A Senate inquiry report has confirmed bipartisan support for the corporate collective investment vehicle (CCIV) and the retirement income covenant (RIC).
Commenting on these developments, the Financial Services Council (FSC) issued a statement commending the Senate committee’s support for these measures.
“The FSC welcomes the recommendation by the Senate committee that the bill implementing the covenant and CCIV be passed ‘as soon as practicable’ to provide certainty to the industry and stakeholders,” said FSC acting CEO Blake Briggs.
The FSC has long supported the CCIV, arguing that it would underpin major export opportunities for the Australian funds management industry and help the financial services industry contribute to Australia’s post-COVID recovery.
“The CCIV should help address an export gap for Australia, with foreign capital currently only 5 per cent of investment into Australian managed funds,” Mr Briggs said.
The CCIV regime will permit fund managers to use a company structure with flowthrough tax treatment – this will be more familiar to international investors who are more used to corporate investment structures.
On the retirement front, Mr Briggs voiced the FSC’s strong support for the retirement income covenant, which will require superannuation funds to develop a retirement income strategy for fund members who are retired or nearing retirement.
“The retirement income covenant will help a growing proportion of Australians plan with certainty as they move into their retirement,” Mr Briggs concluded.
