House of Representatives
Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021
Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, the Hon Michael Sukkar MP)The Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport is available at:
https://fundspassport.apec.org// .
The primary exception to this is any liquidator, person administering an arrangement or compromise or receiver appointed to the CCIV, which is an officer of the CCIV.
The Melbourne Corporation doctrine is a principle of constitutional law which prevents the Commonwealth from interfering with the States exercising their powers of fulfilling their functions.
Refer to paragraph 8.27 for further detail on ED securities in a CCIV.
A CCIV is only permitted to appoint a corporate director as a director. However, if a person acts as a shadow director, that person is bound by all of the requirements that apply to other officers of the CCIVs.
This prohibition on the winding up of a sub-fund does not override subsection 5G(8) which provides that Chapter 5 of the Corporations Act does not apply to a scheme of arrangement, receivership or winding up carried out in accordance with a provision of a law of a State or Territory.
An asset or liability of a CCIV that relates solely to the business of a sub-fund of the CCIV is allocated to that sub-fund. Where an asset or liability relates to more than one sub-fund, the asset or liability is allocated to the sub-fund in a proportion that is fair and reasonable in the circumstances. The corporate director of the CCIV must determine the proportion that is fair and reasonable in the circumstances. See Chapter 6 of this explanatory memorandum.
See existing section 70-35 of Schedule 2 to the Corporations Act.
Generally, a security interest must be registered before the later of: (1) six months before the sub-fund commences winding-up; or (2) the end of 20 business days after the agreement was made or the time winding up commences (whichever is earlier).
Sections 592 to 594 (which relate to debts incurred before 1993) do not apply to CCIVs.
The levy is to be imposed on the corporate director, as the only licensed entity, to ensure symmetry with the way that the ASIC Supervisory Cost Recovery Levy operates for responsible entities of registered schemes and operators of notified foreign passport funds.
Refer to paragraph 8.27 for further detail on ED securities in a CCIV.
See also Annex 3 to the Memorandum of Cooperation on the Establishment and Implementation of the Asia Region Funds Passport, which is available at:
https://fundspassport.apec.org/ .
Parliamentary Joint Committee on Human Rights, General Comment No 43 Article 14: Right to equality before courts and tribunals and to a fair trial, CCPRCCG 32, 23 August 2007, [30].
Parliamentary Joint Committee on Human Rights, Guidance Note 2: Offence provisions, civil penalties and human rights, December 2014.
Parliamentary Joint Committee on Human Rights, Guidance Note 2: Offence provisions, civil penalties and human rights, December 2014.
Parliamentary Joint Committee on Human Rights, Guidance Note 2: Offence provisions, civil penalties and human rights, December 2014.
https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22media/pressrel/EJOW6%22
Board of Tax, 2011, Review of Tax Arrangements applying to collective vehicles https://taxboard.gov.au/consultation/taxation-treatment-of-collective-investment-vehicles
ABS 5655.0 (table 1) as at June 2021
https://www.abs.gov.au/statistics/economy/finance/managed-funds-australia/jun-2021
Deloitte Access Economics 'Competition in funds management' prepared for ASIC, September 2021, available at
Report REP 702 Competition in funds management (asic.gov.au)
https://treasury.gov.au/consultation?keyword=collective & sort_by=field_date_range & f%5B0%5D=consultation_date%3A2018
https://www.esma.europa.eu/regulation/fund-management
Corporations and Markets Advisory Committee ' Managed Investment Schemes- Report 2012'
http://www.camac.gov.au/camac/camac.nsf/byHeadline/PDFFinal+Reports+2012/$file/MIS_Report_July2012.pdf
Retirement Income Review (2020), p. 17.
Retirement Income Review (2020), p. 100.
ATO TaxStats 2018-19, Table 5, Chart 12 (2021).
Retirement Income Review (2020), p. 520.
Retirement Income Review (2020), p. 449.
Retirement Income Review (2020), p. 447.
Financial System Inquiry (2014), p. 120.
Retirement Income Review (2020), p. 19.
Financial System Inquiry (2014), p. 120.
Productivity Commission (2015), Superannuation Policy for Post-Retirement, p. 75.
Retirement Income Review (2020), p. 432.
Retirement Income Review (2020), p. 435.
Retirement Income Review (2020), p. 436.
Retirement Income Review (2020), p. 181.
Frydenberg, J., 2021. Address to the COTA Australia National Policy Forum on Retirement Income.
Retirement Income Review (2020), p. 19.
The design and distribution obligations were originally scheduled to commence on 5 April 2021. Due to the Coronavirus pandemic, ASIC provided a temporary exemption from the obligations for six months.
Retirement Income Review (2020), p. 96.
APRA Quarterly Superannuation Performance Statistics June 2021.
APRA list of RSES and RSE Licensees and MySuper Authorised products and ERFs 25 October 2021.
'Intra-fund advice' refers to the types of advice that a superannuation trustee can provide to members where the cost of the advice is borne by all members of the fund. (Source: ASIC)
Frydenberg, J., 2021. Address to the COTA Australia National Policy Forum on Retirement Income.
Retirement Income Review, p. 29.
Retirement Income Review, p. 447 - 451.
2018 Budget Factsheet 3.4: "Retirement Income Framework"
Retirement Income Review, p.450
Retirement Income Review, p.449
Retirement Income Review, p.449
2020 Australian Advice Landscape, p. 19.
ASIC Consultation Paper 332, p. 20.
FSC White Paper on Financial Advice p. 5,9.
Retirement Income Review, p.449.
APRA Annual Fund Level Superannuation Statistics June 2020
APRA Annual Fund Level Superannuation Statistics June 2020
APRA Annual Superannuation Bulletin June 2015-June 2020.
Retirement Income Review, p. 445.
APRA Annual Superannuation Bulletin June 2015-June 2020.
Retirement Income Review, p. 459.
Retirement Income Covenant 2018 and 2021 Position Paper Consultation
"Business case for retirement needs to stack up", Investment Magazine, June 28 2021.
Financial System Inquiry (2014) Appendix 4.
Retirement Income Review (2020), p. 56
Retirement Income Review p. 417