The Turnbull Government is seeking public comment on the proposed core legislative frameworks to give effect to the Asia Region Funds Passport (Passport) and introduce the Corporate Collective Investment Vehicle (CCIV) regime.
This legislation continues the Government’s work to implement arrangements set out in the Passport’s Memorandum of Cooperation between signatories Australia, Japan, Korea, New Zealand and Thailand.
The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said the Passport is an international initiative that will expand opportunities to export Australia’s funds management expertise. It also provides Australian consumers with greater investment choice.
“The Passport will give Australian funds managers access to economies across the Asia-Pacific region with a combined gross domestic product of US$6.9 trillion. It establishes appropriate cross-border recognition while promoting strong investor protections,” Minister O’Dwyer said.
The CCIV regime will support the implementation of the Passport. It establishes a new type of investment vehicle which will allow Australian fund managers to offer investments through a company structure. It is an internationally recognisable vehicle which can be readily marketed to foreign investors.
One of the key features of the CCIV is the depositary, which is required to be independent and have oversight of the CCIV and custody of fund assets. This is an important investor protection for retail investors both in Australia and overseas.
“These initiatives will work together to enhance the marketability of Australian managed funds across our region and create domestic and regional economies of scale. This leverages our large pool of funds under management and benefits both fund managers and investors,” Minister O’Dwyer said.
Complementary consultation is also underway on the proposed regulatory guidance to be issued by the Australian Securities and Investments Commission and the other Passport economy regulators. The consultation closes on 19 September 2017 and details are available on the Passport website.
The draft legislation and supporting materials are available on the Treasury website. Further consultation will follow once the core framework and any consequential amendments are settled.
Submissions close on 21 September 2017.