note that the CCIV regime operates alongside, rather than replacing, the MIS regime.

Structure: corporate director, sub-funds, members

A CCIV’s structure centres on a single corporate director. This director must hold an Australian Financial Services Licence (AFSL) with specific CCIV authorisations (section 1224A). The corporate director owes statutory duties to act in members’ best interests, mirroring responsible entity duties (section 601FC) as outlined in section 1224H.

CCIVs comprise sub-funds, and each sub-fund is treated separately for tax purposes (under Subdivision 195-C of the Income Tax Assessment Act 1997). Assets and liabilities of each sub-fund are segregated under section 1233F. CCIVs can be either ‘retail’ or ‘wholesale’, with retail CCIVs subject to enhanced disclosure and corporate governance requirements.

Members of a sub-fund hold shares referable to that sub-fund. This structure allows for a range of investment strategies to be pursued within the CCIV framework.

Disclosure and licensing

Disclosure requirements for CCIVs depend on whether they are offered to retail or wholesale investors. Retail CCIVs are required to lodge a Product Disclosure Statement (PDS) for each sub-fund, as mandated by section 1241F. Wholesale CCIVs are generally not required to issue a PDS, although they must still adhere to provisions relating to misleading conduct.

The corporate director of a CCIV must possess an Australian Financial Services Licence (AFSL) authorisations. These authorisations cover the financial services provided, including the operation of a registered scheme and dealing in financial products.

CCIVs may be eligible for the Attribution Managed Investment Trust (AMIT) regime, provided they satisfy the necessary AMIT requirements. Furthermore, opportunities for cross-border passport recognition under the Asia Region Funds Passport remain accessible.

Practical uptake and market position

Uptake of the CCIV regime has been gradual since commencement on 1 July 2022. This reflects the complexity of the new structure and the ongoing process of industry familiarisation.

Industry feedback has highlighted areas requiring refinement, specifically concerning tax integration and the treatment of stapled structures. Treasury has responded to this feedback, undertaking several rounds of consultation on potential CCIV amendments since launch.

The CCIV offers a structure familiar to international investors accustomed to corporate fund structures such as Luxembourg SICAVs, Cayman SPCs, and Singapore VCCs. Existing managed investment schemes can also transition to a CCIV through a member-approved restructure, utilising the CCIV transitional rules.