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The new Corporate Collective Investment Vehicle (CCIV) licensing
regime commenced on 1 July 2022.
What does this mean for existing AFSL holders?
AFSL holders that want to advise or deal in CCIVs must be
authorised to provide advisory and dealing services in relation to
securities. In our previous blog article, we discussed how ASIC had
contacted AFSL holders affected by the commencement of the regime
and advised that existing AFSL holders which do not hold
authorisations in relation to securities, would be contacted by
ASIC to explain the process of an ASIC initiated AFSL variation
application to add securities authorisations.
AFSL holders also need to consider whether they are required to
vary their AFSL further to include advisory and dealing
authorisations in relation to the CCIV’s assets that are
financial products where this is not covered on their existing
AFSL. CCIV assets that are financial products include derivatives
or other financial assets as described below.
AFSL holders that want to underwrite CCIV securities must be
authorised to underwrite an issue of securities.
What does this mean for new AFSL holders?
An entity seeking to obtain an AFSL to be authorised to operate
CCIVs will need to demonstrate to ASIC that they have at least one
Responsible Manager with knowledge and skills in relation to CCIVs.
This means the AFSL applicant must have one or more Responsible
Managers with knowledge or skills in relation to:
- operating the business and conducting the affairs of a CCIV;
- the assets under management.
If an AFSL is granted which includes the authorisation to
operate a retail CCIV, ASIC has the discretion to limit the retail
authorisation to one sub-fund. Where the AFSL holder is seeking to
operate multiple sub-funds, a variation application to ASIC will
need to be submitted.
What is a CCIV?
A CCIV is a type of company limited by shares that operates as a
collective investment vehicle. A CCIV has a corporate director that
is a public company and upon registration holds an AFSL authorising
the corporate director to operate the business and conduct the
affairs of the CCIV.
CCIVs operate as either retail or wholesale financial services
providers and have at least one sub-fund registered. Sub-funds are
operated as separate businesses and are allocated specific assets
- Commodities – raw materials, metals (including precious
metals), agricultural products and energy products
- Crypto assets (which are not financial products)
- Derivatives whether for hedging or other purposes
- Direct real property
- Films (the sub fund has the sole purpose of producing and/or
exploiting a cinematograph film)
- Financial assets – cash, cheques, orders for payment of money,
bills of exchange, promissory notes, securities, deposit products
and interests in managed investment schemes
- Mortgages; and
- Primary production – cattle breeding, forestry, horse breeding,
horticulture, livestock grown for fleece, ratites, tea trees and
ASIC is yet to release its guidance in relation to the
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