The Financial Services Council (FSC) has said it was encouraged to see the Senate Committee’s support for Retirement Income Covenant (RIC) and Corporate Collective Investment Vehicle (CCIV) as means to provide certainty to the industry.
“The CCIV will underpin major export opportunities for the Australian funds management industry and help our financial services industry contribute to Australia’s post-COVID recovery,” FSC acting chief executive, Blake Briggs, said.
The CCIV regime, under which fund managers would be permitted to use a company structure with flowthrough tax treatment, should help address an export gap for Australia, with foreign capital currently only 5% of investment into Australian managed funds, the FSC said.
At the same time, the RIC, which would require superannuation funds to develop a retirement income strategy for fund members who are retired or nearing retirement, would be expected to help a growing proportion of Australians plan with certainty as they move into their retirement.
The FSC recommended the measures were passed “as soon as practicable” to provide certainty to its members.
