Government Releases Third Tranche Of Revised CCIV Bill

Background 

On 12 October 2018, the Federal Government released the third tranche of the revised Corporate Collective Investment Vehicle (CCIV) Bill (Tranche 3 Exposure Bill) for public consultation.  This follows the release of the first tranche on 13 June 2018 and the second tranche on 19 July 2018. In our previous Alert we outlined some of the key features of CCIVs.

The Tranche 3 Exposure Bill proposes further provisions concerning:

• the independence requirements for the depositary;
• external administration and insolvency;
• deregistration of sub-funds and CCIVs; and
• the application of the takeover and disclosure regimes.

Depositary independence

A CCIV depositary, any entity performing depositary functions and their related bodies corporate will be required to be independent from entities that direct a CCIV's investment decisions. This independence will be subject to three tests, the failure to satisfy any of which will result in a depositary