Stara has become the first Australian company to be licensed to operate a Corporate Collective Investment Vehicle (CCIV) – a new type of fund designed for collective investment.
The Australian Securities and Investment Commission has granted Stara the first Australian licence to operate a new type of collective investment vehicle in a major first for the funds management industry.
Stara has received an Australian Financial Services Licence (AFSL) authorising it to operate a Corporate Collective Investment Vehicle (CCIV).
The CCIV framework, introduced on 1 July 2022, offers a company-based investment structure designed to enhance Australia’s competitiveness in the global funds management sector.
Unlike traditional trust-based managed investment schemes, CCIVs provide a more internationally recognisable structure, potentially attracting greater offshore investment.
Stara’s achievement was facilitated by legal advisors McMahon Clarke (now part of Hall & Wilcox).
Paul Weightman, Managing Director of Stara and former CEO of Cromwell Property Group, said he believed CCIVs would, over time, become a preferred investment structure for both managers and investment.
“The CCIV regime is a long-awaited and welcome development for the Australian funds management industry and helps to resolve some of the hurdles we’ve faced with the trust-based managed investment scheme,” he said.
“CCIVs are very similar to umbrella and multiclass fund structures used in other major investment markets and should be more readily accepted by international investors than traditional Australian MIS trust structures.”
“The major benefits of CCIVs are simplicity, cost, and time to market. The use of CCIVs will significantly reduce the administrative burden on a manager and facilitate the issue of products quickly.”
Stara’s pioneering role in adopting the CCIV structure underscores its commitment to innovation and leadership in the Australian funds management landscape. By embracing this new framework, Stara aims to offer more efficient and globally aligned investment vehicles to its clients.
