What is a CCIV, and why your next investment stake might use it!

The term in the title CCIV, is probably new to you.
That’s not a surprise as this new corporate entity form has been officially approved to be used in Australia on July 1st, 2022 by ASIC the Australian Securities and Investment Commission.

Key points to know about a CCIV structure being used to support investment fundraising include:
CCIVs are all attractive to foreign investors
CCIVs are called “Umbrella Structures.”
Investors in a CCIV get shares, not units, and trusts are not generally involved
CCIVs have sub-funds that each hold ring-fenced assets
CCIVs are bankruptcy protected from each other
CCIVs generally have the powers, rights, duties, and characteristics of a company, and it is subject to the ordinary company rules under the respective Company or Corporation regulations.

To summarise, you could say that a CCIV is a company or corporation where investors have limited liability, are issued shares for their investment, and the CCIV is used for funds management. The investment entity has ring-fenced sub-funds, which are more acceptable to foreign investors.
The CCIV doesn’t need an AFSL because the Corporate Director appointed to the CCIV already holds one. For more detailed information, please visit cciv.info

Other countries already have introduced similar structures successfully:
(OEIC) In the United Kingdom, the Open-Ended Investment Company
(ICAV) In Ireland, the Irish Collective Asset-Management Vehicle
(OFC) Hong Kong has had its Open-Ended Fund Company
(S-VACC) Singapore’s version of the CCIV is called the Variable Capital Company
(CCIV) Now we have in Australia the Corporate Collective Investment Vehicle

If we look at what CCIV stands for, we can learn more:
C = Corporate — Means to do with a regulated entity like a company or a corporation
C = Collective — Means that investors are joined, gathered, or collected together for the purpose of investment
I = Investment — Means the activity that everyone is assembled for is an investment
V = Vehicle — Is the entity that is used to manage the investment

We will see a lot of CCIVs in the future, and eziStake will keep you updated on the progress. eziStake will be working towards supporting clients to set up their own CCIV.
If you would like to learn more about CCIVs and how they could be useful for the future, please visit eziStake.com.