FSC welcomes Corporate Collective Investment Vehicle draft legislation

THE Financial Services Council (FSC) has welcomed the revised draft legislation released by the Federal Government to implement the Corporate Collective Investment Vehicle (CCIV).

FSC CEO Sally Loane said, “The FSC has been advocating for the introduction of the CCIV for many years because of its potential to unlock significantly increased export investment in Australia’s sophisticated funds management industry.

“We are supportive of significant changes to the revised draft, particularly to remove tax penalties on CCIVs, increase flexibility on CCIVs using custodians, improve the ability of CCIVs to list on financial markets, and allow cross-investment between CCIV sub-funds,” Ms Loane said.

“The FSC will review the draft closely with members and respond to the consultation in due course.

“Finalising a competitive CCIV regime and removing tax barriers on Australian fund managers will help deliver an economic windfall as the economy recovers from the COVID-induced downturn.

“Foreign capital currently only contributes just over five percent of investment into Australian managed funds, $126 billion as a proportion of $2.2 trillion. The FSC has long advocated for using our large and successful funds management sector’s untapped potential as a major export opportunity.

“We want to see Australia financial services industry continue to grow, and reforms such as the CCIV will ensure the industry and Australia can help drive the economy forward,” Ms Loane said.

www.fsc.org.au

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